Mr. George Ogilvie reports

ARIZONA SONORAN COMPLETES 0.64% BUY-DOWN OF CACTUS PROJECT ROYALTIES

Further to its June 25, 2025, press release, Arizona Sonoran Copper Company Inc. has completed the 0.64-per-cent buydown of certain net smelter return royalties on the Cactus project. Following execution of definitive documentation, total cash payments of $8.91-million (U.S.) were made to RG Royalties LLC, a subsidiary of Royal Gold Inc., and Elemental Royalties Delaware LLC, a subsidiary of Elemental Altus Royalties Corp., upon which the aggregate percentage of the NSR royalties was reduced from 3.18 per cent to a remaining 2.54 per cent.

Nick Nikolakakis, chief financial officer and vice-president, finance, of Arizona Sonoran, commented: "Management's focus is driven by delivering copper price exposure and potential upside to our shareholders. The completion of the buydowns is a natural step for the company to generate potential additional shareholder value and reduce economic encumbrance on the asset as we advance towards project financing. In particular, the 2024 PEA [preliminary economic assessment] demonstrated that the $8.91-million expenditure to complete the buydowns improves the Cactus project valuation at variety of long-term copper price forecasts and therefore increases shareholder value now and in the long run."

The company's subsidiaries, Cactus 110 LLC and Arizona Sonoran Copper Company USA Inc., following execution of definitive documentation, have completed the buydowns as follows: (i) Royal Gold's 2.5-per-cent NSR royalty to 2.0 per cent for $7-million (U.S.); and (ii) Elemental Altus's 0.68-per-cent NSR royalty to 0.54 per cent for $1.91-million (U.S.).

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 recent 2024 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'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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