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Key Performance Indicators:
- US$2.03B Net Present Value (“NPV”) (8% discount, after-tax)
- 24% Internal rate of return (“IRR”)
- 4.9 years Payback Period
Life of Mine (“LoM”) Gross Revenue of $20.8 billion
LoM Free Cash Flow (“FCF”) of $7.3 billion (unlevered)
Cash costs (C1) of $1.82 and All in Sustaining Costs (“AISC”) of $2.00 per pound of copper
Financial and operational executability nowthrough transition to Open Pit operation
- 94% material from open pit mining (Cactus West and Parks/Salyer), 6% from the Stockpile and Cactus East underground
232 million pounds (“lbs”) (116,052 short tons (“st”)) average annual copper cathode production over the first 20 years of operation and a total of 5,339 million lbs (2,669,342 st) of copper cathode produced over the 31-year operating mine life
Cactus Project is well positioned to add value in a variety of copper price environmentsCopper Price Assumption$3.90/lb Cu$4.50/lb CuNPV8 (after-tax)$2,032 million$2,927 millionIRR (after-tax)24%30%Payback (after-tax)4.9 Years4.5 YearsDevelopment Capital $668 million$668 millionLoM FCF (After Tax)7,295 million9,777 million

Casa Grande, AZ and Toronto, ON, August 7, 2024 – Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) (“ASCU” or the “Company”) today reports the results from an NI 43-101 Preliminary Economic Assessment (“PEA”) on its 100%-owned brownfield Cactus Project in Arizona, USA. The PEA supersedes the previously released Pre-Feasibility Study (“PFS”) in all respects, and rescopes Parks/Salyer as an open pit operation resulting from the inclusion of the MainSpring property. The inclusion materially improves the economics and operations of the project, producing a total of 5.3 billion lbs or 2.7 million st of LME Grade A Copper Cathodes over a 31-year operating LoM via heap leaching and solvent extraction and electrowinning (“SXEW”), an established and industry standard hydrometallurgical extraction technology. All dollar amounts referenced herein in US dollars, and all references to tons are imperial or short tons, unless otherwise noted; 1 short ton equals approximately 0.91 metric tonnes. The Company previously issued a news release on JUL 16, 2024 (the “MRE News Release“), disclosing an updated mineral resource estimate (the “2024 MRE“) for the Cactus Project which formed the basis for the PEA.

A webinar will be held on August 8, 2024, at 10:30 am ET. Please join George Ogilvie, Nick Nikolakakis, Bernie Loyer, Steve Dixon and Anthony Bottrill in discussion of the PEA and the Company’s next steps by registering here https://www.bigmarker.com/vid-conferences/ASCU-VID-THF-07082024.

The PEA is preliminary in nature and 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. There is no certainty that the project described in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

TABLE 1: SUMMARY OF KEY METRICS

Valuation Metrics (Unlevered)	Unit	2024 PEA $3.90/lb Cu
Net Present Value @ 8% (pre-tax)	$ millions	2,769
Net Present Value @ 8% (after-tax)	$ millions	2,032
Internal Rate of Return (after-tax)	%	24.0
Payback Period (after-tax)	# years	4.9
Project Metrics (Imperial)	Unit	2024 PEA $3.90/lb Cu
Construction Period – SXEW plant	# years	1.5 – 2
Life of Mine (“LoM”)	# years	31
Strip Ratio	Waste : Ore	2.02
LoM Mineralized Material Mined	ktons	889,004
LoM Copper Grade	% CuTSol	0.41
LoM Avg Annual Contained Copper Production	000 tons millions lbs	86 172
LoM Annual Crusher Throughput	millions tons	29
Annual Copper Production (years 1-20)	000 tons millions lbs	116 232
Recovery (years 1-20)	%CuTSol	83
LoM Recoveries (LOM)	% CuTSol	73
LoM Oxide	% CuTSol	92
LoM Enriched	% CuTSol	85
LoM Primary (conventional leaching)	% CuT	25
LoM Recovered Copper Cathodes	K pounds	5,338,683
Initial Capital (including contingency)	$ millions	668
Sustaining Capital	$ millions	1,169
Cash Cost (C1)*	$/lb Cu	1.82
All in Sustaining Cost (AISC)*	$/lb Cu	2.00
LoM Revenues	$ millions	20,821
LoM EBITDA	$ millions	11,292
LoM FCF (unlevered) after tax	$ millions	7,295

Notes:
*Project operating costs include mine operating, process plant operating, and general and administrative costs (“G&A”). Total production costs include royalty expense. The AISC additionally includes initial Capex, sustaining Capex, reclamation & closure.
George Ogilvie, ASCU President and CEO commented, “We achieved, and far surpassed each goal to demonstrate leading NPV, IRR and payback and all other operational and economic metrics from the Cactus Project. The PEA represented herein delivers a highly compelling copper mining operation, on a standalone basis. The project size and top-tier location are complemented by a highly skilled operations and development team already based in Casa Grande and motivated to deliver an executable plan. After completing the MainSpring title transfer in March 2024, and subsequently obtaining the General Plan Arrangement approval, MainSpring’s integration to Parks/Salyer positively impacts the operations, lowers mining risks and is overall transformational to the economics.

He continued, “We now look forward to completing metallurgical programs and the infill drilling to support a PFS expected in 1H2025. Clearly, Cactus shows merit on a standalone basis and we will continue to move forward with this mine plan, while continuing to work with our partner, Nuton Technologies, a Rio Tinto Venture. We envisage Cactus, a brownfield Copper Mine as having the size and scale capable of making a meaningful positive impact to the US copper mining industry.”

Key Impacts on the NPV:

Mine plan execution rescopes to 94% open pit
- Parks/Salyer and Cactus West are open pit operations; changes positively impact annual throughput, mining costs, operating costs and processing costs.
Mineralized material impacts
- LoM tonnage processed of 889 million st, including:
  - 659 million st of oxides and enriched material
    - Parks/Salyer: 69%
      - Including: new MainSpring inferred mineral resources of 245 Mst @ 0.39% CuT (PR dated JUL 16, 2024)
    - Cactus West: 23%
    - Cactus East: 6%
    - Stockpile 2%
  - 230 million st of primary sulphides to the leach pads with current recoveries reported at an average of 25% from year 15
    - Parks/Salyer 34%
    - Cactus West: 66%
Processing cost impacts
- Processing initial capital expenditure (“capex”) of $511 million including contingency (SXEW plant and owner’s costs)
- Processing sustaining capital of $553 million (process plant – average of $18 million per year)
- Processing operating costs (“opex”) of $2.29/st
Other cost impacts
- Updated salvage cost, land sales, closure and royalties
Mining cost impacts
- Mining opex and capex impacted by Parks/Salyer rescope to an open pit mining operation
- Parks/Salyer cut-off grade of 0.1% cut off grade
- Initial Capex of $157 million (pre-production stripping)
- Mining sustaining capital of $544 million, optimizing the per ton mining costs (average of $18 million per year)
- Operating expenditures of $8.16/t processed

Bernie Loyer, ASCU SVP Projects commented, “The evolution of the MainSpring and Parks/Salyer open pit combination as demonstrated by this PEA presents a profound change to the Cactus Mine business case. That impact can be gauged in the project’s robust economics and also in the contribution that this generational asset is expected to make to our local communities for years to come. With the anticipated creation of more than 3,000 direct and indirect jobs and more than $2.2 billion in life of mine federal and state tax revenues, Cactus Mine is anticipated to become a cornerstone business for the local economy. Great copper projects are where you find them and that often translates to remote and sometimes complicated jurisdictions around the world. In contrast, the combined heritage of the Arizona and Pinal County copper mining legacy married to a Casa Grande venue sets an incredible launch platform for this great project.”

Nick Nikolakakis, ASCU CFO commented, “The economics at Cactus in the PEA afford us an opportunity to begin seeking project financing. The Company has been in initial discussions with a group of lenders including commercial banks and an export credit agency. Cactus is projected to generate robust cash flows over a 30+ year mine life. The current economic metrics present a unique opportunity for the Company to actively pursue financing alternatives as the project advances towards a pre-feasibility and definitive feasibility study in 2025.”

The Company intends to file a technical report (the “Technical Report”) in respect of the PEA in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) on SEDAR+ (www.sedarplus.ca) under the Company’s issuer profile and the Company’s website within 45 days of the MRE News Release.

Preliminary Economic Assessment Summary
The 2024 PEA supersedes the PFS titled “Cactus Mine Project NI 43-101 Technical Report and Pre-Feasibility Study, Arizona, United States of America”, dated March 28, 2024 (with an effective date of February 21, 2024) (“March 2024 PFS”) in its entirety. The PEA integrates the new Parks/Salyer additions from the MainSpring property as inferred mineral resources, re-scoped as an open pit. By applying open pit mining costs to the Parks/Salyer mineral resource estimate, it now contributes 531 M tons of feed material grading 0.530% CuT to the total 889 million tons of feed material at 0.46% CuT over the LoM. FIGURE 1 illustrates the cumulative stacked production in this PEA. Overall, the Cactus Project PEA envisages a 31-year mine life with annual average throughput of 29 million tons, for an average of 86 kstpa of copper cathodes produced annually. The result is a lower risk brownfield open pit mining operation with a long life and a streamlined permitting process on private land in Arizona with water rights and access to water from in-situ water wells.

A total of 2,872 million tons will be mined and a total of 889 million tons processed, recovering 5.34 billion pounds of copper cathodes over the LoM or 2,669,000 tons. Copper cathodes will be produced directly onsite via heap leach and SXEW, including a four year ramp up period. Total Copper recoveries are planned at an average of 73%, extracting copper from the oxides, enriched and primary sulphides. See Exhibit 1 and 2 for mine plan, sequencing, costs and economics. Gross acid usage is calculated at 22 lbs per ton at a cost of $160 per ton.

FIGURE 1: Cumulative Stacked Recoverable Copper

FIGURE 2: Annual Production and Revenue and EBITDA

Onsite facilities at the mine site will consist of two open pits, one underground mining operation, a fine crushing plant incorporating all crushing, classification, agglomeration and conveying systems, heap leach pad, water supply and distribution systems, technical and operational support offices, additional electrical substation, warehousing and an SXEW process plant. Onsite supporting infrastructure will include site power distribution, access roads, mine operations infrastructure, and heap leach facilities, of which the power and roads are already in use.

