Mr. George Ogilvie reports

ARIZONA SONORAN CLOSES C$5.8 MILLION PRIVATE PLACEMENT WITH HUDBAY MINERALS

Further to its press release dated June 20, 2025, Arizona Sonoran Copper Company Inc. has closed a $5.8-million non-brokered private placement equity financing with Hudbay Minerals Inc., which exercised its pre-emptive rights under its investor rights agreement (as defined herein).

Arizona Sonoran Copper president and chief executive officer George Ogilvie commented: "We appreciate Hudbay's continued support as a strategic shareholder in our brownfield copper project. Their pre-emptive rights investment reflects confidence in our progress and outlook as we continue to move toward an anticipated final investment decision as early as Q4 2026. With 2025 and 2026 shaping up as pivotal and well-funded years, we are advancing Cactus from the 2024 PEA to prefeasibility study, and laying the groundwork for necessary permit amendments, project financing and 86,000-short-ton life-of-mine average annual cathode production (as projected in the 2024 PEA). This year's work -- including trade-off studies, engineering, drilling, metallurgy and royalty reductions -- we believe has significantly derisked the project. We are grateful to all of our other shareholders for their continuing support as we work to further derisk and unlock the full potential of the Cactus project."

Pursuant to the terms of the investor rights agreement between the company and Hudbay dated Jan. 31, 2025, Hudbay elected to exercise its pre-emptive rights in respect of the company's $51.75-million bought deal public offering (see PR dated June 20, 2025) to maintain a 9.9-per-cent ownership interest in the company. Hudbay subscribed for 2,907,612 common shares of the company at a price of $2.00 per pre-emptive right share for aggregate gross proceeds to the company of $5,815,224. On closing of the Hudbay placement, the company has a cash position of approximately $61.7-million (U.S.), and 177,569,382 common shares outstanding.

The pre-emptive right shares issued under the Hudbay placement are subject to a statutory hold period under applicable Canadian securities laws, expiring four months and one day after closing the transaction. The Hudbay placement remains subject to the final approval of the Toronto Stock Exchange.

About Arizona Sonoran Copper Company Inc.

Arizona Sonoran Copper 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 2024 PEA proposes a generational open pit copper mine with robust economic returns. Cactus is a lower-risk copper developer benefitting 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 markets expertise.

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