Mr. Karim Rayani reports

EUROPACIFIC'S CEO ISSUES CORPORATE UPDATE LETTER TO SHAREHOLDERS

Europacific Metals Inc. has provided a corporate update letter to shareholders in address from the company's chief executive officer, Karim Rayani.

Dear shareholders,

As we embark on the ensuing year ahead, I am pleased to share with you a corporate update letter outlining the company's objectives and strategies for 2024 and beyond.

We are in the midst of what is quickly shaping up to be a very favourable macroeconomic environment for gold, copper and precious metals. Yet a perplexing disparity persists for companies despite the favourable backdrop as metal prices head higher market capitalizations continue to struggle creating unprecedented opportunities in the resources sector. Additionally low interest rates can weaken the purchasing power of fiat currencies, making precious metals relatively more attractive as a store of value setting stage for a return to commodities and market capitalizations within the junior mining sector.

One of the commodities that I feel presents tremendous opportunity in the sector is copper; the recent surge in copper prices, combined with anticipated supply shortfalls over the next few years, makes copper a value proposition that one should not ignore:

• Supply-demand imbalance: With increasing demand for copper driven by infrastructure projects, renewable energy initiatives and electric vehicle adoption, the market is facing a potential supply-demand imbalance. The result upward pressure on prices, benefiting copper producers.
• Investment potential: The expected shortfall in copper supply creates an attractive investment opportunity for those looking to capitalize on potential price appreciation. Investors can consider exposure to copper through various avenues such as stocks of mining companies, exchange-traded funds (ETFs) or directly trading copper futures contracts.
• Strategic importance: Copper is a critical metal with diverse industrial applications, ranging from construction and electronics to transportation and telecommunications. Its strategic importance in various sectors ensures sustained demand, further supporting its price outlook.
• Long-term trends: Structural shifts such as the transition to renewable energy, electrification of transportation and urbanization in emerging markets are expected to drive long-term demand for copper. Investing in copper now could position investors to benefit from these continuing trends.
• Geopolitical factors: Geopolitical tensions, trade disputes and supply chain disruptions can impact copper production and distribution. As such, this can provide a hedge against geopolitical risks and uncertainties.

Over all, the combination of surging copper prices and anticipated supply shortfalls presents an opportunity for investors bullish on the copper sector. However, it is essential to conduct thorough research and consider risk factors before making investment decisions.

I was newly appointed chief executive officer, director of Europacific on Oct. 17, 2023, and since have made several changes to streamline operations optimizing resources and enhancing productivity across all aspects of operations. We prioritize and recognize the importance of sustainable and social initiatives to the well-being of our communities as we develop our asset portfolio.

Looking ahead, our primary objective for the ensuing year is the immediate planning of advancing the Miguel Vacas copper prospect. An 11-hole program totalling 1,000 metres is currently being planned to test the surface mineralization along strike; we will be reporting back in the coming weeks on the estimated start date once drill contractors have been confirmed.

A two-year exploration plan has been approved internally for the advancement of the project where we feel a resource can be developed:

• The area lies approximately 180 kilometres east by road from Lisbon and 70 kilometres from Evora, the Alentejo region capital. It is close (less than 10 kilometres) to the small towns of Estremoz, Borba, Vila Vicosa and Alandroal;
• Confirm the high-grade zones from old reports and expand the mining widths to a more substantial target size over the main drilled area covering a strike length of 1.1 kilometres of the mineralized shear zone;
• Infill drilling with a 100-metre-by-100-metre grid to produce an initial reliable mineral resource estimation (inferred category) of the supergene heap-leachable copper blanket (zero to 80 metres depth);
• Further soil testing and advancement studies for expansion along less advanced prospects, including geochemistry (soils and rocks), along with geophysics (airborne EM (electromagnetic) and ground IP (induced polarization));
• Borba 2 projects -- further exploration plans under way with well-documented potential to host precious metals and base metals mineralization for copper and gold.

The Miguel Vacas mine was an open-pit copper mine last operated in 1986 by heap leaching methods. Records show that between the 1920s and 1990, 346,068 tonnes of oxide copper mineralization were mined, but, due to poor recovery, only 895 tonnes of copper metal were produced. Copper grades ranged from 0.6 per cent to 0.7 per cent in the early years of the operation but later reached up to 1.4 per cent. This mine was closed in 1986 due to financial trouble after having produced 464,100 tonnes of ore with an average grade of 2.1 per cent copper. Prior exploration was carried out by Rio Tinto for epithermal gold deposits during the early 1980s. The project changed hands a number of times before we were able to acquire ownership.

