Strong Year-Over-Year Growth and Advancement of 0

Development Initiatives in Q3 2025

VANCOUVER, BC, Nov. 18, 2025 /CNW/ - Luca Mining Corp. ("Luca" or the "Company") (TSXV: LUCA) (OTCQX: LUCMF) (Frankfurt: Z68) is pleased to report operational and financial results for the three and nine months ended September 30, 2025. Q3 has delivered substantial production and revenue growth from the prior-year period. Luca has generated positive net free cash flow before working capital of $5.3 million in the first 9 months of 2025, even as the Company has invested heavily in development and exploration to position both mines for stronger production and profitability going forward. Sustaining capital in the quarter was elevated and metals recoveries were temporarily lower due to mine sequencing and commissioning activities; however, these investments have led to improvements in mine efficiency and expected increases in recoveries. As the Company moves into 2026, increased grades, higher recoveries and continued cash generation from operations are expected.

Third Quarter 2025 Highlights

   -- Safety: continued emphasis on safe, disciplined operations with 
      strengthened housekeeping and visible leadership engagement across both 
      sites. 
 
   -- Throughput increased: consolidated tonnes milled of 250,807 (+66% vs. 
      prior year), supported by increased plant availability at both mines 
      which has resulted in higher metal output: 
 
          -- Gold increased 51%, Silver increased 97%, Zinc increased 78%, Lead 
             increased 81%, Copper increased 43% over Q3 2024. 
 
   -- Profitability indicators: Adjusted EBITDA of $4.3 million for the quarter 
      and positive year-to-date adjusted net earnings of $12.8 million, a 
      reflection of greater operational performance. 
 
   -- Revenue momentum: Revenues of $35.0 million (+94% vs. prior year), 
      supported by higher sales volumes and increased realized precious-metal 
      prices (gold +28%, silver +18%). 
 
   -- Campo Morado performance: production in Q3 improved year-over-year (+75% 
      ZnEq pounds(a)) on higher grades, notably zinc (+30%) and silver (+27%) 
      and increased volumes (+43% tonnes milled per day). Cash costs decreased 
      to $1.09 per payable ZnEq pound(a) (-14% vs. prior year) with AISC of 
      $1.43/lb slightly increased (+8%) from the same quarter in the prior 
      period, reflecting increased sustaining capital development and the 
      commencement of a significant exploration program at the mine (all of the 
      Company's exploration expenditures are included in AISC). 
 
   -- Tahuehueto ramp-up: 77,548 tonnes milled, setting a record of 969 tonnes 
      milled per day in the quarter (+187% vs. prior year), with AuEq 
      production up 74% year-over-year. As a result of increased volumes, 
      direct cost per tonne reduced to $149 (-22%). Lower grades in the quarter, 
      as well as increased capital development and exploration, resulted in an 
      increase in AISC (+35%) year-over-year. Increased grades and the benefit 
      of this capital development are expected to decrease AISC at Tahuehueto 
      in the subsequent periods. 
 
   -- Investment for reliability: sustaining capital investment of $8.7 million 
      in the quarter ($19.0 million YTD) to accelerate underground development 
      and exploration drilling, positioning both mines for improved grades and 
      operating flexibility. 
 
   -- The Company made significant progress in exploration, with multiple 
      high-grade intercepts at both operations. 
 
   -- Repaid $2.5 million in debt. 

"Q3 was a transformational quarter of operational investment and performance for Luca Mining," stated Dan Barnholden, CEO of Luca Mining. "Both of our operating mines delivered substantial year-over-year production growth, are operating at throughput levels above budget, and our increased development investment is positioning us for higher grades, stronger recoveries, and improved cash flow as we enter 2026. While sustaining capital, including exploration, was elevated this quarter, this spending was strategic and front-loaded to enhance long-term asset performance. Even with the increased investment we have made in our mines and in exploration, so far in 2025 our operations have generated $5.3 million in net free cash flow net of corporate expenses. Given the strong exploration results received to date, we are excited to have committed to a major three-year, US$25 million exploration program, introduced in our recent news release dated November 12, 2025, which we believe has the potential to unlock considerable new gold resources at both Campo Morado and Tahuehueto."

