Arizona Sonoran Copper Company Inc.

Company Data | Introduction | Projects in Hand | Management
News Update | Chinese

Company Data

Introduction

ASCU’s objective is to become a mid-tier copper producer with low operating costs and to develop the Cactus and Parks/Salyer Projects that could generate robust returns for investors and provide a long term sustainable and responsible operation for the community and all stakeholders. The Company's principal asset is a 100% interest in the Cactus Project (former ASARCO, Sacaton mine) which is situated on private land in an infrastructure-rich area of Arizona. Contiguous to the Cactus Project is the Company’s 100%-owned Parks/Salyer deposit that could allow for a phased expansion of the Cactus Mine once it becomes a producing asset.

The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise.

Projects in Hand

Cactus Mine Project, Arizona (Cactus and Parks/Salyer Deposits)

Project Highlights

• Private land package and 100% ownership in Tier 1 jurisdiction
• Brownfield, scalable copper development project, with simple heap-leach and SX/EW mine planned
• Low risk development and State-and-County led permitting framework
• 3rd largest independent copper project in the US
• Construction decision expected in late 2024, upon successful DFS.

Global Mineral Resource

• Indicated Resource: 1.61 billion lbs
• Inferred Resource: 4.89 billion lbs

Maiden Parks/Salyer Mineral Resource Estimate (MRE) Doubled the Global Leachable Inventory on Cactus

• Proposed SX/EW heap leach operation with robust project economics on the Cactus oxide and enriched copper resource
• 18-year mine life with aggregate of 1 billion pounds of copper, or ~56Mlbs (28 ktpa) produced per year
• NPV8 of US$312 M (Post-Tax) and IRR of 33% (@ US$3.35/lb Cu)
• AISC of US$1.88/lb (incl. royalty)
• Low capital intensity of US$2.20 per pound of copper produced
• Significant scale and growth opportunity beyond the Cactus Mine plan
• Currently drilling and conducting detailed engineering to include Parks/Salyer’s oxide and enriched material into the Cactus mine plan – PFS expected in late 2023/early 2024
• Parks/Salyer, with higher tonnage and higher grades than Cactus, is located within 2 km of the Cactus deposit will likely benefit from economies of scale
• 4 km mine trend, with potential for growth in Gap Zone and NE Extension
• Rio Tinto’s NutonTM technologies is testing the leachability of the Cactus and Parks/Salyer primary sulphide material, previously thought of as a stranded resource, a first mover testing the NutonTM leaching technologies
• Primary sulphide mineral resource
• 0.55 billion pounds of copper (indicated)
• 1.2 billion pounds of copper (inferred)

ASCU-led Metallurgical programs: Focus on Leachable Material

• Testing programs for the PFS and Definitive Feasibility Study (“DFS”) level includes at least 12 columns, 20 ft (6 m) in height and composed of material from the Stockpile, Parks/Salyer and Cactus deposits, separated into different rock type, copper grades and mineralogy
• 5 additional columns, 30 ft (9 m) in height are scheduled to be constructed and online within Q1 2023
• Program completion anticipated in Q3 2023

Testing Primary Chalcopyrite Leachability via Partnership with Rio Tinto’s NutonTM Technologies, a 30-year innovation

• ASCU primary sulphides are not currently in the mine plan. Partnering with NutonTM tests the optionality for considering a primary sulphide leaching process
• NutonTM is currently column leach testing the Parks/Salyer & Cactus material (oxide, enriched and primary). Initial testing showed +72% leaching recoveries of primary sulphides
• Ongoing column testing the leachability of the primary sulphide material at Cactus and Parks/Salyer
• The full impact of the success of the NutonTM technologies in relation to Cactus and Parks/Salyer and/or integration within a technical study remains under consideration and will be determined by the output of the technical work and commercial arrangements yet to be negotiated
• Potential to infill drill the primary sulphide material at Cactus, related to the NutonTM technologies requirements

ASCU Total Primary Sulphide Resources

• 545M lbs Cu indicated
• 1.2B lbs Cu inferred

Drilling Programs

• Drilling Programs targeting oxide and enriched copper mineralization
• Complete 105,000 ft (32,000 m) infill drilling program on Parks/Salyer (Q1 2023)
• Complete 90,000 ft (27,000 m) infill drilling program at the Cactus East and Parks/Salyer projects (Q2-Q4 2023) a requirement for Definitive Feasibility Study (“DFS”) in 2024
• Begin small exploration program along the 4 km mine trend (Q1-Q3 2023) on the NE Ext. and “The Gap Zone.”
• Permitting
• Complete permitting of Cactus based on the 2021 Cactus Preliminary Economic Assessment (“PEA”)

George Ogilvie, ASCU President and CEO commented, “This past year was pivotal as we developed Cactus and demonstrated scalability through the addition of the Parks/Salyer deposit which grew our Cactus project into the third largest independent copper project in the US. Additionally, our teams advanced permitting, conducted detailed engineering and welcomed Rio Tinto as a 7% shareholder, related to its NutonTM technologies testing ASCU’s primary material, a previously stranded resource. Our team continues to grow at the project level, as we ended the year with 17 employees and 25 contracted support personnel, and zero-lost time accidents.

