Mr. Dan Symons reports

C3 METALS REPORTS MAIDEN RESOURCE OF OVER 560 MILLION LBS. OF CONTAINED COPPER, 320,000 OZ. GOLD IN FIRST OF 13 SKARN TARGETS AT JASPEROIDE, PERU

C3 Metals Inc. has released an initial mineral resource estimate for the Montana de Cobre zone (MCZ) on its 100-per-cent-owned Jasperoide project in southern Peru.

The MCZ is the first copper-gold skarn zone that C3 Metals has systematically explored along a 28-kilometre belt (the Jasperoide belt) that extends along the eastern side of the company's 300 square km (30,000-hectare) mineral concession and application package. Thirteen separate skarn occurrences have been mapped along the Jasperoide belt to date.

A second, parallel belt of copper-gold mineralization (the Khaleesi belt) is located approximately 10 km west of the Jasperoide belt. The Khaleesi belt hosts the company's 100-per-cent-owned Khaleesi porphyry and skarn project. The company is currently working through the declaration de impacto ambiental (DIA) permitting process to enable exploration drilling at Khaleesi.

MCZ mineral resource estimate highlights:

• MCZ mineral resources breakdown:
  • Measured and indicated mineral resources -- 51.9 million tonnes (Mt) at 0.50 per cent total copper and 0.20 gram per tonne gold for 569.1 million pounds (Mlb) of copper and 326,800 ounces of gold;
  • Measured mineral resources -- 28.6 Mt at 0.60 per cent total copper, 0.24 g/t gold for 380 Mlb of copper and 218,200 ounces of gold;
  • Indicated mineral resources -- 23.3 Mt at 0.37 per cent total copper, 0.15 g/t gold for 189.1 Mlb of copper and 108,600 ounces of gold;
  • Inferred mineral resources -- four Mt at 0.32 per cent total copper, 0.11 g/t gold for 28.3 Mlb of copper and 14,600 ounces of gold.
• Mineral resources are reported based on a conceptual constraining pit shell (CCPS) to demonstrate reasonable prospects for eventual economic, open-pit extraction. Assumptions include $3.75/lb copper price and an estimated 75-per-cent copper recovery. Calculated break-even cut-off grade is 0.14 per cent copper.
• The MCZ deposit comprises a shallow-dipping copper-gold skarn that is oxidized to greater than 200 metres vertical depth and with a 50 m to 250 m true thickness.
• Copper oxide mineralization at the MCZ increases significantly with depth, with multiple drill holes intersecting 30 m to 80 m thick zones of greater than 2 per cent copper oxide mineralization.

Dan Symons, president and chief executive officer, stated: "We are very pleased to announce this significant milestone of our company. The maiden mineral resource estimate at the MCZ demonstrates a near-surface, high-grade, copper-gold oxide deposit that we expect will benefit from a very low strip ratio. There is also potential to extend the MCZ to the north, south and west. Importantly, the MCZ is the only prospect to be systematically drilled out of 13 prospects on the 28 km long Jasperoide belt. As demonstrated by the MCZ, we see a tremendous opportunity to delineate more of these near-surface targets along the belt."

Mr. Symons added: "It is important to emphasize the strategic location of C3 Metals' 300 square km concession package within the mineral district and to recognize the undrilled potential of the company's untested Khaleesi skarn and porphyry belt on the western side of our property. We have confirmed outcropping porphyry, skarn and epithermal mineralization along the parallel Khaleesi belt and intend to drill test these targets once drill permits are in hand. It is clear that we have assembled a very large, strategic land package in Peru -- the second-largest copper-producing jurisdiction in the world."

MCZ is a near-surface copper-gold skarn-type deposit with well-developed copper oxide mineralization to over 200 m in vertical depth. C3 Metals' approximate 300 square km mineral concession package is located within the Andahuaylas-Yauri skarn/porphyry belt approximately 45 km east of MMG's Las Bambas mine and First Quantum Minerals' Haquira project, 40 km northwest of Hudbay's Constancia and Pampacanchca mines, and 100 km northwest of Glencore's Antapaccay mine.

