Mr. Gregory Duras reports

WESTERN METALLICA ANNOUNCES ACQUISITION OF COPPER ASSETS IN PERU

Western Metallica Resources Corp. has acquired all of the issued and outstanding shares of Consolidated Copper Corp., pursuant to a share purchase agreement dated Aug. 10, 2023. Consolidated Copper holds options to acquire 100 per cent of the Cana Brava and Turmalina projects, two highly prospective copper-molybdenum porphyry projects located in northern Peru.

Highlights:

• Complementary portfolio of assets: The acquisition of Consolidated Copper marks a strategic option for Western Metallica, expanding its horizons beyond Spain and positioning the company as a copper-focused mineral exploration firm.
• Attractive mining jurisdiction: By acquiring 100 per cent of the Cana Brava and Turmalina projects, both located in northern Peru, Western Metallica gains access to a region known for its rich mineral potential. Peru is a mining-friendly jurisdiction, which, coupled with its status as the second-largest copper producer globally, makes it an attractive destination for mining investment. The presence of major players like Rio Tinto, First Quantum and Hudbay Minerals in the vicinity of Cana Brava and Turmalina further reinforces the potential of these projects.
• Favourable market conditions: Western Metallica's timely acquisition aligns with an expected period of increasing strength in the copper market, making it an opportune moment to secure these prospective assets. With the increasing demand for copper as a crucial resource in the global energy transition, Western Metallica's move positions the company favourably to cater to the growing market needs.
• Untapped exploration potential: The Cana Brava and Turmalina projects lie within a copper-porphyry region that has seen notable exploration and production success. However, the central and northern portions of the belt remain significantly underexplored, presenting a region of compelling interest for future discoveries. Western Metallica's expertise in exploration and development puts the company in a prime position to unlock the untapped potential of these projects.

Gregory Duras, chief executive officer and director of Western Metallica Resources, commented: "Western Metallica is excited to enter into this transaction to acquire Consolidated Copper, which we believe complements our existing portfolio by adding a new package of highly prospective assets in a region that is attractive for investment. Both projects lie on a copper-porphyry belt that has seen notable exploration and production success, but with much of the central and northern portions of the belt remaining significantly underexplored and, therefore, a region of compelling interest. Given the strength of the company's balance sheet and the current positive market dynamics for copper, this is an opportune time for the company to make this strategic acquisition."

Terms of the share purchase agreement

Pursuant to the agreement, Western Metallica has agreed to acquire 100 per cent of the issued and outstanding shares of Consolidated Copper in exchange for an aggregate consideration of: (i) 20 million common shares of the company; and (ii) five million common share purchase warrants of the company, with each warrant entitling the holder to acquire one additional common share at an exercise price of 10 cents until the earlier of: (i) the date that is one year from the date of issuance; and (ii) within 20 days of the company providing such holder with written notice accelerating the warrant expiry date, provided that the daily volume weighted average price (or closing bid price on days when there are no trades) of the common shares on the TSX Venture Exchange is at least 15 cents for a minimum of 20 consecutive trading days prior to such written notice from the company being provided.

The acquisition was an arm's-length transaction, as such term is defined in the policies of the exchange, and no finders' fees are payable in connection with the acquisition. The acquisition was completed as an expedited transaction pursuant to exchange Policy 5.3, Acquisitions and Dispositions of Non-Cash Assets, and remains subject to final acceptance of the exchange.

A copy of the agreement will be filed under the company's profile on SEDAR.

Cana Brava project

Cana Brava is a highly prospective 5,100-hectare copper-molybdenum project, located in the La Libertad department of northern coastal Peru, only 35 kilometres inland from the Peruvian coast. The project is located at an elevation of 1,500 metres in the western Cordillera of the Peruvian Andes. The project contains at least three partially eroded porphyry centres and there is potential at Cana Brava for a cluster of medium-sized porphyry copper-molybdenum systems of above average grade. At the westernmost (El Sausal) porphyry centre, concentrically arranged propylitic, phyllic and potassic alteration have been mapped over an area of at least 800 metres by 600 metres, with visible copper and molybdenum mineralization associated with stockwork-style quartz veining present in the topographically lowest parts. The existence of a well-developed supergene enrichment profile at El Sausal is encouraging and suggests possible enrichment of copper grades near surface. Apart from first-pass mapping work, the project has never been explored by systematic modern exploration and no drilling has ever been executed to test the porphyry centres. The proximity to the coast and potential port is a positive factor for future development and economic considerations.

