Orla Mining Announces Results of the Updated Feasibility Study and Approves Start of Construction Spending for the South Railroad Project

2026-01-15

TSX - Toronto Stock Exchange · Gold · Canada

Canada NewsWire

_Strong Results Deliver NPV5%of US$783 millionat US$3,100Gold Confirming Orla's Next Building Block _

VANCOUVER, BC, Jan. 14, 2026/CNW/ -Orla Mining Ltd.(TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to provide an update for its South Railroad Gold Project ("South Railroad" or the "Project"). This update presents the results of the optimized Feasibility Study (the "FS" or "Study") and confirms the Board of Directors' approval to begin spending for detailed engineering, procurement, and project execution. The Board has also approved the start of project construction, subject to receipt of all required permits. South Railroad is located in Nevada, USA, and forms a part of the Company's larger South Carlin Complex ("South Carlin") land package on the prolific Carlin Trend.

All amounts expressed in U.S. dollars unless otherwise stated.

Highlights of the South Railroad Project Update

Completion of Optimized Feasibility Study and Project Approval: Orla will now transition to the execution phase, beginning with pre-construction spending for detailed engineering, construction readiness activities, and long-lead procurement. Full construction is expected to begin in mid-2026, following receipt of the final project permits. Robust Economics:The Study reaffirms South Railroad's strong economics, supported by consistent production and high margins. NPV5%is $783 millionand 48% IRR at $3,100gold price (after-tax). NPV5%is $1.7 billionand 95% IRR at $4,500gold price (after-tax)[1].

Strong Production Profile and Robust Margins: Average annual gold production of 130,000 ounces over the first five years at an average All-in Sustaining Cost ("AISC")[2]of $1,485/oz. Clear Permitting Pathway to Construction:The Project is advancing through federal and state approvals, with the BLM Record of Decision targeted for mid-2026. As a FAST-41 Covered Project under NEPA, the Company expects a coordinated and transparent federal permitting process. Optimized and Construction-Ready:Significant engineering work, contractor and supplier engagement, and project optimizations have been completed, forming the basis for the initial capital cost estimate of $395 million. Project enhancements include a two-stage crushing circuit and improvements to the overall development scope. Fully Funded Pathway:Development of the Project will be financed through operating cash flow and cash on hand. Strategic Growth Catalyst:South Railroad will become Orla's third operating mine, expected to increase consolidated annual production to close to 500,000 ounces and solidifying the Company's position in North America. South Carlin Complex Offers Significant District Scale Growth beyond this Study: Measured and Indicated Mineral Resources have increased since acquisition by 206,000 ounces in oxide and 469,000 ounces in sulphide, marking the beginning of the resource expansion. With a strong mineral endowment and Orla's commitment to exploration and deeper geological understanding, the district presents clear potential for mine life extensions and new discoveries across existing resources and priority targets.

"This optimized South Railroad feasibility study reaffirms the strength of the project and the basis upon which we will move forward in Nevada. Since acquiring the project in 2022, we have worked to advance engineering, optimize design, update cost and in turn, establish a construction-ready project. South Railroad is more than our next project; it is our next building block of growth as we solidify our place in Nevada, a leading global mining jurisdiction. South Carlin, still early in its district-scale evolution, is advancing rapidly through ongoing exploration, with what we believe to be upside extending well beyond the feasibility study. This momentum will help position the complex as the foundation for sustained expansion, and we are moving toward construction with confidence, ready to deliver benefits for our stakeholders."

Jason Simpson, Orla's Chief Executive Officer

Table 1: South Railroad Feasibility Study Summary

| Feasibility Study Summary (At $3100 Gold) | Units | Values | | Ore Mined | M tonnes | 66.6 | | Waste Mined | M tonnes | 266.8 | | Total Tonnes Mined | M tonnes | 333.4 | | Strip Ratio | w:o | 4.0 | | Mine Life | years | 10 | | | | | | LOM Run of Mine (ROM) - Processing | M tonnes | 33.7 | | LOM Two-Stage Crush - Processing | M tonnes | 33.0 | | Total Ore to Leach Pad | M tonnes | 66.6 | | Throughput - ROM Avg Per Day | tpd | 10,100 | | Throughput - Two- Stage Crush Avg Per Day | tpd | 9,900 | | Gold Grade (Average) | (g/t) | 0.71 | | Silver Grade (Average; Over Pinion Ore Tonnes Only) | (g/t) | 5.1 | | Contained Gold | ounces | 1,516,332 | | Contained Silver | ounces | 6,194,776 | | Average Gold Recovery | % | 71 % | | Average Silver Recovery | % | 12 % | | Recovered Gold | ounces | 1,072,306 | | Recovered Silver | ounces | 760,005 | | Average Annual Gold Production (first 10 years) | ounces | 103,756 |