He continued, “This next year’s milestones will be tied to the integration of the Cactus base case leachable material mine plan with potential new additions from the Parks/Salyer deposit and the primary sulphide optionality currently being tested with Rio Tinto’s NutonTM technologies.

“We also aim to conduct pure additional exploration drilling on our underexplored property; which could add further value through success with the drill bit.”

Key Investment Highlights:

• ASCU’s core values are supported by an ESG (Environmental, Social, and Governance) framework
• Copper market fundamentals remain strong in the medium and longer term
• Mature tight share capital structure with no debt
• Experienced leadership team and board with a proven track record
• Brownfield, scalable development project in Tier 1 jurisdiction
• Large scale mineral resource
• Robust project economics
• Low risk development with state-and-county led permitting framework
• Water permits in hand and availability of water
• Mergers and acquisitions potential longer term within Arizona

Management

Management and Directors

George Ogilvie, P.Eng., President, CEO & Director

+30 years of management, operating and technical experience in the mining industry. Previously President & CEO of Battle North (sold to Evolution Mining), CEO of Kirkland Lake and Rambler Metals.

Ian McMullan, P.Eng., MBA, COO

+25 years of mining experience in operational and management roles. 20 year tenure with Newmont. Previously VP of Mining at Klondex.

Nick Nikolakakis, BA.Sc, MBA, VP Finance and CFO

+27 years of North American executive mining finance experience. Former VP Finance and CFO of Battle North, Rainy River and Placer Dome.

Rita Adiani, LLB Hons, SVP Strategy & Corporate Development

+16 years of mining experience across strategy & business development, investment banking and corporate law. Previously EVP and Head of Business Development at Xiana Mining.

Doug Bowden, MSc., Vice President, Exploration

+40 years mining experience throughout North America and Mexico. Responsible for managing exploration programs for Amselco, BP Minerals, Kennecott and Wester Uranium. Senior executive positions held at Gold Summit Corporation, Western Uranium and Concordia.

Travis Snider, B.Sc., Env Chem, SME, Vice President, Sustainability & External Relations

+20 years experience in the mining industry in Arizona. Previously Mining Project Manager at Engineering & Environmental Consultants, SVP of Operations for Sierra Resource Group and VP of Mining & Oil operations for Wilcox.

Alison Dwoskin, CPIR, Director, Investor Relations

+15 years in investor relations. Formerly Manager, Investor Relations of Klondex Mines and Eastmain Resources.

David Laing, B.Sc. Eng., Chair of the Board of Directors

+40 years experience in the mining industry. Currently Chair of Fortuna Silver and Director of Northern Dynasty Mineral, Blackrock Silver Corp. and Amarillo Gold Corp.

Thomas Boehlert, ICD.D, Director

+30 years in the agribusiness, mining and energy. Previously EVP, CFO of Bunge Limited and Kinross Gold Corporation, President, CEO of First Nickel Inc.

Alan Edwards, B.Sc. Eng, MBA, Director

+35 years of operational and executive experience in the mining sector. Currently also director of Americas Gold and Silver, Entrée Resources & Orvana Minerals

Mark Palmer, B.Sc., Director

+30 years in the mining industry with roles in finance and industry. Currently Partner at Tembo. Currently also serves on the board of Orion Minerals.

Sarah Strunk, Director

+37 years in the mining law, with commercial, legal and transactional experience. Currently Chair at Fennemore Craig.

News Update

On January 30, 2024, Arizona Sonoran Copper Company Inc. has provided an update on its 2024 work plan and 2023 achievements. The ensuing year's activities relate to the continued advancement of the Cactus Property, through Feasibility studies while concurrently completing Nuton-related work programs.

