...Thank you for the opportunity to respond to your inquiry regarding our Los Filos Mine in Guerrero State, Mexico...

The land use and social agreements in place with the three local agrarian communities of Carrizalillo, Mezcala, and Xochipala were negotiated earlier in the mine’s life, and are no longer economically viable for today’s economic conditions and the stage of mine life. As a result, Equinox Gold has communicated transparently and openly that unless agreement can be reached on terms for new long-term agreements, the mine will have to close.

Equinox Gold invited the agrarian communities of Carrizalillo, Mezcala, and Xochipala to a dialogue and negotiation table beginning in November 2023. The intention was to have transparent and open dialogue with all three communities to reach consensus on terms for new land use and social agreements that would improve the long-term economic viability of the mine...

Having been unable to reach consensus on terms, in January 2025 the mine began a reduction of mining activities and corresponding workforce restructure. The communities then requested the intervention of the state government, and from January 24 to 29, the company met with the three communities, the aforementioned authorities, and the Undersecretary of Political and Social Development of the State of Guerrero at the state government offices.

At these meetings, all three communities and representatives of Equinox Gold were able to reach consensus on terms for new long-term agreements.

The agreed terms were recorded in a memorandum of agreement that was signed by each of the agrarian authorities of the three communities, and the company, in addition to the three government authorities who witnessed these negotiation sessions...

On March 1, Los Filos representatives visited Carrizalillo with the intention of providing an update to the community on the terms of the new agreements and the long-term benefits to community members in the form of social investments and land use payments.

On March 7, the company requested an open community meeting in Carrizalillo, and both the municipal and state governments have called the Carrizalillo community and the company to the dialogue table, but unfortunately Carrizalillo has not appeared...

Equinox Gold would prefer to keep the mine open, but cannot do so unless new long-term agreements are in place with all three communities that support the long-term economic viability of the mine, as communicated in all of its public disclosure since late 2023...