Table 2: Feasibility Study Sensitivity Analysis

| Gold Price ($/oz) | $2,000 | $2,500 | $3,100 | $3,500 | $4,000 | $4,500 | | After-tax NPV 5% ($M) | $82 | $406 | $783 | $1,031 | $1,341 | $1,651 | | After-tax IRR (%) | 10 % | 28 % | 48 % | 61 % | 78 % | 95 % | | Payback (years) | 4.9 | 3.1 | 2.0 | 1.5 | 1.1 | 0.9 |

Feasibility Study Overview

The updated Feasibility Study was prepared by a team of independent industry experts who are qualified persons as defined under NI 43-101, led by M3 Engineering ("M3") and supported by NewFields Mining Design and Technical Services ("NewFields"), Forte Dynamics ("Forte"), Stantec, Ray Walton Consulting Inc., RESPEC, APEX Geoscience Ltd., and Westland Resources. See Table 7 below for further details.

The updated Feasibility Study was conducted using a base case gold and silver price of $3,100per ounce and $36.50per ounce, respectively.

The South Railroad Project includes Mineral Reserves for the Dark Star and Pinion deposits.

The Mineral Reserve estimate at South Railroad includes Proven and Probable Mineral Reserves of 66.6 million tonnes (73.4 million tons) at a gold grade of 0.71 grams per tonne ("g/t"), for total Mineral Reserves of 1.52 million ounces of gold. In addition, the Pinion deposit contains 6.2 million ounces of silver from 37.9 million Mineral Reserve tonnes (41.8 million tons) at 5.1 g/t silver.

The total Measured and Indicated Mineral Resource is 105.9 million tonnes at 0.72 g/t gold, resulting in an estimated 2.46 million ounces of gold. In addition, the Pinion deposit contains 7.4 million ounces of silver from 50.7 million Measured and Indicated tonnes at 4.6 g/t silver. The Inferred Mineral Resource totals 55.7 million tonnes at 0.56 g/t gold, resulting in an estimated 1.01 million ounces of gold. In addition, the Pinion deposit contains 0.1 million ounces of silver from 1.3 million Inferred tonnes at 2.65 g/t silver. Mineral Resources are inclusive of Mineral Reserves.

Further details on the Mineral Resource and Mineral Reserve estimates are provided below under "South Railroad Technical Report Summary Information".

Operating costs are based on Orla-performed mining, with all mine components being financed or owned by the Company. Capital cost estimates are based on a combination of material takeoffs (MTOs), vendor quotations, database pricing, Engineering, Procurement, Construction Management ("EPCM")-awarded contract values, and allowances. The scope and costs related to mechanical and electrical equipment is well-defined with 67% of those costs supported by firm vendor quotes.

South Railroad is situated on federal land and is currently advancing under the guidance of the BLM in accordance with the National Environmental Policy Act ("NEPA") for permitting. The BLM NEPA public comment period closed on September 18, 2025with the largest category of submissions being letters of support, reflecting strong community and stakeholder backing for the project and the U.S. Army Corps of Engineers Section 404 public comment period ended on September 25, 2025with no significant comments received. Orla has all the mineral rights, surface use and right of way agreements in place to commence construction upon receipt of all required permits.

Key Optimizations

The updated FS reflects an optimized and more advanced, construction-ready project than the previous Feasibility Study published in 2022 (the "2022 FS"). Advanced engineering, vendor pricing, and execution plans inform the FS and enhance the overall confidence in delivery. Key optimizations are highlighted below, and the associated cost movements are outlined in the Capital Cost section.

Revised Processing Flowsheet – Two-stage Crushing Added: The optimized FS replaces the run-of-mine ("ROM")-only approach in the 2022 FS with a two-stage crushing circuit for a significant portion of the ore, improving recovery confidence and reducing metallurgical risk identified in the earlier study.

Updated Metallurgical Recoveries Based on Expanded Test Work: The recovery model reflects 187 column tests completed since 2022, simplifying ore types and incorporating new data for Pinion East and Dark Star North. The updated model provides higher confidence in both crushed and ROM performance.

Enhanced Water Management and Site Infrastructure Design: The updated scope includes redesigned water supply systems, updated hydrogeological information, and refined site infrastructure layouts to support operational reliability and reduce environmental risk. See Figure 1 in the Appendix for Site Plan Layout.

