Mr. Mike Ciricillo reports

NEVADA COPPER ANNOUNCES FILING OF Q2 2021 FINANCIAL STATEMENTS AND MD&A, OPERATIONAL UPDATE AND MANAGEMENT CHANGE

Nevada Copper Corp. has provided an operations update, and filed its Q2 2021 financial statements and the related management's discussion and analysis.

Operations update:

• Mining of first stope: During Q2 2021 the company successfully mined approximately 9,500 tons at a grade of 1.5 per cent copper out of the first stope mined since the restart of the mine in the East South area. Tons mined and ore breakage were consistent with the plan, indicating that the mining method was appropriate for the ground conditions where the stope is located, although mining of the stope was later than originally planned. Subsequently, the stope was successfully backfilled, and the company is now preparing to mine the next stope in the East South area.
• Mine infrastructure: Mine infrastructure works were further advanced during the quarter, albeit slower than expected, including the final two sets of underground fans installed and commissioned as planned in Q2 2021, allowing for an increase in development rates. Commissioning of the surface ventilation fans continues to be planned for Q4 2021.
• Material hoisting: Following completion of the main shaft material handling system in Q4 2020, the underground mine achieved a peak daily hoisting rate of over 3,000 tons by February, 2021, and has since achieved a hoisting rate equivalent to 5,000 tons per day (tpd) on a shift basis, demonstrating capacity of the shaft and associated materials handling system. Due to slower development rates in Q2 2021 through the water-bearing dike structure, the company now expects to reach sustainable hoisting rates of 3,000 tpd in Q4 2021 and for hoisting rates to continue to ramp up beyond that.
• Lateral development: Lateral development continued on multiple headings, providing access to ore mining zones in the East South orebody and advancing development toward the East North orebody. During Q2 2021 the company continued development of the East North area through a dike structure located between the East South and East North orebodies. A second heading crossing the dike is 90 feet below the first heading. Additional ground support was required to complete dike crossing, and the company is almost through the water-bearing dike structure.
• Processing: The process plant maintained average concentrate grade over 21 per cent along with 81-per-cent recoveries. While batch processing ore through the processing plant, the company achieved a weekly average of 3,271 tpd. The company processed 87,211 tons of ore through the concentrator in Q2 2021 with an average feed grade of 0.51 per cent. Approximately 1,514 tons of concentrate was produced at a 21-per-cent average copper grade for Q2 2021. During June, Sedgman successfully completed C5 testing of the processing plant for grind size and moisture of concentrate and tailings.
• Production ramp-up and mine planning: The company continues to advance its mine planning process and has made revisions to the mine plan. The revised mine plan incorporates the recent experiences during mine development, including the geotechnical conditions of the East South area. In light of the impact of the water-bearing dike structure, expected equipment utilization rates and the remaining infrastructure projects to be completed, the company now expects that the underground mine will reach a hoisting rate of 3,000 tpd in Q4 2021 and 5,000 tpd in first half 2022.

Property development plans:

• Underground: The company has progressed its life-of-mine planning aimed at operating its underground mine at an ultimate production rate in excess of the originally contemplated 5,000-ton-per-day rate. Mine planning work further supports the potential for the mine, once ramped up to steady state, to operate at higher long-term rates of 6,500 tons per day milled, increasing long-term annual copper production potential.
• Open pit: The company reviewed its longer-term development targets for its Pumpkin Hollow property, including a solar power study, electrification and emissions reduction analysis, follow-up work on scaling opportunities to improve economics, and plans for infill and extension drilling.
• Exploration: The company plans to follow up on new exploration targets added through recent expansion of the company's properties to the east and analysis of geophysical surveys.

Corporate:

• Payroll protection program loan (PPP loan) forgiveness: On Aug. 6, 2021, the company received confirmation for the approval of the forgiveness of the PPP loan in the amount of $2.4-million. The loan was received in 2020 as part of a United States government COVID-19 pandemic program to assist companies to retain their employees.
• KfW credit facility amendment discussions: On June 30, 2021, the company received a waiver from KfW IPEX-Bank (KfW), the lender under its amended and restated senior credit agreement, which provided for a 60-day extension to the project completion long-stop date (the final date to meet the requirements of the project completion test under the amended KfW facility) from June 30, 2021, to Aug. 31, 2021. The company has requested and expects to receive a further short-term extension of the project long-stop date from KfW. The company is also in discussions with KfW to achieve a longer-term extension of the project long-stop date to a date in 2023, the deferral of debt servicing by 12 months and the temporary deferral of compliance with certain financial covenants under the amended KfW facility as the underground mine continues to ramp up. The company expects to have the short-term extension finalized in the next few weeks and the other proposed amendments finalized in the next few months. However, there can be no assurance that such extension and amendments will be finalized by such times or at all. Failure to finalize the extension or these amendments would result in the company being in default under the amended KfW facility.
• 2021 promissory notes: The company received a loan of $15-million under a promissory note with Pala Investments Ltd., the company's largest shareholder, in June, 2021, providing additional liquidity for the ramp-up of the underground mine and addressing the reduced development rates associated with crossing the water-bearing dike structure. The 2021 promissory note has a maturity date of June 30, 2022, and bears interest at 8 per cent per annum on amounts drawn. Subsequent to the end of Q2 2021, Pala agreed to provide the company with additional loans of up to $27-million (of which $19-million has been received) pursuant to a series of amendments and restatements of the 2021 promissory note on the same terms and conditions as the original 2021 promissory note. Further draws by the company are subject to agreed use of proceeds and regulatory approval of the amended and restated promissory note.
• 2021 credit facility: On Feb. 3, 2021, the company entered a credit facility with Pala for $15-million to be drawn by the company. The 2021 credit facility also provided $15-million under an accordion feature. The full $30-million has been drawn by the company.

Senior management changes

Mike Ciricillo will be stepping down from the role of president and chief executive officer of the company, effective Aug. 14, 2021.

Mike Brown will assume the role of interim president and chief executive officer. Mr. Brown has been a non-executive director of Nevada Copper since 2013, and has over 35 years of underground and open-pit mining experience, including as chief operating officer of De Beers Consolidated Ltd., where he was responsible for five operating mines. Mr. Brown has also managed a number of major projects, including the $750-million Finsch block 4 project, the $1.3-billion Venetia underground feasibility study, and a $200-million construction and commissioning of the Voorspoed mine.

Mr. Ciricillo will continue to provide support at the Pumpkin Hollow site for a transition period.

"The board of directors would like to thank Mr. Ciricillo for his contributions to the company, including execution on ramp-up of the underground mine, and look forward to his ongoing support," stated chairman Mr. Gill. "The board of directors is pleased to welcome Mr. Brown as interim president and CEO, and look forward to his leadership in that role."

Q2 2021 financial statements

The company has filed on SEDAR its condensed interim financial statements, and the related management's discussion and analysis for the quarter ended June 30, 2021. These documents are available on the company's website and the company's SEDAR profile.

Qualified persons

The technical information and data in this news release was reviewed by Greg French, CPG, and Norm Bisson, PEng, for Nevada Copper, who are non-independent qualified persons within the meaning of National Instrument 43-101.

About Nevada Copper Corp.

Nevada Copper is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, United States, Pumpkin Hollow has substantial reserves and resources, including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, which is now in the production stage, and a large-scale open pit project, which is advancing toward feasibility status.

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