Ms. Sarah Armstrong-Montoya reports

CORDOBA MINERALS PROUDLY ANNOUNCES THE COMPLETION OF THE NI 43-101 FEASIBILITY STUDY FOR THE ALACRAN PROJECT IN COLOMBIA

Cordoba Minerals Corp. has completed a feasibility study prepared in accordance with the National Instrument 43-101 -- Standards of Disclosure for Mineral Projects for the company's flagship Alacran project. The board of directors for Cordoba unanimously approved the completion and filing of the feasibility study on Dec. 14, 2023. Information from the feasibility study has been used as the basis for the environmental impact assessment (EIA).

The Alacran project is situated in the municipality of Puerto Libertador, which is approximately 390 kilometres northwest of Bogota, and 160 km north of Medellin in Colombia, amongst 22 mining concessions owned by the company, of which five licences are part of the Alacran project. The company conducted several exploration programs between 2012 and 2023, consisting of geological mapping, geochemical sampling, geophysical surveys and various drilling campaigns, that supported the completion of the 2019 preliminary economic assessment, the 2022 prefeasibility study and the current 2023 feasibility study, which marks the beginning of the development phase for the project.

Key highlights of the feasibility study:

• Initial capital cost (capex) is estimated to be approximately $420.4-million (U.S.) for the construction of a conventional truck-shovel open-pit mine.
• The project is anticipated to hold an after-tax net present value (NPV) of $360-million (U.S.) with an internal rate of return (IRR) of 23.8 per cent and a payback period of three years.
• The project's mine life is projected to be 14.2 years in addition to the estimated two years of construction and preproduction mining, of which freshly mined ore will be stockpiled alongside historical tailings.
• The life of mine (LOM) cash costs for copper, net of byproduct, is $1.35 (U.S.)/pound with byproduct credits at $1.31 (U.S.)/lb, and a total LOM cash cost at $2.66 (U.S.)/lb (cash costs exclude sustaining capital).
• The average mining rate for the project is projected to be 39.5 million tonnes (Mt) of mined material per year of which ore material will be fed to dual processing plants consisting of a main processing facility for fresh and transition material, and a separate wash gravity plant for saprolite ore and historical tailings.
• The company filed the EIA application with the relevant Colombian government authority on Dec. 11, 2023, and was issued the official filing number on Dec. 12, 2023.
• In accordance with the strategic framework agreement signed with joint development partner JCHX Mining Management Co. Ltd., the second instalment of $40-million (U.S.) will be payable by JCHX to the company within 10 business days subsequent to the approval of the feasibility study by the Cordoba board of directors and the filing of the EIA application (see further details below).

A technical report prepared in accordance with NI 43-101 will be filed on SEDAR+ and on Cordoba's website within 45 days of the issuance of this news release. Readers are encouraged to read the technical report in its entirety, including all qualifications, assumptions and exclusions that relate to the details summarized in this news release. The technical report is intended to be read as a whole, and sections should not be read or relied upon out of context.

The information from the feasibility study forms the basis for the comprehensive EIA study which is required by Colombian law, and the official notification of receipt of application from the environmental authority commences the review process of the EIA application. Leading up to the filing of the EIA, continuing communication by means of support and technical workshops with the relevant government authorities has enabled a smooth and expedited application filing.

"The filing of the EIA in conjunction with the completion of the feasibility study for Alacran officially commences the next chapter for Cordoba as we transition from a pure exploration company to a development enterprise, which is a landmark milestone achieved through the unequivocal dedication by the Cordoba team and unwavering support from our shareholders and stakeholders," commented Sarah Armstrong-Montoya, president and chief executive officer of Cordoba.

Project economics largely consistent with prefeasibility guidance

The feasibility study reinforces the majority of metrics and economic figures presented in the 2022 prefeasibility study (PFS).

