Mr. George Ogilvie reports

ARIZONA SONORAN APPOINTS HANNAM & PARTNERS AS PROJECT FINANCE ADVISOR FOR THE CACTUS PROJECT

In preparation for project financing, Arizona Sonoran Copper Company Inc. has appointed Hannam & Partners Advisory Ltd. (H&P) as its debt financial adviser for the Cactus project, a copper cathode development project in Arizona.

H&P will work closely with the management team to provide complete and pro-active support in all aspects of the project financing process for the project, acting as the primary interface with lenders. The project financing process will run concurrently with the continuing advancement of the project's continuing prefeasibility study (PFS) on target for completion in the second half of 2025 and the eventual planned definitive feasibility study (DFS) slated for completion in the second half of 2026.

Arizona Sonoran is an emerging copper developer and producer, advancing its 100-per-cent-owned, past-producing Cactus project on private land, 45 miles southwest of Phoenix, Ariz. As contemplated by the 2024 preliminary economic assessment (PEA), Cactus is a proposed heap-leach and solvent extraction/electrowinning (SX/EW) open-pit project with the potential to produce greater than 100,000 tonnes of copper cathode for direct use within the U.S. industry. The Arizona Sonoran team will work with H&P, which will play a pivotal role in securing the financing package in support of an eventual construction decision. Following the PFS, the company plans to complete permitting for the project, with the advancement of project financing to continue in parallel through to the planned DFS and an eventual construction decision in the second half of 2026. On that timeline, production of first copper cathode from the SX/EW plant is anticipated in late 2028 or 2029, after an expected 18-to-24-month construction period.

Nick Nikolakakis, chief financial officer and vice-president, finance, of Arizona Sonoran, commented: "H&P is an experienced project financing adviser and will be an asset to management in pursuit of financing for the development and construction of the Cactus project. We continue to advance the project through remaining study phases toward an eventual construction decision, and we will be concurrently seeking to identify and implement flexible financing solutions with a low cost of capital. We believe that the project's location, projected long mine life, robust cash flow estimates and other economic metrics are well suited to support a long-tenor project financing facility, and, to that end, we look forward to close dialogue with exporting credit agencies, commercial banks and other potential lenders. Demand for copper as a critical metal is outpacing supply within the U.S., and Cactus is well positioned to become a major contributor to the U.S. copper supply chain with an operation projected to produce in excess of 100,000 tonnes of copper cathodes per annum on average over the first 20 years."

David Bellingham, a partner of H&P, commented: "Hannam & Partners is delighted to be partnering with the ASCU management team in its plan to secure project financing for the Cactus project. We are proud to serve as the exclusive financial adviser for this world-class asset, led by a management team and board of directors with a strong track record of achievement. We look forward to playing a key role in advancing the project's financing plan and, in doing so, supporting the production of this critical mineral in the United States."

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 2024 PEA (preliminary economic assessment) 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's 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 markets expertise.

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