Turmalina project

The 2,600-hectare Turmalina project is a highly prospective copper-molybdenum breccia-hosted system located in the Piura region of northern coastal Peru, approximately 170 kilometres by road from the Pan-American coastal highway to the west. The project is located at an elevation of 2,600 metres in the western Cordillera of the Peruvian Andes. The existence of widespread (kilometre-scale) porphyry-style phyllic alteration, sulphidic veining and numerous small quartz-tourmaline breccia pipes suggests potential exists for a very large porphyry copper-molybdenum system at depth under the breccia systems. In addition, the project contains a historic, high-grade copper-molybdenum-producing mine in one of these breccia pipes; historical development was from within a cylindrical, semi-vertical breccia pipe about 200 metres in diameter, over at least 400 metres of vertical extent. Ore grades were verified in eight production levels, exploiting high-grade copper-molybdenum arranged around the borders of the breccia pipe. The company believes that there is a high chance for discovery of further productive high-grade, copper-molybdenum breccia pipes. Apart from the limited historical production from the breccia pipe, the project has never been explored by systematic modern surface exploration and no drilling has ever been executed to test the porphyry concept.

About Consolidated Copper Corp.

Consolidated Copper is a private Canadian-based firm with mineral claims, rights and interests in two copper-molybdenum porphyry prospective projects located in Peru, Cana Brava and Turmalina. The projects lie on the Upper Cretaceous and Miocene Cu-Mo (copper-molybdenum) porphyry belt respectively, occurrences that extend for at least 900 kilometres along the western Cordillera and the adjacent high plateaus province, defined by a large number of hydrothermal mineral deposits of different types. The Cana Brava project is a copper-molybdenum property located in La Libertad province, comprising a total of six exploration concessions across 3,900 hectares, plus newly staked extensions of two exploration concessions for 1,200 hectares. The Turmalina project is a copper-molybdenum past-producing mine, which underwent limited production, located in the Piura province, comprising six exploration concessions across 2,033 hectares, plus a newly staked extension of a new exploration concession for 600 hectares.

Scheduled investor update call

Western Metallica's chief executive officer and director, Gregory Duras, and vice-president of exploration, Giovanni Funaioli, will discuss the company's key initiatives and expectations for year 2023-2024, including prospective exploration and drill programs, and will respond to shareholder and investor questions during a scheduled update call, on Tuesday, Aug. 15, 2023, at 10 a.m. Eastern Standard Time.

The participants may use the below information to join the call, accessible via the Zoom platform, by video conferencing and by dial-in:

• 1-438-809-7799 in Canada; 1-587-328-1099 in Canada;
• 1-647-374-4685 in Canada;
• 1-689-278-1000 in the United States;
• 1-929-205-6099 in the U.S.;
• 34-84-368-5025 in Spain;
• 44-208-080-6592 in the United Kingdom;
• 49-69-3807-9883 in Germany.

Webinar ID:  820 8889 0032

Passcode:  888888

Other international numbers are available on-line.

Qualified persons

The technical and scientific information in this news release has been reviewed and approved by Giovanni Funaioli, EurGeol, vice-president of exploration of Western Metallica, who is a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Funaioli is an employee of the company and is not considered independent under NI 43-101.

The technical information relating to the Cana Brava and Turmalina projects is historical in nature and has not been independently verified by the company.

About Western Metallica Resources Corp.

Western Metallica is an Ontario company with its head office in Toronto, Ont., trading on the TSX Venture Exchange under symbol WMS. Western Metallica is in the business of mineral resource exploration and development; its principal assets are its 100-per-cent-owned Nueva Celti copper property in the Ossa Morena belt in Andalusia, Spain, and three other Spanish gold projects in the Navelgas gold belt in Asturias, Spain (Penedela, Valledor and Sierra Alta).

We seek Safe Harbor.