Mr. George Ogilvie reports

ARIZONA SONORAN GRANTED DUST PERMIT FOR THE CACTUS PROJECT

Arizona Sonoran Copper Company Inc. has been granted the dust permit from the Pinal County Air Quality Division and based on the prefeasibility study (PFS) issued in November, 2025.

Travis Snider, vice-president, sustainability and external relations at Arizona Sonoran, commented: "The dust permit is the first permit to be received post-PFS, which outlined annual production of 113,000 short tons of copper cathode over the first 10 years of the 22-year project life. The team has also begun amending the aquifer protection permit (APP), industrial air permit and mined land reclamation permit (MLRP), which are all led by Arizona state regulators. We anticipate the APP and industrial air permits to be in hand mid-year, while the MLRP should be completed later this year in conjunction with an expected final investment decision. Our team is committed to the development of the Cactus project and we look forward to responsibly advancing the Cactus project towards restart, with the benefit of shareholders, stakeholders and the community in mind."

Permitting background

Following the initial public offering in late-2021, the company fully permitted the Cactus project, which at that time envisaged 28,000 short tons per annum of copper cathode within an 18-year mine life. By 2023, the permits received included the initial APP and MLRP, as well as the industrial air permit, which was amended in 2024. Today, the conceptual production profile has been simplified and grown substantially, with the inclusion of the Parks/Salyer mineral body as an open pit, alongside the Cactus project open pit, warranting further amendments to the permits.

Arizona Sonoran is moving forward to reapply for its amended permits, with targeted completion in 2026, ahead of the feasibility study (FS). Assuming the final FS has robust project economics and project financing has been secured, the Cactus project is expected to be fully permitted for the final investment decision as early as the fourth quarter of this year.

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 Cactus project, on privately held land, contains a large-scale porphyry copper resource and a recent PFS proposes an 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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