Mr. David Strang reports

ERO COPPER AGREES WITH VALE BASE METALS TO ENTER INTO EARN-IN AGREEMENT FOR A 60% INTEREST IN THE FURNAS COPPER PROJECT

Ero Copper Corp. has entered into a binding term sheet with Salobo Metais SA, part of the Vale Base Metals business (VBM), to advance its Furnas copper project located in the Carajas mineral province in Para state, Brazil. The term sheet contemplates Ero Copper earning a 60-per-cent interest in the project upon completion of several exploration, engineering and development milestones over a period of five years from the execution of a definitive earn-in agreement. In exchange for its 60-per-cent interest, Ero will solely finance a phased exploration and engineering work program during the earn-in period and grant VBM up to an 11 per cent free carry on future project construction capital expenditures.

"We are delighted for the opportunity to partner with VBM to advance the Furnas copper project. We are fully committed to unlocking value for all stakeholders by accelerating what we believe is a world-class project," said David Strang, chief executive officer. "This partnership will leverage VBM and Ero's collective strengths as well as our shared vision for sustainable mine development.

"As construction of our Tucuma project approaches completion in the coming year, we look forward to Furnas further contributing to the growth of copper production within the broader Carajas region and solidifying Brazil's position as a leader in low carbon-intensity production of critical minerals."

Furnas is an IOCG (iron oxide copper/gold) project located approximately 50 kilometres southeast of VBM's Salobo operations and approximately 190 kilometres northeast of Ero's Tucuma project. Covering an area of approximately 2,400 hectares, the project sits within 15 kilometres of extensive regional infrastructure, including paved roads, an industrial-scale cement plant, a power substation and Vale's railroad loadout facility.

Ero's exploration and development efforts will focus on two discrete high-grade zones identified within the overall mineralized body, known as the SE and NW zones, that extend over a combined strike length of approximately five kilometres. The company's initial work program will include infill drilling to increase confidence around, and continuity of, these two high-grade zones, as well as extensional drilling to depth where limited prior drilling suggests increasing grades and thickness. Known high-grade mineralization ranges between approximately 20 metres and 60 metres in thickness, and has been drilled to a general depth from surface of approximately 300 metres (vertical). Drill intercepts within these zones are highlighted by:

• SE zone:
  • PKC-FURN-FD024:
    • 59 metres grading 2.11 per cent Cu (copper) and 0.54 g/t Au (2.48 per cent CuEq) from 58.0 metres, including 5.0 metres grading 15.24 per cent Cu and 0.06 g/t Au (15.28 per cent CuEq) from 99.0 metres
  • FUR-FURN-DH00170:
    • 8.6 metres grading 10.20 per cent Cu and 0.06 gram per tonne (g/t) gold (Au) (10.24 per cent CuEq (copper equivalent)) from 81 metres.
  • PKC-FURN-DH00036:
    • 36 metres grading 1.04 per cent Cu and 0.94 g/t Au (1.69 per cent CuEq) from 236 metres, including 20 metres at 1.25 per cent Cu and 1.59 g/t Au (2.34 per cent CuEq) from 242 metres.
• NW zone:
  • FUR-FURN-DH00102:
    • 32 metres grading 1.22 per cent Cu and 0.64 g/t Au (1.67 per cent CuEq) from 293.5 metres, including 14 metres grading 1.98 per cent Cu and 0.68 g/t Au (2.45 per cent CuEq) from 297.4 metres.
  • FUR-FURN-DH00177:
    • 54.9 metres grading 0.88 per cent Cu and 0.63 g/t Au (1.31 per cent CuEq) from 381.1 metres, including 12.9 metres grading 1.28 per cent Cu and 0.63 g/t Au (1.72 per cent CuEq) from 381.1 metres.

As part of its overall work program, Ero intends to validate the historical exploration drill database, develop block models incorporating planned infill and extensional drilling to prepare a mineral resource estimate that complies with National Instrument 43-101 (as defined below), generate selective mine designs, perform confirmatory metallurgical test work, develop process flow sheet designs, undertake geotechnical and environmental studies, and advance various community and social programs.

Where applicable, copper equivalent in this press release has been calculated using the following formula: CuEq equals Cu plus (Au times 0.687) based on long-term copper and gold prices of $3.50 per pound and $1,650 per ounce, respectively. No adjustment for metallurgical recoveries has been made when calculating CuEq.

