Mr. Richard Lock reports

OROCO ANNOUNCES $2.3 BILLION PRE-TAX NPV IN A PEA FOR THE SANTO TOMAS PROJECT

Oroco Resource Corp. has released a preliminary economic assessment (PEA) and updated mineral resource estimate (MRE) for the North zone and South zone of its Santo Tomas porphyry copper project in Sinaloa state, Mexico. The PEA results support a staged open-pit mine and processing plant starting at 60,000 tonnes per day (t/d) in year 1 of production, expanding to 120,000 t/d in year 2 over a 20.1-year life of mine (LOM). Production is preceded by two years of construction and prestripping. The PEA has been prepared by Ausenco Engineering USA South Inc. The updated MRE and geologic model were prepared by SRK Consulting (U.S.) Inc. of Denver, Colo., and SRK Consulting (Canada), of Vancouver, B.C. SRK (Canada) was responsible for geotechnical modelling. The mine planning and mine costs components of the PEA were prepared by Mining Plus Canada Consulting Ltd.

Highlights of the Santo Tomas PEA include:

• $2.33-billion (U.S.) pretax net present value (8 per cent) and $1.24-billion (U.S.) after-tax NPV (8 per cent);
• 23-per-cent pretax internal rate of return and 17.3-per-cent after-tax IRR;
• Total LOM payable copper production of 4,749 million pounds;
• Pretax payback of 4.1 years; after-tax payback of five years from first concentrate production;
• Initial capital costs estimated at $1,339.9-million (U.S.); sustaining and expansion capital costs estimated at $1,134.5-million (U.S.);
• Average annual LOM C1 cash cost of $1.66 (U.S.)/lb Cu on byproduct basis;
• An ultimate pit design constrained resource of 388 million tonnes (Mt) of indicated and 460 Mt of inferred material.

Commenting on the PEA, Richard Lock stated: "This is a significant start to the process of evaluating Santo Tomas. The PEA firmly demonstrates the economic viability of the Santo Tomas project and justifies its continued development. The combination of excellent infrastructure, simple metallurgy, a cohesive and consistent grade distribution, and a low strip ratio, along with the identification of several existing opportunities for resource expansion, provide additional strength and certainty to the project. We have also identified a high probability of additional upside in project economics through the future application of mine and process design improvements, all of which confirm that we have a substantial resource at Santo Tomas. In summary, the Santo Tomas project clearly has robust potential for the development of a large, low-cost, open-pit, copper mining operation."

Santo Tomas project PEA overview

The Santo Tomas property comprises 9,034 hectares of mineral concessions encompassing significant porphyry copper mineralization in northern Sinaloa and southwest Chihuahua, Mexico. The project is located in the Santo Tomas porphyry district, which extends from Santo Tomas northward to the Jinchuan Group's Bahuerachi project located approximately 14 kilometres to the north-northeast. The PEA was conducted using data (including 27,382 Cu assays) from 68 diamond drill holes (43,063 metres) drilled by the company and 90 legacy reverse circulation and diamond drill holes (21,075 m, for a total of 64,138 m in 158 drill holes) in the project's North zone and South zone. The data from the seven exploration diamond drill holes in Brasiles zone and the single geotechnical hole (GT001) drilled by the company were excluded from consideration in the MRE and PEA. Oroco's entire updated drill hole database (including PEA-excluded holes) contains 166 new and legacy drill holes totalling 69,556 m with lithological logging data and 29,992 Cu assays.

PEA economic sensitivities

Project economics and cash flows are most sensitive to changes in the price of copper. Mined grade and recovery sensitivity is high and future studies will seek to optimize these parameters. However, the highest potential for change in economics is anticipated to result from future changes in copper pricing.

PEA mineral resources

The PEA MRE was prepared by SRK Consulting (U.S.) in accordance with the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) definition standards incorporated by reference in National Instrument 43-101, with an effective date of Oct. 11, 2023. The technical report will be prepared and released by the company and will be available on Oroco's website and on SEDAR+ under the company's profile, within 45 days of this news release.

The mineral resource estimation process includes updated structural, lithologic and mineralization models, though the PEA MRE has not materially changed from the previous study, effective April 27, 2023, due to the inclusion of two additional drill holes in the North zone and updated economic assumptions based on the PEA study. The company provided SRK with an updated exploration database, including drill hole collar and downhole survey data, geological logging, assay, specific gravity, geotechnical classification, and associated information.