2023 Achievements

• c. $74 million CAD Financing
• C$30M (February) via bought deal financing
• US$33M (December) via initial option to JV payment ( PR - Dec 14, 2023 )
• Option to JV with Nuton LLC, a Rio Tinto Venture
• Total option exercise payment to be determined based on the stand-alone ASCU Pre-Feasibility Study ("PFS") net present value ("NPV")
• Mineral Resources
• Increased the total M&I mineral resources by 221%
• Increased the leachable M&I mineral resources by 316%
• Strengthened the Owner/Operator Team
• Appointed Bernie Loyer as SVP Projects, Steve Dixon, Senior Metallurgist, Chris White, Chief Mine Geologist, and Victor Moraila, Chief Mine Engineer and Alan Hernandez, Senior Project Engineer
• Drilling - Completed 150,561 ft (45,891 m) of drilling, including infill and exploration. Discovered MainSpring near surface mineralization south of Parks/Salyer and confirmed mineralization in the Gap Zone and NE Extension
• Land - purchased an option to acquire the MainSpring Property (543 acres) and began its rezoning from Residential to Industrial with the City of Casa Grande.
• Metallurgy - completed ASCU PFS metallurgy
• Ongoing DFS metallurgy and Nuton metallurgical testing
• Permitting - successfully completed all major permits related to the Cactus PEA. Modified water rights through ADWR to include MainSpring and ASLD Lands

2024 ASCU Work Plan Highlights

• Technical Studies - Complete ASCU's Stand-alone PFS and initiate the Amended PFS which will incorporate MainSpring. The Amended PFS will be compared to the subsequent Nuton case Integrated PFS. Assuming the economics meet the required thresholds, and Nuton chooses to exercise its option, it will make the option payment based on a 0.65x multiple of the NPV included in the Amended PFS including MainSpring thereby obtaining up to 40% of the project.
• Stand-alone ASCU PFS expected in 1Q24
• Amended PFS including MainSpring, estimated for completion by October 2024
• Stand-alone DFS estimated completion June 2025
• Drilling Programs - Infill to inferred and indicated programs totaling 180,000 ft (54,860 m) at MainSpring and Cactus West required for future technical studies. Drilling will target oxide, enriched and primary mineralization
• Metallurgy - Begin evaluating MainSpring and Parks/Salyer heap leach amenability in 20 ft (6m) columns in a commercial laboratory
• Permitting will include amending permits (SWPP, Aquifer Protection Permit and Industrial Air) related to the Cactus PFS

2024 Nuton Work Plan Highlights

• Drilling of MainSpring and Cactus West (as above):
• Infill to indicated programs to assess the primary sulfide potential along with core drilling to support the Phase 2 Nuton metallurgical test program
• Technical Studies:
• Integrated Nuton PEA: A Preliminary Economic Assessment incorporating the Nuton technology as applied to the Cactus/Parks Salyer and MainSpring expected in H2 2024
• Integrated Nuton PFS: The Parties agree to work towards the Integrated Nuton PFS release by the end of 2024, unless extended mutually by the Parties.
• Metallurgy:
• Primary material from both MainSpring and Cactus West, will be tested in small columns to evaluate optimum Nuton operating conditions for the material
• Full height, 30 feet (10m) tall column will be operated to confirm scale-up considerations under Nuton leach conditions

George Ogilvie, ASCU President and CEO commented, "I am extremely proud of the team's efforts in 2023. Within a tough overall market, we raised C$30 million at the beginning of the year funding a transformational year in terms of becoming one of the lowest risk advanced exploration copper companies. Our strengthened owner-operator team permitted our Cactus project, significantly grew the mineral resources to become a top tier project in a tier one location, advanced our metallurgical work and continued to demonstrate the support from the local community for the reactivation of the Cactus Mine, for which we are thankful.

He continued, "Most significant to the development of Cactus, is our exciting new partnership with Nuton and Rio Tinto, bringing long-term accretive value to the ASCU shareholders. Having signed the Option to Joint Venture Agreement with Nuton late last year, we find ourselves funded to deliver advanced technical studies demonstrating the integration of an exciting new technology and potentially unlocking a previously stranded and untreatable mineral resource. We are thrilled to be working with a company that values our environmental and social stewardship and we believe the strengthening of our business relationship will be a win-win-win for ASCU shareholders, the Cactus Project and for Nuton."

On January 25, 2024, Arizona Sonoran Copper Company Inc. has released drill assay results from an exploration program at the MainSpring property, situated within the Cactus copper project in Arizona. A total of seven of 11 Arizona Sonoran drilled holes completed last year (see press release Nov. 20, 2023), and 22 legacy holes from the previous option holder are reported here and indicate mineralization from the Parks/Salyer deposit nears surface as it extends south. Future drilling will test the open-pit potential of MainSpring with the intent of updating the Cactus mineral resource estimate postprefeasibility study (PFS). Drilling highlights:

• ECM-194: 1,053 feet (321 metres) at 0.20 per cent CuT (total copper) of mineralization from 147 ft (45 m) depth:
• 48 ft (15 m) at 0.35 per cent CuT, 0.25 per cent Cu TSol (total soluble copper), 0.001 per cent molybdenum (oxide);
• 471 ft (144 m) at 0.3 per cent CuT, 0.29 per cent Cu TSol, 0.001 per cent Mo (enriched).
• ECM-195: 503 ft (153 m) at 0.27 per cent CuT of mineralization from 145 ft (44 m) depth:
• 41 ft (12.5 m) at 0.63 per cent CuT, 0.59 per cent Cu TSol from 145 ft (44 m) depth (enriched);
• 208 ft (63 m) at 0.44 per cent CuT, 0.40 per cent Cu TSol, 0.001 per cent Mo (enriched) from 440 ft (134 m);
• 41 ft (12.5 m) at 0.63 per cent CuT, 0.59 per cent Cu TSol from 145 ft (41 m) depth.
• ESC-010: 1,027 ft (313 m) at 0.30 per cent CuT of continuous mineralization:
• 170 ft (52 m) at 0.59 per cent CuT, 0.46 per cent Cu TSol, 0.017 per cent Mo (enriched);
• 857 ft (261 m) at 0.24 per cent CuT, 0.009 per cent Mo (primary).
• -ESC-047: 216 ft (66 m) at 0.60 per cent CuT, 0.51 per cent Cu TSol, 0.011 per cent Mo (enriched);
• ESC-046: 175 ft (53 m) at 0.68 per cent CuT, 0.65 per cent Cu TSol, 0.004 per cent Mo (enriched);
• ESC-030: 249 ft (76 m) at 0.41 per cent CuT, 0.31 per cent Cu TSol, 0.006 per cent Mo (oxide).

Note: True widths are not known.

George Ogilvie, Arizona Sonoran president and chief executive officer, commented: "The MainSpring property shows early signs of promise with continuous mineralization starting from near surface, that may have the potential for being open-pittable. Given we only started drilling MainSpring late in 2023, it will not feature in our soon-to-be-released PFS. However, with continued drilling in H1 2024, it has the potential to be included in future technical studies that may further enhance the production profile and economics of the project."

He also commented: "The Cactus property continues to show itself as a lower-risk copper project with few barriers to entry and low discovery costs. We are showing discovery costs per pound at Cactus of less than two cents per pound, indicating that we should continue our exploration programs, while concurrently developing our main project. Our high-performing team continues to deliver excellent results and we expect this to continue with our 2024 work program which is currently being finalized and will be announced to the market shortly."

On January 25, 2024, Arizona Sonoran Copper Company Inc. has released drill assay results from an exploration program at the MainSpring property, situated within the Cactus copper project in Arizona. A total of seven of 11 Arizona Sonoran drilled holes completed last year (see press release Nov. 20, 2023), and 22 legacy holes from the previous option holder are reported here and indicate mineralization from the Parks/Salyer deposit nears surface as it extends south. Future drilling will test the open-pit potential of MainSpring with the intent of updating the Cactus mineral resource estimate postprefeasibility study (PFS). Drilling highlights:

• ECM-194: 1,053 feet (321 metres) at 0.20 per cent CuT (total copper) of mineralization from 147 ft (45 m) depth:
• 48 ft (15 m) at 0.35 per cent CuT, 0.25 per cent Cu TSol (total soluble copper), 0.001 per cent molybdenum (oxide);
• 471 ft (144 m) at 0.3 per cent CuT, 0.29 per cent Cu TSol, 0.001 per cent Mo (enriched).
• ECM-195: 503 ft (153 m) at 0.27 per cent CuT of mineralization from 145 ft (44 m) depth:
• 41 ft (12.5 m) at 0.63 per cent CuT, 0.59 per cent Cu TSol from 145 ft (44 m) depth (enriched);
• 208 ft (63 m) at 0.44 per cent CuT, 0.40 per cent Cu TSol, 0.001 per cent Mo (enriched) from 440 ft (134 m);
• 41 ft (12.5 m) at 0.63 per cent CuT, 0.59 per cent Cu TSol from 145 ft (41 m) depth.
• ESC-010: 1,027 ft (313 m) at 0.30 per cent CuT of continuous mineralization:
• 170 ft (52 m) at 0.59 per cent CuT, 0.46 per cent Cu TSol, 0.017 per cent Mo (enriched);
• 857 ft (261 m) at 0.24 per cent CuT, 0.009 per cent Mo (primary).
• -ESC-047: 216 ft (66 m) at 0.60 per cent CuT, 0.51 per cent Cu TSol, 0.011 per cent Mo (enriched);
• ESC-046: 175 ft (53 m) at 0.68 per cent CuT, 0.65 per cent Cu TSol, 0.004 per cent Mo (enriched);
• ESC-030: 249 ft (76 m) at 0.41 per cent CuT, 0.31 per cent Cu TSol, 0.006 per cent Mo (oxide).

