Mr. George Ogilvie reports

ARIZONA SONORAN CLOSES C$10.4 MILLION PRIVATE PLACEMENT WITH HUDBAY MINERALS

Further to Arizona Sonoran Copper Company Inc.'s press release dated Dec. 2, 2025, the company has closed a $10.4-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: "The recent financings have provided ASCU with the incremental capital to expand our key 2026 deliverables to include early development activities. Logistically, we will begin advancing the most productive and/or time sensitive activities outlined in the recent prefeasibility study, which will be summarized in a 2026 work plan press release expected early in the new year. We would like to thank Hudbay for its ongoing support of the company. The company now anticipates ending 2025 with just over $100-million (U.S.), providing a strong foundation to advance early development activities and project debt financing in 2026."

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 $86,250,105 bought deal private placement offering (see press release dated Dec. 2, 2025) to maintain a 9.99-per-cent ownership interest in the company. Hudbay subscribed for 3,111,089 common shares of the company at a price of $3.35 per pre-emptive right share for aggregate gross proceeds to the company of $10,422,148. Following these recent equity financings, the company has a cash position of approximately $100-million (U.S.), and 208,656,359 common shares outstanding as of market close yesterday.

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 Cactus project, on privately held land, contains a large-scale porphyry copper resource and a recent 2025 PFS (preliminary feasibility study) 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'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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