The mineral resource estimate is based on a resource model developed during February and March, 2023, by Independent Mining Consultants Inc. (IMC) under the direction of Michael G. Hester, FAusIMM, a qualified person under National Instrument 43-101. The resource model incorporates all available drilling information and an updated geologic interpretation. In total, 103 drill holes and 24,218 m of drilling were completed in the MCZ area in which the maiden mineral resource estimate was prepared.

The measured, indicated and inferred mineral resources reported herein are contained within a floating cone pit shell to demonstrate reasonable prospects for eventual economic extraction to meet the definition of mineral resource in NI 43-101. An NI 43-101 technical report will be filed within 45 days.

The attached table shows a sensitivity analysis of the mineral resource estimate to various total copper cut-off grades. The base case mineral resource estimate is at a cut-off grade of 0.14 per cent total copper, which is the estimated break-even cut-off grade based on a copper price of $3.75/lb and the unit costs and recovery parameters used for this estimate.

C3 Metals exploration potential in Peru

The MCZ deposit has a high-grade core, comprising a measured and indicated resource of 15.9 Mt at 1.1 per cent copper and 0.35 g/t gold (0.45 per cent copper cut-off). This enriched zone is located within the CCPS, which shows a potential low strip ratio. The higher-grade core at MCZ and the proximity of nearby copper mines and development projects provide the company with various development options. These include the potential to develop a stand-alone SX/EW (solvent extraction and electrowinning) mining operation that exploits higher-grade supergene copper mineralization early on, or potential partnerships with nearby mines and development projects.

The MCZ deposit is strategically located within 60 km of two large-scale heap leach copper development projects at Haquira (First Quantum Minerals) and Cotabambas (Panoro Minerals) and two large-scale copper flotation mines at Las Bambas (MMG) and Constancia (Hudbay Minerals). Production at Haquira is planned from near-surface secondary copper mineralization that is amenable to SX/EW heap leaching (like MCZ) and from primary copper-gold mineralization amenable to a concentrator flotation circuit. Panoro is evaluating an SX/EW heap leaching operation that supports a 17-year mine life.

There are multiple copper-gold skarn, porphyry and epithermal prospects north, west and south of the MCZ deposit that will be evaluated as drill permits are finalized. A total of 13 skarn prospects have been identified and are located along the northeast-southwest-trending Jasperoide belt that extends for over 28 km along C3 Metals' eastern mineral concession package.

On the western side of C3 Metals' mineral concession package is outcropping porphyry, skarn and epithermal-style mineralization, along the Khaleesi belt, which is a parallel copper-gold mineralized belt located approximately 10 km west of the Jasperoide belt.

Future targets for drill testing

Jasperoide belt:

• The Jasperoide belt comprises copper and gold mineralization that is broadly contemporaneous with magnetite-dominated iron-rich skarns, epithermal veins and an interpreted porphyry.
• The 28 km belt extends 15 km north and 13 km south of the MCZ deposit.
• Thirteen copper-gold mineralized skarn prospects have been identified to date.
• Informal miners are actively exploiting a three km area of near-surface magnetite/garnet skarn with copper oxide and sulphide mineralization.

Khaleesi belt:

• The parallel porphyry, skarn and epithermal belt located 10 km west of the MCZ deposit and the Jasperoide belt.
• Outcropping porphyry, skarn and epithermal copper and gold mineralization has been identified.
• Discrete zone of porphyry and skarn alteration measuring 1,000 m by 1,000 m, where surface samples have confirmed high-grade copper-gold mineralization in porphyry, skarn and polymetallic vein-style mineralization.

Next steps

The MCZ was the first skarn target of 13 identified prospects to be drill tested along the 28 km Jasperoide belt. Extensive additional mineralization has already been identified on C3 Metals' landholdings. The company believes the MCZ maiden mineral resource estimate represents only a small portion of the broader discovery potential on the property.

