Orla Mining Announces Positive Preliminary Economic Assessment for the Camino Rojo Underground Project

2026-02-19

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High-Margin Growth Beyond Current Open-Pit Operation

VANCOUVER, BC, Feb. 19, 2026/CNW/ - Orla Mining Ltd.(TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to announce positive results of a Preliminary Economic Assessment (the "PEA" or the "Study") for the underground project (the "Project") at its Camino Rojo Mine ("Camino Rojo") located in Zacatecas, Mexico. The PEA evaluates the technical and economic potential of a stand-alone, underground development project beneath the existing Camino Rojo open pit operation and outlines a potential pathway toward development of a larger-scale and long-life underground mining operation and processing facility.

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

Camino Rojo Underground PEA Highlights

Underground Sulphide Expansion Beyond Oxides Open Pit: The PEA outlines a pathway to develop an additional, standalone operation at Camino Rojo beyond the current open pit heap leach operation through development of an underground mining operation supported by its own crushing, grinding, and flotation circuits producing saleable concentrates. Robust Economics Across Gold Price Scenarios: Net Present Value ("NPV")5%of $1.3 billion and 30% internal rate of return ("IRR") at $3,100/oz gold price (after-tax). NPV5%of $3.3 billion and 61% IRR at $5,000/oz gold price (after-tax)1.

Capital Efficient Growth Opportunity: The Project demonstrates strong capital efficiency with an after-tax NPV to initial capital ratio of 5.5:1 at $5,000/oz gold, highlighting the leverage of the underground expansion to gold prices. Strong Production Profile and Optimal Margins: Average annual gold production over the first 10 years is projected to be 215,000 ounces, with an expected average all-in sustaining cost ("AISC")2of $1,304 per payable ounce of gold. Phased De‑Risking Strategy: A phased de-risking program through 2026 will advance optimization studies, exploration decline development, and staged underground drilling to build technical and resource confidence ahead of a construction decision. The Company intends to complete a pre-feasibility study ("PFS") for the Project in 2027. Exploration Growth Potential Beyond Current Study:Since 2020, 110,000 metres of drilling have advanced Camino Rojo into a de-risked underground project with over 4 Moz gold equivalent ("AuEq")3in measured and indicated ("M&I") Mineral Resources, defining higher-grade zones, extending mineralization at depth with Zone 22, and reinforcing strong district-scale growth potential.

"A multi-year program of drilling and test work underpins this initial underground expansion study, highlighting the potential opportunity beyond the current oxide heap leach operation. The work represents an important milestone as the Project advances towards a future construction decision. Supported by a solid base case PEA and with the deposit remaining open in Zone 22, the Project offers continued growth potential and the basis for a multi-decade mining complex in Mexico."

Jason Simpson, Orla's Chief Executive Officer

Table 1: Camino Rojo Underground PEA

Table 2: PEA Economic Sensitivity Analysis

| Gold Price ($/oz) | $2,000 | $2,500 | $3,100 | $3,500 | $4,000 | $5,000 (Spot) | | Silver Price ($/oz) | $24.19 | 30.24 | $37.50 | $42.34 | $48.39 | $75.00 | | After-Tax NPV5% ($M) | $104 | $638 | $1,275 | $1,700 | $2,231 | $3,342 | | After-Tax IRR (%) | 7.7 % | 19.0 % | 30.2 % | 37.1 % | 45.2 % | 61.2 % | | Payback | 7.9 | 4.8 | 3.2 | 2.6 | 2.1 | 1.5 |

Note: Gold equivalent (AuEq) reflects total metal presented on an equivalent basis. The Company uses conversion ratios for calculating gold equivalent for its silver and zinc production, which are calculated by multiplying the volumes of silver and zinc by the respective assumed metal prices, recoveries (varies), and dividing the resulting figure by assumed gold price. The following metal prices and recoveries (averaged) were used:

Gold: $3,100/oz and 87% recovery Silver: $37.50/oz and 75% recovery Zinc: $1.20/lb and 40% recovery

The PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The PEA has been completed independent of the Camino Rojo open pit project and is treated as a completely separate development project.

