Mr. George Ogilvie reports

ARIZONA SONORAN INITIATES 2026 WORK PLAN TO ADVANCE CACTUS, AND 2025 RECAP

Arizona Sonoran Copper Company Inc. today outlined the initial steps to demonstrate operational readiness at the Cactus project through its fully financed 2026 work plan and has highlighted the corporate and developmental progress throughout 2025. The company is committed to advancing its brownfield Cactus project to first cathode production in H2 2029. In 2026, Arizona Sonoran anticipates the successful completion of the 2026 workstreams, including permitting, project financing and early development programs, inclusive of long lead procurement and derisking activities ahead of mine development, which will be key to advancing the Cactus project to a final investment decision as early as Q4 2026.

George Ogilvie, Arizona Sonoran president and chief executive officer, commented: "The objectives set forth for 2026 are underpinned by the company's successes in 2025. Through the methodical and disciplined execution of the corporate and project level strategy, we are advancing towards the operational readiness of the project. In 2025, the company welcomed Hudbay as a strategic investor, whilst the company improved shareholder value by buying down all eligible copper royalties on the Cactus project. We also expanded the project footprint, while our prefeasibility study confirmed compelling economics and a mine plan that is deliberately simplified, executable and grounded in conventional open-pit mining and processing practices.

"As we advance the feasibility study to completion, our teams focus is advancing the project to a final investment decision as early as Q4 this year. Included in this year's scope of work, we will seek amendments to key permits, procure long lead items and advance project financing to expected completion to fund the anticipated initiation of construction in 2027. With a strong technical foundation, a cash balance of approximately $105-million to start 2026 and a clear execution pathway, we believe Arizona Sonoran is well positioned to transition from development into construction, and unlock the value of the Cactus project for all stakeholders."

2026 work plan highlights -- fully financed program with approximately $105-million cash balance at Jan. 1 to advance the Cactus project to an eventual final investment decision and to keep on schedule for first cathode production anticipated in H2 2029. The 2026 budget of $75-million (U.S.) includes the following:

1. Early development activities -- procurement, recruitment and derisking programs targeting first cathode production in H2 2029;
2. Feasibility study -- completion of a feasibility study (FS) is expected in H2 2026, with M3 Engineering as lead consultant;
3. Geological and geotechnical programs -- a minimum of 29,200 feet (8,900 metres) infill to measured drilling at Parks/Salyer, and other programs in preparation of operational readiness;
4. Permitting and land -- major permit amendments are anticipated to be received in H2 2026, including the aquifer protection permit, industrial air permit and mined land reclamation permit;
5. Project financing -- the company is advancing the debt financing package to targeted completion post-FS and is exploring available government financial support options;
6. Environmental, social and governance -- a focus on engagement with the local community to foster its continuing support.

2026 early development activities -- The objectives of the 2026 work program include the execution of scopes which are in alignment with the project's master schedule and the target of first sustainable cathode production in H2 2029. To date, the program is largely comprising long lead procurement and derisking activities. The Cactus project team has initiated engineering with Arizona Public Service with respect to procurement of transformers and switch gear to increase the power capacity at site and eventually install new power lines and relocate the substation to the northwest corner of the Cactus project site. Power line engineering is expected to expand on the technical drawings from the PFS technical report issued in November, 2025. The power line reroute has an anticipated completion in early 2028 while the substation is anticipated in early 2029. The current substation will continue to provide power to the offices while the reroute is taking place.

The project team is expected to expand in 2026 with a focus on safety, human resources, administrative support to support operational readiness and organizational development.

Feasibility study -- The FS workstreams began in November, 2025, with M3 Engineering re-engaged as lead engineer, a decision supported by M3's strong project management skills and working knowledge of the Cactus project. Workstreams will further advance the engineering and execution detail of Cactus as a conventional two open-pit heap leach and solvent/extraction electrowinning (SX/EW) copper project, targeting the first cathode in H2 2029. In addition to M3, technical consultants advancing the FS include:

• AGP Mining Consultants -- mining and mineral reserves;
• Clear Creek Associates -- hydrology study work;
• ALS GeoResources -- geology and mineral resources;
• Geo-Logic Associates -- heap leach design and optimization;
• Call and Nicholas Inc. -- mine geotechnical study work;
• Partners in performance -- real-time modelling and optimization.

