Mr. George Ogilvie reports

ARIZONA SONORAN ANNOUNCES PRIVATE SALE OF SHARES BY TEMBO CAPITAL

On July 11, 2025, Tembo Capital Elim Co-Investment LP sold 17.5 million common shares of Arizona Sonoran Copper Company Inc. to Scotia Capital Inc. in a bought deal arrangement which, Arizona Sonoran Copper Company understands, closed on July 14, 2025. The company further understands that Scotia, in turn, sold the Tembo shares to various institutions in a secondary market transaction, also completed on July 14, 2025. As a result of the Tembo sale, Tembo Capital's aggregate common share ownership in Arizona Sonoran was reduced from 18.8 per cent to 9.0 per cent and, as a result, the investor rights agreement between the company and Tembo concurrently terminated. On July 11, 2025, Tembo issued a corresponding press release and is expected, in due course, to file a corresponding early warning report under the company's issuer profile on SEDAR+. The company did not receive any proceeds from the Tembo sale. Tembo's nominee to the Arizona Sonoran board of directors, Mark Palmer, resigned as director of the company, effective July 15, 2025.

Tembo separately advised Arizona Sonoran of its continuing support for the company and its development of the Cactus project.

Arizona Sonoran president and chief executive officer George Ogilvie commented: "This sale is a win-win for ASCU and Tembo as ASCU matures into a meaningful copper developer in the United States. Tembo's investment in ASCU has demonstrated a significant return for its investors from both this sale and the royalty monetization by sale to Royal Gold earlier this year. For ASCU shareholders, we see this successful trade by Tembo as improving trading liquidity in the company's shares and, in turn, providing a point of entry for a new, broader group of what we understand to be institutional investors to participate in the development of the Cactus project."

Mr. Ogilvie continued: "Tembo has been an important partner to ASCU since our acquisition of the historic Sacaton mine, which we renamed to the Cactus project in 2020. We are thankful for Tembo's financial support and technical expertise over the years, including the guidance provided on our board of directors through Tembo's nominee, Mark Palmer. We wish Mark and Tembo success, both as a continuing shareholder of ASCU and in their other endeavours. We look forward to Tembo's continued participation in our future successes, particularly as we remain on track to issue the pending Cactus prefeasibility study within the next few months."

David Street, chief executive officer of Tembo Capital Management, commented: "Tembo Fund III has been heavily involved in the acquisition and funding of the Sacaton project since 2020 when ASCU was a private company. The company is now in a very strong position with a clear path to development and a strong balance sheet. Tembo will remain a significant shareholder in the company and we wish George and the team every success as they progress with the upcoming PFS on Cactus and advance this robust copper project in a Tier 1 jurisdiction towards production."

As a result of the completion of the Tembo sale, Tembo's investor rights agreement with the company concurrently terminated and its nominee on Arizona Sonoran's board of directors, Mr. Palmer, resigned as director of the company, effective July 15, 2025. The company's board of directors is assessing the resulting vacancy and may, in due course, undertake a process to identify and potentially appoint a replacement.

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 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 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.

We seek Safe Harbor.