 
(a)  Beginning in Q3 2025, Luca refined its production 
      and cost reporting to better reflect each mine's distinct 
      profile. Campo Morado results are now presented on 
      a zinc-equivalent (ZnEq) basis, while Tahuehueto continues 
      to report on a gold-equivalent (AuEq) basis. Further 
      details are provided in the Company's MD&A on page 
      6. 
 
 
1.  See Reconciliation of earnings before interest, taxes, 
     depreciation, and amortization in the MD&A 
2.  See "Non-IFRS Financial Measures" in the MD&A . 
3.  Based on provisional sales before final price adjustments, 
     treatment, and refining charges 
4.  Mine operating cash flow before taxes is calculated 
     by adding back royalties, changes in inventory and 
     depreciation and depletion to mine operating earnings. 
     See Reconciliation to IFRS in the MD&A 
5.  Net free cash flow before working is operating cash 
     flow before working capital changes, less capital 
     expenditures. See in the MD&A 
6.  Information presented herein for the three and nine 
     months ended September 30, 2024, has been restated 
     to reflect the impact of the reclassification of the 
     Amended Streaming Agreement from deferred revenue 
     to a derivative financial liability. See Note 2 of 
     the condensed consolidated interim financial statements 
 

Production

Campo Morado (Guerrero, Mexico)

Campo Morado delivered another quarter of solid production and improved cost performance. The mine processed 173,260 tonnes of mineralized material, representing a 42% increase over the same quarter in 2024. This resulted in total production of approximately 30.2 million zinc-equivalent pounds, a 75% year-over-year increase, reflecting higher throughput (+43% tonnes milled per day) and improved plant reliability, as well as on higher grades: zinc (+30%), copper (+3%), gold (+11%), and silver (+27%).

Cash operating costs averaged $1.09 per payable ZnEq pound (-14%), while all-in sustaining costs were $1.43 per pound (+8%), reflecting both increased production volumes and grades and increased sustaining capital development and the commencement of a significant exploration program at the mine. All of the Company's exploration expenditures are included in AISC.

Ongoing initiatives to improve blending control and metallurgical performance have continued to stabilize recoveries and enhance concentrate quality. Zinc-circuit recoveries have been stabilized through targeted ore-blend controls and optimized reagent operating adjustments and the commissioning of a fourth Zn-cleaning flotation stage. In parallel, development activities supported the opening of new production areas and further optimization of mine sequencing.

High grade precious metals drill results were returned from the Reforma deposit at Campo Morado in the quarter, including 37.2 metres grading 5.87 g/t gold, 367.50 g/t silver, 0.53% copper, 5.54% zinc and 2.57% lead, released on August 27, 2025. Exploration drilling also returned multiple high-grade intercepts adjacent to existing workings, reinforcing confidence in the resource potential and the opportunity for near-mine expansion.

Tahuehueto (Durango, Mexico)

At Tahuehueto, production continued to ramp up steadily through the quarter. The mine processed 77,548 tonnes of ore, setting a record of 969 tonnes per day milled in the quarter (+187% vs. prior year), as plant availability improved and mining activities expanded into new zones. Total gold-equivalent production reached 5,579 ounces, an increase of 74% year-over-year, reflecting the growing contribution of both gold and silver output as the mine progresses toward nameplate capacity.

Direct mining cost per tonne improved 22% year-over-year to $149, supported by better equipment utilization and increased ore volumes. Lower grades in the quarter, as well as increased capital development and exploration, resulted in an increase in AISC (+35%) year-over-year. While average gold grades were lower year-over-year due to mine sequencing, new stopes developed during the quarter are expected to provide higher-grade feed in Q4 and into 2026.

The Company also advanced installation of a new copper-lead separation circuit, a key process improvement designed to enhance metal recoveries and overall concentrate quality. This system will allow Tahuehueto to produce separate copper and lead concentrates for the first time, rather than a combined bulk concentrate. The separation is expected to improve payabilities, reduce impurities, and create greater marketing flexibility with multiple potential offtake partners. Mechanical installation was substantially completed during the quarter, and industrial trials are scheduled to begin in late-Q4 2025, with full integration into regular production anticipated early in 2026.

Exploration drilling at Tahuehueto continued to return strong results in the second quarter, including 14.0 metres grading 6.68 g/t gold from the Santiago deposit, released on September 8, 2025. Located one kilometre from current mine workings, Santiago has never been mined and is open along strike.

Outlook

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