The resource estimation methodology involved the following procedures:

• Database compilation and verification;
• Construction of wireframe models for the major structures, lithotypes and controls on mineralization;
• Definition of resource domains using a combination of lithotypes, structure and mineralization grade shells;
• Data conditioning (compositing and capping) for statistical and geostatistical analyses;
• Determination of spatial continuity through variography within the estimation domains;
• Block modelling and grade interpolation for all key economic variables (copper, molybdenum, silver, gold and sulphur) and secondary variables (arsenic, calcium, potassium, lead and zinc);
• Block model validation;
• Resource classification;
• Assessment of reasonable prospects for eventual economic extraction (RPEEE) using a constraining economic pit shell and selection of an effective cut-off grade (CoG);
• Preparation of the updated mineral resource statement.

SRK undertook the geological modelling and mineral resource estimate using Seequent Leapfrog Geo and Leapfrog Edge, respectively. The procedure involved construction of wireframe models for structural geology controls, key geological and mineralization domains, data conditioning (compositing and capping) for statistical analysis, variography, block modelling, and grade interpolation followed by block model validation. Grade was estimated using a combination of ordinary kriging and inverse distance weighting cubed estimates for copper, molybdenum, gold and silver. Sulphur grades are estimated using inverse distance weighting squared (IDW2) and bulk density is estimated using a combination of simple kriging and IDW2. Grade estimation was based on block dimensions of 50 m by 50 m by 10 m for the PEA model (unchanged from the previous 2023 study). The block size reflects current data spacing across the project while considering a likely open-pit mining method. Classification of mineral resources considers the geological complexity (structure, lithology, alteration and mineralization), spatial continuity of mineralization, data quality and spatial distribution of drilling conducted at the project.

The PEA MRE is supported by 64,138 m of drilling in 158 holes. The drilling data represent a combination of holes completed by Oroco from 2021 to 2023 and historical drill holes but excludes drilling at Brasiles zone and one geotechnical hole.

The PEA MRE includes the two primary mineralization zones identified at Santo Tomas: the North zone and the South zone. These zones display similar mineralization styles but are physically separated by localized postmineralization faults and material currently defined as waste due to a lack of drilling. Consistent with the previous study, the MRE is not constrained by the location of the Huites reservoir. Mineral resources are reported above an effective cut-off grade (CoG) of 0.15 per cent Cu and constrained by an economic pit shell.

Mineralization has been identified outside the current economic pit shell. The PEA highlights the potential to define additional mineral resources on the property. There is identified exploration potential for additional mineralization in the southeastern and southwestern portions of the South zone based on observations from drilling and surface outcrops in the area.

PEA mine design

The PEA mine design, prepared by Mining Plus, contemplates open-pit development that ensures no incursion upon the Huites reservoir, maintaining a 100 m berm between the reservoir high water mark and the pit limit thereby remaining outside of CONAGUA's (Comision Nacional del Agua; Mexican water authority) jurisdiction boundary. These constraints were selected by the company. Avoiding the CONAGUA limit and applying a series of pit slope constraints derived from preliminary geotechnical domains defined by SRK from phase 1 drilling on the project, a mineral resource within the ultimate pit design (by classification and grades) for this PEA has been defined as shown herein.

The mine design proposes a standard open-pit, truck-and-shovel operation with 10-metre bench intervals. Haul trucks with a capacity of 194 tonnes will be used for hauling mineralized material to the mineral processing plant, stockpile facilities and the waste rock storage facility (WRSF). Mining operations will use large-scale mining equipment, including 200-centimetre-diameter blast hole drills, 29-cubic-metre hydraulic shovel, 22-cubic-metre front-end loader and 194-tonne-capacity haul trucks. Supplier-sourced capital costs from October, 2023, are used in the mine fleet cost calculations.

The mine is divided into two zones, the higher-grade North zone, which is the initial focus of mine development, and the lower-grade South zone, which requires prestripping ahead of mine development. The North zone pit is approximately 1,850 m long (north-south) and 1,000 m wide (east-west) with a depth of 680 m and the South zone pit is 2,050 m long and 1,080 m wide with a depth of 780 m.

The mining sequence consists of four phases. The first and second phases define the North pit, and the successive two phases define the South pit.

The project has an operational LOM of 22.1 years, which includes two years of prestripping. The pit-constrained resource contains 388 million tonnes of indicated and 460 million tonnes of inferred resource and 983.6 million tonnes of waste are removed, resulting in a strip ratio of 1.16 over the life of the mine.

Mining operations will be carried out on a 24-hour-per-day, 365-day-per-year schedule. Milling will start at 60,000 t/d in the first year of production, expanding to 120,000 t/d in the second year.

