Mr. Guy Goulet reports

SANTANDER MINE EXPLORATION AND DRILLING CAMPAIGN UPDATE

Cerro de Pasco Resources Inc. has provided an update on its drilling and exploration campaign at its wholly owned Santander mine in Peru.

Highlights:

• New La Cunada zone in the Santander pipe: The zone starts at the surface of the historic open pit (4,580 masl (metres above seal level)) down to the bottom of the pit (4,380 masl), and then continues downward to the historic underground operation at level 4,220 (where the Upper zone starts).
• Positive results were achieved from recent relogging and digitization of historical data relating to the La Cunada zone, comprising 12 historic drill holes totalling 1,380 metres and 123 composites, together with 32 historic plans; and modelling of mineralized domains (high-grade, low-grade, skarn core) as well as depletion solids from previous mining.
• The La Cunada zone in the Santander pipe involves vertical mineralization of approximately 200 metres and has the potential to add two million to three million tonnes with between 3 and 4 per cent zinc grade, 0.3 to 0.4 per cent lead, 0.6 to 0.7 ounce/ton silver and 0.10 to 12 per cent Cu. The La Cunada zone, for practical purposes, is divided into two zones: (1) superficial zone La Isla, consisting of a remnant volume from old open-pit mining; and (2) La Cunada-underground, which corresponds to historic underground mining.
• The company plans to develop an exploration ramp from the surface whereby the cost will be offset over time through replacement of the previously planned shaft/winch for the Santander pipe area. Through this exploration ramp, Cerro expects to have access to exposed skarn mineralization inside the open pit by Q4 2024.
• The 2023 Puajanca drilling campaign comprised eight boreholes totalling 2,208 metres of drilling. Highlights include:
  • The drill holes SAN-0295 and SAN-0297 intersected 39.6 metres grading 2.92 per cent zinc, 0.81 per cent lead, 0.02 per cent copper and 1.60 opt silver;
  • Over all, the Puajanca drilling campaign intercepted 61.8 metres of mineralization with average grades of 2.96 per cent zinc, 0.98 per cent lead, 0.03 per cent copper and 1.8 opt silver.

Guy Goulet, Cerro's chief executive officer, commented, "The new discoveries at Puajanca which is within close proximity to the existing operation and the addition of La Cunada potential zone to the Santander pipe package are exciting developments, that not only benefit our Pipe project but also show the potential of our 56,000-hectare land package."

Jorge Lozano, Cerro's chief operating officer, commented: "Delineating further zones of underground mineral resources potential and providing access for future mining, while at the same time improving on the overall capex requirement for the Pipe project, will add significant value to an already attractive project. The exposed skarn material at the bottom of La Cunada open pit will allow us to significantly optimize the timing of Pipe production, as well as optimizing the project economics for 2024, improving Santander's current outlook in the current market environment and through the construction phase."

The Santander pipe -- La Cunada zone:

• In the 2023 Santander pipe preliminary economic assessment, the Upper zone was recognized as a highly important target with significant potential to add three million to four million tons of resource with 4 to 6 per cent Zn grade. The Upper zone is supported by extensive drilling information that is 44.5 per cent higher in drilling density than the main Santander pipe. However, due to the water levels in the Upper zone, the validation of the depletion sold from previous mining activities under National Instrument 43-101 standards was not possible.
• An area with similar potential to the upper zone of the Santander pipe that was not included in the PEA is the La Cunada zone. The zone starts at surface of the historic open pit (4,580 masl) down to the bottom of the pit (4,380 masl), and then continues downward to the historic underground operation at level 4,220 (where the upper zone starts). Cerro has the new La Cunada zone, the Upper zone, Main Pipe and Pipe North extension.
• Recent information supporting the La Cunada zone includes (new to the Santander pipe project):
  • Digitization of 32 historical plans;
  • Compilation and relogging of data from 12 historical drill holes, 1,380 metres, 123 composites;
  • Modelling of mineralized domains (high-grade, low-grade, skarn core) as well as depletion solid from previous mining.
• The La Cunada project can be seen in satellite images; for practical purposes, La Cunada is divided into two zones: (1) superficial zone La Isla, consisting of a remnant volume of the old open-pit mining; and (2) La Cunada-underground, which corresponds historic underground mining. Regarding La Isla, which is primarily the exposed skan core is located at the bottom of the old open pit which was developed of annular form, concentrating on high-grade orebodies (greater than 8 per cent Zn) leaving a massive core of skarn, in addition to relicts in sectors of the periphery, this material (on the surface) involves approximately 160,000 tons of accessible material.
• The La Cunada zone drillhole data are summarized herein.

