Los Cerros : Quarterly Activities Report and Quarterly Cashflow Report

31 January 2022

ASX Announcement

ASX: LCL

		December 2021 Quarterly Report
HIGHLIGHTS
only
▪	Drilling at Tesorito Gold Porphyry continues to deliver high grade gold zones within wide gold
	mineralised intercepts.

▪ Ceibal confirmed as a new porphyry discovery ~1km from Tesorito.

▪ Deep penetrating IP and drone aero-magnetic surveys over priority areas have generated and

	refined compelling targets. Deep drilling of the central target potentially joining Tesorito to
	Miraflores has begun.
use
▪	The 2022 exploration program includes ongoing multi-rig drilling at Quinchia targets
	supplemented with further geophysics and target generation field work plus the intention of
	advancing exploration at the Andes project. A Tesorito maiden Resource and first round
	metallurgical test program are planned for the first half of 2022.
	Los Cerros Limited (ASX: LCL) (Los Cerros or the Company) continues to experience significant
	exploration success at its 100% owned Quinchia Gold Project in Risaralda - Colombia. During the
	quarter, drilling at Tesorito was focussed on step-out campaigns to the north and south with both
	campaigns delivering more encouraging drill results and expansion of the surface footprint of +0.5g/t
personal
	modelled gold envelopes.
	All six drill holes of the first drilling campaign at the Ceibal porphyry target delivered extensive
	porphyry gold mineralisation from surface.
	The results of deep penetrating Induced Polarisation (IP) geophysics program over the
	Tesorito/Miraflores area, particularly the emergence of a substantial conductivity and chargeability
	high between Tesorito and Miraflores, added considerable evidence in support of the Company's
	regional model.
	During 2022 drilling will focus at Quinchia with three building to five rigs in continuous operation in
	Q1 and substantial early-stage geological field and geophysical programs will continue.
	At the end of the Quarter the Company had $19.2 million in cash at bank.
	Tesorito drilling extends gold envelopes north and south
	The quarter's Tesorito drilling program focussed primarily on step-out drilling broadly testing
	northern and southern extensions to modelled gold envelopes. Assay results for a total of 17 holes
For
	for ~7,800m of diamond drilling was reported during the quarter, the results of which have roughly

doubled the surface expression of modelled low-grade envelopes and extended the high grade (>1g/t Au) porphyry core southward.

The southern step out drilling campaign delivered high grade gold assays with multiple holes intercepting southern extensions of the early diorite that defines the porphyry core (Figure 1). Results include1-

▪ 236m @ 1.0g/t Au from surface in TS-DH34 including

▪ 26m @ 2.14g/t Au from 6m, and ▪ 27.5m @ 2.73g/t Au from 121.5m

▪ 211m @ 0.8g/t Au from surface in TS-DH35 including

		31 January 2022
		ASX Announcement
		ASX: LCL
		▪ 64.6m @ 1.25g/t Au from 128m
	▪ 102.5m @ 0.92g/t Au from 8m in TS-DH45 including
only		▪ 58m @ 1.24g/t Au from 48m
	▪ 46m @ 1.3g/t Au from 80m.
	▪	65.3m @ 1g/t Au from 2.3m in TS-DH46 including 20m @ 1.28g/t Au from 18m
	▪ 187m @ 0.86g/t Au from 5m in TS-DH51 including
		▪ 12m @ 1.5g/t Au from 42m and
Assay results from the northern step out drilling campaign during the quarter include1 -
use	▪ 114m @ 0.53g/t Au from 358m in TS-DH31
▪ 226m @ 0.5g/t Au from 120m in TS-DH32
▪ 550m @ 0.5g/t Au from 34m in TS-DH33
▪ 480m @ 0.42g/t Au from surface in TS-DH36 including 8m @ 1.36g/t Au from 472m (beyond
	west fault)
▪	376.2m @ 0.5g/t Au from 16m in TS-DH39 including 8.0m @ 1.44g/t Au from 100m.
Of particular note was a deep intercept of 8m @ 1.36g/t Au from 472m in TS-DH36 being the highest
personalFor

gold grade interval reported west of the fault interpreted as the western structural control/limit of the Tesorito porphyry. This intercept is proximal to the significant IP target, between Tesorito and Miraflores, reported on 26 October 20212.