Current onsite and nearby infrastructure includes:

Onsite administration buildings, geology, core storage, completed earthworks, substation, parking lot and access roads
Clean power via onsite substation for $0.07/kWh
Paved access roads and easy access to interstate highways I-8 and I-10
Union Pacific railroad line adjacent to the property
Casa Grande, Maricopa and Phoenix are all located nearby to supply materials/consumables in addition to a skilled labour pool
Permitted water available onsite, and additional water may be available through the city
Flat land and low altitude
Located within the City of Casa Grande industrial park

TABLE 2: Report Sensitivities to the Copper Price

Revenue, NPV and IRR Sensitivity Based on Copper Price
Metal Price	Copper Price	Revenue (US$000)	NPV, before tax @ 8% (US$000)	NPV, after tax @ 8% (US$000)	IRR after Tax
Base Case	$3.90	$20,820,863	$2,769,280	$2,031,671	24%
20%	$4.68	$24,985,035	$4,237,162	$3,196,838	32%
10%	$4.29	$22,902,949	$3,503,221	$2,612,817	28%
-10%	$3.51	$18,738,777	$2,035,338	$1,450,505	20%
-20%	$3.12	$16,656,690	$1,301,397	$861,488	16%

FIGURE 3: NPV Sensitivity to the Metal Price, CAPEX and OPEX

Mining and Processing Operations
Mineralized material will be sourced mainly from the two open pits with an overall LoM strip ratio of 2:1. The Cactus West pit (1.0:1 strip ratio) and new Parks/Salyer pit (3.2:1 strip ratio) comprise 94% of the total material to the leach pads. The remaining 5% of material will be sourced from the Cactus East underground deposit utilizing sub-level cave from the 1,200 ft (366 m) level, and 1% from the Stockpile.

Both Parks/Salyer and Cactus West will be mined using 40 ft (12.1 m) single benches, with ramps sized to allow 320-ton class haul trucks. At Parks/Salyer, all walls have been designed with 45-degree inter-ramp slopes, while geotechnical step-outs are employed to reduce the overall slope to approximately 40 degrees. At Cactus West, inter-ramp slopes range from 45–50 degrees depending on material type, with typical overall slope angles of 41-43 degrees. Gila conglomerate and alluvium constitute the large majority of the waste in the pits.

The mine schedule for open pit mining at Parks/Salyer consists of 531 million tons of feed material grading 0.530% CuT, including 453 million tons of oxide and enriched leach feed material grading 0.55% CuT and 78 million tons of primary sulphide leach feed material grading 0.41% CuT. Open pit mining will initiate in Parks/Salyer in Year -1 and operate continuously for 23 years over seven pit phases. Total waste mined in Parks/Salyer is 1,680 million tons.

The mine schedule for open pit mining at Cactus West consists of 306 million tons of feed material grading 0.29% CuT, including 154 million tons of oxide/enriched leach feed material grading 0.26% CuT and 152 million tons of primary leach feed material grading 0.32% CuT. Open pit mining will take place at Cactus West in the years of 7-11, 15, 19, and 23-31. Phase 1 Cactus West is used to smooth stripping requirements of Parks/Salyer in the middle-years of the mine plan, while Phase 2-3 are mined in the later years and predominantly supply primary feed material. Total waste mined from Cactus West is 299 million tons.

The Stockpile project contributes 9.8 million tons of conventional leach feed material grading 0.24% CuT which will be used for project commissioning in Year 1 of processing.

After a comprehensive review of Cactus East¸ sub-level caving (“SLC”) was selected as the preferred underground mining method. A sublevel cave underground mine is planned for Cactus East with development beginning in Year 8 and mining completed in Year 22, peaking at 3.9 million tons per year. Total Cactus East feed material mined is projected to be 42 million tons grading 0.83% CuT. The initial Cactus East SLC level will begin at 1,325 ft (404 m) below the surface over 7 sublevels, to a final depth of 1,845 ft (562 m). Access will be via a single decline with a portal located within the existing Cactus West pit. Haulage of mineralized material to surface will be via a vertical conveyor which can be supplemented with truck haulage to surface via the open pit if necessary.

The Cactus Project heap leaching process design includes crushing of all material types for leaching to a minus ¾” P80 size. All material types, oxides, enriched and primary are to be leached in on a single pad with an initial leaching cycle of 180 days. A maximum 3-year leaching cycle has been assumed (3 lifts) as the practical limit for effective recovery based on experience and hydrodynamic analysis of the materials by HydroGeoScience Inc. (HGS). The copper leaching metallurgical test data has been extrapolated from the testing data at one year based on the rates prevailing after one year using a logarithmic curve fit projection that considers the decaying rate of copper extraction.

Average annual water consumption is planned at approximately 1,200 gallons per minute, the equivalent of 1,935 acre feet per year, well within ASCU’s permitted 3,600 acre feet per year industrial use allocation, using in place onsite wells.

The PEA envisages that overall tonnage will comprise approximately 25% oxide material, 50% enriched (secondary sulphides) and 25% primary sulphides within the LoM. From year 15 to 22 placed tons will consist of approximately 25% primary, whereas from year 23, will comprise 100% of the operation. Overall copper extraction is impacted by the lower rates from primary sulphides. In the PEA, ASCU includes a conservative 25% extraction rate.

The total LoM costs, operating costs per ton ($/st) of processed material, and dollars per pound ($/lb) of cathode produced are summarized in the three tables below. Project operating costs include mine operating, process plant operating, and general and administrative costs (“G&A”). Total production costs include royalty expense. The AISC additionally includes initial Capex, sustaining Capex, reclamation & closure.

Mining operating cost estimates, prepared by AGP Mining Consultants Inc., are based on a small owner’s team managing mining activities using an owner-operator model. Process operating cost estimates were prepared by Samuel Engineering and G&A cost estimates were prepared by M3 Engineering with input from ASCU, as summarized in TABLES 3-5 below (note numbers may not add due to rounding). Sequencing of operations and annual cash flows are detailed in Exhibit 1 and 2, at the end of this release.

TABLE 3: LoM OPERATING AND PRODUCTION COSTS
Cost Elements	LoM (US$)
Cost Elements	Total Cost (US$M)	US$ / st Processed	US$ / lb Copper
Mine Operating Cost	$7,252	$8.16	$1.36
Process Plant Operating Cost	$2,039	$2.29	$0.38
G & A	$50	$0.06	$0.01
Operating Costs	$9,341	$10.51	$1.75
Royalties	$388	$0.44	$0.07
Total Production Costs	$9,729	$10.94	$1.82
Sustaining Capex	$1,169	$1.31	$0.22
Reclamation & Closure	$25	$0.03	$0.00
Salvage	-$225	-$0.25	-$0.04
All-In Sustaining Costs	$10,697	$12.03	$2.00
Property & Severance Taxes	$562	$0.63	$0.11
Initial Capex (non-sustaining)	$668	$0.75	$0.13
All-In Costs	$11,927	$13.42	$2.23

TABLE 4: LoM OPERATING COST AND CASH FLOW
ACTIVITY (LOM)	US$M	US$ / st
LOM REVENUE	20,821	–
Mining (OP and UG)	7,252	8.16
Process Plant	2,039	2.29
General & Administration	50	0.06
Total Cash Operating Cost	9,341	10.51
Royalties	388	0.44
Salvage Value	-$225	-0.25
Reclamation & Closure	$25	0.03
Total Production Cost	9,529	10.72
EBITDA	11,292	–
Total CAPEX	1,836	2.07
Net Income Before Taxes	9,456	–
Taxes and Depreciation	2,161	2.43
Free Cash Flow (unlevered)	7,295	–

The capital cost estimates for the PEA were developed with a -25% to +30% accuracy. The Company uses an estimated overall mining contingency of approximately 18% and according to the Association of the Advancement of Cost Engineering International (AACE) Class 5 estimate requirements.

TABLE 5: CAPITAL COST ESTIMATES
AREA	DETAIL	INITIAL CAPEX (US$000’s)	SUSTAINING CAPEX (US$000’s)	TOTAL CAPEX (US$000’s)
Direct Costs	Mine Costs	156,856	543,609	700,465
	Processing Plant	259,320	408,240	667,560
	Infrastructure	95,740	17,211	112,951
Indirect Costs		45,470	16,944	62,414
Owner’s Costs, First Fills, & Light Vehicles		22,921	72,030	94,951
Total CAPEX without Contingency		580,307	1,058,034	1,638,341
Contingency		87,558	110,599	198,157
Total CAPEX with Contingency		667,865	1,168,633	1,836,498

The PEA is based on the updated 2024 MRE, as published in the MRE News Release on JUL 16, 2024, showing a 41% increase of Measured and Indicated (“M&I”) pounds and an 89% increase of the inferred pounds. The Mineral Resources for the Cactus Project are shown in TABLE 6 and illustrated in FIGURE 2 below. For more details relating to the 2024 MRE, please refer to the MRE News Release, a copy of which is available on SEDAR+ (www.sedarplus.ca) under the Company’s issuer profile and the Company’s website (www.arizonasonoran.com).

TABLE 6: Cactus Project Mineral Resource Estimate

Material Type	Tons kt	Grade CuT %	Grade Cu Tsol %	Contained Total Cu (k lbs)	Contained Cu Tsol (k lbs)
Measured
Total Leachable	55,200	0.94	0.79	1,032,200	873,800
Total Primary	12,300	0.51	0.05	124,400	13,400
Total Measured	67,500	0.86	0.66	1,156,500	887,200
Indicated
Total Leachable	414,800	0.60	0.53	4,965,000	4,365,700
Total Primary	150,400	0.39	0.04	1,173,300	126,000
Total Indicated	565,200	0.54	0.40	6,138,200	4,491,700
M&I
Total Leachable	470,000	0.64	0.56	5.997,200	5,239,500
Total Primary	162,700	0.40	0.04	1,297,600	139,400
Total M&I	632,600	0.58	0.43	7,294,800	5,378,900
Inferred
Total Leachable	299,600	0.43	0.38	2,572,400	2,262,800
Total Primary	174,500	0.36	0.04	1,267,500	124,700
Total Inferred	474,000	0.41	0.25	3,839,900	2,387,500

