COLORADO SPRINGS – November 2, 2020 – Gold Resource Corporation (NYSE American:
GORO) (the “Company”, “We”, “Our” or “GRC”) reported consolidated production results for the third quarter ended September 30, 2020 of 12,575 gold ounces and 333,761 silver ounces. In addition to precious metals, the Company produced base metals resulting in consolidated net revenue of $42.3 million for the quarter. Gold Resource Corporation is a gold and silver producer,
developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $115 million to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
“Our successful third quarter demonstrates our strength and determination,” stated Gold Resource Corporation’s CEO and President, Mr. Jason Reid. “Despite the mandatory two-month shutdown in Mexico during the second quarter, our Oaxaca Mining unit is back to generating free cashflow while putting employee and community health and safety first. Nevada also delivered on generating free cash flow with its record quarterly gold production, a 51% increase over the prior quarter, while continuing rigorous COVID protocols. Additionally, we made a deliberate strategic move to unlock and increase shareholder value from both mining units by initiating the spin-off of the Nevada Mining Unit to shareholders as Fortitude Gold Corporation.”

Q3 2020 HIGHLIGHTS
? On July 1, 2020, we celebrated 10 years of production, over $1 billion in revenue and $114 million in shareholder dividends;
? Record gold production from Isabella Pearl of 7,847 gold ounces;
? Consolidated production of 12,575 gold ounces and 333,761 silver ounces;
? $42.3 million consolidated net sales bringing year-to-date September 30, 2020 sales to $91.4 million;
? Net income of $5.0 million or $0.07 per share;
? Total Oaxaca Mining Unit cash cost after by-product credits of $589 per ounce;
? Total Nevada Mining Unit cash cost after by-product credits of $935 per ounce;
? $31.3 million cash balance at September 30, 2020, an increase of $20.2 million from the December 31, 2019 balance of $11.1 million;
? Cash from operating activities of $17.7 million for the nine months ended September 30, 2020, an increase of 127% from same period in 2019;
? Working capital at September 30, 2020 of $50.0 million, an increase of 120% from December 31, 2019;
? $0.7 million dividend distributions, or $0.01 per share for the quarter;
? On August 6, 2020, we announced Ms. Kim Perry would transition from the Board of Directors to fill the Chief Financial Officer role for retiring Mr. John Labate. The Board of Directors’ nominating committee is actively recruiting for the vacant Board of Director’s seat;
? Subsequent to the quarter close, we announced on October 5, 2020, the intent to spin-off the Nevada Mining Unit to its shareholders as a separate publicly traded company, Fortitude Gold Corporation, to further create shareholder value.
Overview of Q3 2020 Results Record third quarter production from the Company’s Nevada Mining Unit (NMU) totaled 7,847 gold ounces, an increase of 51% over Q2 2020. Through the first three quarters of 2020, NMU gold production totaled 16,747 gold ounces. The third quarter was the first full quarter that the Company was able to regularly access portions of the deposit’s high-grade “Pearl” zone, while also mining the deposit’s lower grade “Isabella” zone. Gold Resource Corporation remains on track to achieve its annual production target of 40,000 gold ounces in 2021.
Third quarter Oaxaca Mining Unit (OMU) production totaled 4,728 gold ounces, 324,592 silver ounces, 428 copper tonnes, 2,157 lead tonnes and 5,538 zinc tonnes. Through the first three quarters of 2020, OMU production numbers total 13,619 gold ounces, 912,464 silver ounces, 1,162 copper tonnes, 5,811 lead tonnes and 14,386 zinc tonnes.
Third quarter NMU sales from the Isabella Pearl mine totaled 8,396 gold ounces at a total cash cost of $935 per ounce (after by-product credits) at an average realized price of $1,901 per ounce. Third quarter OMU sales totaled 7,898 precious metal gold equivalent ounces at a total cash cost of $589 per ounce (after by-product credits). OMU average realized metal prices during the quarter included $1,887 per ounce and $25.47 per ounce*. The Company recorded net income of $5.0 million, or $0.07 per share, and paid $0.7 million to its shareholders in dividends, or $0.01 per share during the quarter. Cash and cash equivalents at quarter end totaled $31.3 million.
*Average realized metal prices include final settlement adjustments for previously unsettled provisional sales. Some provisional sales may remain unsettled from one period into the next.
Realized prices will therefore vary from average spot metal market prices upon final settlement.

COVID-19
The Company previously withdrew its 2020 production outlook for both its Oaxaca and Nevada Mining Units following the impacts and uncertainties of the global pandemic, the two-month mandatory governmental suspension of Mexican operations in April 2020, and uncertainty of potential future outbreaks or governmental responses to the pandemic. Both mining units operated continuously during the third quarter along with continued health screening protocols for COVID-19 prevention and mitigation. During the third quarter, Nevada identified one positive case of COVID- 19 while Mexico identified 29 positive cases. Due to the rigorous protocols in place, these cases were promptly identified and mitigated to ensure the health and safety of our employees and the communities in which we operate.

Nevada Mining Unit Spin-Off
Subsequent to the quarter, on October 5, 2020, the Company announced its intention to spin-off its Nevada Mining Unit to shareholders as a separate publicly traded company, Fortitude Gold Corporation. 100% of the Nevada Mining Unit will be distributed on a pro rata basis to shareholders of record on the transaction execution date. Following completion of the spin-off, the Gold Resource Corporation will hold all of the assets and related liabilities of the Oaxaca Mining Unit and Fortitude Gold Corporation will hold all of the Nevada assets and related liabilities. The spin-off does not require shareholder approval and is expected to be tax-free to the shareholders.
The transaction is subject to certain conditions, including the final approval by the Company’s Board of Directors and the receipt of an effective date for the Form S-1 registration statement filed by Fortitude Gold Corporation on October 19, 2020 with the Securities and Exchange Commission. The transaction is targeted to be completed by year-end 2020 or the first quarter of 2021.
The following Production Statistics tables summarize certain information about our Oaxaca and Nevada Mining Unit operations for the three and nine months ended September 30, 2020 and 2019:

Oaxaca Mining Unit

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