Transition to an Execution-Ready Project: The FS incorporates detailed engineering, a defined project delivery model, EPCM engagement, long-lead procurement planning, and construction sequencing to support the transition into execution. This level of planning and detail was not included in the 2022 FS.

Capital Costs

The updated capital cost estimate reflects a significantly more advanced and construction-ready project compared to the 2022 FS, which estimated initial capital of $190 million. The updated study and cost estimate are supported by comprehensive engineering, vendor pricing, and execution plans that enhance overall confidence in project delivery.

Key variances in initial capital costs from the FS in comparison to the 2022 FS include:

$46 millionrelated to inflationary cost escalation; $101 millionin direct cost additions, primarily reflecting the inclusion of a two-stage crushing system (previously ROM only) and updated water management systems; $33 millionin indirect costs associated with the crushing system and water circuit; and $25 millionin additional contingency more reflective of a project of this study level.

Table 3: Capital Cost Summary (excl. value added tax)

| Description | Cost (US$m) | | Process Facilities (Adsorption, Desorption, and Recovery ("ADR")/Refinery) | 48.2 | | Crushing & Stacking | 47.1 | | Heap Leach Facility | 20.7 | | Mining & Waste Rock Disposal Facilities | 60.7 | | Power Systems | 16.4 | | Site Water Management Infrastructure & Treatment | 62.4 | | Ancillaries | 24.3 | | Indirects | 57.1 | | Owner's Costs | 10.8 | | Contingency | 47.0 | | Total Initial Capital | 394.7 | | Working Capital & Initial Fills | 6.9 | | Sustaining Capital – Mine & Process | 202.3 | | Total LOM Capital (incl. working capital) | 603.9 | | Closure Costs | 29.2 |

The initial capital cost of $395 millionexcludes regulatory costs, expenses related to permit conditions, off-site infrastructure support, financial assurance instruments, and other expenses not directly related to the construction of the mine, totaling $45 million, which are tracked as permitting obligations or management reserve and disclosed separately.

Operating Costs

Operating costs for the feasibility study were estimated by RESPEC (mine development) and M3 (process plant, site development, power generation, and ancillaries), Stantec (site-wide water management systems), NewFields (heap leach and waste rock disposal facilities) and Linkan Engineering (water treatment plant and potable water systems).

Mine operating costs were estimated using first principles. This was done using estimated hourly costs of equipment and personnel against the anticipated hours of work for each. The equipment hourly costs were estimated for fuel, oil, and lubrication, tires, undercarriage, repair and maintenance costs, and special wear items.

Process operating costs have been estimated by M3 from first principles. Labour costs were estimated using project specific staffing, salary and wage, and benefit requirements. Unit consumptions of materials, supplies, power, and delivered supply costs were also estimated.

Operating costs were estimated based on third quarter 2025 US dollarsand are presented with no added contingency based upon the design and operating criteria. Operating costs are considered to have an accuracy of +/- 15%.

Operating costs estimates have been based upon information obtained from the following sources:

Project metallurgical test work and process engineering; Development of a detailed equipment list and demand calculations; M3 in-house data for reagent pricing; and Experience with other similar operations.

Table 4: Operating Cost Summary

| Description | LOM Costs | LOM Costs | | $/t (Ore) | $/oz | | | Mining | 12.25 | 761 | | Process | 4.54 | 282 | | G&A | 1.21 | 75 | | Total Operating Costs | 18.00 | 1,118 | | Refining & Transport | 0.03 | 2 | | Royalties | 1.46 | 91 | | By-product Credits | (0.06) | (4) | | Total Cash Costs (net of by products)2 | 19.43 | 1,207 | | Sustaining Capital | 2.79 | 173 | | Reclamation | 0.44 | 27 | | Net Proceeds and Excise Tax | 1.56 | 97 | | AISC2 | 24.22 | 1,505 |

Mineral Resource & Reserves Summary

Mineral Resources were estimated for Dark Star, Pinion, Jasperoid Wash, North Bullion and Pony Creek deposits at a gold price $2,800per ounce, while the Mineral Reserves were estimated for Dark Star and Pinion deposits at a gold price of $2,300per ounce. The Mineral Reserves and Mineral Resources estimate included in the Feasibility Study have an effective date of September 30, 2025. The Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Since the 2022 FS, which was completed by Gold Standard Ventures Corp., the Mineral Resource has been updated to incorporate new drilling data, revised geological interpretations, and the addition of the Pony Creek deposits acquired in 2024. Additionally, new drilling at Dark Star and Pinion has increased the confidence level of the Mineral Reserves and helped further derisk the project. Updates to the Mineral Reserve modifying factors include revised cost assumptions and parameter changes associated with the incorporation of crushed-ore stacking alongside ROM ore stacking on the heap-leach facility.

