Mr. David Strang reports

ERO COPPER ANNOUNCES 2023 PRODUCTION RESULTS AND PROVIDES 2024 GUIDANCE

Ero Copper Corp. has released its 2023 production results, 2024 guidance and three-year production outlook.

All amounts are in United States dollars, unless otherwise noted.

Highlights

Record gold production driven by successful completion of the NX 60 initiative:

• The Xavantina operations produced 59,222 ounces of gold in 2023, exceeding the increased guidance range of 55,000 ounces to 59,000 oz, issued on Nov. 2, 2023, and the original 2023 guidance range of 50,000 oz to 53,000 oz.
• Average processed gold grades of 15.13 grams per tonne (g/t) represented a 98.8-per-cent increase in gold grades as compared with 2022

Caraiba mill expansion design capacity reached by year-end:

• The Caraiba operations produced 43,857 tonnes of copper in concentrate for the full year, slightly below guidance of 44,000 tonnes to 47,000 tonnes.
• Although the Caraiba mill expansion design capacity was achieved by year-end, throughput volumes and copper production for the fourth quarter and full year were impacted by approximately one week of additional unplanned downtime related to the integration of the expansion circuit.

Two thousand twenty-four guidance:

• Consolidated copper production is expected to be 59,000 tonnes to 72,000 tonnes in concentrate at C1 cash costs between $1.50 to $1.75 per pound of copper produced.
• The Xavantina operations are expected to produce 55,000 oz to 60,000 oz of gold at average C1 cash costs between $550 and $650 per ounce of gold produced, and all-in sustaining costs (AISC) between $1,050 and $1,150 per ounce of gold produced.
• Total capital expenditures are expected to decrease year-on-year to a range of $299-million to $349-million in 2024, primarily due to the completion of the Tucuma project, which remains on schedule to commence production during the second half of the year. As a result, capital spend is expected to be weighted toward the first half of 2024.

Three-year production outlook:

• Consolidated copper production is projected to more than double to 95,000 tonnes to 105,000 tonnes in 2025, as the Tucuma mine is expected to achieve its first full year of production.
• Following the successful completion of the NX 60 initiative in 2023, the Xavantina operations are expected to sustain annual gold production levels of 55,000 oz to 60,000 oz through 2026.

Commenting on the production results and 2024 guidance, David Strang, chief executive officer, said: "Our 2023 production performance reflects the strong execution of our organic growth strategy, highlighted by the successful completion of the NX 60 initiative, which resulted in a 39-per-cent year-on-year increase in gold production. Although the completion of the mill expansion project at our Caraiba operations necessitated additional plant downtime, culminating in full-year copper production that slightly missed our expectations, this milestone is pivotal for supporting higher sustained ore production volumes from the Pilar mine over the long term.

"We have carried this strategic momentum into 2024 as we transition from construction to commissioning at the Tucuma project, where we anticipate initial copper concentrate production in the second half of this year. With consolidated copper production on track to increase at least 35 per cent this year and more than double in 2025, we are actively advancing our longer-term growth initiatives. These include construction of the new external shaft at the Caraiba operations, continued nickel exploration throughout the Curaca Valley and preparing for the first phase of work at the Furnas project.

"I am proud of the progress our team has made in executing major growth initiatives announced just over two years ago. We are committed to building upon this track record as we position Ero to deliver peer-leading growth in the years ahead."

Fourth quarter and full-year 2023 production results

Caraiba operations:

• Throughput volumes increased 12.8 per cent year-on-year to over 3.2 million tonnes, despite lower-than-expected processed tonnage in Q4 2023 due to mill downtime related to the integration of the expansion circuit.
• Processed copper grades and metallurgical recoveries were in line with expectations, averaging 1.49 per cent and 91.4 per cent, respectively, for the year.

Xavantina operations:

• Processed gold grades increased 98.8 per cent to average 15.13 g/t for the year, more than offsetting lower year-on-year mill throughput volumes.