Miguel Vacas deposit -- old open pit

Recent exploration results have indicated a potential strike extension of two kilometres of copper-bearing shear zones:

• Assays from a channel sampling program carried out in 2006 by Rio Narcea Gold Mines (RNGM) in the old Miguel Vacas north pit walls have indicated a width of 13.5 metres of 1.6 per cent copper, including two metres of 4.9 per cent copper. The results from the southern wall are nearly identical with an interval of 13.6 metres of 1.6 per cent copper. The samples were taken at the far ends of the old pit that extends presently 250 metres along strike.
• Historical and recent drilling confirms these results. Highlights include six metres of 0.8 per cent copper from hole MV04, 10.0 metres of 0.9 per cent copper from hole MV05, 8.6 metres of 1.1 per cent copper from hole MV07, 7.9 metres of 2.03 per cent copper from hole MV08, 4.25 metres of 1.5 per cent copper from hole MV09, 16.5 metres of 1.5 per cent copper from hole MV10, 6.0 metres of 1.0 per cent Cu from hole MV14, 7.9 metres of 1.0 per cent copper from hole MV16, 21.6 metres of 1.6 per cent copper from hole MV19 and 10.7 metres of 1.94 per cent copper from hole BOMV15001.
• Rio Narcea produced an in-house resource estimation (non-compliant) exercise based on a 100-metre-by-100-metre drilling campaign (20 holes in total) using the basic Tysson Polygon method. Results point out to a figure of 5.54 million tonnes with a total contained 68,186 tonnes of copper metal. This includes a total of 1.12 million tonnes of 1.23 per cent copper from the oxidized blanket and 4.4 million tonnes of 1.24 per cent copper from primary sulphide ore.

This underground mine was registered in 1866 and operated intermittently until around 1900. There are records for a total of nine mine levels down to a total depth of 200 metres.

The vein system occupies a one-kilometre-long section of the fault zone and includes three main veins that have been mined in the past: vein 1 (main vein) -- north 50 degrees east/80 degrees northwest, up to 1.2 metres thick, mined over 800 metres along strike; vein 2 -- north-south/50 degrees east, average 1.3-metre thickness; and vein 3 -- north-south/90 degrees and no records on thickness.

Dump samples of silicified and sheared acid tuffs from the Bugalho mine area within the Vascas deposit assay up to 9.14 grams per tonne gold and 0.35 per cent copper. The mineralization is from a wide northeast-southwest-trending shear zone that can be mapped on at least five kilometres along strike. Detailed follow-up is planned in this prospect.

Significant drill intercepts comprise 5.45 metres of 1.53 grams per tonne gold, including 2.47 metres of 2.44 grams per tonne gold in hole PAM-1. The highest individual value obtained came from a gossanous quartz-dolomite altered marble of 5.77 grams per tonne gold over an intercept of 0.75 metre. Banded carbonatization and low-temperature silica alteration occur thoroughly in the hole. Zones of poor recovery are interpreted to represent karst fill features.

Results obtained for borehole PAM-2, located in the same zone, include an intercept of 17 metres of 0.5 gram per tonne gold, including an interval of two metres of 3.7 grams per tonne gold. The mineralized zone coincides with sections of intense silica-carbonate alteration with several massive gossan zones and localized fresh sulphide dissemination (chalcopyrite and pyrite).

Drilling planned for 2024:

• Additional new targets identified with follow-up mapping and soil and rock geochemistry, along with detailed geophysics (IP/resistivity), followed by drill checking.

Exploring for critical elements, particularly copper, presents a compelling value proposition in today's market characterized by a global deficit. As industries increasingly rely on copper for essential applications in renewable energy, electric vehicles and infrastructure development, the demand for this critical element continues to outpace supply. By securing access to new copper reserves through exploration efforts, companies can not only mitigate supply chain risks but also stand to benefit from potentially lucrative opportunities in a market hungry for this indispensable resource.

Europacific is opportunistically positioned as we further develop and explore the Miguel Vacas copper project. The company is also in the process of rebranding and will be announcing a name change to better align the company's focus in the Iberian peninsula.

About Europacific Metals Inc.

Europacific Metals is a Canadian public company listed on the TSX Venture Exchange and in United States on the OTCQB. The company holds brownfield gold and copper-gold projects located in Portugal. The company is focused on exploration in highly prospective geological settings in Europe and Eurasian jurisdictions.

We seek Safe Harbor.