Also of note across the northern campaign is the persistence of low gold grade material 300+m north of the high grade Tesorito porphyry core. This demonstrates a clearly developed NNE to NE trend orientation to the gold mineralisation conforming to the Marmato Fault (Figure 1), an important structural control of mineralisation in the region.

The Company is targeting a Tesorito maiden JORC Resource estimate in the first half of 2022.

1. See announcement 10 November 2021 for results of drillholes TS-DH31 to '36 and 13 December 2021 for TS-DH45, '46 and '51. The Company confirms that it is not aware of any new information that affects the information contained in the announcement.
2. See announcements 26 October 2021. The Company confirms that it is not aware of any new information that affects the information contained in the

announcement.

31 January 2022

ASX Announcement

ASX: LCL

onlyuse

personalFigure 1: Plan view of Tesorito showing modelled gold envelopes and key structures. A recently defined IP chargeability anomaly to the north offers potential for further extensions.

ForCeibal confirmed as another significant gold porphyry discovery

The initial six-hole scout diamond drilling program at Ceibal has provided an encouraging start to the investigation of this new porphyry discovery less than 1km from the Tesorito Gold Porphyry. Ceibal displays structural characteristics consistent with the Tesorito Gold Porphyry structural model - in particular, its location within the Marmato Fault Corridor and at the intersection of NW trending faults.

All six drill holes of the Ceibal campaign generated extensive intersections (between 88m and 586m) of porphyry gold mineralisation bearing strong resemblance to the extensive low-grade intercepts at the Tesorito Gold Porphyry. Intersections of the initial campaign include3:

3 See announcement 8 July 2021 for results from drillholes CEDDH01 and '02 and 22 November 2021 for CEDDH03 to '06. The Company confirms that it is

not aware of any new information that affects the information contained in the announcement

31 January 2022

ASX Announcement

ASX: LCL

	• 500m @ 0.52g/t Au from surface in CEDDH01 (announced previous quarter)
	• 586m @ 0.51g/t Au from surface in CEDDH02 (announced previous quarter)
only	• 243.1m @ 0.49g/t Au from 87.20m in CEDDH03
• 120.00m @ 0.71g/t Au from 4m in CEDDH04
• 88.00m @ 0.51g/t Au from 314m in CEDDH05
• 252.00m @ 0.41g/t Au from 530m in CEDDH06

The causative intrusive porphyry or related wide intervals of intrusive breccia have not yet been intersected at Ceibal. However extensive sheeted type veining and trends in element, mineral and vein density, suggest the causative porphyry intrusion (porphyry core) is north of the drilled area. Magnetic susceptibility results generated from a recent drone magnetic survey revealed two northern

usemagnetic highs, potentially representing the location of the porphyry core (Figure 2).

The relative location of the two magnetic highs to the north of the drilling, and another magnetic high to the south of drilling, conform to the regional NW/NNW orientation associated with gold bearing systems throughout the Quinchia Project. At Ceibal this orientation extrapolates to the SE to intercept recently discovered creek side porphyry related breccia outcrops and the Company's Chuscal porphyry target.

Deep penetrating IP geophysics survey currently underway over the Ceibal and Chuscal areas will personalprovide further guidance for target definition and prioritisation ahead of further drilling early in the

new year. For

31 January 2022

ASX Announcement

ASX: LCL

onlyuse

personalForFigure 2: Drill traces and modelled gold envelopes from drill assays projected to surface at Ceibal, over regional magnetic susceptibility. The three magnetic highs are targets for follow up drilling. Note the NW/NNW orientation of higher grade gold envelopes and higher magnetic susceptibility, a characteristic of mineralised systems throughout Quinchia and the broader Mid Cauca porphyry belt.

Target generation and geophysics provides an exciting exploration pipeline for Quinchia 2022 drilling

Interpretation and assimilation of recent drone aero-magnetic and deep penetrating IP geophysical survey data has identified significant drill targets spatially associated with established Quinchia gold discoveries.