The initial capex contains direct and indirect costs, including:

• An open-pit mine development, along with the required equipment fleet, and support infrastructures and services;
• A conventional semi-autogenous ball mill crusher (SABC) circuit and flotation process plant producing a copper concentrate and a high-grade gold and silver concentrate with supporting infrastructures and services (see further details below);
• A separate wash gravity plant for the processing of saprolite ore and historical tailings will produce a high-grade Au and Ag concentrate (see further details below);
• A co-disposal waste rock with thickened tailings waste management facility (WMF);
• Other on-site infrastructures including potable and sewage water treatment, electrical substation, and distribution, shops and other general facilities;
• Relevant off-site infrastructures.

The detailed engineering phase for the Alacran project to begin immediately

Detailed mine engineering and design work is planned to commence in early 2024, with early engineering targeting a completion date late in Q2 2024. The feasibility level of engineering work, which depicts approximately 30 to 40 per cent of the total engineering tasks required for the project, had already been carried out to support the capex calculations for the feasibility study.

The feasibility study envisions a relatively low surface footprint with the main infrastructure components comprising the mine and processing plant, site accommodation facilities, a tailings waste management facility, external and internal access roads, power supply and distribution, freshwater supply and distribution, and process water supply and distribution.

The feasibility study concluded that the mine will have an average mining rate of 39.5 Mt of total mined material per year. The extracted ore material from the open-pit mine will use conventional crushing, flotation, regrinding and gravity concentration as the primary method of processing through a dual plant facility featuring:

• A mill throughput rate of 17,600 tonnes/day for the main facility processing the fresh and transition material;
• A gravity wash plant throughput rate of 2,400 t/d of saprolite material and 1,200 t/d of historical tailings material;
• A non-potentially acid-generating (NPAG) waste rock borrow area to provide initial quantity of NPAG waste rock for the WMF embankment;
• A two-year preproduction mining period to coincide with the WMF initial development.

The WMF will consist of a valley-type impoundment to provide permanent storage for co-disposal of potentially acid-generating (PAG) tailings and PAG/uncertain waste rock. Thickened PAG tailings will be delivered to the WMF at a design solids content of approximately 55 per cent by mass. PAG and uncertain waste rock from open pit development will be hauled to the WMF. A portion of the PAG and uncertain waste rock excavated from open pit development will be encapsulated into the perimeter embankments, and the remainder will be placed within the WMF basin and covered with tailings. Saprolite and NPAG waste rock from open-pit mine development will be primarily used to construct the WMF embankments and downstream buttresses.

Selection process for the detailed design and the engineering and procurement contractor(s) has commenced

An in-person workshop to initiate the detailed engineering phase of the Alacran project between Cordoba and JCHX has been scheduled for January, 2024.

On Dec. 8, 2022, Cordoba and JCHX announced that the parties had entered into the strategic agreement for the joint development of the Alacran project, with JCHX purchasing a 50-per-cent ownership interest in the project for an aggregate consideration of $100-million (U.S.) (approximately $134-million). The purchase consideration was agreed to be fulfilled upon the achievement of the following milestones:

1. $40-million (U.S.) upon closing of the transaction;
2. $40-million (U.S.) upon a Cordoba board-approved feasibility study of the Alacran project, and the submission of the EIA to the Colombian government;
3. $20-million (U.S.) upon the approval of the EIA.

According to the strategic agreement, JCHX (or its affiliate) has the right of first offer to bid on the engineering, procurement and construction (EPC) and detailed design agreement contracts, provided that Cordoba has the right to open the process out to competitive tender; of which, JCHX will have the right to match any competitive bid.

Procurement activities will be prioritized to schedule critical items for the construction of the mine and the estimated lead times are as noted herein.

Ms Armstrong-Montoya, president and CEO of Cordoba, further commented, "Given our partner JCHX's deep experience in mine construction, development and contract mining, we are very confident that the company will be able to swiftly compose the most optimal plan and assemble the best possible team to promptly bring the Alacran project on-line."

Construction financing assessment is under way

A comprehensive process to assess financing options for the project has already commenced, with all combinations of financial instruments currently being evaluated to deliver optimum value for the project.

The 2023 feasibility study provides further confidence on the capability of the Alacran project

The results from the 2023 in-fill drilling campaign reinforce the consistency between the 2023 feasibility study and 2022 prefeasibility study mineral resource block models by intersecting grades broadly consistent with those previously predicted.