Two thousand twenty-four production guidance and three-year production outlook

The company's 2024 production guidance and three-year production outlook reflect the continuing execution of its organic growth strategy, including the successful completion of the Xavantina operations' NX 60 initiative, as well as the anticipated completion of the Tucuma project, which remains on schedule to commence production in the second half of this year. As a result, the company expects to deliver sustained annual gold production of 55,000 oz to 60,000 oz through 2026, and more than double copper production to 95,000 tonnes to 105,000 tonnes in concentrate in 2025.

At the Caraiba operations, copper production is projected to range from 42,000 tonnes to 47,000 tonnes through 2026, with higher mill throughput volumes expected to offset lower forecast mined and processed copper grades. Following the anticipated completion of the Pilar mine's new external shaft in late 2026, the company expects mined and processed copper grades to increase as mining from the high-grade Deepening extension zone ramps up.

Copper production from the Tucuma operations is expected to increase from 17,000 tonnes to 25,000 tonnes in the second half of 2024, to 53,000 tonnes to 58,000 tonnes in 2025, when the mine achieves its first full year of production. The Tucuma mill is expected to sustain nameplate throughput levels of approximately four million tonnes per annum beginning in 2025, with strong mined and processed copper grades projected through 2026.

At the Xavantina operations, higher mill throughput levels are expected to offset lower mined and processed gold grades over the next three years. In 2024, gold production is expected to be slightly weighted toward the first half of the year due to higher anticipated gold grades compared with the second half of the year.

Two thousand twenty-four cost guidance

Two thousand twenty-four copper C1 cash cost guidance on a consolidated basis is $1.50 to $1.75 per pound of copper produced. This range incorporates several key updates relative to previous 2024 C1 cash cost projections:

• The foreign exchange rate has been adjusted from 5.30 to 5.00 Brazilian reais (BRL) per United States dollar, reflecting the BRL's continued strength.
• Guidance includes higher concentrate treatment and refining charges based on Q4 2023 levels, which have shown a favourable downward trend year to date.
• Consumable cost assumptions have been refreshed higher to align with consumable pricing observed in Q4 2023.
• The company has assumed the Caraiba operations will export 100 per cent of its copper concentrate in 2024, up from the 50 per cent previously assumed.

Furthermore, in light of changes to the Caraiba operations' copper concentrate sales channels, the company has updated its copper C1 cash cost calculation methodology. This change will be offset by an equal increase in reported realized copper prices.

At the Xavantina operations, the C1 cash cost guidance range of $550 to $650 per ounce of gold produced reflects improved fixed cost-efficiencies, driven by higher expected gold production, partially offsetting the impact of planned decreases to mined and processed gold grades. The AISC guidance range for 2024 is $1,050 to $1,150 per ounce of gold produced.

Two thousand twenty-four cost guidance assumes a foreign exchange rate of 5.00 U.S.:BRL, a gold price of $1,900 per ounce and a silver price of $23 per ounce.

Two thousand twenty-four capital expenditure guidance

Two thousand twenty-four capital expenditures are expected to decrease to a range of $299-million to $349-million due to the anticipated completion of the Tucuma project, which is on schedule to commence production in the second half of the year. As a result, capital spend is expected to be weighted toward the first half of 2024.

The associated table includes an estimated $30-million to $40-million of consolidated exploration expenditures. This estimate includes approximately $20-million designated for drilling activities at the Caraiba operations, including expenditures related to the Curaca Valley nickel exploration program. Additionally, the company has budgeted approximately $6-million for the first phase of work at the Furnas project.

The 2024 capital expenditure guidance assumes an exchange rate of 5.10 U.S.:BRL for the Tucuma project, based on designated foreign exchange hedges with a weighted-average ceiling and floor of 5.10 and 5.23 U.S.:BRL, respectively. All other capital expenditures assume an exchange rate of 5.00 U.S.:BRL. Figures presented in the associated table are in millions of U.S. dollars.

About Ero Copper Corp.

Ero 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 (MCSA), 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), comprising an operating gold and silver mine located in Mato Grosso, Brazil.

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