NOTES:
1. Total soluble copper grades (Cu TSol) are reported using sequential assaying to calculate the soluble copper grade. Tons are reported as short tons.
2. Stockpile resource estimates have an effective date of 1st March, 2022, Cactus Project mineral resource estimates have an effective date of 29th April, 2022, Parks/Salyer-MainSpring mineral resource estimates have an effective date of 11th July, 2024. All mineral resources use a copper price of US$3.75/lb.
3. Technical and economic parameters defining mineral resource pit shells: mining cost US$2.43/t; G&A US$0.55/t, 10% dilution, and 44°-46° pit slope angle.
4. Technical and economic parameters defining underground mineral resource: mining cost US$27.62/t, G&A US$0.55/t, and 5% dilution. Underground mineral resources are only reported for material located outside of the open pit mineral resource shells. Designation as open pit or underground mineral resources are not confirmatory of the mining method that may be employed at the mine design stage.
5. Technical and economic parameters defining processing: Oxide heap leach (“HL”) processing cost of US$2.24/t assuming 86.3% recoveries, enriched HL processing cost of US$2.13/t assuming 90.5% recoveries, sulphide mill processing cost of US$8.50/t assuming 92% recoveries. HL selling cost of US$0.27/lb; Mill selling cost of US$0.62/lb.
6. Royalties of 3.18% and 2.5% apply to the ASCU properties and state land respectively. No royalties apply to the MainSpring property.
7. Variable cut-off grades were reported depending on material type, potential mining method, potential processing method, and applicable royalties. For ASCU properties – Oxide open pit or underground material = 0.099% or 0.549% Cu TSol respectively; enriched open pit or underground material = 0.092% or 0.522% Cu TSol respectively; primary open pit or underground material = 0.226% or 0.691% CuT respectively.For state land property – Oxide open pit or underground material = 0.098 % or 0.545% Cu TSol respectively; enriched open pit or underground material = 0.092% or 0.518% Cu TSol respectively; primary open pit or underground material = 0.225% or 0.686% CuT respectively.For MainSpring properties – Oxide open pit or underground material = 0.096% or 0.532% Cu TSol respectively; enriched open pit or underground material = 0.089% or 0.505% Cu TSol respectively; primary open pit or underground material = 0.219% or 0.669% CuT respectively. Stockpile cutoff = 0.095% Cu TSol.
8. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, sociopolitical, marketing, or other relevant factors.
9. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there is insufficient exploration to define these inferred mineral resources as an indicated or measured mineral resource; it is uncertain if further exploration will result in upgrading them to an indicated or measured classification.
10. Totals may not add up due to rounding

FIGURE 2: Cactus Project Mineral Resources

Metallurgical Testwork
Metallurgical testwork used for the PEA shows good metallurgical recoveries from all deposits with no deleterious elements. Testing in the PEA shows an average of 73% of total copper extracted overall. A column leach testing program for oxides and enriched sulphides, from Parks/Salyer and the Stockpile, is ongoing at BaseMet and McClelland labs (Tucson, AZ and Reno, NV, respectively). Primary sulphide column leaching is expected to begin in the fourth quarter.

Project Overview
The Cactus Project is a brownfield project located approximately 6 mi (10 km) northwest of the city of Casa Grande and 40 road miles south-southwest of the Greater Phoenix metropolitan area in Arizona. The Greater Phoenix area is a major population centre (approximately 4.8 million persons) with a major airport and transportation hub and well-developed infrastructure and services that support the mining industry. The Cactus Mine Project is accessible on North Bianco Road off of West Maricopa-Casa Grande Highway with direct access to interstate highway 10. During historic ASARCO operations (1974-1984), a rail spur was connected directly with the United Pacific Railroad to ship concentrates to its El Paso refinery in Texas; while the spur has been removed, the onsite rail line is still in existence. Current onsite infrastructure includes power lines and substation, water wells and a water pond, geological buildings, core sheds and administrative offices, keeping the capital intensity low and demonstrating robust economics.

The Cactus Project is host to a large porphyry copper system that has been dismembered and displaced by Tertiary extensional faulting. The major host rocks are Precambrian Oracle Granite and Laramide monzonite porphyry and quartz monzonite porphyry. The mine trend features the formation of horst and graben blocks of mineralization where the Cactus deposits are situated, extending from the Cactus East deposit, southwest to the Parks/Salyer deposit. Drilling to the northeast and southwest along the trend indicates that mineralization continues in both directions and at depth at the Cactus West deposit.

Ownership, Social License and Permitting
The Cactus Project is 100% controlled by ASCU through its wholly owned subsidiary Cactus 110 LLC and encompasses an area of approximately 5,720 acres. The Cactus Project includes exploration and mining on private land and on two Arizona State Land Department (“ASLD”) leases. There is no federal nexus for permitting the project and all permitting is limited to State of Arizona-required permits including the Aquifer Protection Permit, Industrial Air permits and the Mined Land Reclamation Permit, each of which ASCU has received from state regulators. Modifications will be required to address changes in the mine plan presented in the PEA.

Of the 5,720 acres, 4,732 acres are considered fee simple and private land. The remaining acreage is State land where ASCU owns either the surface or mineral rights and is in the process of acquiring the surface rights from the State.

ASCU has a well-developed community engagement plan that it has implemented through numerous public meetings and outreach. With the presence of legacy mining in the Casa Grande area and the determination of Cactus as a “brownfield” and disturbed site, the local community is supportive of the Cactus Project. The Company anticipates the Project to create multiple decades of high paying jobs that will benefit the local communities and the state. There is no significant opposition to the Cactus Project.

Royalties
The Cactus Project is subject to three net smelter return (“NSR”) royalties based on potential mining production. The MainSpring property does not contain any royalties. The Tembo/Elemental Altus NSR royalty applied to the originally acquired land package including, Cactus and Parks/Salyer may be reduced to 2.54% from 3.18%, with a total payment of $8.9 million. On a portion of the Parks/Salyer deposit, BCE holds a 1.5% NSR royalty, with an option to reduce it to 0.5% for payment of $0.5 million, and ASLD owns a sliding net return royalty (2.0% to 8.0% and estimated at 2%), payable to ASLD and the State Trust. ASCU will formalize the royalty percentages with ASLD once the Company submits a Mineral Development Report to ASLD, thus converting the existing Mineral Exploration Permit, to a Mineral Lease.

Opportunities and Next Steps, including Nuton Technologies

Technical Studies
Following the issuance of the PEA, the anticipated next steps for the Cactus Project include a PFS (which is expected to be completed in 1H2025) (the “2025 PFS”), followed by an early works program, and expects to initiate a Feasibility Study in 2H2025. The Company is planning Project financing for the Cactus Project in conjunction with a potential construction decision.

It is expected that the 2025 PFS will include the major economic and operational rescope; specifically, rescoping Parks/Salyer to an open pit and the additional integration of the Nuton Technologies. Infill drilling programs are planned for Parks/Salyer composing the first 10 years of operations, and into Cactus West for the expansion of primary mineralization suitable for leaching via the Nuton Technologies. Pursuant to the option to joint venture agreement entered into between ASCU and Nuton, a PFS which includes the application of the Nuton Technologies should be issued no later than December 31, 2024, unless mutually extended by written agreement of both parties. Assuming both ASCU and Nuton agree to an extension of such PFS, completion is expected in 1H2025. Completion of the 2025 PFS will require the completion of infill to indicated drilling and updated metallurgical studies, including Phase 2 Nuton metallurgical testing.

Parks/Salyer’s grade, scale and scope secures it as the main contributor from day one to the Cactus Project. Cactus West, drilling and finding more primary material. Any future work on the project is not expected to change the mine plan within the first 10 to 15 years of the operation. It provides further optionality on a robust standalone plan.

An Early Works program is in the early phases of being defined and planned for mid-2025, dependent upon funding. The program includes executing the permitting and bonding requirements and optimizing a pre-stripping program for the Parks/Salyer pit. Due to the brownfield nature of the project, roads, power and onsite administration buildings are currently in place.

Nuton Opportunity
The PEA proposes a robust standalone project incorporating conventional leaching technology. In order to capitalize on the primary sulphides, initial test work has validated the application of Nuton proprietary technology. As per the strategy outlined in the option to Joint Venture (“JV”) press release, dated DEC 14, 2023, Phase 2 metallurgical testing and Cactus West pit expansion drilling targeting the primary sulphides will be included to the 2025 PFS.

Nuton LLC, a Rio Tinto Venture, is a copper heap leaching technology. Nuton™ became a shareholder in 2022, and a potential JV partner in late 2023. Its Nuton™ suite of proprietary technologies provide opportunities to leach both primary and secondary copper sulfides, providing significant opportunity to optimize the mine plan and the overall mining and processing operations.

Other Future Opportunities
The project has several other opportunities available to continue the optimization of the operation.

The addition of an In-Pit-Crush-Convey (IPCC) for waste handling instead of truck haulage will be evaluated for improvement in the economics of the project.
There is a potential to access the high-grade Parks/Salyer material earlier, by moving the Parks/Salyer open pit centroid further northward

Mine Plan and Key Financial Assumptions
Exhibit 1: Production and Cash Costs
Year	Production (000’s) tons								Head Grade		Recovered Copper		Costs (/lb)
	Open Pit							U/G	OP	UG
	Parks/Salyer	Cactus West	Stockpile	Open Pit Rehandle	Total Open Pit Moved	Open Pit Material	Open Pit Waste	Cactus East	% TCu	% TCu	ktons	klbs	C1 Cost	AISC
0	70,000	0	0	0	70,000	170	69,829	0	0.12		48.78	87,427
1	130,000		10,000	9	140,009	24,527	115,473	0	0.23		64.24	111,826	$3.84	$5.01
2	150,000	0	0	0	150,000	34,303	115,697	0	0.24		61.62	106,669	$3.42	$3.65
3	140,000	0	0	303	140,303	30,621	109,379	0	0.25		72.72	126,910	$3.56	$3.96
4	150,000	0	0	0	150,000	35,538	114,462	0	0.25		210.96	360,507	$3.16	$3.61
5	150,000	0	0	0	150,000	77,997	72,003	0	0.48		177.01	302,233	$1.16	$1.23
6	152,363	0	0	10,312	162,675	21,428	130,935	0	0.87		65.26	112,749	$1.15	$1.32
7	131,119	8,881	0	20,859	160,859	4,282	135,718	0	0.32		66.71	116,778	$2.79	$2.93
8	97,685	65,000	0	5,712	168,397	18,160	144,525	132	0.36	0.37	176.94	303,147	$2.99	$3.48
9	94,478	50,522	0	0	145,000	36,401	108,599	920	0.6	0.69	86.7	154,276	$1.34	$1.72
10	88,593	50,558	0	0	139,151	33,780	105,371	2,462	0.31	0.79	116.63	207,731	$2.80	$3.46
11	105,000	22,301	0	0	127,301	33,486	93,815	3,456	0.33	0.82	295.39	507,032	$2.25	$2.42
12	125,000	0	0	0	125,000	49,458	75,542	3,328	0.8	0.84	220.54	378,173	$1.01	$1.21
13	125,000	0	0	4,601	129,601	33,652	91,348	3,825	0.76	0.92	151.19	261,603	$1.33	$1.44
14	115,000	0	0	10,582	125,582	27,174	87,826	3,822	0.5	0.86	109.64	156,352	$1.82	$1.87
15	86,891	28,109	0	2,719	117,719	29,972	85,028	3,828	0.32	0.79	177.8	269,472	$2.93	$3.37
16	100,000	0	0	4,848	104,848	24,733	75,267	3,693	0.56	0.88	203.53	306,859	$1.59	$1.61
17	85,724	0	0	5,478	91,202	25,134	60,590	3,502	0.72	0.88	219.74	341,302	$1.24	$1.30
18	53,497	0	0	2,040	55,537	28,686	24,810	3,584	0.75	0.84	170.78	254,961	$0.94	$1.11
19	18,367	7,763	0	2,958	29,087	25,854	275,559	3,603	0.57	0.9	122.81	176,092	$0.96	$0.98
20	17,015	0	0	12,096	29,111	16,669	346	3,535	0.47	0.75	76.39	97,761	$1.20	$1.20
21	9,294	0	0	20,527	29,821	9,254	41	2,520	0.41	0.76	61.52	70,315	$1.76	$2.26
22	16,097	0	0	22,520	38,617	16,079	17,895	0	0.37		54.06	61,131	$1.94	$2.17
23	0	20,813	0	27,195	48,008	4,265	16,547	0	0.16		99.51	62,746	$2.45	$2.46
24	0	67,119	0	22,332	89,451	15,490	51,629	0	0.22		88.77	58,543	$3.58	$4.42
25	0	67,584	0	0	67,584	35,186	32,398	0	0.28		87.71	63,674	$4.04	$4.05
26	0	60,000	0	5,000	65,000	30,480	29,520	0	0.28		72.18	61,623	$3.45	$3.46
27	0	60,000	0	0	60,000	41,640	18,360	0	0.24		92.68	81,688	$3.72	$4.75
28	0	30,000	0	4,361	34,361	26,939	3,060	0	0.32		94.36	68,405	$2.04	$2.04
29	0	34,018	0	1,997	36,015	29,305	4,712	0	0.32		92.06	58,879	$2.54	$2.55
30	0	30,000	0	6,651	36,651	24,783	5,217	0	0.35		16.51	11,817	$3.07	$3.89
31	0	2,805	0	7,061	9,865	1,343	1,462	0	0.33				$5.00	$5.00

