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TORONTO, July 08, 2024 (GLOBE NEWSWIRE) -- Pasinex Resources Limited (CSE: PSE) (FSE: PNX) (The “Company” or “Pasinex”) announces that the Company has filed its financial statements, management's discussion and analysis, and related certifications for the quarter ended March 31, 2024 (collectively, the “First Quarter Results”) on SEDAR+.

The common shares of the Company are currently halted due to a failure-to-file cease trade order (the “FFCTO”) issued by the British Columbia Securities Commission ("BCSC") on June 12, 2024, as a result of the failure of the Company to timely file its First Quarter Results. It is anticipated that as a result of filing of the First Quarter Results that the Company will be up-to-date with its required filings and that the FFCTO will be revoked by the BCSC.

First Quarter Financial Results

Cautionary Note

The Company has not completed a current technical report that includes a mineral resource estimate as defined by the Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council, and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators National Instrument 43-101 (NI 43-101). The Company has no intention of completing a NI 43-101 compliant technical report. The Joint Venture has not followed accepted quality assurance and quality control procedures with respect to its current drilling program and has not used an independent third-party laboratory for its assay analysis. The Joint Venture uses field handheld X-ray fluorescence analysers (“XRF”) for zinc assays and grade control in exploration and mining. In addition, assays are completed by an independent third-party laboratory for all of the Joint Venture’s sales.

• Subsequent to the quarter end, Horzum AS initiated two separate legal actions, which resulted in the appointment of an interim committee and an authorized trustee to provide oversight of the management of the Joint Venture. In addition, a legal action is on-going by Horzum AS for the recovery of the debt owed by Akmetal.
  

  • For the three months ended March 31, 2024, Pasinex recorded net income of approximately $0.3 million, compared with a net loss of approximately $0.2 million for the three months ended March 31, 2023. The primary reason for the increase in the net income in 2024 versus the net loss in 20232 was that the Company did not incur exploration costs in 2024.
    

  • The operating income in Horzum AS decreased to $1.4 million in the three months ended March 31, 2024, from $2.1 million for the same period in 2023. The decrease was due to higher costs being incurred as a result of inflationary pressures. Gross margin (see non-GAAP measures) for the three months ended March 31, 2024, was 37% compared with 58% for the same period in 2023.
    

• Horzum AS mined 1,503 tonnes of zinc product during the three months ended March 31, 2024, at the Pinargozu mine, compared with 2,811 tonnes of zinc product for the same period in 2023.
  

• Sales volume was 2,986 tonnes of high-grade zinc sulphide product in the three months ended March 31, 2024, compared with 2,997 tonnes of high-grade zinc sulphide product for the same period in 2023.
  

• Sales prices per tonne on a USD basis decreased by 2% for zinc sulphide product for the three months ended March 31, 2024, when compared to prices in the same period in 2023. The average USD sales price for the three months ended March 31, 2024, was US$878 per tonne for zinc sulphide product versus US$892 per tonne for zinc sulphide product in the same period in 2023.
  

• The average grade of the high-grade zinc sulphide product sold was 49.5% zinc per tonne for the three months ended March 31, 2024, compared with 49.6% zinc per tonne for the same period in 2023.
  

• The CAD cost per tonne mined (see non-GAAP measures) increased to $789 per tonne mined for the three months ended March 31, 2024, compared with $491 per tonne mined in the same period in 2023. The USD cash cost per pound of zinc product mined (see non-GAAP measures) increased to US$0.51 per pound mined in the three months ended March 31, 2024, from US$0.34 per pound mined in the three months ended March 31, 2023.