This infill drilling campaign surpassed its original target of 40,000 metres and completed a total of 44,889.75 metres in 233 diamond drill holes. The results from the infill drilling along with various metallurgical testing further confirmed the continuity of the mineralization zone amongst the Alacran orebody which displays consistent Cu, Au and Ag mineralization.

Symbolic intercepts from the infill drilling campaign include:

• ACD195 at 71.11 metres from 48.89 m to 120 m with 0.98 per cent Cu, 0.34 grams per tonne Au and 6.16 g/t Ag, or 1.15 per cent Cu equivalent (CuEq);
• ACD204 at 130.9 m from 18 m to 148.9 m with 0.4 per cent Cu, 0.13 g/t Au and 3.06 g/t Ag, or 0.47 per cent CuEq, including
  • 1.3 m from 18 m to 49.3 with 0.88 per cent Cu, 0.28 g/t Au, 6.10 g/t Ag, or 1.02 per cent CuEq;
  • 47.5 m from 69.4 m to 116.9 m with 0.38 per cent Cu, 0.15 g/t Au and 3.24 g/t Ag, or 0.46 per cent CuEq.
• ACD204 at 42.8 m intersected a fossiliferous limestone that has been reported in previous holes, where chalcopyrite and pyrite mineralization replace bivalve shells;
• ACD202 at 99.82 m intersected a thin carbonate base metal vein that is approximately one m thick. This was within a 1.2 m interval from 99 m to 100.2 m and returned 2.63 per cent Cu, 2.94 g/t Au and 29.9 g/t Ag.

Lab-scale gravity testing from the fresh, transition, saprolite and historical tailings materials confirmed the recovery of both gold and silver from all material types. While the flotation testing within the fresh and transition material confirmed that copper, gold and silver can be recovered. The combination of the lab and specific gravity testing on the saprolite material confirmed a lower overall density when compared with the material tested during the 2022 prefeasibility study.

Dual processing plants to be erected to increase recovery of metals

The deposit of historical tailings left behind by past illegal miners at the project has been included into the design of the mine operations due to the tailings' containment of economically recoverable Au and Ag. The past illegal miners had operated in this area and processed minerals from the project for over 40 years, resulting in the accumulation of a substantial historical tailings deposit.

As a result, the feasibility study envisages a dual processing plant design for the project. The main processing facility will recover Cu, Ag and Au from the fresh and transition material, while the gravity wash plant will recover gold and silver from the saprolite and historical tailings material. The duel processing design will enhance recoveries for each material type. The saprolite and historical tailings recoveries are noted herein.

On account of this enhanced recovery of precious metals, the main processing plant will produce a Cu and high-grade Ag/Au concentrate, and the wash plant will produce a high-grade gold and silver concentrate. Separating these concentrates allows for an improvement in shipping and treatment charges, given the distinct separation of the two types of concentrates.

Environmental, social and governance (ESG) is a priority at Cordoba

The company continues to recognize the equal importance of ensuring the implementation of ESG principles is to the highest possible standard.

Highlights of continuing initiatives include:

• During the infill drilling campaign in 2022/2023, the project generated approximately 800 jobs for local community members and thereby considerably reducing illegal mining and meaningfully strengthening community relationships.
• To date, the company has trained and upskilled more than 500 community members in partnership with the Colombian government educational training centre, Servicio Nacional de Aprendizaje (SENA), to equip local communities with the necessary skills for an opportunity to work at the project.
• In further partnership with SENA, the company supported and invested in local community members to establish sustainable businesses outside of mining. This included businesses such as uniform manufacturing, supplying of food produce, farming of pig, fish and especially cocoa beans, whereby this local produce of cocoa beans has become part of the supply chain for the largest chocolate company in Colombia as part of a national incentive.
• Continuing detailed informative workshops and agreements with 12 communities regarding the project lead to a successful and expedited completion of the consultation process with the three indigenous communities situated within the area of impact.
• Continual introduction of infrastructure improvements in the municipality, such as roads, medical facility and schools; and provided various essential medical equipment and services for all communities, in particular for malaria.