Annual Economics
Year	Revenue	Operating Cost	Operating Income	EBIthA	Capex	FCF
1	$340,967	$332,627	$8,340	$5,397	$102,706	-$71,907
2	$436,120	$382,077	$54,043	$54,043	$25,670	$30,440
3	$416,010	$379,520	$36,489	$36,489	$43,144	-$6,621
4	$494,949	$398,917	$96,032	$93,897	$57,236	$36,231
5	$1,405,976	$389,412	$1,016,564	$987,861	$26,734	$935,152
6	$1,178,711	$329,272	$849,439	$829,972	$49,795	$780,917
7	$439,719	$311,686	$128,033	$125,338	$16,223	$127,771
8	$455,433	$341,343	$114,090	$106,808	$57,718	$51,196
9	$1,182,272	$377,582	$804,690	$777,214	$115,440	$646,986
10	$601,678	$417,705	$183,974	$169,690	$101,252	$88,500
11	$810,151	$448,298	$361,853	$343,759	$36,426	$305,103
12	$1,977,426	$467,196	$1,510,230	$1,463,166	$99,477	$1,334,095
13	$1,474,876	$468,718	$1,006,158	$970,532	$39,170	$945,067
14	$1,020,251	$453,686	$566,565	$544,759	$14,287	$542,463
15	$609,773	$446,648	$163,125	$151,118	$68,164	$91,679
16	$1,050,943	$403,691	$647,252	$623,353	$5,512	$601,360
17	$1,196,752	$355,360	$841,392	$814,791	$16,933	$788,938
18	$1,331,076	$298,244	$1,032,832	$1,008,617	$55,195	$945,061
19	$994,347	$221,191	$773,156	$750,838	$5,241	$747,369
20	$686,759	$196,789	$489,970	$476,033	$872	$481,319
21	$381,268	$166,281	$214,987	$208,780	$48,300	$165,033
22	$274,229	$133,755	$140,474	$137,529	$15,943	$120,137
23	$238,411	$147,415	$90,996	$88,846	$560	$92,237
24	$244,709	$223,111	$21,598	$20,182	$53,006	-$25,226
25	$228,319	$235,193	-$6,874	-$8,453	$581	-$7,506
26	$248,330	$217,178	$31,152	$28,796	$470	$26,082
27	$240,331	$226,661	$13,670	$10,784	$63,237	-$51,526
28	$318,583	$162,159	$156,424	$152,150	$232	$143,451
29	$266,781	$171,065	$95,717	$93,146	$871	$94,773
30	$229,629	$179,241	$50,388	$48,994	$48,238	$2,650
31	$46,086	$58,728	-$12,642	-$12,642	$0	-$22,436

PRICE DECK – ASSUMPTIONS
PRICE / RATE	UNIT	LONG TERM
Copper	$/lb	3.90
Weighted Average Recovery	%	73
Sulfuric Acid	$/ton	160.00
Electricity (Nuclear)	$/kWh	0.071
NSR Royalty
	%	2.54% (assumes buyback) on Cactus and a portion of Parks/Salyer
	%	0.5% on Bronco Creek (portion of PS)
Effective Taxes	%	22.9

Quality Assurance and Quality Control Procedures
Skyline Labs is accredited in accordance with the recognized International Standard ISO/IEC 17025:2005. Their quality management system has been certified as conforming to the requirements defined in the International Standard ISO 9001:2015. The standard operating procedure (SOP) used while processing the ASCU samples was to process samples in groups of 20. Each tray consisted of 18 samples with samples No. 1 and No. 10 repeated as duplicates. The results from each tray were analyzed and any variance in the duplicates of more than 3% would result in the entire tray being re-assayed.

The results of these analyses, including the QA/QC checks, were transmitted to a select set of individuals at ASCU and the qualified persons.

Qualified Persons
Each of the persons listed below are authors preparing the 2024 PEA and have reviewed and verified the contents of this news release as it relates to their area of responsibilities. By virtue of their education, experience and professional association membership, each of the below listed persons are considered “qualified person” as defined by NI 43-101.

Scientific and technical aspects of this news release have been reviewed and verified by these Qualified Person’s listed below and Dan Johnson, ASCU Director of Projects, as defined by National Instrument 43-101.

Project Management, M3 Engineering, John Woodson, PE, SME-RM
Metallurgy, M3 Engineering, Laurie Tahija, QP-MMSA
Mineral Resources, Allan L. Schappert, CPG, SME-RM, ALS Geo Resources LLC
Water and Environmental, R. Douglas Bartlett, CPG, PG. Clear Creek Associates, a subsidiary of Geo-Logic Associates
Mine Planning, Gordon Zurowski, P.Eng., AGP Mining Consultants Inc.

Links from the Press Release:
Webinar: https://www.bigmarker.com/vid-conferences/ASCU-VID-THF-07082024
Figures and Tables: https://arizonasonoran.com/projects/cactus-mine-project/press-release-images/
July 16, 2024: https://arizonasonoran.com/news-releases/arizona-sonoran-updates-cactus-project-mineral-resource-estimate-to-7.3-b-lbs-of-copper-in-m-i-and-3.8-b-lbs-of-copper-in/
December 14, 2023: https://arizonasonoran.com/news-releases/arizona-sonoran-and-nuton-llc-announce-option-to-joint-venture-on-cactus-project-in-arizona/
SEDAR+: https://www.sedarplus.ca

About Arizona Sonoran Copper Company (www.arizonasonoran.com | www.cactusmine.com)
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.

For more information
Alison Dwoskin, Director, Investor Relations
647-233-4348
adwoskin@arizonasonoran.com

George Ogilvie, President, CEO and Director
416-723-0458
gogilvie@arizonasonoran.com

Non-IFRS Financial Performance Measures
This news release contains certain non-IFRS measures, including sustaining capital, sustaining costs, EBITDA, C1 cash costs and AISC. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Cautionary Statement Regarding Estimates of Mineral Resources
This news release uses the terms measured, indicated and inferred mineral resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. The mineral resource estimate disclosed in this news release may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. The mineral resource estimate is classified in accordance with the Canadian disclosure requirements of Institute of Mining, Metallurgy and Petroleum’s “CIM Definition Standards on Mineral Resources and Mineral Reserves” incorporated by reference into NI 43-101. Under NI 43-101, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for preliminary economic assessments. Readers are cautioned not to assume that further work on the stated resources will lead to mineral reserves that can be mined economically.

Forward-Looking Statements
This news release contains “forward-looking statements” and/or “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expect”, “is expected”, “in order to”, “is focused on” (a future event), “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, or the negative connotation thereof. In particular, statements regarding ASCU’s future operations, future exploration and development activities or other development plans constitute forward-looking statements. By their nature, statements referring to mineral reserves or mineral resources constitute forward-looking statements. Forward-looking statements in this news release include, but are not limited to statements with respect to the results (if any) of further exploration work to define and expand or upgrade mineral resources and reserves at ASCU’s properties; the anticipated exploration, drilling, development, construction and other activities of ASCU and the result of such activities; the mineral resources and mineral reserves estimates of the Cactus Project (and the assumptions underlying such estimates); the estimates and assumptions underlying the PEA; projected production; pre-tax and after-tax NPV; [pre-tax] and after-tax IRR; payback period; LOM estimates; free-cash flows estimates; AISC and cost estimates; job creation estimates; expected revenues, EBITDA or recoveries; the ability of exploration work (including drilling) to accurately predict mineralization; the ability of management to understand the geology and potential of the Cactus Project; the focus of the 2024 drilling program at the Cactus Project including the Parks/Salyer deposit and MainSpring property; the ability to generate additional drill targets; the ability of ASCU to complete its exploration objectives in 2024 in the timing contemplated (if at all); the completion and timing for the filing of the PEA; the timing and ability of ASCU to publish the 2025 PFS (if at all); the possibility of obtaining an extension of time to issue the 2025 PFS (if at all); the timing and ability to publish a feasibility study (if at all); the scope of any future technical reports and studies conducted by ASCU; the ability to realize upon mineralization in a manner that is economic; the impact of bringing the MainSpring property into the mine plan; the ability and timing of ASCU to commence operations (if at all); the robust economics and opportunity represented by the Cactus Project; the expected impact of the Cactus Project on the local economy and stakeholders; ; the impact of the NutonTM technologies on ASCU operations and cost relating to same; the impact of the relationship with Nuton on ASCU and its operations and any other information herein that is not a historical fact.

