Candelaria Announces Drill Permit and Provides Corporate Update

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• Company   receives   drilling   permit   for   Pinos   infill   program
• Work   is   progressing   on   a   number   of   fronts   to   prioritize   resource   targets
• Permit   application   submitted   for   an   ambitious   drill   program   at   the   highly   prospective   Au-Cu   epithermal   /   porphyry   district   of   Caballo   Blanco
  

Candelaria Mining Corp. (TSX-V: CAND, OTCQX: CDELF) (the " Company ") is pleased to announce the award of the drill permit for a focused infill program at the Company's 100%-owned Pinos Gold Project in Zacatecas, Mexico, and provides a general corporate update.

A drill permit application was also submitted in late December for the Company's flagship property at Caballo Blanco in Veracruz, Mexico. This initial Phase 1 drilling program will comprise approximately 7,000m and provide the first tests of each of the high priority targets within the highly prospective gold-copper epithermal / porphyry district. A second phase will then build upon these results, and also include resource expansion drilling at the most advanced PEA-level project within the region, La Paila. During 2022 it is expected that total drill metres of 14,000 – 15,000m will be completed, along with a variety of other exploration activities.

Mike Struthers, CEO, commented: " We   are   pleased   to   start   this   infill   program   at   our   Pinos   project. Drilling is expected to commence within a few days. It is one of three strands of   work at Pinos currently being undertaken. The drilling will seek to validate recently   updated   structural   interpretations   of   the   distribution   of   higher-grade   mineralization,   together with some additional holes in other high-grade veins in different parts of the   mineralized system. This will provide for greater production flexibility and opportunities   for   grade   blending.   The   team   are   also   assessing   the   highest   potential   resource   expansion   opportunities related to extensive old workings within the license area (most of these   workings stopped at the water table), which will influence future resource drilling plans,   and   undertaking   further   exploration   on   the   two   very   compelling   greenfield   targets   exposed   at   surface,   further   to   the east.

"This year should also be very exciting for the Company at our Caballo Blanco license   area   in   Veracruz.   Our   plans   for   over   14,000m   of   exploration   drilling   will   see   the   Company   completing initial drill-testing of all the high-priority targets in this highly prospective   epithermal / porphyry style, gold and copper mineralized district, which will inform future   exploration planning. Thanks to the support of our strategic partners Agnico Eagle this   program is fully funded.   Furthermore, we anticipate the planned resource expansion   drilling at our more advanced La Paila project should lead to a resource update and by   year end the start of more advanced engineering studies on a potential open pit – heap   leach operation at La Paila. I look forwards to providing more updates as our work   progresses. "

ON   BEHALF   OF   THE   BOARD
Mike Struthers
CEO
+1 604 349 5992

For further information, please contact:

Candelaria Mining Corp.
Investor Relations
+1 604 349 5992 | info@candelariamining.com

Cautionary   Note   Regarding   Forward-looking   Statements: This   press   release   contains   certain   "forward-looking   statements"   and   "forward-looking   information"   under   applicable   Canadian   securities laws. Forward-looking statements and forward-looking information include, but are not   limited to, statements with respect to the terms, the use of proceeds and the timing of closing of   the   Offering.   Forward-looking   statements   are   based   on   the   opinions   and   estimates   as   at   the   date   the   statements   are   made,   and   are   based   on a   number   of   assumptions   and   subject   to   a   variety   of   risks and uncertainties and other factors that could cause actual events or results to differ   materially   from   those   projected   in   the   forward-looking   statements.   Many   of   these   assumptions   are   based on factors and events that are not within the control of the Company and there is no   assurance they will prove to be correct. Factors that could cause actual results to vary materially   from   results   anticipated   by   such   forward-looking   statements   include   changes   in   market   conditions   or metals prices, unanticipated developments on the Company's properties, and other risks   described in the Company's public disclosure documents available under the Company's profile   at www.sedar.com .

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