A modification to the existing Jasperoide drill permit is under way to extend the permitted area and provide additional drill platforms and holes. The company is also advancing drill permits for its highest-priority targets on the Khaleesi belt.

Metallurgical test work on the MCZ deposit has commenced. Results from initial mineralized materials leach characteristics are expected in the second half of 2023. The company envisions the MCZ deposit as being potentially amenable to a low-strip open-pit, copper heap or vat leach operation given the high-grade, near-surface nature of the deposit.

Other information

The mineral resources are classified in accordance with the May, 2014, Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards for mineral resources and mineral reserves adopted by the CIM Council in accordance with the requirements of NI 43-101. The mineral resource estimate reflects the reasonable expectation that all necessary permits and approvals will be obtained and maintained.

There is no guarantee that any of the mineral resources will be converted to mineral reserve. There is also no guarantee that any of the inferred mineral resources will be upgraded to measured or indicated mineral resources or to mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The inferred mineral resources included in this estimate meet the current definition of inferred mineral resources. The quantity and grade of inferred mineral resources are uncertain in nature and there has been insufficient exploration to define these inferred mineral resources as an indicated mineral resource. It is, however, expected that the majority of inferred mineral resource could be upgraded to indicated mineral resource with continued exploration.

The project is subject to the normal risks that mining projects face, including changes to metal prices, changes to government regulations, social risks, uncertainty in mineral resource and recovery estimates, permitting risks, and financing risks.

Metallurgical work on the project is limited at this time. The main copper minerals identified in the resource area are amenable to dissolution in sulphuric acid and recovery by solvent extraction/electrowinning methods. There is a risk that the gold metal reported in the mineral resource estimate will not be recovered if the processing method ultimately chosen is conventional heap leaching with sulphuric acid.

Data verification

The sampling data used for the mineral resource estimate were verified by IMC. A substantial portion of the database was compared with original assay certificates. There were no limitations of the verification process. IMC is of the opinion that the database is acceptable for the purpose of the mineral resource estimate.

Qualified persons

Stephen Hughes, PGeo, is vice-president, exploration, and a director for C3 Metals and is a qualified person as defined by National Instrument 43-101. Mr. Hughes has reviewed the technical information in this news release and approves the written disclosure contained herein. The qualified person for the mineral resource estimate is Michael G. Hester, FAusIMM, of Independent Mining Consultants.

About C3 Metals Inc.

C3 Metals is a junior minerals exploration company focused on creating substantive value through the discovery and development of large copper and gold deposits. The company holds the 26,800-hectare Jasperoide project in the prolific high-grade Andahuaylas-Yauri porphyry-skarn belt of southern Peru. Mineralization at Jasperoide is hosted in a similar geological setting to the nearby major mining operations at Las Bambas (MMG), Constancia (Hudbay) and Antapaccay (Glencore). C3 Metals also holds a 100-per-cent interest in five licences covering 20,700 hectares of highly prospective copper-gold terrain of Jamaica. Mining dates to the 1500s and 1800s when Spanish and British mining companies targeted high-grade copper in veins. The company also holds a 2-per-cent royalty in Tocvan's Rogers Creek project.

Technical program

C3 Metals adheres to a strict quality assurance/quality control protocol for handling, sampling, sample transportation and analyses. Chain-of-custody protocols are designed to ensure security of samples until their delivery at the laboratory.

Samples are analyzed by four-acid digest inductively coupled plasma mass spectrometry finish for 63 elements, including pathfinder rare earth elements with pulps from samples reporting greater than 1 per cent copper being reassayed by the ore-grade method. Gold is analyzed by 30-gram fire assay atomic absorption spectroscopy finish, with pulps from samples reporting greater than five parts per million reassayed by one-kilogram screen fire assay. The company inserts blanks and certified reference standards in the sample sequence for quality control.

We seek Safe Harbor.