Table 5: South Railroad Mineral Reserves (Dark Star and Pinion Deposits)

| Category | Tonnage | Grades | Contained Metal | | | | (kt) | Au (g/t) | Ag (g/t) | Gold (koz) | Silver (koz) | | | Proven | 10,585 | 1.04 | 6.56 | 354 | 445 | | Probable | 56,033 | 0.65 | 5.00 | 1,162 | 5,749 | | Proven and Probable | 66,618 | 0.71 | 5.08 | 1,516 | 6,195 |

| Notes: | | | 1. | The estimate of Mineral Reserves was done by Thomas L. Dyer, PE of RESPEC. | | 2. | Mineral Reserves are classified in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards and are recognized at the point process feed. | | 3. | Mineral Reserves are reported based on gross metal value (GMV) cutoff grades based on gold prices of $2,300 per ounce Au and silver prices of $25.00 per ounce Ag. The Mineral Reserve effective date is September 30, 2025. | | 4. | Economic parameters and recoveries will be described in the South Railroad Technical Report. | | 5. | As Mineral Reserves were defined using lower metal prices compared to the economic analysis that supports them, resulting Proven and Probable Mineral Reserves are justified. | | 6. | Rounding may result in apparent discrepancies between tons, grade, and contained metal content. | | 7. | Cutoff grades are applied by material type as will be described in the South Railroad Technical Report. | | 8. | Proven and Probable Mineral Reserves for Pinion include silver as reported above; | | 9. | Silver Mineral Reserves apply to Pinion only, and silver grade is based on Pinion tonnes |

Table 6: South Carlin Mineral Resources

| Category | Tonnage | Grades | Contained Metal | | | | (kt) | Au (g/t) | Ag (g/t) | Gold (koz) | Silver (koz) | | | Mineral Resources - Dark Star, Pinion, Jasperoid Wash and North Bullion Deposits | | | | | | | Measured | 13,609 | 0.92 | 6.05 | 401 | 509 | | Indicated | 92,296 | 0.69 | 4.48 | 2,058 | 6,915 | | Measured + Indicated | 105,905 | 0.72 | 4.56 | 2,459 | 7,424 | | Inferred | 20,298 | 0.8 | 2.65 | 519 | 111 | | Mineral Resources - Pony Creek | | | | | | | Inferred | 35,417 | 0.43 | | 493 | | | Total South Carlin Resources | | | | | | | Measured | 13,609 | 0.92 | 6.05 | 401 | 509 | | Indicated | 92,296 | 0.69 | 4.48 | 2,058 | 6,915 | | Measured + Indicated | 105,905 | 0.72 | 4.56 | 2,459 | 7,424 | | Inferred | 55,716 | 0.56 | 2.65 | 1,012 | 111 |

| Notes - Dark Star, Pinion, Jasperoid Wash and North Bullion Deposits. | | | 1. | The estimate of Mineral Resources was done by Michael S. Lindholm, CPG of RESPEC in Imperial tons. | | 2. | In-situ Mineral Resources are classified in accordance with CIM Standards. | | 3. | The base cases for all mineral resources are reported at a gold price of $2,800 oz Au and have an effective date of September 30, 2025. | | 4. | Tabulations comprise all model blocks at variable cutoff grades for oxide/transitional and sulphide materials within the $2,800 optimized pits or within a 2.57 Au g/t grade shell for underground. Pit optimizations vary by deposit and throughput rates of 11 kt/day and 18 kt/day; waste mining costs of US$2.34/t mined to US$2.43/t mined; crushing, stacking and heap leaching costs of US$4.01/t to US$4.94/t; and general and administrative costs of $1.26/t. At North Bullion, transportation costs of $44.09/t are applied for shipping refractory material off-site. | | 5. | Recoveries are calculated within each block model, and vary by deposit, ore-type, redox state, sulphide-sulfur and inorganic-carbon content, and gold and silver grade. At Dark Star, assumed minimum metallurgical recoveries of 65% and 70% for gold for ROM and crushed ore, respectively, are applied; At Pinion, assumed variable metallurgical recoveries with base cases at 53% and 70% for gold for ROM and crushed ore, respectively, and base cases at 5% and 15% for silver for ROM and crushed ore, respectively. | | 6. | The average grades of the tabulations are comprised of the weighted average of block-diluted grades within the optimized pits. | | 7. | Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. | | 8. | Rounding may result in apparent discrepancies between tons, grade, and contained metal content. | | 9. | Silver Mineral Resources from Pinion only, silver grade is based on Pinion tonnes. |

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