Work programs with respect to the FS will include a mine geotechnical study, a heap leach facility design, geotechnical reviews, continuing metallurgical programs and engineering work, with the intent of improving operational readiness of the Cactus project. Water reviews will include the storm water management system, a dewatering well around the planned Parks/Salyer pit and the inclusion of three monitor wells around the contemplated heap leach pad; minimal ground water is expected, as per current work programs and as described in the PFS. The FS is expected in H2 2026, with detailed engineering to begin immediately afterward.

Outside of the PFS and pending FS, future mine life extension opportunities include further infill drill conversion from the inferred category at Cactus West and East, and inclusions of the Cactus East underground mineral resources and the eventual inclusion of the primary sulphide mineralization.

Geological and geotechnical programs -- In keeping with the strategy of preparing for operational readiness, the geology and exploration team will focus on completing infill to measured drilling, geotechnical and hydrogeological drilling, and condemnation drilling in the first half of the year, in support of the planned FS completion in the second half. The team focus in the second half of the year will be dedicated to geologic operational readiness for an eventual final investment decision and commencement of construction.

The infill to measured drilling program initiated mid-2025 is continuing. Ninety-one holes for nearly 70,000 ft (21,335 m) were completed in 2025 and an additional minimum of 30 holes for 22,000 ft (6,705 m) are planned for 2026. The program will define the first 2.5 years of mining over drill spacing of 125 ft (38 m) with the goal of defining proven mineral reserves. The drilling also serves as the basis for mine engineering studies associated with the FS, including updated geologic modelling and mapping, and density measurements.

Geotechnical and hydrological drilling programs are based on PFS recommendations. Geotechnical drilling around the pit and separately, at depth, may help gain access to additional mineral resources through steepening of pit wall slopes and/or by alleviating the imposed geotechnical step back from the basement fault. Hydrogeological drilling in the contemplated Parks/Salyer open pit area will help with prediction of the dewatering rates required for open pit operations and provide data to the geotechnical team for further evaluation of pit wall slope stability.

Condemnation drilling under planned future mine facilities is currently under way with one rig, to complete 13 holes (7,000 feet/2,130 metres) in the northwest and southeast of the project property. One drill hole completed in 2025, intersected bedrock at 117 ft (36 m) and stayed in barren upper plate intrusive rocks to its total depth of 3,195 ft (974 m).

Exploration programs are currently being considered to continue expanding access to the copper porphyry along the 5.5-kilometre mine trend. Evaluation of the NE extension (northeast of Cactus East) is currently under way, with relogging of historical drill core and reassaying of existing sample pulps from that drill core planned. Historical assays included only total copper, while reassaying will include total copper, soluble copper and molybdenum. In early 2023, ECN-128 was drilled into the NE extension to confirm historical drilling completed by ASARCO. ECN-128 intersected 990 ft (302 m) mostly continuous mineralization from a depth of 997 ft (305 m) with an average grade of 0.46 per cent CuT (see press release dated March 20, 2023, for details).

Confirming operational readiness is a top priority for the Cactus project, and key for the geology team in H2 2026. Under the guidance of consulting senior resource geologist (Anthony Bottrill) and independent geologic QP (Allan Schappert), the development of production ore control and mine-to-process models will begin, including advanced geologic modeling of the lithology, alteration, structure and ore type models.

Permitting and land -- Following the 2025 PFS, the company began the permit amendment process for the industrial dust permit, which was received on Jan. 7, 2026, Aquifer protection permit (APP), industrial air permit and mined land reclamation permit (MLRP), as well as a modification to the general plan amendment (GPA) and planned area development (PAD) with respect to, the additional lands acquired in 2025. These permit amendments are anticipated to be received in H2 2026 which would then render the project fully permitted under the pending FS. Land payments in 2026 will include $7-million (U.S.) in cash and shares to the vendors of the lands purchased in 2025 (see press release dated Sept. 2, 2025).

The 7,843-acre Cactus project land package supports the anticipated development and operations plan for the Cactus project as outlined in the PFS.

Project financing -- The company, with Hannam & Partners as debt financial advisers, is advancing the project debt financing with the intent to secure the lowest cost of capital available to the company. A number of banks, export credit agencies and project financing institutions are positively engaged in project due diligence and discussions with the company, with firm commitments targeted following the issuance of the FS in H2 2026. Positive conversations with potential financiers are supported by the highly compelling economics outlined in the Cactus 2025 PFS.

