Mr. George Ogilvie reports

ARIZONA SONORAN INITIATES PRE-FEASIBILITY STUDY; APPOINTS M3 ENGINEERING AND BEGINS PFS WORKSTREAMS

Following a request for proposal, Arizona Sonoran Copper Company Inc. has appointed M3 Engineering of Tucson to lead the Cactus project prefeasibility study and to act as metallurgical program lead. The consultants will include AGP (mining), Clear Creek (hydrology), ALS Geotechnical (geology) and Partners in Performance (real-time modelling and optimization), all of which have contributed to Arizona Sonoran's prior studies. The company anticipates the PFS to be completed in the second half of 2025.

Prefeasibility study workstreams

The Cactus mine plan and, in particular, the first five years of mining were rescoped in the August, 2024, preliminary economic assessment (see news release dated Aug. 7, 2024) by the incorporation of mineralized material from the MainSpring property. The MainSpring title transfer took place in March, 2024. An initial drilling program on the MainSpring property was complete in April, 2024, and identified a significant inferred copper mineral resource as the near-surface and southern extension of the Parks/Salyer deposit (see news release dated July 16, 2024). The updated mineral resource ultimately rescoped Parks/Salyer as an open-pit mine from an underground scenario, comprising the initial years of proposed production. The focus of the coming months will be upgrading the entirety of the Parks/Salyer deposit to the PFS level. Coming workstreams in preparation of the PFS include:

• Exploration and infill drilling;
• Mine design and scheduling;
• Technical studies and project support, including:
  • Geotechnical and hydrological drilling;
  • Metallurgical test work.

Bernie Loyer, senior vice-president, projects, Arizona Sonoran, commented: "Continuing to use M3 and supporting consultants was a logical choice due to their strong working knowledge of the project, the close proximity of their engineering centres in Chandler, Tucson and Hermosillo and the long-term productive working relationship between our two project teams in the execution of multiple large projects across a wide range of jurisdictions, including Arizona, Mexico, Peru, Chile and Argentina. M3 Engineering's focus and performance on the recently completed PEA is testimony to the efficiency of that working relationship, setting an optimum stage for the next level of study. Additionally, we continue to develop the base-case scenario while working closely with our partners at Nuton Technologies to develop an integrated prefeasibility study."

Opportunities

Having already led the PEA (preliminary economic assessment) for the Cactus project in 2024, M3 and the consultants have a strong working knowledge of the project's characteristics and opportunities. Trade-off studies for continued optimization of the current scope, include:

• In-pit and near-pit crushing and conveying;
• Shifting the Parks/Salyer open-pit centroid north;
• Primary sulphide extraction scenarios;
• Options to adjust and smooth cathode production and cash flows over the life of mine;
• Waste dump reclamation studies (backfilling).

About Arizona Sonoran Copper Company Inc.

Arizona Sonoran is a copper exploration and development company with a 100-per-cent interest in the brownfield Cactus project. The project, on privately held land, contains a large-scale porphyry copper resource and a recent PEA proposes a generational open-pit copper mine with robust economic returns. Cactus is a lower-risk copper developer benefiting from a state-led permitting process, in-place infrastructure, highways and rail lines at its doorstep, and on-site permitted water access. The company objective is to develop Cactus and become a mid-tier copper producer with low operating costs that could generate robust returns and provide a long-term sustainable and responsible operation for the community, investors and all stakeholders. The company is led by an executive management team and board, which have a long-standing record of successful project delivery in North America, complemented by global capital market expertise.

For more information on the Cactus copper project, including the referenced PEA, please refer to the company's news release dated Aug. 7, 2024, and the corresponding technical report for the project, both available on the company's website and under its issuer profile on SEDAR+.

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