ASCU considers its assumptions to be reasonable based on information currently available but cautions the reader that their assumptions regarding future events, many of which are beyond the control of the Company, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect ASCU, its properties and business.Such risks and uncertainties include, but not limited to, the global economic climate, developments in world commodity markets, changes in commodity prices (particularly prices of copper), risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, risks relating to capital market conditions and ASCU’s ability to access capital on terms acceptable to ASCU for the contemplated exploration and development at the Company’s properties, changes in exploration, development or mining plans due to exploration results and changing budget priorities of ASCU or its joint venture partners, the effects of competition in the markets in which ASCU operates, results of further exploration work, the ability to continue exploration and development at ASCU’s properties, the ability to successfully apply the NutonTM technologies in ASCU’s properties, the impact of the NutonTM technologies on ASCU operations and cost relating to same, the timing and ability for ASCU to prepare and complete the 2025 PFS and the costs relating to same, errors in geological modelling, changes in any of the assumptions underlying the PEA, the ability to expand operations or complete further exploration activities, the ability to obtain regulatory approvals, the impact of changes in the laws and regulations regulating mining exploration, development, closure, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in ASCU’s most recently filed Annual Information Form, annual and interim management’s discussion and analysis, copies of which are available on SEDAR+ (www.sedarplus.ca) under ASCU’s issuer profile. ASCU’s anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.

Although management considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it based on information available at the date of preparation, those assumptions may prove to be incorrect. There can be no assurance that these forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and are urged to carefully consider the foregoing factors as well as other uncertainties and risks outlined in ASCU’s public disclosure record.

ASCU disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law.

Phoenix, Arizona–(Newsfile Corp. – August 8, 2024) – Excelsior Mining Corp. (TSX: MIN) (OTCQB: EXMGF) (FSE: 3XS) (“Excelsior” or the “Company”) is pleased to announce that construction has commenced at the Johnson Camp Mine (“JCM”), in southeast Arizona, with first copper production anticipated in H1 of 2025.

Following the decision by Nuton LLC (“Nuton”), a Rio Tinto venture to proceed to Stage 2 of a process to restart the JCM mine using Nuton™ copper heap leaching technologies (see Excelsior press release dated May 15^th, 2024), Excelsior has completed the bulk of the planning & engineering and has mobilized crews to start construction. M3 Engineering based in Tucson has been awarded the EPCM contract. Earthworks related to the construction of the new leach pad has commenced, including crushing of the over-liner material. Rango Inc. from Mesa was awarded the leach pad construction and overliner crushing contract and is ramping up efforts to achieve the Excelsior milestones.

To facilitate the start of these activities and Stage 2, Nuton recently provided funding of $7.9 million through August 2024. Additional funding and activities will be announced as they progress.

“The commencement of leach pad construction marks a key milestone in Excelsior’s partnership with Nuton. The M3 and Rango team we have assembled is world class and committed to delivering a safe and timely project. The opportunity to build and operate Nuton’s first demonstration of their state-of-the-art copper leaching technology is a privilege Excelsior and our team is proud to deliver,” comments Robert Winton, SVP Operations and General Manager of JCM.

During construction, progress along with an image gallery will be posted on the company website at www.excelsiormining.com.

ABOUT NUTON

Nuton is an innovative venture that aims to help grow Rio Tinto’s copper business. At the core of Nuton is a portfolio of proprietary copper leaching related technologies and capability – a product of almost 30 years of research and development. Nuton offers the potential to economically unlock copper from primary sulfide resources through leaching, achieving market-leading recovery rates and contributing to an increase in copper production at new and ongoing operations. One of the key differentiators of Nuton is the ambition to produce the world’s lowest footprint copper while having at least one Positive Impact at each of our deployment sites, across our five pillars: water, energy, land, materials and society.

ABOUT THE JOHNSON CAMP MINE

The Johnson Camp Mine is a past producing open pit, heap leach operation. The operation includes two open pits, a fully functioning SX-EW plant capable of producing 25 million pounds of cathode copper per year, a complete set of PLS and raffinate ponds, and full infrastructure (ancillary facilities, access, power, water, and communications).

ABOUT EXCELSIOR MINING

Excelsior “The Copper Solution Company” is a mineral exploration and production company that owns and operates the Gunnison Copper Project in Cochise County, Arizona. The project is a low cost, environmentally friendly in-situ recovery copper extraction project that is permitted to 125 million pounds per year of copper cathode production. Excelsior also owns the past producing Johnson Camp Mine, which with Nuton LLC, a Rio Tinto Venture is in Stage 2 of a process to restart the mine using Nuton technologies, with first copper expected to be produced in 2025. Excelsior additionally owns a portfolio of exploration projects, including the Peabody Sill and the Strong and Harris deposits.

For more information on Excelsior, please visit our website at www.excelsiormining.com.

For further information regarding this press release, please contact:

Excelsior Mining Corp.
Concord Place, Suite 300, 2999 North 44^th Street, Phoenix, AZ, 85018.

Shawn Westcott
T: 604.365.6681
E: info@excelsiormining.com
www.excelsiormining.com

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this news release includes, but is not limited to, statements with respect to: (i) the potential of well stimulation to improve performance of the Company’s mineral projects; (ii) the intention to deploy the Nuton® technology at the Johnson Camp mine and future production therefrom; (iii) the details and expected results of the stage two work program; and (iv) future production and production capacity from the Company’s mineral projects.

In certain cases, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved” suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the amended permit will not be appealed, work plans will be approved in a timely manner, the availability of financing to continue as a going concern and implement the Company’s operational plans, the estimation of mineral resources and mineral reserves, the realization of resource and reserve estimates, expectations and anticipated impact of the COVID-19 outbreak, copper and other metal prices, the timing and amount of future development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs (including the price of acid), the availability of labour, material and acid supply, receipt of and compliance with necessary regulatory approvals and permits, the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks related to the Company not obtaining adequate financing to continue operations, the breach of debt convenants, risks inherent in the construction and operation of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not be sustained at the Gunnison Copper Project, risks related to the delay in approval of work plans, variations in mineral resources and reserves, grade or recovery rates, risks relating to the ability to access infrastructure, risks relating to changes in copper and other commodity prices and the worldwide demand for and supply of copper and related products, risks related to increased competition in the market for copper and related products, risks related to current global financial conditions, risks related to current global financial conditions and the impact of any resurgence of COVID-19 on the Company’s business, uncertainties inherent in the estimation of mineral resources, access and supply risks, risks related to the ability to access acid supply on commercially reasonable terms, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the construction or mining process, regulatory risks including the risk that permits may not be obtained in a timely fashion or at all, financing, capitalization and liquidity risks, risks related to disputes concerning property titles and interests, environmental risks and the additional risks identified in the “Risk Factors” section of the Company’s reports and filings with applicable Canadian securities regulators.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219202

Phoenix, Arizona–(Newsfile Corp. – August 1, 2024) – Excelsior Mining Corp. (TSX: MIN) (OTCQB: EXMGF) (FSE: 3XS) (“Excelsior” or the “Company”) is pleased to announce the appointment of Mr. Craig Hallworth as Chief Financial Officer (“CFO”) effective September 3, 2024.

Mr. Hallworth is currently the Chief Financial Officer, Arizona Business Unit at Hudbay Minerals where he has held various finance leadership roles over the past 13 years. Recently, he led the development and optimization of all financial aspects of the Copper World Project, a re-designed mega-project with over one billion tons of copper resources. Prior to joining Hudbay Mr. Hallworth was a manager with Ernst & Young LLP. Mr. Hallworth is a CPA accountant and CFA Charterholder and he obtained an Honors Bachelor of Commerce from Ryerson University.

Stephen Twyerould, President & Chief Financial Officer of Excelsior commented: “I am very excited that Craig has agreed to join the Excelsior team. He is joining at a critical time for Excelsior as Johnson Camp moves towards commercial production as part of the Nuton stage 2 work program and Excelsior continues to evaluate well stimulation and open pit mining opportunities at the Gunnison Project. Craig’s experience with Copper World will be a huge asset to Excelsior plans.”

Mr. Hallworth will replace Danny Heatherson who had served as the Company’s Interim CFO. The Company thanks Mr. Heatherson for his valuable contributions during the search for a new full-time CFO and welcomes Mr. Heatherson in his continued role as Corporate Controller.

About Excelsior Mining

For more information on Excelsior, please visit our website at www.excelsiormining.com.

For further information regarding this press release, please contact:

Excelsior Mining Corp.
Concord Place, Suite 300, 2999 North 44^th Street, Phoenix, AZ, 85018.

Shawn Westcott
T: 604.365.6681
E: info@excelsiormining.com
www.excelsiormining.com

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” concerning anticipated developments and events that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to: (i) the potential of well stimulation to improve performance of the Company’s mineral projects; (ii) the intention to deploy the Nuton® technology at the Johnson Camp mine and future production therefrom; (iii) the details and expected results of the stage two work program; and (iv) future production and production capacity from the Company’s mineral projects.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks related to the Company not obtaining adequate financing to continue operations, the breach of debt covenants, risks inherent in the construction and operation of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not be sustained at the Gunnison Copper Project, risks related to the delay in approval of work plans, variations in mineral resources and reserves, grade or recovery rates, risks relating to the ability to access infrastructure, risks relating to changes in copper and other commodity prices and the worldwide demand for and supply of copper and related products, risks related to increased competition in the market for copper and related products, risks related to current global financial conditions, risks related to current global financial conditions and the impact of any resurgence of COVID-19 on the Company’s business, uncertainties inherent in the estimation of mineral resources, access and supply risks, risks related to the ability to access acid supply on commercially reasonable terms, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the construction or mining process, regulatory risks including the risk that permits may not be obtained in a timely fashion or at all, financing, capitalization and liquidity risks, risks related to disputes concerning property titles and interests, environmental risks and the additional risks identified in the “Risk Factors” section of the Company’s reports and filings with applicable Canadian securities regulators.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/218313

Casa Grande, AZ and Toronto, ON, July 16, 2024 – Arizona Sonoran Copper Company Inc. (TSX:ASCU) (“ASCU” or the “Company”), releases its updated Mineral Resource Estimate (“MRE”) for the Cactus brownfield copper project, located 45 miles south of Phoenix, Arizona (see FIGURES 1-3). The updated and expanded MRE is inclusive of a seven-month drilling program targeting the MainSpring property, which was completed in April 2024. The Cactus Project is wholly owned and located on private land in Arizona with direct road and rail access, infrastructure onsite, is at an advanced permitting stage, and has permitted access to onsite water wells. Highlights and key changes from the updated MRE are listed below.