Process design and plant infrastructure

The Q2 2022 metallurgical test work program demonstrated the ability to produce a marketable copper concentrate using a conventional flotation process flowsheet. Levels of molybdenum in bulk concentrates were sufficient to produce a marketable molybdenum concentrate using conventional Cu-Mo separation flotation techniques. For purposes of the PEA, logarithmic regression analysis was performed on the flotation test work results to develop metallurgical process recoveries as a function of head grade. Based on these formulas, Ausenco forecasts the following mean recoveries for copper, molybdenum, silver and gold at 83.3 per cent, 59.2 per cent, 53.9 per cent and 53.2 per cent, respectively. Results from comminution test work on nine variability samples returned elevated hardness properties for some of the mineralized materials (such as Axb and ball mill work index of 30 and 18.3 kilowatt-hours/tonne, respectively). Given these measurements and high throughputs, high-pressure grinding rolls (HPGR) crushing was considered over conventional SAG (semi-autogenous grinding) milling.

The primary crusher is located at the northeast end of the South pit. Coarse crushed material is transported to a stockpile facility to the west of the process plant via an overland conveyor. An alternative to this design would involve the construction of conveyance tunnels and in-pit crushers in both the North and South pits feeding the stockpile. Material from the primary crusher is further reduced in size via secondary crushing and HPGR before feeding into twin ball mills. Ground material at a sizing of 80 per cent passing 150 micrometres then advances to the flotation circuit to produce a bulk rougher product that is subsequently reground to 23 micrometres P80 prior to cleaner circuit upgrading. The bulk cleaner concentrate advances to copper-molybdenum separation to recover a molybdenum concentrate. Gold and silver report to the copper concentrate. The tailings are thickened and pumped to the tailings storage facility (TSF). Copper and molybdenum concentrates are dewatered prior to shipment.

Concentrates are trucked using the sealed containerized method to the Port of Topolobampo situated on the Gulf of California for transport to overseas smelters. The containerized method removes the capital expense of a concentrate storage facility at the port and loss of concentrate to the environment. The proximity of rail infrastructure to the project could offer an alternative mode of concentrate transport.

Some infrastructure design includes expansion capacity design features (such as overland conveyor, power line and water supply) during the initial phase so as to not interfere with production during the expansion phase.

Tailings and waste rock storage facilities

Both the waste rock storage facility (WRSF) and the TSF are designed in accordance with national and international standards and constructed in valleys west and east of the resource, respectively. The TSF has a rock fill with upstream composite liner system for a starter embankment that transitions to a cycloned sand centreline dam for the LOM with a seepage collection system in the downstream foundation. Ditches and berms have been designed to capture non-contact water above the facility and divert it around to reduce water management in the TSF. The WRSF will be constructed from the bottom up in thick lifts and contact water from the facility will be captured with a water treatment facility at the toe of the facility prior to release. Ditches and berms direct non-contact water above the facility and divert it around.

Power infrastructure and water supply

Electrical supply is either from the Huites hydroelectric plant downstream from the project or via built-for-purpose combined cycle gas turbine plant tentatively located close to the Huites power station and the Texas-Sinaloa natural gas pipeline. Both options represent low-carbon-footprint power sources for the estimated power requirements at similar costs. A 230-kilovolt-ampere power line trace from Huites station to the project has been laid out and costed, as has the main mine access route.

A makeup process water supply source is from wells located within 25 kilometres of the project and follow a gravel valley well source configuration similar to that employed during mine operations at the El Sauzal mine site located 45 km upstream of the project and the historic Reforma mine located seven km to the north.

Geology and mineralization

Porphyry Cu (Mo-Au-Ag) mineralization on the Santo Tomas property is closely associated with intrusives linked to the Late Cretaceous to Paleocene (90 million to 40 million years) Laramide orogeny. Santo Tomas and most of the known porphyry copper deposits in Mexico lie along a 1,500 km long, north-northwest-trending belt subparallel to the west coast, extending from the southwestern United States through to the state of Guerrero in Mexico.

In the Santo Tomas area, Mesozoic-aged country rocks comprising limestone, minor sandstones, conglomerates, shales and a thick succession of andesitic volcanics were intruded by a range of Laramide-age intrusions related to the Late Cretaceous Sinaloa-Sonora batholith. Multiple phases are recognized ranging from dioritic to monzonitic in composition.

Mineralization is strongly structurally controlled by the Santo Tomas fault and fracture zone by the pathway to quartz monzonite dikes, associated hydrothermal alteration, hydrothermal breccias and sulphide mineralization. Sulphide minerals are dominated by chalcopyrite, pyrite and molybdenite with minor bornite, covellite and chalcocite. Sulphides occur as fracture fillings, veinlets and fine disseminations together with potassium feldspar, quartz, calcite, chlorite and locally, tourmaline. Chalcopyrite is the main copper mineral with minor copper oxides near surface.

Community and environment

Oroco maintains an environmental and social plan for the project which provides a framework for its community outreach efforts focused on education, continuing employment, indigenous engagement and community mapping. Oroco strives to maintain the support of the community, local municipal leaders, and state regulators and governments in Sinaloa and Chihuahua. Oroco maintains its exploration permits and approvals in good standing.