A clear path forward with focal milestones ahead for the development of Alacran

"We are extremely excited for the completion of the feasibility study and filing of the EIA with the Colombian government. JCHX and Cordoba have been working together closely to ensure a punctual remittance of funds to the company for our investment obligations. We applaud the entire Cordoba team for their tremendous efforts and very much look forward to the next phase of the Alacran project," commented Dr. Huaisheng Peng, president of JCHX Group.

In accordance with the strategic agreement between Cordoba and JCHX, JCHX (or its affiliate) has the right to make an offer to acquire up to 100 per cent of the offtake from the current reserve of the Alacran project, provided that it is paying fair market value and it is the most competitive offer (including a matching right for other third party proposals).

"On behalf of the board of directors, I would like to express our sincerest congratulations and gratitude to the entire Cordoba team for countless hours of dedication and hard work that has gone into reaching this momentous achievement," commented Ms. Armstrong-Montoya, president and CEO of Cordoba. "We also thank the people and government of Colombia for their continual support and confidence in the company, and we look forward to developing a successful project that will bring an abundance of positive economic benefits to Colombia."

Technical information and qualified persons

The updated mineral resource estimate and mineral reserve estimate were completed by Todd McCracken, PGeo, and Joanne Robinson, PEng, of BBA Engineering Ltd., respectively. Mr. McCracken, and Ms. Robinson are considered qualified persons under NI 43-101. The scientific and technical information presented in this news release was reviewed and approved by the qualified persons. Work results provided and undertaken by Cordoba are well documented and collected under the supervision of the qualified persons working for the company, and reviewed by Mr. McCracken, PGeo, and are deemed to be valid and without limitations

The scientific or technical information for the infill drilling in this news release, including the sampling, analytical and test data underlying the information, has been reviewed, verified and approved by Mark Gibson, PGeo, a qualified person for the purpose of NI 43-101. Mr. Gibson is the chief operating officer of Cordoba and chief geophysics officer of Ivanhoe Electric Inc., Cordoba's majority shareholder, and is not considered independent under NI 43-101.

Further information about the feasibility study and accompanying reserve estimate, including a discussion about assumptions, parameters, methods and risks, will be available in the feasibility study technical report expected to be filed on SEDAR+ within 45 days of this news release.

Quality assurance/quality control

Cordoba uses ALS Minerals Laboratory in Medellin, Colombia, ALS Minerals Laboratory in Lima, Peru, and SGS Colombia SAS in Medellin, Colombia. These labs operate in accordance with ISO/IEC 17025 and all are independent of Cordoba.

Cordoba employs a comprehensive industry-standard quality assurance/quality control (QA/QC) program. PQ and HQ diamond drill core is cut lengthwise into three fractions, one-quarter is sent to geochemistry, half is sent to metallurgy and one-quarter is left behind in a secure facility for future assay verification.

Some sample shipments are delivered to ALS Minerals Laboratory in Medellin, Colombia, where the samples are prepared. Analysis occurs at the ALS Minerals Laboratory in Lima, Peru.

Alternate sample shipments are delivered to SGS Colombia in Medellin, Colombia, where the samples are prepared and analyzed.

Both analytical labs determine the gold by a 50-gram fire assay with an atomic absorption spectroscopy finish. An initial multielement suite comprising copper, molybdenum, silver and additional elements are analyzed by four-acid digestion with an inductively coupled plasma mass spectrometry finish. All samples with copper values over 10,000 parts per million and gold greater than 10 ppm are subjected to an overlimit method for higher grades, which also uses a four-acid digest with an inductively coupled plasma emission spectroscopy finish, and fire test with gravimetric finish. Certified reference materials, blanks and duplicates are randomly inserted at the geologist's discretion and QA/QC geologist's approval into the sample stream to control laboratory performance (15 per cent).

About Cordoba Minerals Corp.

Cordoba Minerals is a mineral exploration company focused on the exploration, development and acquisition of copper and gold projects. Cordoba is jointly developing the Alacran project with JCHX located in the department of Cordoba, Colombia. Cordoba also holds a 51-per-cent interest in the Perseverance copper project in Arizona, United States, which it is exploring through a joint venture and earn-in agreement.

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