Highlights:

Updated total Cactus Project Mineral Resource Estimate (“MRE”) including Primary Mineral Resources:
- Measured and Indicated (“M&I”) 632.6 million short tons @ 0.58% Total Copper (“CuT”) for 7.3 billion pounds (“lbs”) of copper
- Inferred 474.0 million short tons @ 0.41% CuT for 3.8 billion lbs of copper
Key Changes:
- Confirms Parks/Salyer and MainSpring as one deposit, renamed to “Parks/Salyer”
  - Parks/Salyer mineral resource contains 339.0 million short tons @ 0.71% CuT for 4.8 billion lbs of copper in the M&I category and 299.3 million short tons @ 0.43% CuT for 2.6 billion lbs of copper in the Inferred category
- Parks/Salyer amenable as an open pit within the pending Preliminary Economic Assessment
  - New Parks/Salyer mineral resource dimensions are 6,400 feet (“ft”)(1,950 meters (“m”) by 3,000 ft (915 m) to a maximum depth of 2,350 ft (716 m) below surface
- 1,904% increase to the Measured Category with inclusion of initial Measured mineral resources at Parks/Salyer, 26% increase to the total M&I and a 60% increase in total Inferred resource, with no change to cut-off grade criteria or underlying price and cost assumptions
  - 42% increase of M&I mineral resources at Parks/Salyer attributed to success of measured infill drilling program, reporting of open pit resources, and reporting based on total copper pounds
  - Parks/Salyer infill drilling (56,907 ft | 17,345 m) converted 55.9 M short tons @ 1.03% CuT for 1.2 billion lbs of copper reported to the measured category
  - 60% increase to the Inferred mineral resources attributed to expansion of Parks/Salyer mineral resource onto the MainSpring property and reporting based on total copper pounds
  - 7-month drilling program at MainSpring (49,193 ft | 14,994 m) delivered 244.9 M short tons @ 0.39% CuT for 1.9 Billion lbs of copper reported to the Inferred mineral resource

Table 1 below reports the July 11, 2024, Cactus Project MRE, containing the combined Parks/Salyer, Cactus West, Cactus East, and Stockpile mineral resource areas. Each mineral resource area is broken out individually in Table 4. Mineral resources defined within this July 11, 2024, the Cactus Project MRE will be used to form the basis of the ASCU Preliminary Economic Assessment (“PEA”), on track for release in early Q3 2024.

TABLE 1: Cactus Project MRE, Contained Copper Separated into Total Copper and Soluble Copper

Material Type	Tons kt	Grade CuT %	Grade Cu Tsol %	Contained Total Cu (k lbs)	Contained Cu Tsol (k lbs)
Measured
Total Leachable	55,200	0.94	0.79	1,032,200	873,800
Total Primary	12,300	0.51	0.05	124,400	13,400
Total Measured	67,500	0.86	0.66	1,156,500	887,200
Indicated
Total Leachable	414,800	0.60	0.53	4,965,000	4,365,700
Total Primary	150,400	0.39	0.04	1,173,300	126,000
Total Indicated	565,200	0.54	0.40	6,138,200	4,491,700
M&I
Total Leachable	470,000	0.64	0.56	5.997,200	5,239,500
Total Primary	162,700	0.40	0.04	1,297,600	139,400
Total M&I	632,600	0.58	0.43	7,294,800	5,378,900
Inferred
Total Leachable	299,600	0.43	0.38	2,572,400	2,262,800
Total Primary	174,500	0.36	0.04	1,267,500	124,700
Total Inferred	474,000	0.41	0.25	3,839,900	2,387,500

NOTES:
1. Total soluble copper grades (Cu TSol) are reported using sequential assaying to calculate the soluble copper grade. Tons are reported as short tons.
2. Stockpile resource estimates have an effective date of 1st March, 2022, Cactus mineral resource estimates have an effective date of 29th April, 2022, Parks/Salyer-MainSpring mineral resource estimates have an effective date of 11th July, 2024. All mineral resources use a copper price of US$3.75/lb.
3. Technical and economic parameters defining mineral resource pit shells: mining cost US$2.43/t; G&A US$0.55/t, 10% dilution, and 44°-46° pit slope angle.
4. Technical and economic parameters defining underground mineral resource: mining cost US$27.62/t, G&A US$0.55/t, and 5% dilution. Underground mineral resources are only reported for material located outside of the open pit mineral resource shells. Designation as open pit or underground mineral resources are not confirmatory of the mining method that may be employed at the mine design stage.
5. Technical and economic parameters defining processing: Oxide heap leach (HL) processing cost of US$2.24/t assuming 86.3% recoveries, enriched HL processing cost of US$2.13/t assuming 90.5% recoveries, sulphide mill processing cost of US$8.50/t assuming 92% recoveries. HL selling cost of US$0.27/lb; Mill selling cost of US$0.62/lb.
6. Royalties of 3.18% and 2.5% apply to the ASCU properties and state land respectively. No royalties apply to the MainSpring property.
7. Variable cut-off grades were reported depending on material type, potential mining method, potential processing method, and applicable royalties. For ASCU properties – Oxide open pit or underground material = 0.099% or 0.549% TSol respectively; enriched open pit or underground material = 0.092% or 0.522% TSol respectively; primary open pit or underground material = 0.226% or 0.691% CuT respectively.For state land property – Oxide open pit or underground material = 0.098 % or 0.545% TSol respectively; enriched open pit or underground material = 0.092% or 0.518% TSol respectively; primary openpit or underground material = 0.225% or 0.686% CuT respectively.For MainSpring properties – Oxide openpit or underground material = 0.096% or 0.532% TSol respectively; enriched open pit or underground material = 0.089% or 0.505% TSol respectively; primary open pit or underground material = 0.219% or 0.669% CuT respectively. Stockpile cutoff = 0.095% TSol.
8. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, sociopolitical, marketing, or other relevant factors.
9. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there is insufficient exploration to define these inferred mineral resources as an indicated or measured mineral resource; it is uncertain if further exploration will result in upgrading them to an indicated or measured classification.
10. Totals may not add up due to rounding.

George Ogilvie, Arizona Sonoran Copper Company President and CEO commented, “The new Parks/Salyer deposit, inclusive of MainSpring could be transformational for the Company as we foresee the opportunity to right size a larger operation and rescope Parks/Salyer to an open pit mine. The pending result would lead to reduced mining execution risks and lowered operating costs which could manifest themselves in improved Project economics. The key difference in the larger mineral resource used for the pending PEA, relates to the MainSpring property acquisition and subsequent inferred drilling program identifying the continuation of near surface mineralization south of Parks/Salyer.”

Doug Bowden, Arizona Sonoran Copper Company VP Exploration stated, “Our Cactus Project is a successful copper porphyry growth story resulting from an aggressive exploration program. Our mineral resource journey began with our initial PEA in 2021, and continuously expanded outward from the Cactus Pit area to include Parks/Salyer and most recently MainSpring within the 5.5 km mine trend. The Parks/Salyer discovery includes significant quantities of high-grade (+1.00% CuT) copper, similar to the grades in Cactus East (as shown in FIGURES 2 and 3). Through systematic step out and infill drilling following our first mineral resource in 2021 to today’s update, our Cactus Project MRE indicates an increase to the M&I by an impressive 353%, from 1.61 Billion lbs to 7.29 Billion lbs of copper, while the inferred mineral resources increased 94%, from 1.98 Billion lbs to 3.84 Billion lbs. Lastly, these mineral resource areas have responded favorably and impressively to infill drilling with a consistently high conversion rate into higher resource classifications and will look forward to future infill programs as we move through the technical studies.”

Cactus Mineral Resources Estimate

The Parks/Salyer mineral resources as shown in FIGURE 3, inclusive of MainSpring, indicate 339.0 M short tons @ 0.71% CuT in the M&I category and 299.2 M short tons @ 0.43% CuT in the Inferred Category. Notably, Parks/Salyer is mostly contained within an optimized resource open pit shell indicating the rescoped potential of open pit mining of the deposit with the inclusion of shallower mineralization located on the MainSpring property. Parks/Salyer mineral resources were calculated with a cutoff date of March 31, 2024. There are no material changes to the Cactus East, West and Stockpile deposits as reported within the FEB 21, 2024 PFS.

For the purposes of the MRE, Cactus East reports as open pit mineral resources in compliance with Reasonable Prospects for Eventual Economic Extraction (“RPEEE”). For the purposes of the pending PEA, Cactus East is expected to be exploited as an underground operation.

Table 2 below reports a direct like–for-like comparison of the updated July 11, 2024, MRE, to the MRE comprising the Prefeasibility Study (“PFS”) MRE and illustrates a significant change to the Measured (+1,900%) and Inferred (+60%) categories, as it relates to successful expansion and infill programs at Parks/Salyer, including the MainSpring Property. The Table below calculates a combination of the Soluble Copper grades and Total Copper grades based on the leachable (oxides and enriched) zones, and the primary sulphides, respectively, going forward, mineral resources will calculate both the contained Total Copper and Soluble Copper inventory. Table 2 uses the same notes and assumptions as Table 1.

Table 2: The Cactus Project Mineral Resource Estimate, as of July 11, 2024, as Compared to August 31, 2023

	PREVIOUS MINERAL RESOURCE (As of August 31, 2023)			UPDATED MINERAL RESOURCE (As of July 11, 2024)			VARIANCE
Material Type	Tons kt	Grade Cu%¹	Contained Cu k lbs	Tons kt	Grade Cu%¹	Contained Cu k lbs	Cu Content %
Leachable	9,100	0.23¹	41,900	55,200	0.79¹	873,800	1,985%
Primary	1,300	0.32	8,000	12,300	0.51	124,400	1,455%
Total Measured	10,400	0.24	49,800	67,500	0.74	998,200	1,904%
Leachable	348,500	0.63¹	4,387,200	414,800	0.53¹	4,365,700	0%
Primary	86,800	0.43	737,000	150,400	0.39	1,173,300	59%
Total Indicated	435,300	0.59	5,124,200	565,200	0.49	5,539,000	8%
Leachable	357,600	0.62¹	4,429,000	470,000	0.56¹	5,239,500	18%
Primary	88,000	0.42	745,000	162,700	0.40	1,297,600	74%
Total M&I	445,700	0.58	5,174,000	632,600	0.52	6,537,100	26%
Leachable	107,700	0.61¹	1,307,900	299,600	0.38¹	2,262,800	73%
Primary	126,200	0.36	900,000	174,500	0.36	1,267,500	41%
Total Inferred	233,800	0.47	2,207,900	474,000	0.37	3,530,300	60%

NOTES: refer to TABLE 1
1 Grade shown is Soluble Copper (Cu TSol)

Drilling programs
The updated Cactus Project MRE is supported by a systematic drilling program targeting MainSpring, the near surface southern extension of the Parks/Salyer deposit, and infill to measured drilling at Parks/Salyer, within the 5.5 kilometre (“km”) (~3.5 mile (“mi”)) mine trend. Mineral resources were classified using data of 125 ft (38 m) drill spacing for Measured, 250 ft (76 m) drill spacing for Indicated and 500 ft (~152 m) drill spacing for Inferred. The in-ground mineral resources were calculated using 435 total drillholes including 161 new holes drilled into the Cactus West and East deposits since 2019 and 159 new holes drilled into the Parks/Salyer deposits since 2020. The Stockpile mineral resource was calculated using 514 new holes drilled into the stockpile on a regular grid since 2021. The isolated MainSpring mineral resource estimate containing 244.9 M short tons @ 0.39% CuT, is shown in TABLE 3 below, while each deposit is broken out separately within TABLE 4.