Summary of key terms:

• To earn a 60-per-cent interest in the project, the term sheet requires Ero to complete three phases of work:
  • Phase 1: Ero to conduct a minimum of 28,000 metres of exploration drilling and produce a scoping study within 18 months of signing a definitive earn-in agreement;
  • Phase 2: Ero to conduct an additional minimum of 17,000 metres of exploration drilling and produce a prefeasibility study within 18 months of completing phase 1;
  • Phase 3: Ero to conduct an additional minimum of 45,000 metres of exploration drilling, unless otherwise mutually agreed, and produce a definitive feasibility study (DFS) within 24 months of completing phase 2.
• Following the completion of a DFS, subject to customary technical review periods, and with Ero positive investment approval, the parties will enter into a joint venture agreement whereby VBM will transfer 60 per cent of the equity interest in the project to Ero, and Ero will grant VBM a free carry on certain capital expenditures related to project development:
  • Ero to grant VBM an initial 11 per cent free carry, financing 71 per cent of the first $1-billion of project capital expenditures;
  • If applicable, Ero to grant VBM a subsequent 5.5 per cent free carry, financing 65.5 per cent of the next $1-billion of project capital expenditures;
  • If applicable, each party to finance its then pro rata share of capital expenditures beyond $2-billion.
• As long as VBM maintains greater-than-30-per-cent ownership, it will have 100-per-cent offtake rights on the copper concentrate produced by the project;
• Prior to a positive Ero investment decision and the formation of a joint venture, VBM will retain 100-per-cent ownership of the project with Ero solely responsible for financing the phased exploration and engineering work programs related to the project, as well as continuing payments to maintain the property in good standing. Failure of Ero achieving the prescribed milestones within the earn-in period, will have the earn-in option drop away.

Qualified person

Cid Goncalves Monteiro Filho, SME RM (04317974), MAIG (No. 8444), FAusIMM (No. 3219148), has reviewed and approved the scientific and technical information contained in this press release. Mr. Monteiro is resource manager of the company and is a qualified person within the meaning of NI 43-101.

Quality assurance/quality control

Four diamond exploration drilling campaigns were previously carried out on Furnas, with control sample protocols applied to each campaign. Historical quality assurance/quality control (QA/QC) data were evaluated, including duplicates, blanks and standard samples from the most recent drilling campaign.

In all drilling campaigns, a quarter of the recovered core sample was collected. In the first three exploration campaigns, one-metre sampling intervals were used. In the fourth exploration campaign, one-metre sampling intervals were used in the mineralized zone and two-metre sampling intervals were used in the weathered zone and in waste rock.

Physical preparation of the quarter-core samples was performed in the following laboratories: Vale/Carajas, Intertek-Parauapebas-PA, Intertek-Nova Lima-MG, SGS GEOSOL or Lakefield-Geosol. Chemical analysis was performed by ACME, Lakefield-Geosol in Belo Horizonte/MG, and SGS Geosol Laboratories in Vespasiano/MG. The selection of analytical methods and the number of elements analyzed varied across exploration campaigns.

To verify the accuracy of older sampling campaigns, a reanalysis program was performed on Cu and Au for select assay intervals. The reanalysis program demonstrates good performance, particularly for Cu and Au, allowing for the inclusion of historical campaign data for the purposes of this press release.

The company intends to validate the entirety of the historical exploration database as part of its phase 1 work program.

About Ero Copper Corp.

Ero Copper is a high-margin, high-growth, low-carbon-intensity copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The company's primary asset is a 99.6-per-cent interest in the Brazilian copper mining company, Mineracao Caraiba SA, 100-per-cent owner of the company's Caraiba operations (formerly known as the MCSA mining complex), which are located in the Curaca Valley, Bahia state, Brazil, and include the Pilar and Vermelhos underground mines and the Surubim open-pit mine, and the Tucuma project (formerly known as Boa Esperanca), an iron-oxide-copper/gold-type copper project located in Para, Brazil. The company also owns 97.6 per cent of NX Gold SA, which owns the Xavantina operations (formerly known as the NX gold mine), composed of an operating gold and silver mine located in Mato Grosso, Brazil. The company's shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol ERO.

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