Mr. Vincent Metcalfe reports

PECOY COPPER ANNOUNCES ANNUAL GRANT OF INCENTIVE AWARDS AND CORPORATE UPDATE

Pecoy Copper Corp. has provided updates with respect to certain matters relating to the company's compensation practices, including the annual grants of incentive awards made under the company's omnibus equity incentive plan.

As part of its annual compensation review, the board approved the compensation of the executive officers and the non-executive directors of the company for the financial year ending April 30, 2027, including grants of a total number of 1,971,600 options to purchase common shares of the company, 230,400 restricted share units and, in respect of non-executive directors, 50,000 deferred share units pursuant to the omnibus plan. The options have an exercise price of $1.78 per common share, representing the closing price of the company's common shares on the TSX Venture Exchange on June 25, 2026. The company granted 1,229,100 of the options to executive officers, which options will vest in three equal tranches on each of the first, second and third anniversary of the date of the grant. It granted 594,000 of the options to non-executive directors, which options will vest in three equal tranches on each of the date of grant and on each of the first and second anniversary of the date of grant. Also, it granted 148,500 of the options to a non-executive director, which options will vest in one tranche on the date of the grant. All the options will expire five years from the date of the grant. The RSUs will vest in three equal tranches on each of the first, second and third anniversary of the date of grant, and the DSUs will vest on the date of the shareholders annual meeting for the year ended April 30, 2027, and in accordance with the terms of the omnibus plan.

In connection with the foregoing review, which led to the approval of changes to the compensation of the company's non-executive directors, the board, and Paul Matysek and Luis Zapata agreed to terminate consulting agreements that had been entered into prior to the company's reverse takeover transaction completed in September, 2025, such that Mr. Matysek and Mr. Zapata will be compensated in accordance with the company's director compensation policy.

A description of the omnibus plan is available in the company's listing application dated Sept. 3, 2025, a copy of which is available on the company's profile at SEDAR+.

About Pecoy Copper Corp.

Pecoy Copper is advancing the 9,975-hectare Pecoy copper-gold-molybdenum-silver project, a large, undeveloped porphyry system located in southern Peru's Arequipa region, within one of the world's most prolific copper belts. The project benefits from its favourable elevation of approximately 1,650 metres above sea level, providing year-round access and reduced operating complexity compared with many high-altitude Andean deposits. Strategically located near the Pacific coast, Pecoy enjoys excellent infrastructure, with close proximity to highways, power lines and water sources, and good access to the deepwater ports of Matarani (approximately 240 kilometres southwest) and Ilo. This infrastructure advantage positions Pecoy Copper to advance the project efficiently from exploration toward future development within one of the world's most established and mining-friendly jurisdictions.

The company's common shares are listed on the TSX Venture Exchange under the symbol PCU and also trade on the OTCQB under the symbol PCUUF.