Mr. George Ogilvie reports

ARIZONA SONORAN CACTUS PROJECT STANDALONE PEA TECHNICAL REPORT REPORTING POST-TAX NPV8 OF US$2.03 BILLION AND IRR OF 24% IS NOW FILED

Further to the press release dated Aug. 7, 2024, announcing the Cactus project National Instrument 43-101 preliminary economic assessment (PEA), Arizona Sonoran Copper Company Inc. has filed the technical report in respect of the PEA on SEDAR+ under the company's issuer profile, and it is also available on the company's website. The Cactus PEA envisages an average 86,000-short-ton-per-annum (172-million-pound-per-annum) open-pit copper heap leaching operation over a 31-year mine life. In total, 5.3 billion pounds or 2.7 million short tons of LME (London Metal Exchange) Grade A copper cathodes are detailed for production directly on site by solvent extraction/electrowinning (SXEW) hydrometallurgical processing. The PEA supersedes the previously released prefeasibility study (PFS) in all respects. All dollar amounts referenced herein in U.S. dollars, and all references to tons are imperial or short tons, unless otherwise noted; one short ton equals approximately 0.91 metric tonne.

Highlights from the PEA:

• Key performance indicators at $3.90 per pound copper:
  • $2,032-million net present value (NPV) (8-per-cent discount, after tax);
  • 24-per-cent internal rate of return (IRR, after tax);
  • 4.9-year payback period;
  • $668-million development capital, including contingency;
• Life-of-mine gross revenue of $20.8-billion;
• Life-of-mine free cash flow (FCF) of $7,295-million (unlevered);
• Cash costs (C1) of $1.82 and all-in sustaining costs (AISC) of $2 per pound of copper;
• Financial and operational executability now through transition to open-pit operation:
  • 94 per cent of material from open-pit mining (Cactus West and Parks/Salyer) and 6 per cent from the stockpile and Cactus East underground;
• 232 million pounds (116,052 short tons) average annual copper cathode production over the first 20 years of operation and a total of 5,339 million pounds (2,669,342 short tons) of copper cathode produced over the 31-year operating mine life;
• Cactus project is well positioned to add value in a variety of copper price environments.

The PEA is preliminary in nature, and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the project described in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The attached tables summarize the key metrics within the PEA and the sensitivities to the copper price as they relate to revenue, net present value and internal rate of return.

Quality assurance/quality control procedures

Skyline Labs is accredited in accordance with the recognized international standard -- ISO/IEC 17025:2005. Its quality management system has been certified as conforming to the requirements defined in international standard ISO 9001:2015. The standard operating procedure (SOP) used while processing the Arizona Sonoran samples was to process samples in groups of 20. Each tray consisted of 18 samples, with samples No. 1 and No. 10 repeated as duplicates. The results from each tray were analyzed and any variance in the duplicates of more than 3 per cent would result in the entire tray being reassayed.

The results of these analyses, including the QA/QC checks, were transmitted to a select set of individuals at Arizona Sonoran and the qualified persons.

Qualified persons

Each of the persons listed herein is an author preparing the PEA and has reviewed and verified the contents of this news release as it relates to his or her area of responsibilities. By virtue of his or her education, experience and professional association membership, each of the listed persons is considered a qualified person as defined by NI 43-101.

Scientific and technical aspects of this news release have been reviewed and verified by these qualified persons listed as follows and Dan Johnson, Arizona Sonoran director of projects, as defined by NI 43-101:

• Project management -- John Woodson, PE, SME-RM, M3 Engineering;
• Metallurgy -- Laurie Tahija, QP-MMSA, M3 Engineering;
• Mineral resources -- Allan L. Schappert, CPG, SME-RM, ALS Geo Resources LLC;
• Water and environmental -- R. Douglas Bartlett, CPG, PG, Clear Creek Associates (a subsidiary of Geo-Logic Associates);
• Mine planning -- Gordon Zurowski, PEng, AGP Mining Consultants Inc.

About Arizona Sonoran Copper Company Inc.

Arizona Sonoran's objective is to become a mid-tier copper producer with low operating costs and to develop the Cactus and Parks/Salyer projects, which could generate robust returns for investors and provide a long-term sustainable and responsible operation for the community and all stakeholders. The company's principal asset is a 100-per-cent interest in the Cactus project (formerly Asarco's Sacaton mine), which is situated on private land in an infrastructure-rich area of Arizona. Contiguous to the Cactus project is the company's 100-per-cent-owned Parks/Salyer deposit, which could allow for a phased expansion of the Cactus mine once it becomes a producing asset. The company is led by an executive management team and board that have a long-standing record of successful project delivery in North America, complemented by global capital market expertise.

We seek Safe Harbor.