Gold Resource Corporation Reports Robust Financial Results For Q3 and First Nine Months of 2021

• $18.9 MILLION INVESTED IN DON DAVID GOLD MINE
• WATER FILTRATION PLANT AND DRY STACK TAILINGS FACILITY 95% COMPLETE - COMMISSIONING EXPECTED BEFORE YEAR END
• OPERATING CASH FLOW OF $21.9 MILLION YEAR-TO-DATE
• CASH OF $29.5 MILLION AT SEPTEMBER 30, 2021
• FULLY FUNDED GROWTH WITH ACQUISITION OF BACK FORTY PROJECT

DENVER, CO / ACCESSWIRE / October 27, 2021 / Gold Resource Corporation (NYSE American:GORO) (the "Company", "We", "Our" or "GRC") earned net income of $1.5 million or earnings of $0.02 per share reflecting the significantly higher gold grades mined and processed during the quarter, offset by fewer tonnes processed due to the temporary shutdown of operations due to COVID-19. Revenues were strong at $29.0 million. Cash flow from operating activities was $5.7 million in the third quarter of 2021 bringing our cash balance at September 30, 2021 to $29.5 million, an increase of $4.1 million for the first nine months of 2021. The Don David Gold Mine produced and sold a total of 9,170 gold equivalent ounces, comprising 5,809 gold ounces and 255,394 silver ounces sold at an average price per ounce of $1,762 and $23, respectively. Total cash cost was $466 per ounce of gold equivalent (after co-product credits) and all-in sustaining cost was $1,031 per ounce of gold equivalent (after co-product credits) for the third quarter 2021.

Allen Palmiere, President and CEO said "Our operations team rose to the challenge this quarter when a spike in COVID-19 cases led us to temporarily ramp down operations in mid-August and early September to keep everyone healthy and safe. In addition, we reinvested $7.7 million into exploration and infrastructure improvements at the Don David Gold Mine, bringing our year-to-date investment to $18.9 million. Our investment in Mexico is focused on favorably impacting our environment, social and governance programs while creating operational efficiencies and longevity. Construction of the water filtration plant and dry stack tailings facilities is 95% complete. The dry stack facilities will conserve and recirculate water, eliminate risks related to traditional tailings facilities, accelerate reclamation of certain areas of the open pit mine, and extend the life of the operations. While I've said this before it bears repeating, our strong operating cash flow per share and dividend yield puts us among the top of our peer group which is currently not reflected in our share price."

The quarter also included the roll out of a series of safety programs implemented during the second quarter to improve the overall safety culture with positive results and we published our second annual Sustainability Accounting Standards Report.

On September 7, 2021, the Company announced a binding letter agreement with Aquila Resources Inc. to acquire all of their issued and outstanding common shares and the transaction is expected to close in late November. The transaction is accretive on many metrics and upon closing will significantly add to the resources, reserves and growth of the Company.

THIRD QUARTER 2021 HIGHLIGHTS

Additional highlights for the three months ended September 30, 2021 are summarized below:

Strategic

• $0.7 million distributed in shareholder dividends this quarter, totaling $118.5 million since 2010.
• On September 24, 2021, the Company released its 2020 Sustainability Accounting Standards Report.

Operational

• Don David Gold Mine initiated a safety program that aims to bolster the health and safety culture. Despite program progress, one lost time incident occurred during the quarter. While the incident was not categorized as serious, it was thoroughly investigated, and the appropriate actions taken.
• During the third quarter, we announced encouraging results regarding the potential to increase higher grade mineralized material and the down-dip extension of the Switchback vein system mineralization at depth.
• With a focus on unlocking the future value at the Don David Gold Mine, a total review of first principles of the mineral reserve and mineral resource block models continued during the quarter, including assessments of the geology, metallurgy, ground support, mining methods and other key criteria. The full review is expected to be completed during the fourth quarter and is expected to form the basis of the December 31, 2021 SK-1300 Technical Report Summary and 2022 production guidance.

Financial

• Working capital was $31.0 million at September 30, 2021.

