Peruvian Metals Corp. — Interim / Quarterly Report 2021

Sep 16, 2021

Peruvian Metals Achieves Positive AdjustedEBITDA During the First Half of 2021 and Restarts Exploration at Minas Maria Norte

Edmonton, Alberta--(Newsfile Corp. - September 16, 2021) - Peruvian Metals Corp. (TSXV: PER) (OTC: DUVNF) ("Peruvian Metals" or the "Company") is pleased to provide an update regarding the mineral processing at its 80-per-cent-owned fully permitted Aguila Norte processing plant ("Aguila Norte" or the "Plant") located in Northern Peru.

During the second quarter of 2021, the Company is also pleased to report second quarterly positive adjusted-EBITDA ( see table below ), representing a second quarterly positive EBITDA in 2021. During the second quarter, the Company invested $85,675 US into the Palta Dorada Au-Ag-Cu project completing our 50% earn-in with Rio Silver Inc. Furthermore, the yearly holding costs due June 30[th] of $53,180 US were paid to keep many of the Company's concessions in good standing. Due to the complicated social conditions in the Mansa Musa project area the Company and its partner GEXEG S.A.C decided not to renew the concessions. Third quarter EBITDA performance is expected to reflect similar performance with continued investments into the Company's wholly owned projects.

During the month of August, Peruvian Metals processed 2,190 metric tonnes ("mt") of material for third parties. As of August 31st, the Plant has processed 16,560 tonnes in 2021 exceeding total tonnes processed in 2020 of 13,185 tonnes. The Company expects a record year for 2021 and is on track to exceed 2019's total processing record of 18,510 tonnes.

Jeffrey Reeder, Chief Executive Officer of Peruvian Metals, commented: "We are pleased that we are on track for a record processing year in 2021 at Aguila Norte. We are continuing to report positive adjustedEBITDA and we have started to deploy our income to advance our other projects in Northern Peru. Investment in our properties is intended to provide further feed for the Plant which will result in increased profit margins on each tonne processed at Aguila Norte."

The Company also intends to re-start exploration at Minas Maria Norte located in the Huachocolpa Mining District. New recent developments on Silver X Mining's prospective Tangana property have created a renewed interest in the area. The Minas Maria Norte project is located less than three kilometres from Tangana. Previous sampling and mapping showed a gold rich polymetallic vein system and is summarized in the Company's press release dated July 21[st] , 2020. A field crew is scheduled to be mobilized to the area at the end of the month to conduct further sampling and commence community introductions.

The Aguila Norte processing plant has an environmental permit ("IGAC") from the Peruvian government which provides the Plant with the ability to expand operations past the current 100 tonnes per day level. Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation, or approved the scientific and technical disclosure contained in this news release.

Adjusted EBITDA - UNAUDITED

Adjusted EBITDA - UNAUDITED
Net (loss) income Add Interest expense Share-based compensation Non-operating loss (gain) on investments	ThreeMonthsEnded June 30,
	2021 $ (267,582) $ 3,782 $ - $ 220,573	2020 $ (191,515) $ 3,838 $ - $ 2,370	2019
			$ (142,758) $ 6,706 $ - $ 21,100

Gain on disposal of exploration subsidiary Non-operating property impairment charge Amortization Accretion expense Adjusted EBITDA Net (loss) income Add Interest expense Share-based compensation Non-operating loss (gain) on investments Gain on disposal of exploration subsidiary Non-operating property impairment charge Amortization Accretion expense Adjusted EBITDA	$ - $ - $ - $ - $ - $ - $ 59,574 $ 58,118 $ 57,885 $ 3,093 $2,945 $2,058 $19,440 $ (124,244) $ (55,009) Six MonthsEnded June 30,	$ - $ - $ - $ - $ - $ - $ 59,574 $ 58,118 $ 57,885 $ 3,093 $2,945 $2,058 $19,440 $ (124,244) $ (55,009) Six MonthsEnded June 30,	$ - $ - $ 57,885 $2,058
			$ (55,009)
	2021 $ (330,759) $ 7,495 $ 28,541 $ 303,982 $ - $ - $ 118,374 $ 6,186 $133,819	2020 $ 577,598 $ 7,765 $ 28,961 $ - $ (1,033,689) $ - $ 116,236 $ 5,890 $ (297,239)	2019
			$ (917,000) $ 13,338 $ - $ 37,630 $ - $ 582,051 $ 117,106 $4,116
			$ (162,759)

• adjusted to also include non-cash share-based compensation and non-cash loss/(gain) on investments and exploration subsidiary

About Peruvian Metals Corp.

Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business model is to provide toll milling services for clients and to produce high grade concentrates from mineral purchases. The Company continues to acquire and develop precious and base metal properties in Peru.

For further information on Peruvian Metals Corp. please visit www.peruvianmetals.com .

Peruvian Metals Corp. is a Canadian resource company listed on the TSX Venture Exchange : Symbol "PER" For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290 Website: www.peruvianmetals.com Email: jeffrey.reeder@peruvianmetals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclosure Regarding Forward-Looking Statements: This press release contains certain "ForwardLooking Statements" within the meaning of applicable securities legislation. We use words such as "might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and

uncertainties are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.

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