TABLE 3: MainSpring Property Resource contained within New Parks/Salyer Mineral Resource

Material Type	Tons kt	Grade CuT %	Grade Cu Tsol %	Contained Total Cu (k lbs)	Contained Cu Tsol (k lbs)
Inferred
Total Leachable	200,100	0.39	0.34	1,562,700	1,370,300
Total Primary	44,800	0.38	0.04	344,000	33,100
Total Inferred	244,900	0.39	0.29	1,906,700	1,403,500

NOTES: refer to TABLE 1

TABLE 4: Cactus Project Mineral Resources by Resource Area

Material Type		Tons kt	Grade CuT %	Grade Cu Tsol %	Contained Total Cu (k lbs)	Contained Cu Tsol (k lbs)
Measured
Leachable	Parks Salyer O/P	45,000	1.09	0.92	981,200	828,700
	Parks Salyer U/G	5	1.30	0.92	100	100
	Cactus O/P	10,200	0.25	0.22	50,800	45,000
	Cactus U/G	n/a
	Stockpile	n/a
Total Leachable		55,200	0.93	0.79	1,032,100	873,800

Primary	Parks Salyer O/P	10,900	0.53	0.06	115,500	12,200
	Parks Salyer U/G	40	0.77	0.07	700	100
	Cactus O/P	1,300	0.32	0.04	8,200	1,100
	Cactus U/G	n/a
	Stockpile	n/a
Total Primary		12,300	0.51	0.05	124,400	13,400
Total Measured		67,500	0.86	0.66	1,156,500	887,200
Indicated
Leachable	Parks Salyer O/P	201,300	0.75	0.66	3,027,000	2,671,100
	Parks Salyer U/G	1,100	0.96	0.85	21,400	18,900
	Cactus O/P	131,000	0.55	0.49	1,446,100	1,277,000
	Cactus U/G	10,200	1.04	0.89	213,100	181,100
	Stockpile	71,100	0.18	0.15	257,400	217,600
Total Leachable		414,800	0.60	0.53	4,965,000	4,365,700

Primary	Parks Salyer O/P	80,400	0.42	0.04	680,600	69,200
	Parks Salyer U/G	100	0.77	0.12	1,200	200
	Cactus O/P	68,300	0.34	0.03	465,800	45,100
	Cactus U/G	1,600	0.81	0.36	25,700	11,500
	Stockpile	n/a
Total Primary		150,400	0.39	0.04	1,173,300	126,000
Total Indicated		565,200	0.54	0.40	6,138,200	4,491,700
Measured & Indicated
Leachable	Parks Salyer O/P	246,300	0.81	0.71	4,008,200	3,499,800
	Parks Salyer U/G	1,100	0.98	0.86	21,500	19,000
	Cactus O/P	141,200	0.53	0.47	1,496,900	1,322,000
	Cactus U/G	10,200	1.04	0.89	213,100	181,100
	Stockpile	71,100	0.18	0.15	257,400	217,600
Total Leachable		470,000	0.64	0.56	5,997,200	5,239,500

Primary	Parks Salyer O/P	91,300	0.44	0.04	796,100	81,400
	Parks Salyer U/G	100	0.95	0.15	1,900	300
	Cactus O/P	69,600	0.34	0.03	474,000	46,200
	Cactus U/G	1,600	0.80	0.36	25,700	11,500
	Stockpile	n/a
Total Primary		162,700	0.40	0.04	1,297,600	139,400
Total M&I		632,600	0.58	0.43	7,294,800	5,378,900
Inferred
Leachable	Parks Salyer O/P	234,500	0.42	0.38	1,990,200	1,767,500
	Parks Salyer U/G	9,600	0.84	0.76	161,200	146,300
	Cactus O/P	50,400	0.34	0.28	344,600	286,900
	Cactus U/G	3,900	0.94	0.77	72,800	59,100
	Stockpile	1,200	0.15	0.13	3,600	3,000
Total Leachable		299,600	0.43	0.38	2,572,400	2,262,800

Primary	Parks Salyer O/P	54,100	0.39	0.04	427,300	41,000
	Parks Salyer U/G	1,000	0.82	0.26	16,700	5,300
	Cactus O/P	117,800	0.34	0.03	798,700	68,300
	Cactus U/G	1,500	0.82	0.33	24,900	10,200
	Stockpile	n/a
Total Primary		174,500	0.36	0.04	1,267,600	124,800
Total Inferred		474,000	0.41	0.25	3,839,900	2,387,500

NOTES: refer to TABLE 1

Cactus Project Mineral Resource Modelling

The geological modelling, statistical analysis, and resource estimation in respect of the Cactus Project MRE were prepared by the ASCU resource team and by Allan Schappert – CPG #11758, who is a qualified person as defined by National Instrument 43-101– Standards of Disclosure for Mineral Projects (“NI 43-101”).

The Cactus Project MRE updates are based upon updated drilling data and interpretations. The Cactus Mineral Resource model was developed in Vulcan. Drilling data is supported by industry standard quality assurance and quality control programs, with quality control sampling comprising preparation blanks, certified reference materials, and field and pulp duplicate analyses. Review of the QA/QC data indicates it is of a quality suitable for use in resource estimation.

The mineralized domains are consistent with domaining for porphyry copper systems. Mineralized domains represent combinations of rock type and copper mineral zonation associated with secondary copper enrichment weathering processes. The main mineral zones are leached, oxide, enriched, and primary. Mineral zones are determined by logging and the assay attributes of sequential copper analyses.

Physical density measurements have been undertaken across the deposits, both historically by ASARCO, and more recently by ASCU. Density measurements on inground deposits use the wet / dry weight method and comprise 3,372 samples for Cactus and 143 samples for Parks/Salyer. Due to the unconsolidated nature of the stockpile material, physical bulk density measurements were attained by weight and volume calculations. Four test holes were excavated from which the material removed was dried and weight and the volume of each hole calculated.

Copper grades were estimated using Ordinary Kriging, using 20 ft (6.1 m) composites and top cutting determined by log normal probability plots on a per domain basis. Grade estimates were validated using visual and statistical methods including statistical distribution comparisons, visual comparison against the drilling data on sections, swath plots comparing block grades trends against de-clustered composites, and by smoothing checks using change of support. The effective date of the Cactus Project MRE is July 11, 2024. The Cactus Project MRE will form the basis of a PEA technical report prepared in accordance with NI 43-101, and prepared by M3 Engineering, which will be filed on SEDAR+ under the Company’s issuer profile within 45 days of this news release and will also be available at such time on the Company’s website. The PFS will be superseded in all respects once the Company has publicly disclosed the PEA.

Quality Assurance / Quality Control

Drilling completed on the project between 2020 and 2024 was supervised by on-site ASCU personnel who prepared core samples for assay and implemented a full QA/QC program using blanks, standards, and duplicates to monitor analytical accuracy and precision. The samples were sealed on site and shipped to Skyline Laboratories in Tucson AZ for analysis. Skyline’s quality control system complies with global certifications for Quality ISO9001:2008.

Scientific and technical information contained in this news release have been reviewed and verified by Allan Schappert – CPG #11758, who is a qualified person as defined by NI 43-101.

Links from the Press Release

Figures: https://arizonasonoran.com/projects/cactus-mine-project/press-release-images/
February 21, 2024: https://arizonasonoran.com/news-releases/arizona-sonoran-announces-a-positive-pre-feasibility-study-for-the-cactus-mine-project-with-a-us-509m-post-tax-npv-and-55-kstpa/

Neither the TSX nor the regulating authority has approved or disproved the information contained in this news release.

About Arizona Sonoran Copper Company (www.arizonasonoran.com | www.cactusmine.com)
ASCU’s objective is to become a mid-tier copper producer with low operating costs and to develop the Cactus Project 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 brownfield Cactus Project (former ASARCO, Sacaton mine) which is situated on private land in an infrastructure-rich area of Arizona. 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.

For more information:

Alison Dwoskin, Director, Investor Relations
647-233-4348
adwoskin@arizonasonoran.com

George Ogilvie, President, CEO and Director
416-723-0458
gogilvie@arizonasonoran.com

Forward-Looking Statements
This news release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. All information, other than historical fact, are forward-looking information. Generally, statements containing forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expect”, “is expected”, “in order to”, “is focused on” (a future event), “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, or the negative connotation thereof. Forward looking information includes, but is not limited to, the Company’s future operations, future exploration and development activities or other development plans, the potential of the Cactus Project (including the Parks/Salyer deposit), timing of economic studies and mineral resource estimates including the filing of the technical report in respect of the Cactus Project MRE, the results (if any) of further exploration work to define and or upgrade mineral resources and reserves at the Company’s properties; the anticipated exploration, drilling, development, construction and other activities of ASCU and the result of such activities; the mineral resources and mineral reserves estimates of the Cactus Project including the Cactus Project MRE (and the assumptions underlying such estimates); the ability of exploration work (including drilling) to accurately predict mineralization; the ability of management to understand the geology and potential of the Cactus Project; the completion and timing for the filing of the technical report in respect of the Cactus Project MRE; the timing and ability of the Company to produce a preliminary economic assessment (if at all); the scope of any future technical reports and studies conducted by ASCU; the ability to realize upon mineralization in a manner that is economic; the impact of bringing the Parks/Salyer deposit including the MainSpring property into the mine plan; , and corporate and technical objectives. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ASCU to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties that could affect the outcome include, among others: future prices and the supply of metals; risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar; the results of drilling; the ability to access capital on terms acceptable to the Company necessary to incur the expenditures required to retain and advance the properties; changes in exploration, development or mining plans due to exploration results and changing budget priorities of the Company or its joint venture partners; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs or further exploration work; the ability to continue exploration and development of the ASCU properties; changes in any of the assumptions underlying the Cactus Project MRE; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain any required consents, permits or approvals; and the additional risks described in ASCU’s most recently filed Annual Information Form, annual and interim management’s discussion and analysis, copies of which are available on SEDAR+ (www.sedarplus.ca) under ASCU’s issuer profile.

