Press Release: Hemlo Mining Corp. Reports Second Quarter 2026 Operating Results

Dow Jones04:05

TORONTO, July 20, 2026 /PRNewswire/ -- Hemlo Mining Corp. (TSX: HMMC) (OTCQX: HMMCF) ("Hemlo Mining" or the "Company") is pleased to report operating results for the second quarter ended June 30, 2026 ("Q2" or "Q2 2026"). The Company plans to release its second quarter 2026 financial results after market close on Tuesday, August 11, 2026, followed by a conference call and webcast hosted by senior management on Wednesday, August 12, 2026 at 11:00 AM Eastern Time.

(All amounts expressed in U.S. dollars unless otherwise stated and are unaudited)

Jason Kosec, President, CEO & Director of Hemlo Mining, commented: "Q2 marked a milestone quarter for Hemlo as we assumed full owner-operator responsibility for the underground workforce and continued investing in our people and equipment while refining mine sequencing to support higher production rates. Production was in line with our expectations as these strategic initiatives continue to gain momentum. Importantly, we maintained our strong health, safety, and environmental performance, reaching three consecutive years free of lost-time injuries. Beyond operations, we completed an Impact Benefit Agreement with Biigtigong Nishnaabeg, increased Measured & Indicated mineral resources by 34%, graduated to the Toronto Stock Exchange, and returned strong exploration results from our newly interpreted South-Rim Zone. We are very pleased with the progress made in 2026 and remain more confident than ever in the significant long-term potential at Hemlo."

Second Quarter 2026 Operating Highlights

 
                                   Three months    Three months     Six months 
                                          ended           ended          ended 
Hemlo Mine                  Unit  June 30, 2026  March 31, 2026  June 30, 2026 
--------------------------  ----  -------------  --------------  ------------- 
Williams 
 Ore processed              000t            283             230            513 
 Average grade               g/t           2.53            3.37           2.90 
 Gold produced(1)            oz.         22,516          24,635         47,151 
 
Interlake(2) 
 Ore processed(2)           000t             61              92            153 
 Average grade(2)            g/t           3.05            3.51           3.33 
 Gold produced(1,2)          oz.          5,342          10,129         15,471 
 
Total ore processed         000t            344             322            666 
Recovery                       %           94.3            95.6           95.0 
Total gold produced(1)       oz.         27,858          34,764         62,622 
Total gold sold              oz.         32,425          38,685         71,110 
 
Attributable gold 
 produced(1,3)               oz.         25,188          29,699         54,887 
Attributable gold sold(3)    oz.         27,858          32,052         59,910 
--------------------------  ----  -------------  --------------  ------------- 
 
 
1.  Gold produced represents gold poured during the period. 
2.  Operating statistics are presented on a 100% basis. The Interlake claims 
    are subject to a 50% net profits interest ("NPI") royalty with 
    Franco-Nevada Corporation. 
3.  Attributable gold is calculated as 100% of gold from Williams and 50% of 
    gold from Interlake. Attributable gold sold is estimated based on current 
    period production and will be subject to adjustment to reflect actual 
    settlements during the quarter. 
 

The Hemlo Gold Mine ("Hemlo" or the "Mine") continued its strong safety and environmental performance in Q2, recording no environmental non-compliance and no lost-time injuries while achieving three consecutive years without a lost-time injury.

Gold production in Q2 2026 was lower than the first quarter of 2026 ("Q1"), reflecting a strategic refinement to the mining sequence. During the quarter, portions of the operation transitioned from a top-down to a bottom-up mining approach to reduce waste handling and improve long-term mining efficiency. This sequencing delayed access to certain higher-grade stopes and increased the proportion of lower-grade development ore processed from the Williams and Interlake zones, temporarily reducing mill feed grade during the quarter. The incremental lower-grade tonnes were sourced from 100%-owned areas of the Mine, increasing the share of production attributable to the Company.

