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Hemlo Mining Contains Underground Outage, Awaits $250,000 Substation

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Hemlo Mining Contains Underground Outage, Awaits $250,000 Substation

Toronto – September 17, 2026 -- Hemlo Mining Corp. (TSX: HMMC) (OTCQX: HMMCF) confirmed a temporary electrical outage on September 4, 2026, at an underground substation feeding the Alimak production area on the 9765 level of its flagship Hemlo Gold Mine in northwestern Ontario, with no injuries reported and all underground personnel safely evacuated.

A replacement substation ordered under a critical spare parts audit is due in December 2026 at an estimated cost of US$250,000

The company had pre-ordered the replacement unit before the failure occurred, a move that now shortens the repair timeline. In the interim, technical teams have installed a temporary electrical bypass that restores power to the affected zone at reduced capacity, allowing some mining to continue while development and exploration work remains constrained.

Processing and mining across the rest of the Hemlo Mine continue without interruption

The outage is confined to a single production area; the processing plant and all other underground operations are running normally. Hemlo Mining is pursuing expedited equipment procurement, backup power options, and possible relocation of electrical infrastructure from elsewhere in the mine to speed full power restoration.

Deferral of mining from certain planned stopes is possible until full power returns

The company is evaluating alternative mine sequencing and accelerating development in other areas to offset potential production impacts from the outage. President, CEO and Director Jason Kosec said site teams responded quickly, prioritizing worker safety, and that the mine's more than 300 kilometres of existing development gives it operational flexibility to maintain processing while mitigation efforts advance.

The Hemlo Gold Mine has produced approximately 25 million ounces of gold since 1985 from combined underground and open pit operations. The ultimate effect of the disruption on full-year 2026 production remains under assessment.

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