The company is also exploring other project finance opportunities including potential government grants and loans, as part of the overall financing package for the Cactus project.

Environmental, social and governance

Having completed the PFS in November, the company is focused on updating and expanding on its ESG program, based on the PFS mine plan. An updated life cycle analysis will begin later in the year, and an updated economic impact report to the city of Casa Grande is expected in H2 2026. Additionally, the project team plans to complete a fourth round of polling within Pinal county to update the 2024 polling results which showed 87-per-cent support for the restart of the Cactus project at that time.

Furthermore, the company will advance work on developing an internal environmental and social management system for advancement of the Cactus project through eventual construction.

Key 2025 achievements

1. No lost-time incidents.

2. Approximately $255.3-million demand for Arizona Sonoran shares via three financings and two block trades:

• $21.6-million strategic private placements with Hudbay Minerals Inc. and a corresponding investor rights top-up private placement to Nuton LLC, a Rio Tinto Venture (see PR dated Jan. 31, 2025);
• $57.6-million bought deal financing (see PR dated June 20, 2025), including subsequent $5.8-million Hudbay investor rights top-up private placement (see PR dated July 10, 2025);
• Approximately $79.4-million in two block trades completed at $2.50 (September) and $2.32 (July), to place the Tembo Capital position with new and supportive institutional shareholders;
• $96.7-million bought deal private placement (see PR dated Dec. 2, 2025), including subsequent $10.6-million Hudbay investor rights top-up private placement (see PRs dated Dec. 2 and Dec. 12, 2025).

3. Exploration focused on the definition of mineral reserves, including the required infill to indicated drilling at Parks/Salyer South:

• 203,678 ft (62,081 m) of completed drilling in 2025;
• Announced a 51-per-cent increase to the mineral resource estimate in the measured and indicated (M&I) category. The M&I increased to 11 billion pounds of copper at a grade of 0.48 per cent Cu, with an additional inferred mineral resource estimate of 1.7 billion pounds at a grade of 0.37 per cent Cu (see PR dated Sept. 16, 2025);
• Defined a 5.3-billion-pound mineral reserve estimate at a grade of 0.52 per cent CuT in the Cactus project prefeasibility study (PFS; see PR dated Oct. 20, 2025).

4. Compelling prefeasibility study envisaged conventional open pit mining with copper cathode production of 113,000 short tons per annum over the first 10 years of the 22-year project life (see PR dated Oct. 20, 2025 (PFS technical report)), with the following estimated economics:

• Profitability index of 2.4 times and industry leading capital intensity of $10,894/tonne;
• After-tax project economics at $4.25 (U.S.)/pound copper:
  • Net present value (8 per cent) of $2.3-billion (U.S.);
  • Internal rate of return of 22.8 per cent;
  • Initial capex (capital expenditure) of $977-million (U.S.) over a two-year construction period;
  • Free cash flow (unlevered) of $7.2-billion (U.S.);
  • $1.62 (U.S.)/lb C1 cash cost and $2.01 (U.S.)/lb all-in cost (AIC).
• Economic sensitivities.

5. Derisked the Cactus project ahead of PFS, through land acquisitions, buying down all eligible net smelter royalties:

• Bought down Bronco Creek NSR (1.0 per cent for $500,000 (U.S.)) (see PR dated Jan. 6, 2025);
• Bought down Royal Gold and Elemental Royalty NSR (0.64 per cent for $8.91-million (U.S.)) (see PR dated Aug. 13, 2025);
• Acquired 2,123 acres of land, increasing total landholdings to 7,843 and satisfying mine plan land requirements (see PR dated Sept. 2, 2025).

6. Appointed Hannam & Partners as debt project financial advisers (see PR dated June 2, 2025).

7. ESG and permitting program fosters community and regulatory backing for restarting the Cactus project:

• Pinal County Public Works utilized the Cactus project alluvium for the development of Papoose Road improvements (see Casa Grande Dispatch May, 2025);
• Arizona Sonoran's Travis Snider, vice-president, sustainability and external relations, was appointed as chair of the Casa Grande Chamber of Commerce for 2025;
• Initiated a scholarship with Barrett, the Honors College at Arizona State University to finance mining-related graduate studies;
• Various continuing study programs with University of Arizona.

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 2025 PFS 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.

We seek Safe Harbor.