Note: True widths are not known.

George Ogilvie, Arizona Sonoran president and chief executive officer, commented: "The MainSpring property shows early signs of promise with continuous mineralization starting from near surface, that may have the potential for being open-pittable. Given we only started drilling MainSpring late in 2023, it will not feature in our soon-to-be-released PFS. However, with continued drilling in H1 2024, it has the potential to be included in future technical studies that may further enhance the production profile and economics of the project."

He also commented: "The Cactus property continues to show itself as a lower-risk copper project with few barriers to entry and low discovery costs. We are showing discovery costs per pound at Cactus of less than two cents per pound, indicating that we should continue our exploration programs, while concurrently developing our main project. Our high-performing team continues to deliver excellent results and we expect this to continue with our 2024 work program which is currently being finalized and will be announced to the market shortly."

On January 16, 2024, Arizona Sonoran Copper Company Inc. has released infill drill assay results from the Parks/Salyer infill to measured program on the Cactus project in Arizona. These 11 drill holes total 24,463 feet (7,456 metres) of drilling.

Additionally, infill and exploration drilling to the south of Parks/Salyer has resumed at MainSpring with three drills, building on the 11-hole program undertaken in late 2023. The MainSpring drill program is testing the near-surface southern extension of the Parks/Salyer deposit, which lies approximately 1,500 feet (457 metres) to the north. Assays from four of these core holes were reported in press release dated Nov. 20, 2023, while results from the remaining seven core holes are still pending.

George Ogilvie, president and chief executive officer of Arizona Sonoran, commented: "We look forward to integrating the thick and high-grade Parks/Salyer porphyry copper deposit into our prefeasibility study due out this quarter. Having completed the Parks/Salyer drilling in support of the indicated category and a partial program in support of the measured category for a future definitive feasibility study, we look forward to demonstrating the exploration upside of our Cactus project. In 2024, our exploration teams will expand the definition of the primary sulphides, in addition to the oxides and enriched material at our MainSpring and Cactus West projects, presenting a significant potential for the company."

On January 10, 2024, Arizona Sonoran Copper Company Inc. has released additional drill assay results from the Cactus West and Cactus East deposits within the Cactus project in Arizona. A total of 9 drill holes were completed for a total of 18,215 ft (5,552 m) supporting the 125 ft (38 m) infill-to-measured and geotechnical drilling programs (see Thick and high-grade total copper ("CuT") and soluble copper ("Cu TSol") intervals within this Cactus East measured drilling (125 ft | 38 m drill centres) remains consistent with indicated drilling results from the 2023 updated mineral resource.

At Cactus West, infill and geotechnical drilling returned wide intervals of primary copper mineralization both below and at the extents of the Cactus West mineral resource shell. The encouraging results support the need for an expanded Cactus West infill and exploration drill program as per the Nuton LLC Joint Venture press release (see PR Dec 14, 2023 ). ASCU is currently finalizing the 2024 work plan, which will include follow up drilling at Cactus West and MainSpring, and metallurgical test work for the Nuton Case Integrated Pre-feasibility Study. The Nuton case PFS will build upon ASCU's Standalone PFS expected in Q1 2024. Drilling Highlights:

• ECE-177: 730.7 ft (223 m) of 0.92 per cent CuT of continuous mineralization
• 417 ft (127 m) of 1.34 per cent CuT, 1.27 per cent Cu TSol, 0.031 per cent Mo (enriched)
• Incl 55 ft (17 m) of 2.03 per cent CuT, 1.97 per cent Cu TSol, 0.025 per cent Mo
• 265 ft (81 m) of 0.36 per cent CuT, 0.028 per cent Mo (primary)
• ECW-150: 1,416 ft (432 m) of 0.45 per cent CuT of continuous mineralization
• 168 ft (51 m) of 0.62 per cent CuT, 0.51 per cent Cu TSol, 0.006 per cent Mo (enriched)
• 1,174 ft (358 m) of 0.43 per cent CuT, 0.011 per cent Mo
• Incl. 674.5 ft (205 m) of 0.40 per cent CuT, 0.10 per cent Mo primary mineralization extending below the reported resource pit extents
• ECE-179: 670 ft (204 m) of 0.78 per cent CuT of continuous mineralization
• 287 ft (88 m) of 1.37 per cent CuT, 1.30 per cent Cu TSol, 0.033 per cent Mo (enriched)
• Incl 108 ft (33 m) of 1.78 per cent CuT, 1.72 per cent Cu TSol, 0.042 per cent Mo
• ECE-185: 881 ft (269 m) of 0.52 per cent CuT of continuous mineralization
• 436 ft (133 m) of 0.80 per cent CuT, 0.76 per cent Cu TSol, 0.006 per cent Mo (enriched)
• ECW-151: 1,496 ft (456 m) of 0.24 per cent CuT of continuous mineralization from 110 ft (33 m) downhole
• 1,319 ft (402 m) of 0.24 per cent CuT, 0.003 per cent Mo (primary)
• ECW-153: 935 ft (285 m) of 0.25 per cent CuT, 0.012 per cent Mo (primary)
• ECW-154: 1,589 ft (484 m) of 0.19 per cent CuT of continuous mineralization