The PEA will be included as a standalone development option as part of a broader technical report for Camino Rojo (the "Technical Report") prepared in accordance with National Instrument 43-101 – _Standards of Disclosure for Mineral Projects_("NI 43-101"), which will also include updates to the existing open pit oxide heap leach operation, which is the Company's primary focus. The Technical Report will also include further details on qualifications, assumptions, exclusions and risks that relate to the information included in this news release, including the Mineral Resource and Mineral Reserve estimates.

PEA Overview

The PEA was prepared by a team of independent industry experts who are Qualified Persons under NI 43-101, led by DRA Global ("DRA") and supported by Entech Mining ("Entech"), SLR Consultants and RMS ("SLR"), and Blue Coast Research ("BCR"). See Table 7 below for further details on Qualified Persons and responsibilities.

The PEA was completed using base case commodity prices of $3,100/oz gold, $37.50/oz silver, and $1.20/lb zinc, and evaluates the Project supported by an 8,000 tonnes per day ("tpd") processing plant which includes crushing, SAG and ball mill grinding, and selective flotation circuits designed to produce three saleable concentrates (gold, zinc, pyrite). The Study has been completed as a stand-alone underground development case and does not integrate the existing oxide heap leach operation.

The Mineral Resources at Camino Rojo comprises open pit Measured and Indicated Mineral Resource (including stockpile) of 42.9 million tonnes at 0.70 grams per tonne ("g/t") gold, resulting in an estimated 0.96 million ounces of gold (1.04 million of ounces of gold equivalent). The Camino Rojo open pit Inferred Mineral Resource totals 1.6 million tonnes at 0.74 g/t gold, resulting in an estimated 0.04 million ounces of gold (0.04 million of ounces of gold equivalent). The Project underground Measured and Indicated Mineral Resource of 49.3 million tonnes at 2.53 g/t, resulting in an estimated 4.01 million ounces of gold (4.27 million of ounces of gold equivalent). The Project underground Inferred Mineral Resource totals 4.2 million tonnes at 2.50 g/t gold, resulting in an estimated 0.34 million ounces of gold (0.38 million of ounces of gold equivalent). Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves.

Further details on the Mineral Resource estimates are provided below under "Mineral Resource Summary".

Mining Overview

The PEA contemplates a stand-alone underground mining operation accessed through a single portal and developed through two primary ramps. The mine design incorporates cemented rockfill during pre-production and transitions to paste backfill during steady-state operations to optimize ground support and stope sequencing.

Mining is primarily longitudinal with a central retreat strategy, dividing wider mineralized zones into multiple horizons. Larger stopes are designed to support higher and more stable production rates while concurrent mining of multiple lenses provides operational flexibility and consistent production. Multi-face development is planned to occur in advance of full production to ensure mining readiness and an efficient ramp-up.

The projected feed contemplated in the PEA Project includes a Measured and Indicated Mineral Resources of 33.0 million tonnes at 2.80 g/t resulting in an estimated 2.97 million ounces of gold (3.16 million of ounces of gold equivalent), an Inferred Mineral Resources of 2.8 million tonnes at 2.81 g/t resulting in an estimated 0.25 million ounces of gold (0.27 million of ounces of gold equivalent) and an additional 1.4 million tonnes of diluting material included within mineable shapes.

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Metallurgy & Processing Overview

Geometallurgical modelling of the Camino Rojo underground Mineral Resources identified six domains captured into three categories: Non-Refractory, Refractory, and Zone 22. Refractory zones represent approximately 80% of the tonnage and the material therein is not amendable to direct cyanidation.

Earlier concepts and Mineral Resource estimates contemplated pre-treatment of the refractory material (pressure oxidation) prior to cyanidation. The Study assumes concentrate production and sale as the preferred approach, supported by an independent concentrate market assessment which reviewed current market conditions, payables, and treatment terms relevant to the concentrates considered in the PEA. As a result, the sale of three concentrates (pyrite, gold, zinc) has been evaluated in the PEA, with further metallurgical optimization and market studies to be advanced during the next phase of studies.

The process plant is designed for a nominal throughput of 8,000 tonnes per day, operating 24 hours per day with an assumed availability of 92%. Average gold recovered in concentrate across all domains is estimated at 87% of the gold contained in the mined ore.

