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Monday, 08/23/2021 4:24:20 PM

Monday, August 23, 2021 4:24:20 PM

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Sonoro Gold Corp. (TSX.V: SGO | OTCQB: SMOFF) Critical Milestone

A critical milestone was achieved last week when we announced the completion of metallurgical tests for
our Cerro Caliche project. The independent tests determined that the heap leach
characteristics of the oxide gold mineralization at our Cerro Caliche project were optimal, with consistent
recoveries in all ore zones or material types. The recoveries averaged 74% – higher than the 72% used in
our maiden 43-101 resource study.

What’s Next

The next significant milestone for Sonoro Gold is now only a few weeks away. That is, the completion of the
Cerro Caliche’s Preliminary Economic Assessment (PEA) on which the metallurgical results will have a very
decisive impact. Our discussions regarding project finance and the construction of the initial 15,000 tons
per day Heap Leach Mining Operation have been based on internal yet independent professional
assessments which the PEA is expected to confirm.

Sonoro’s Trading vs the Junior Gold Stock Index

When we announced on June 1 that drilling had been paused so we could focus on the completion of the
PEA, Sonoro's shares were trading between $0.26 and $0.29. The GDXJ junior gold index was at 55.79.
Since then, the Index has experienced a major correction, falling by almost 30%. It reached a low last Friday
of 39.5. During the same period, and contrary to very poor market conditions which depressed many
mining companies’ shares, Sonoro’s shares traded as high as $0.39 but closed last Friday back at $0.29
where they were when the GDXJ began its decline.

So Why the Correction?

So why is Sonoro’s share price back to where it was in June? While the overall market conditions may have
contributed, it is reasonable to conclude that the selling may primarily be attributed to the shares issued in
April's private placement becoming free-trading as of Friday, April 20. Some of the participants electing to
take a short-term profit, with even some "short selling" over the prior two weeks. However, we believe a
significant majority of the participants in the April Private Placement invested to benefit from Cerro Caliche
being taken to production in the first half of 2022 and therefore this correction is a chance to accumulate.

The Opportunity

Sonoro is on the cusp of its transformation from an explorer to a gold producer. As we execute, it is
reasonable to anticipate that we will successfully build value and grow the company which will be reflected
in Sonoro’s share price. Sonoro is now at a low-risk development stage, under the direction of a team that
has been acquiring or discovering and developing and operating mines for decades. In speaking with some
of Sonoro’s major shareholders who recognize the significance of the imminent publication of the PEA , they
view this short-term weakness as an opportunity to increase their stake in Sonoro.
In the meantime, we remain totally focused on our fast track our path to production with Sonoro’s next
major catalyst, the Cerro Caliche’s PEA, only weeks away.

John M. Darch

Sonoro Gold Corp. (TSX.V: SGO)
Suite 408, 470 Granville Street, Vancouver, BC, V6C 1V5, Canada
T: (604) 632-1764 | D: (778) 357-1097 | C: (778) 997-7135

Sonoro Gold Corp