NOTE: True widths are not known; Cactus West = ECW, Cactus East = ECE

George Ogilvie, Arizona Sonoran President and CEO commented, "The infill to measured drilling supports the updated Mineral Resource Estimate that we released in October 2023. This measured infill drilling bodes well for future updates to the Mineral Resource Estimate (MRE) and Definitive Feasibility Studies, planned following the release of our Stand Alone PFS in 1Q24. Specific to Cactus East it was encouraging to see an extension of the leachable mineralization to the northeast, representing potential future mineral resource growth.

On December 14, 2023, Arizona Sonoran Copper Company Inc. has entered into an option to joint venture agreement with Nuton LLC, a wholly owned subsidiary of Rio Tinto, to establish a strategic alliance for deployment of the Nuton technologies at its Cactus mine and the Parks/Salyer project in Arizona, United States. All dollar figures herein are in U.S. dollars unless otherwise indicated.

Management will host an interactive webinar on Friday, Dec. 15, 2023, at 9 a.m. ET. Please register on-line to join. Transaction highlights:

Creating a straightforward mechanism for significant project financing;

Endorses the Cactus project through up to $33-million (U.S.) in non-dilutive financing;

Creates a straightforward mechanism for significant project financing, designed to minimize Arizona Sonoran's future share of equity contributions to capital costs

Commitment from Nuton to support the creation of a funding strategy for Arizona Sonoran, which may include the provision of a completion guarantee for the Cactus Project or a performance guarantee related to the Nuton technologies

Potential to improve per share returns to Arizona Sonoran shareholders

Reduction of Execution Risks

Establishes a framework for a joint-venture partnership with industry-leading technical and innovation leader to deliver value-enhancing project economics

Potential to significantly increase attributable copper production per share

Defines near-term project advancement strategy with the goal of delivering an Integrated Nuton Case PFS (defined below) by December 31, 2024

Preserves long-term optionality for Arizona Sonoran and outlines a clear path towards environmentally- friendly copper production in the USA, with a focus on Nuton's positive impact pillars: water, energy, land, materials, and society

George Ogilvie, President and CEO of Arizona Sonoran commented, "We are delighted to announce this strategic joint venture transaction with Nuton. We welcome the expertise and financial support as we expand testing of Nuton's heap leaching technologies, while concurrently advancing ASCU's projects. Nuton's column test results have demonstrated continued improvements in extraction rates from both the primary and enriched mineral resources, resulting in potentially more efficient operations. We look forward to advancing into Phase 2 testing, which includes an expanded understanding of the Nuton technologies' economic benefits within a fully-integrated pre-feasibility study, anticipated by the end of 2024."

On December 13, 2023, Arizona Sonoran Copper Company Inc. has released metallurgical results from the Nuton phase 1 column leach program from Arizona Sonoran's Cactus copper porphyry project in Arizona, United States.

George Ogilvie, Arizona Sonoran Copper Company President and CEO commented, "We are encouraged by the extraction rates resulting from our primary and secondary sulphides using the Nuton technologies. These results demonstrate a continued extraction rate improvement from the columns reported in June. Nuton's heap leaching technology is a potential solution to gain access to our currently stranded primary mineral resource while also incrementally improving the copper extraction rates from the enriched material. Particularly interesting to ASCU, is that Nuton's flow sheet could be integrated into the planned Cactus heap leach and SXEW flow sheet. With a successfully negotiated Commercial Framework Agreement in place and a completed Phase 1 test program, we would seek to coordinate the improved extraction rates into an updated and expanded technical study, complementing the base case PFS anticipated in Q1 2024 and demonstrating economies of scale."