The flowsheet considers primary crushing followed by crushed material stockpiling and reclaim. Grinding will consist of primary and secondary stages, featuring a SAG mill with pebble crushing, and a ball mill operating in closed circuit with hydro-cyclones. Selective flotation circuits (carbon flotation, gold flotation, zinc flotation, and arsenopyrite flotation) will produce separate gold, zinc, and pyrite concentrates, which will be filtered prior to storage and load-out. A carbon flotation stage has been considered to remove high organic carbon material and reduce downstream reagent consumption, improving overall process efficiency.

The pyrite concentrate will be transported in bulk, and the gold and zinc concentrates will be containerized for shipping.

Tailings will be thickened and directed to a paste backfill plant for filtration and to provide the underground mining operation with paste backfill. Surplus filtered tailings will be directed to a dry-stack tailings storage facility.

See Appendix for an illustration of the PEA flowsheet.

Concentrate Market Assessment

An assessment of current market conditions for gold-bearing pyrite, gold, and zinc concentrates was conducted as part of the PEA by an independent concentrate marketing advisor. The assessment included a review of treatment and refining charges, payable terms, impurity thresholds, and transportation costs for concentrates with similar metallurgical characteristics. The analysis also considered recent market transactions and long-term demand trends for sulphide concentrates.

Based on this review, the PEA incorporates payable assumptions and treatment terms consistent with current market conditions for comparable concentrates. While concentrate markets remain subject to variability in metal prices, treatment charges, and smelter capacity, the Study assumes commercially reasonable terms supported by the independent assessment.

Orla intends to continue advancing concentrate market assessments and discussions in parallel with metallurgical optimization and optimization studies through 2026.

Mineral Resource Projected Feed – Production Profile

Over the first 10-years of the mine life, the average annual gold and gold equivalent production in concentrate is projected to be 215,000 ounces and 228,000 ounces, respectively, and the average annual payable gold and payable gold equivalent is projected to be 190,000 ounces and 201,000 ounces, respectively. An annual PEA Underground LOM Summary is presented in Appendix.

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Capital Costs Overview

The initial capital cost estimate for the Project totals $608.1 million (excluding value-added tax), has been developed in accordance with AACE Class 4 standards, and has an estimated accuracy range of ±30–40%. The estimate is based on actual pricing for major equipment, estimated installation costs, and benchmarked inputs for direct and indirect construction costs.

The estimate assumes contractor-performed development mining and is configured as a stand-alone underground development adjacent to the existing heap leach operation. The estimate also includes provisions for a new powerline and associated infrastructure to support the estimated power demand.

Consistent with a Class 4 estimate, growth and provisional allowances have been considered and included throughout the estimate, and then a contingency averaging 17% of the total initial capital cost was applied across the entire estimate.

The initial capital cost estimate excludes escalation, pre-construction expenditures (including PFS and feasibility study work), permitting, and the pre-development exploration decline. The exploration decline is estimated to cost between $100 million and $150 million over an approximately three-year period and is intended as a staged de-risking initiative prior to a future construction decision.

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

| Capital Costs | Values ($M) | | Processing Plant | 306.0 | | Paste Plant (Initial CRF) | 5.8 | | Tailing Storage Facility | 6.2 | | Mine Development | 203.2 | | Contingency | 86.8 | | Total Initial Capital Cost | 608.1 |

Sustaining capital4over the life of mine is estimated at $489.0 million, primarily related to ongoing underground mine development and paste backfill infrastructure, with an additional $30.0 million allocated for closure and rehabilitation costs.

Table 4: Sustaining Capital Cost Summary (excl. value added tax)

| Sustaining Capital Costs | Values ($M) | | Processing Plant | 64.5 | | Paste Plant | 71.1 | | Tailing Storage Facility | 9.2 | | Mine Development | 344.2 | | Total Sustaining Capital Cost | 489.0 | | Closure and Rehabilitation | 30.0 |

Operating Costs Overview

Operating costs were estimated by DRA (process, infrastructure), SLR (tailings storage facility, paste backfill plant) and Entech (mining).

Mining costs are based on contractor rates derived from comparable underground operations and are applied to scheduled production physicals from detailed mine planning models.

Processing and paste plant operating costs were developed using industry standard unit rates applicable to precious metals processing plants.

Quantities and cost inputs were developed from multiple sources, including:

Metallurgical test work results; Supplier quotations; Energy pricing assumptions provided by Orla; DRA and SLR benchmark and historical cost data; and First-principles calculations for key consumables, including grinding media and reagents.