Importantly, operational fundamentals strengthened throughout Q2. Development metres increased 42%, longhole production drilling rose 65%, total tonnes moved improved 5%, and ore milled increased 7% compared with Q1. These leading indicators are expected to drive improved future production as newly developed mining areas enter the production sequence over the coming quarters.

Hemlo also established several new daily operating records in Q2, including 1,051 metres of longhole drilling, 46 metres of lateral development, 4,800 tonnes of paste backfill placed, 7,118 tonnes of ore hoisted, and 5,035 tonnes of ore processed.

Q2 marked Hemlo's first full quarter operating as an owner-operator, representing the first time the Mine has operated under this model since 2019. Recruiting and training efforts progressed well during the quarter, and the Mine now employs 529 full-time employees alongside 265 contractors, approximately 75% of whom are from local communities.

Capital investment continued throughout the quarter with the delivery of seven additional mobile equipment units -- three MacLean bolters, one MacLean scissor lift, one Sandvik 45-tonne truck, and two Sandvik 11-cubic-yard scooptrams -- bringing the total to 10 of 21 planned units now on site. Together with ventilation upgrades expected to improve blast re-entry times during the second half of 2026, these investments are expected to enhance development rates, production flexibility, and operating efficiency.

During the quarter, the Mine also successfully managed a significant spring thaw and snow melt without disrupting operations, reflecting strong planning and operational execution.

Second Quarter 2026 Financial Position

 
                              As at June 30,  As at December 31, 
Financial position    Unit         2026              2025 
-------------------  -------  --------------  ------------------ 
Cash                  $'000s         130,152             131,956 
Net debt(1)           $'000s          19,848              93,044 
-------------------  -------  --------------  ------------------ 
 
 
1.  This is a non-IFRS measure. For further information, refer to the 
    "Non-IFRS Measures" section of this news release. 
 

The financial information presented above is preliminary in nature and subject to completion of the Company's quarter-end financial reporting process. Final unaudited financial results may differ from these amounts and will be reported in the Company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2026. Complete financial results for the second quarter 2026 will be reported and filed on Hemlo Mining's profile on SEDAR+ at www.sedarplus.ca on Tuesday, August 11, 2026.

Conference Call and Webcast

Hemlo Mining will host a conference call and webcast on Wednesday, August 12, 2026 at 11:00 AM Eastern Time to discuss second quarter 2026 results. Details for the conference call and webcast are included below.

Dial-In Numbers / Webcast:

Conference/Meeting ID: 529206668

North America Toll Free: +1 833-461-5787

International Toll: +1 585-542-9983

Canada Local: +1 365-657-4084

Webcast: https://events.q4inc.com/attendee/529206668

About Hemlo Mining Corp.

Hemlo Mining Corp. is a Canadian gold producer focused on operating and enhancing the Hemlo gold camp in northwestern Ontario. The Company's flagship asset, the Hemlo Gold Mine, has produced approximately 25 million ounces of gold since 1985 from both underground and open pit operations. The Company's fit-for-purpose strategy is centered on maximizing the value of the mine through improved operating efficiency, production growth, and mine life extension. Hemlo Mining is led by an experienced team with a track record of value creation in the global mining sector.

Qualified Person

The scientific and technical information contained in this news release has been reviewed and approved by Mike Tsafaras, P.Eng., the Company's Vice President, Engineering and Projects. Mr. Tsafaras is a "qualified person" as defined in NI 43-101.

Forward-looking Statements

This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of words such as "expects", "anticipates", "plans", "will," "may", "should" and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this news release include statements regarding: the timing for release of the Company's Q2 2026 financial results, conference call and webcast; the Company's operational plans, including mine fleet upgrades, ventilation upgrades, workforce training, and production optimization initiatives, and the expectation that they will support improved production performance, blast re-entry times, development rates, production flexibility and operating efficiency; and the Company's goals, plans, commitments, objectives and strategies.

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