On November 20, 2023, Exploration drilling at Arizona Sonoran Copper Company Inc.'s MainSpring property has intersected near-surface copper mineralization from four drill holes. The southernmost MainSpring drill hole, ECM-186, was collared 2,500 feet (762 metres) south of the Parks/Salyer deposit and intersected shallow oxide mineralization at a depth of 138 ft (42 m) from surface. In comparison, Parks/Salyer mineralization begins at approximately 550 ft (176 m) at its shallowest, over a footprint of 2,000 ft by 2,500 ft. The MainSpring property is situated contiguous to the Parks/Salyer property and within Cactus project in Arizona, privately held by Arizona Sonoran.

Eight of 10 drill holes are now complete within the MainSpring exploration program announced Oct. 30, 2023. Current drilling is testing the near-surface extension of mineralization south of the Parks/Salyer deposit across the MainSpring property. Based on early drilling results, a comprehensive 2024 exploration program is being planned to discover the extents of shallow mineralization to the south and then connect the shallow mineralization to the thick high-grade zones at Parks/Salyer in the north.

On October 30, 2023, Arizona Sonoran Copper Company Inc. has released drill assays from five holes at Cactus East and four from Parks/Salyer (18,467 feet/5,629 metres). Drilling at 125 ft (38 m) drill spacings demonstrating the continuity and thicknesses of mineralization within the proposed Cactus East and Parks/Salyer high-grade underground oxide and enriched mineralized zones.

Additionally, the company has begun exploratory drilling at the MainSpring property (Parks/Salyer South), with five holes now complete. The program consists of up to 10 drill holes, targeting shallow mineralization 1,500 ft (approximately 450 m) south of the Parks/Salyer deposit. The Parks/Salyer deposit contains 143.9 million tonnes at 1.009 per cent copper measured and indicated and 48.4 Mt at 0.967 per cent Cu inferred (press release Oct. 16, 2023) and remains open to the south onto the MainSpring property. Historic Asarco drilling supports the continuity of gradually shallower mineralization toward the south, which Arizona Sonoran is testing via the current drill program.

On October 16. 2023, Arizona Sonoran Copper Company Inc. has released its mineral resource update (MRE) for the combined Cactus, Stockpile and Parks/Salyer deposits (together, the Cactus project), located 45 miles south of Phoenix, Ariz. The upgraded MRE is expected to form the basis for the ASCU Pre-Feasibility Study ("PFS"), targeting a 45-50 ktpa copper cathode heap leach and SXEW operation, and is on track for release in Q1 2024. The brownfields project is wholly-owned and located on private land in Arizona with ~$30 million of infrastructure onsite, an advanced permitting stage, approved water rights and access to water. Highlights:

- 221% increase of total Measured and Indicated ("M&I") resources (including primary resources), and a 9% increase of grade, resulting in a 55% decrease of Inferred resources due to upgrading of material

- MRE including Primary Resource Opportunity

M&I 445.7 Mt @ 0.58% Cu for 5.17 billion pounds of copper

Inferred 233.8 Mt @ 0.47% Cu for 2.21 billion pounds of copper

On October 03, 2023, The City of Casa Grande has approved the rezoning for the northern parcel of Arizona Sonoran Copper Company Inc.'s MainSpring property (Parks/Salyer South) to industrial use. Rezoning the northern parcel allows Arizona Sonoran to begin drilling and an exploration plan is being prepared. The southern parcel of Parks/Salyer South is still in process with the City of Casa Grande for rezoning and a general plan amendment. Additionally, the company has acquired a 2.5-acre mineral exploration permit (MEP) within the Parks/Salyer deposit. By acquiring the MEP and Parks/Salyer South, Arizona Sonoran gains a low-risk, high-impact exploration target and operational flexibility for future operations.

As a recap, the Parks/Salyer mineral resource contains a total of 2.9 billion pounds at a grade of 1.015 per cent copper, inferred (for mineral resource disclosures; please see press release dated Sept. 28, 2022), and is currently bounded at the Parks/Salyer border. The company is expecting to issue an updated mineral resource update on the entire Cactus project, inclusive of Parks/Salyer in Q4 2023.

On September 12, 2023, Arizona Sonoran Copper Company Inc. has drilled an initial 13 infill holes from the high-grade core of the Parks/Salyer deposit demonstrating continuity of grade and mineralized widths at 125-foot (38 metres) drill spacing. A total of 29,036 ft (8,850.2 m) have now been drilled within the overall 105,000 ft (32,000 m) infill to measured drilling program over the Cactus project deposits. This program is being undertaken to upgrade parts of the current mineral resources to the measured category for a definitive feasibility study (DFS) in late 2024. Drilling highlights:

• Drilling replicating high grade thicknesses from prior drill programs, including five new intervals in the top 10 grade thickness intervals at Parks/Salyer;
• In July and August, two drill rigs focused in the eastern section, interpreted to be the high-grade core of the deposit;
• ECP-145: 937 ft (285.8 m) at 1.41 per cent CuT (total copper) of continuous mineralization:
• 639 ft (194.8 m) at 1.78 per cent CuT, 1.37 per cent Cu TSol (total soluble copper), 0.016 per cent Mo (molybdenum) (enriched);
• Including 78 ft (23.8 m) at 4.10 per cent CuT, 2.96 per cent Cu TSol, 0.013 per cent Mo;
• ECP-147: 1,023 ft (312 m) at 1.05 per cent CuT of continuous mineralization:
• 935 ft (285.2 m) at 1.02 per cent CuT, 0.63 per cent Cu TSol, 0.014 per cent Mo (enriched);
• Including 202 ft (61.6 m) at 2.03 per cent CuT, 1.28 per cent Cu TSol, 0.016 per cent Mo;
• ECP-162: 1,132 ft (344.9 m) at 1.23 per cent CuT of continuous mineralization:
• 597 ft (181.8 m) at 1.49 per cent CuT, 1.44 per cent Cu TSol, 0.019 per cent Mo (enriched);
• 170 ft (51.8 m) at 1.92 per cent CuT, 1.88 per cent Cu TSol, 0.023 per cent Mo;
• ECP-169: 880.2 ft (268.3 m) at 1.13 per cent CuT of continuous mineralization:
• 519 ft (158.2 m) at 1.49 per cent CuT, 1.09 per cent Cu TSol, 0.011 per cent Mo (enriched);
• Including 158 ft (48.2 m) at 2.16 per cent CuT, 2.10 per cent Cu TSol, 0.004 per cent Mo;
• ECP-152: 1,011 ft (308.2 m) at 0.78 per cent CuT of continuous mineralization:
• 674 ft (205.6 m) at 1 per cent CuT, 0.94 per cent Cu TSol, 0.020 per cent Mo (enriched);
• Including 125 ft (38.3 m) at 2.18 per cent CuT, 2.13 per cent Cu TSol, 0.017 per cent Mo.

Note: True widths are not known, see press release dated Sept. 28, 2022, for the P/S mineral resource

On September 12, 2023, The Globe and Mail reports in its Tuesday, Sept. 12, edition that Scotia Capital analyst Eric Winmill rates Arizona Sonoran Copper "sector outperform" in new coverage. The Globe's David Leeder writes in the Eye On Equities column that Mr. Winmill set a share target of $3.25. Analysts on average target the shares at $3.37. Mr. Winmill calls Arizona's flagship Cactus project "highly compelling." He points to its "relative ease of development, strong project economics, location in a good jurisdiction, proximity to existing infrastructure and mining districts, and exploration upside." Mr. Winmill says in a note: "Despite recent weakness in the base metals markets, we remain bullish on the long-term outlook for copper, in particular, given the strong demand fundamentals as the global economy continues to rebound from COVID-19-related disruptions. At the same time, the supply pipeline of material from new large copper mines remains underdeveloped, in our view, owing to the long lead times involved in copper discovery." With that view, Mr. Winmill thinks Cactus is an attractive asset with "strong upside potential through continued advancement, which could also position Arizona as a possible takeout candidate."

On September 06, 2023, Arizona Sonoran Copper Company Inc. has provided updates on exploration and development activities at the Cactus mine project, inclusive of the Parks/Salyer deposit. All activities are focused on de-risking its high-quality asset in a tier one location, in preparation for the pending step-up Pre-Feasibility Study ("PFS") expected in Q1 2024. Furthermore, the owner-operator team continues to strengthen with the appointment of Mr. Steve Dixon, M.Sc.; Chief Metallurgist. He will be managing the metallurgical programs in preparation for the base case PFS and Definitive Feasibility Study ("DFS"). Highlights include:

- On track and on budget to deliver a PFS in Q1 2024

Targeting step up from the Preliminary Economic Assessment's ("PEA") 28ktpa to 45-50ktpa and to a mine life well-beyond the 18 years previously outlined

PFS scope includes the enriched and oxide material, or approximately 75% of the total mineral resources (based on the 2022 mineral resource update - Sept 28, 2022)

On June 22, 2023, Arizona Sonoran Copper Company Inc. has provided the voting results from its annual general meeting, held yesterday, virtually. A total of 68,844,957 common shares were voted at the meeting representing 64.607 per cent of the issued and outstanding shares. Shareholders voted in favour of the business before the meeting, being (i) the reappointment of PricewaterhouseCoopers LLP as auditor of the company, and (ii) the election of all director nominees as outlined in the company's management information circular dated May 2, 2023, on a vote held by ballot, including the appointment of a new independent board member, Isabella Bertani, who replaces Thomas Boehlert on the board.

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