2021 Key Statistics

Trending Highlights

2021 Capital and Exploration Investment Summary

The Company's investment in Mexico continued in Q3 2021 with year-to-date investments totaling $18.8 million. Capital guidance was revised to reflect a decrease in underground development and the redesign of the Gold Regrind Project. The decrease in guidance for underground development from $9.8 million to $5.0 million is related to the reallocation of resources early in the year to address ground support challenges. The reduction in the Gold Regrind Project from $1.9 million to $0.7 million is due to final engineering identifying opportunities to utilize existing equipment.

Gold Recovery Project: Metallurgical testing, full-scale design, and engineering of the zinc tailings regrind circuit was completed through Q2 2021. In Q3 2021, work began to repurpose the existing ball mill and refurbish floatation cells while new flotation cells are expected to be delivered later in Q4 2021. Regrinding of the zinc tailings is expected to increase gold recovery by 6% to 10%. The reground material will be leached to produce doré bars. Completion and commissioning are expected in the fourth quarter of 2021. As of September 30, 2021, $0.5 million has been invested in this project with another $0.2 million expected before completion.

Dry Stack Tailings Project: Significant construction progress was made on the filtration plant and dry stack tailings project which are 95% complete. Commissioning will commence in November 2021 with completion expected in December 2021. Delays were incurred due to the temporary COVID-19 shutdown in August and certain materials being delivered later than expected. The open pit preparation work to receive dry stack tailings material is complete. The dry-stacked tailings will accelerate reclamation of certain areas of the open pit mine, extend the life of the operation, and reduce water consumption as approximately 80% of the process water will be available for reuse. As of September 30, 2021, $12.4 million has been invested in this project, $5.1 million in 2021, with another $400 thousand expected before completion.

Underground and Exploration Development: Mine development during the quarter included ramps and accesses to different areas of the deposit and exploration development drifts. A total of 2,501 meters of underground development and exploration development, at a cost of $4.9 million, was completed during the year, including access to new exploration drill stations on level 17. We plan to invest a total of $6.6 million in 2021 for underground development, of which $1.6 million is for access to underground exploration drill stations.

2021 Q3 Conference Call

The Company will host a conference call tomorrow, Thursday, October 28, 2021 at 11:00 a.m. Eastern Time.

The conference call will be recorded and posted to the Company's website later in the day following the conclusion of the call. Following prepared remarks, Allen Palmiere, President and Chief Executive Officer, Kim Perry, Chief Financial Officer and Alberto Reyes, Chief Operating Officer will host a live question and answer (Q&A) session.

There are two ways to join the conference call.

To join the conference via webcast, please click on the following link:
https://www.webcaster4.com/Webcast/Page/2361/43124.

To join the call via telephone please use one of the following dial-in details:

Participant Toll Free: 888-506-0062
International: 973-528-0011
Entry Code: 552947

Please connect to the conference call at least 10 minutes prior to the start time using one of the connection options listed above.

About GRC

Gold Resource Corporation is a gold and silver producer, developer, and explorer with its operations centered on the Don David Gold Mine in Oaxaca, Mexico. Under the direction of a new board and senior leadership, the Company focus is to unlock the significant upside potential of its existing infrastructure and large land position surrounding the mine, to close our acquisition of Aquila Resources Inc., and to develop the Back Forty Project in Michigan, USA. For more information, please visit GRC's website, located at www.goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.

Cautionary Statements:

This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward- looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward- looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, the scope, duration, and impact of the COVID-19 pandemic on mining operations, Company employees, and supply chains as well as the scope, duration and impact of government action aimed at mitigating the pandemic may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Also, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's 10-Q filed with the SEC. Additional factors that could cause or contribute to such differences include, but are not limited to, those discussed in the periodic and current reports filed by the Company with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

For further information, please contact:

Ann Wilkinson
Vice President, Investor Relations and Corporate Affairs
[email protected]
www.goldresourcecorp.com

SOURCE: Gold Resource Corporation