Additional baseline studies and initiatives in key subject areas related to environmental, socio-economic, cultural and community engagement are planned. These studies and activities will be necessary to advance the project and provide a strong basis for the preparation of future environmental studies and permitting.

Project enhancement opportunities

Several further opportunities to improve the project have been identified during the PEA study. These include but are not limited to:

• The application of sulphide leaching on lower-grade chalcopyrite resources currently assigned to waste. Preliminary studies have commenced, and results are expected in Q4 2023. Capital expenditure/operating expenditure costs for an SX/EW (solvent extraction-electrowinning) facility are developed but are not considered in this PEA;
• Fully evaluate oxide copper resources that are currently carried as waste in combination with sulphide leaching using available data from surface sampling and drilling;
• Optimize mine plan around larger loading and haulage equipment;
• Optimize mobile mining fleet considering mixed fuel and/or electrified options;
• Infill resource drilling in the area between North and South zones; additional resource in that area would improve optimized pit development and reduce mining costs;
• Additional comminution studies and variability testing to better constrain recoveries across the full range of expected mill feed grades based on rock and alteration types;
• Consider relocation of the primary crushing facility closer to the pit(s) via in-pit crushing stations and conveyance via tunnels from both North and South pits to the mill feed stockpile;
• Investigate coarse particle flotation to reduce comminution costs and improve factors of safety on TSF design;
• Drill hydrogeological test wells at the north end of the North pit to better define pit inflow and pit dewatering costs;
• Drill selected geotechnical holes to optimize pit slope angles and reduce mining of waste;
• Optimize heavy equipment leasing terms.

A geological-geochemical conceptual model will inform the continuing development and refinement of geochemical and mine rock management plan for the site. The predicted occurrence of large volumes of net neutralizing mine waste materials to be mined in early years will be confirmed, as the buffering characteristics of these waste materials can be effectively utilized as part of the overall waste rock management strategy. Additional geochemical assessment of the acid rock drainage/metal leaching risk for the project will be implemented to provide additional test work and sampling coverage, and to confirm preliminary study findings.

Cautionary notes to investors

PEA

The reader is cautioned that the PEA is preliminary in nature, and that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

Mineral resource and reserve estimates

In accordance with applicable Canadian securities laws, all mineral resource estimates of the company disclosed or referenced in this news release have been prepared in accordance with the disclosure standards of NI 43-101 and have been classified in accordance with the CIM standards. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing or other relevant issues. In particular, the quantity and grade of reported inferred mineral resources are uncertain in nature and there has been insufficient exploration to define these inferred mineral resources as an indicated or measured mineral resource. It is uncertain in all cases whether further exploration will result in upgrading the inferred mineral resources to an indicated or measured mineral resource category.

Qualified persons

The PEA for the project summarized in this news release was prepared by Ausenco with input from SRK and Mining Plus, and will be incorporated in a technical report prepared in accordance with NI 43-101 which will be available under the company's SEDAR+ profile and on the company's website within 45 days of this news release. The affiliation and areas of responsibility for each of the qualified persons involved in preparing the PEA, upon which the technical report will be based, are as noted herein.

Each QP has reviewed and verified the content of this news release.

About Oroco Resource Corp.

The company holds a net 85.5-per-cent interest in those central concessions that comprise 1,173 hectares, the core concessions of The Santo Tomas project, located in northwestern Mexico. The company also holds an 80-per-cent interest in an additional 7,861 hectares of mineral concessions surrounding and adjacent to the core concessions (for a total project area of 9,034 hectares, or 22,324 acres). The project is situated within the Santo Tomas district, which extends up to the Jinchuan Group's Bahuerachi project, approximately 14 km to the northeast. The project hosts significant copper porphyry mineralization defined by prior exploration spanning the period from 1968 to 1994. During that time, the project area was tested by over 100 diamond and reverse circulation drill holes, totalling approximately 30,000 metres. Commencing in 2021, Oroco conducted a drill program (phase 1) at Santo Tomas, with a resulting total of 48,481 metres drilled in 76 diamond drill holes. In May of 2023, the company completed a mineral resource estimate for the core concessions that identified indicated and inferred resources of 487 Mt at 0.36 per cent copper equivalent and 600 Mt at 0.36 per cent CuEq, respectively. This news release updates that resource identifying indicated and inferred resources of 561 Mt at 0.37 per cent CuEq and 549 Mt at 0.34 per cent CuEq, respectively.

The project is located within 160 km of the Pacific deepwater port at Topolobampo and is serviced via highway and proximal rail (and parallel corridors of trunk grid power lines and natural gas) through the city of Los Mochis to the northern city of Choix. The property is reached, in part, by a 32 km access road originally built to service Goldcorp's El Sauzal mine in Chihuahua state.

We seek Safe Harbor.