Open-pit exposed core La Isla:

• This superficial new zone has the potential to add 150,000 to 170,00 tons with between 3 to 4 per cent Zn grade, 0.3 to 0.4 per cent Pb, 0.6 to 0.7 oz/t Ag and 0.10 to 12 per cent Cu.

• In summary, the new La Cunada zone has the potential to add 2.5 million to three million tonnes between 3 and 4 per cent Zn grade, 0.3 to 0.4 per cent Pb, 0.6 to 0.7 oz/t Ag and 0.10 to 12 per cent Cu, which would make it comparable in size with the Upper zone with slightly lower grades.

2023 La Cunada outlook:

• Cerro considers the La Cunada zone as a significant contributor to the initial capex optimization of the Santander pipe project. The capex trade-off of the ramp from surface versus the proposed shaft/winch clearly lies in favour of the ramp whereby the new potential resource can provide initial capex relief for the Pipe project while in construction phase.
• Cerro requested in the technical sustainability report (ITS) the exploration authorization for the projects La Cunada and Pipe North extension, with this authorization. The company plans to develop an exploration ramp from the surface, and expects to start in Q3 2023; the engineering and conceptual designs are multipurpose (services and exploratory drilling), this will offset the cost of the project's shaft/winch, thus optimizing the Santander pipe mining in cost and time.

2024 La Cunada outlook:

• By 2024 the plan is to set up the water management system for the Santander pipe which includes rehabilitating the existing drainage tunnel at the bottom of the open pit. With the infrastructure in place, Cerro will continue to develop the ramp downward until reaching the heart of the in situ Pipe resource.
• As the ramp progresses downward, Cerro plans to execute 2,500 to 3,000 metres of underground exploration drilling per month. This cost is offset by the reduction of infill drilling at Magistral.

Puajanca drilling campaign:

• The Puajanca prospect is located approximately three kilometres north-northwest of the Santander pipe and approximately 800 metres of the Magistral area. Mineralization is strongly controlled by the axial plane of an anticline that also hosts the mineralization in the Santander pipe. This feature is observed at different scales, where fluid circulation is focused along the axial plane of the folds.
• The 2023 Puajanca drilling campaign comprising eight new boreholes totalling 2,208 metres of new drilling information.
• The new high-grade mineralization includes drill hole SAN-0295 and SAN-0297 area that intersected 39.60 metres grading 2.96 per cent zinc, 0.81 per cent lead, 0.02 per cent copper and 50.5 grams per tonne silver.
• Over all, the Puajanca drilling campaign intercepted 61.8 metres of mineralization with average grades of 2.96 per cent zinc, 0.98 per cent lead, 0.03 per cent copper and 56.06 gpt silver. Sample results from Santander mine's internal laboratory contracted through SGS in compliance with international quality assurance/quality control protocols.
• Between 2010 and 2011, 14 drilling explorations have been executed.
• Mantles and orebody structures containing Zn-Pb-Ag have been recognized. Twenty-seven boreholes (7,803.2 metres) have been drilled in the Puajanca prospect.
• Cerro considers that what has been identified to date may be part of a much larger system at depth. Also, Cerro considers Puajanca a near-term target. It is located 800 m from Magistral, which is close to the Pipe North extension, which allows for a reduction in cost requirement by also leveraging infrastructure already installed at Magistral. Cerro's strategic goal is to bring Puajanca as another area of operations by 2026/2027.
• The current independently recognized mineral resources of the Puajanca project were developed by SRK NI 43-101, 2016.

• The potential value of Puajanca involves many technical and strategic aspects, including: (1) the current mineral resource estimate, and (2) the geological potential and location (that is, place value), due to its proximity to the Romina project (owned by Volcan).

Technical information

Mr. Lozano, MMSA, qualified person and chief operating officer for Cerro, has reviewed and approved the scientific and technical information contained in this news release. Mr. Lozano is a qualified person for the purposes of reporting in compliance with NI 43-101.

About Cerro de Pasco Resources Inc.

Cerro de Pasco Resources is a mining and resource management company, with the goal to become the next mid-tier producer of base metals in Peru. Cerro is currently engaged in mining, developing and exploring its wholly owned 6,000-hectare Santander mine in the highly prospective Antamina-Yauricocha skarn corridor, located 215 km from Lima. Cerro is also focused on the development of its principal 100-per-cent-owned assest, the El Metallurgista mining concession, comprising mineral tailings and stockpiles extracted from the Cerro de Pasco open-pit mine in central Peru. The company's approach at El Metalurgista entails the reprocessing and environmental remediation of mining waste and the creation of numerous opportunities in a circular economy. Cerro was founded on clear objectives, to engender long-term economic sustainability and benefit for the local population, from an economic, social and health point of view.

We seek Safe Harbor.