Labour costs were estimated using existing Camino Rojo workforce data and industry labour surveys. Processing labour cost assumptions reflect a primarily national and local workforce, while mining labour cost assumptions include a limited number of expatriate roles during early operations to support training and ramp up, and then a transition to a national and local workforce.

Operating cost estimates are consistent with an AACE Class 4 level of accuracy, with an expected range of ±30–40%.

These cost assumptions underpin the projected LOM AISC of $1,339/oz Au payable, supporting the Project's strong margin profile across all evaluated gold price scenarios.

Table 5: Operating Cost Summary

| Operating Cost | LOM Costs

($M) | LOM Costs

($/t Processed) | LOM Costs

($/oz Au Payable) | | Processing Plant | 417.6 | 11.23 | 169 | | Paste Plant | 226.4 | 6.09 | 91 | | TSF | 19.0 | 0.51 | 8 | | UG Mining | 1,767.1 | 47.51 | 713 | | G&A | 202.0 | 5.43 | 82 | | Total Operating Costs | 2,632.2 | 70.77 | 1,062 | | Freight and TC/RC | 438.0 | 11.77 | 177 | | By-product Credits | (425.4) | (11.44) | (172) | | Total Cash Costs | 2,644.8 | 71.10 | 1,067 | | Royalties | 153.4 | 4.12 | 62 | | Sustaining Capital | 489.0 | 13.15 | 197 | | Closure Cost | 30.0 | 0.81 | 12 | | AISC | 3,317.2 | 89.18 | 1,339 |

Next Steps:

Advance the Project towards a PFS, targeted for completion during 2027. Develop an exploration decline to support underground exploration drilling commencing as early as 2026, subject to the approval of the environmental assessment permit application (Manifestación de Impacto Ambiental, "MIA") submitted in November 2024, and the accompanying change of land use permit (Cambio de Uso de Suelo, "CUS") Implement a staged underground drilling program advancing alongside ramp development commencing in 2027. Build geotechnical, metallurgical, and resource confidence ahead of a construction decision. Continue permitting process for the underground operations (baseline data collection and studies)

Mineral Resource Summary

The Mineral Resources Estimate shown here has an effective date of September 30, 2025. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources.

Table 6: MCR Mineral Resources

| Operation | Resource Type | Category | Kt | Average Grade | Contained Metal | NSR Cut-Off Grade ($/t) | | | | | | | | Gold (g/t) | Silver (g/t) | Zn (ppm)* | AuEq (g/t) | 000 oz Au | 000 oz Ag | million lb Zn | 000 oz AuEq | | | | | | | Open Pit | Heap Leach | Measured | 2,768 | 0.79 | 16.21 | - | 0.85 | 71 | 1,442 | - | 76 | 8.44 | | Indicated | 37,309 | 0.69 | 13.10 | - | 0.74 | 823 | 15,708 | - | 893 | | | | | M&I | 40,077 | 0.69 | 13.31 | - | 0.75 | 893 | 17,151 | - | 969 | | | | | Inferred | 1,523 | 0.74 | 12.26 | - | 0.80 | 36 | 600 | - | 39 | | | | | Mill | Measured | 0 | - | - | - | - | - | - | - | - | 14.06 | | | Indicated | 2,213 | 0.85 | 8.91 | 3,947 | 0.94 | 60 | 634 | 19 | 67 | | | | | M&I | 2,213 | 0.85 | 8.91 | 3,947 | 0.94 | 60 | 634 | 19 | 67 | | | | | Inferred | 71 | 0.85 | 8.69 | 2,951 | 0.95 | 2 | 20 | 0 | 2 | | | | | Total | Measured | 2,768 | 0.79 | 16.21 | - | 0.85 | 71 | 1,442 | 0 | 76 | 8.44 to 14.06 | | | Indicated | 39,522 | 0.69 | 12.86 | 221 | 0.76 | 883 | 16,342 | 19 | 960 | | | | | M&I | 42,290 | 0.70 | 13.08 | 207 | 0.76 | 953 | 17,785 | 19 | 1,036 | | | | | Inferred | 1,594 | 0.74 | 12.10 | 131 | 0.80 | 38 | 620 | 0 | 41 | | | | | Underground