Although ASCU has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The Company considers its assumptions to be reasonable based on information currently available but cautions the reader that their assumptions regarding future events, many of which may be beyond the control of the Company, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affects the Company and its operations. Accordingly, readers should not place undue reliance on forward-looking information and are urged to carefully consider the foregoing factors as well as other uncertainties and risks outlined in the Company’s public disclosure record. Forward-looking statements contained herein are made as of the date of this news release and ASCU disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

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Imagine a typical day; as you brew your coffee, copper pipes ensure that water flows safely through your coffee maker, delivering your morning buzz. During your morning commute, the car’s electronics and motors rely on copper to power the engine. Smartphones and computers, containing intricate copper circuitry, keep you connected to the world. The electrical grid and telecommunications network – even the satellites orbiting Earth – all rely on copper wire and components to connect calls. Later, as you prepare dinner, copper cookware evenly distributes heat to your food. From dawn to dusk, copper presents itself in countless ways. This reddish-brown metal appears in ways you might not immediately recognize.

Top Uses for Copper

Copper finds myriad applications across various industries due to its unique properties. Its conductivity, durability, malleability, and antimicrobial nature make it indispensable to many industries. Here are some key ways copper is used across different sectors:

Reliable Power Transmission in Electrical Applications

Copper provides the foundation for power transmission systems; it is a premier conductor of electricity, second only to silver. Its extensive application in copper wire, transformers, and electrical grids ensures the seamless flow of energy, which is vital for powering our communities.

Moreover, copper’s role extends to the intricate circuitry of printed circuit boards (PCBs) within electronic devices, where its conductivity allows efficient energy transfer and reliable performance. Copper is even essential in components used by electrical engineers, like busbars, electric motors, switch gears, and circuit breakers.

Antimicrobial Control, Power Transmission, and Radio Frequency Shielding in Medical Application

Copper is a crucial element in the medical field, serving multiple purposes. Its antimicrobial properties make it useful for creating surfaces that aid in infection control within healthcare settings; some hospitals are starting to adopt antimicrobial copper touch surfaces to help create sterile environments.

Additionally, copper’s durability and biocompatibility make it an optimal choice for crafting medical instruments and tools. Copper circuitry delivers power to medical electronics, contributing to their functionality and reliability.

Furthermore, in advanced medical technologies like MRI rooms, copper is sometimes utilized in radio frequency shielding that lines the walls and ceilings. Copper even helps power active implantable medical devices, extending the lives of millions.

Thermal Conductivity and Energy Conversion in Industrial Machinery

Copper’s properties lend themselves to crucial applications in industrial machinery and enhance efficiency in various industrial processes. Delocalized electrons within copper’s solid lattice structure have the freedom to move unrestricted, effectively transporting heat. This unique property transforms copper into a highly efficient conductor, facilitating heat flow across its surface. This exceptional thermal conductivity makes it indispensable in regulating temperature in heat exchangers.

Copper plays a pivotal role in electric motors and generators, facilitating efficient energy conversion and powering essential machinery for production and operation. Copper enables countless industrial machines—hydraulic presses, mills, cement mixers, and high-power lasers—to operate more efficiently.

Longevity and Weather-Resistance in Construction Materials

Copper is a versatile construction material with numerous applications. Copper pipes ensure durable and reliable plumbing systems, while copper roofing materials provide weather-resistant solutions that protect structures and enhance architectural aesthetics. Copper does not rust, but it will develop a patina and darken over time when exposed to the elements. Due to its malleability and corrosion resistance, the metal is utilized in architectural elements like railings and gutters. Its applications extend to artistic sculptures and, statue building. We can all name at least one very famous and iconic statue made from copper.

Other Applications: Jewelry, Tools, Musical Instruments, and More

These top uses for copper only scratch the surface. There are seemingly endless applications for copper, ranging from jewelry-making to tool manufacturing. Its aesthetic appeal and durability make it ideal for crafting intricate designs and sturdy equipment like cookware and heat sinks. In musical instruments, copper alloys like brass contribute to creating distinctive tones, enriching musical experiences. Copper is also important for currency production and textile manufacturing.

Sustainable Copper Mining Facilitates a Better Future

As demand for copper increases, it becomes crucial to ensure our access to copper is sustainable. Innovations in mining technologies, such as those pioneered by Nuton, are at the forefront of this endeavor, striving to meet the growing demand for copper while minimizing its ecological footprint.

To discover more about Nuton’s transformative technologies and their impact on the industry, delve deeper into the Nuton process and explore the possibilities for a sustainable future.

Learn More About Nuton Technologies

Casa Grande, AZ and Toronto, ON, June 10, 2024 – Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) (“ASCU” or the “Company”) reports drilling results targeting below the leachable oxides and enriched sulphides, into the untested extents of primary copper mineralization around the Cactus West Pit, on the Cactus Project, in Arizona. Drilling confirms a thick zone of primary sulphide mineralization beneath the Cactus West open pit mine plan and at least 750 ft (229 m) south, 500 ft (152 m) southwest and up to an additional 700 ft (213 m) below the Cactus West mineral resource shell (see FIGURES 1-8). The program is part of the 2024 Nuton Work Program sponsored by Nuton LLC, a Rio Tinto venture, as announced January 30, 2024.

A total of 5 drill holes are reported herein for a total of 8,366 ft (2,550 m). The Nuton-sponsored drill program aims to further delineate the primary mineralization beneath the existing oxides and enriched sulphides at the Cactus West open pit, as outlined in the current mine plan. Additionally, the program seeks to extend exploration efforts to the south and southwest regions. The program follows up on geotechnical hole ECW-150 (see PR January 10, 2024), which also encountered a significant primary sulphide interval, extending mineralization by 674 ft (205 m) below the mineral resource shell, within a total interval of 1,416 ft (432 m) @ 0.45% CuT.

Drilling Highlights

ECW-246*: 1,463 ft (446 m) @ 0.31% CuT of continuous mineralization
- 1,370 ft (418 m) @ 0.31% CuT, 0.004% Mo (primary)
ECW-243: 987 ft (301 m) @ 0.34% CuT of continuous mineralization
- 191 ft (58 m) @ 0.35% CuT, 0.30% Cu TSol, 0.014% Mo (enriched)
- 796 ft (243 m) @ 0.33% CuT, 0.011% Mo (primary)
ECW-245: 1,033 ft (315 m) @ 0.28% CuT of continuous mineralization
- 190 ft (58 m) @ 0.56% CuT, 0.010% Mo (primary)
ECW-241: 852 ft (260 m) @ 0.38% CuT of continuous mineralization
- 316 ft (96 m) @ 0.34% CuT, 0.27% Cu TSol, 0.005% Mo (enriched) from 132 m depth
- 536 ft (163 m) @ 0.39% CuT, 0.019% Mo (primary)

NOTE: True widths are not known; * Hole terminated in primary mineralization and angled at –47.5° dip, all other holes drilled vertical and terminated in the basement fault

George Ogilvie, Arizona Sonoran President and CEO commented, “While our engineering and geology teams remain focused on the integration of our MainSpring property into our February 2024 Pre-Feasibility Study, our geo teams continue their exemplary low discovery cost programs. To date, the discovery cost on our Cactus porphyry is under $0.01/lb, and therefore telling us to continue drilling until that cost begins to increase.”

He continued, “The Cactus 2024 drilling programs focused on MainSpring infill drilling and expansion drilling at Cactus West. MainSpring presents engineering with the opportunity to improve economics at Parks/Salyer. At Cactus West, the team is targeting below the previously known mineral extents within the primary sulphides for future opportunities and optionality. Cactus infill drilling is returning wide intervals of primary copper mineralization both below the open pit mine plan, and also outside of the current mineral resource shell. While these Cactus West results will not be included in the pending Preliminary Economic Assessment, we see an expanding primary sulphide zone as future optionality on what is already one of the largest development stage Copper assets in the United States today.”

Drilling Recap

The Cactus West infill and exploration drill program as announced in the January 30, 2024 work plan press release and as part of the 2024 Nuton Work Program, supports the expansion of primary sulphide mineralization, particularly near ECW-150 and is ongoing with two drills. The current drilling will not be reflected in the pending Preliminary Economic Assessment.

Previously, most drilling at Cactus West crossed through the oxide and enriched zones prior to terminating in the upper portions of the primary sulphide mineralization. This developed the oxide and enriched copper resources to support a conventional heap leach project. The current drill program at Cactus West targets the untested extents of primary mineralization by drilling completely through the enriched and primary mineralization zones to the basement fault and stopping in the rock units that compose the basement complex. This drilling is confirming a thick zone of primary mineralization beneath the thinner enrichment zone, typically followed by a barren granitic unit at depth above the basement fault. Though the drill program is in the early stages, it has confirmed that a thick zone of primary mineralization extends beneath the Cactus West pit as well as at least 750 feet south and 500 feet southwest of the pit. Results to date show primary sulphide copper grade increasing from east to west across the southern side of the pit. Grades are interpreted to increase further on the southwest corner of the pit as the drilling aligns with the historical mine trend, consistent with results previously reported from ECW-150. The program will continue to test the extents of primary mineralization to the south and southwest, as it also works to in-fill the areas under and immediately adjacent to the Cactus West pit.

The oxide and enriched proven and probable reserve at Cactus West totals 75.5 Mtons @ 0.26% Cu TSol for 463 Mlbs of copper. Within the Pre-Feasibility Study, Cactus West contributes approximately 12 Mtons annually within the first 7 years of production as an open pit layback. Meanwhile, the Cactus West and East primary sulphide mineral resource estimate consists of 72.9 Mtons @ 0.34% CuT M&I for 463M lbs of copper and 120.4 Mtons @ 0.34% CuT for 837 Mlbs of copper inferred, inclusive of Cactus East (see PR dated February 21, 2024for notes and disclaimers related to the reserves and resources). The Cactus Project overall, inclusive of Parks/Salyer, contains 446 Mtons @ 0.58% CuT for 5.2 Blbs measured and indicated and 224 Mtons @ 0.472% CuT for 2.2 Blbs inferred.

Table 1: Significant Drilling Intercepts

Intervals are presented in core length and are drilled vertically, except in the case of ECW-246 at –47.5°.
Drill assays assume a mineralized cut-off grade of 0.1% CuT reflecting the potential for heap leaching of open pit material in the case of Oxide and Enriched or in the case of Primary material to provide typical average grades. Holes were terminated below the basement fault except in the case of hole ECW-246.
Assay results are not capped. Intercepts are aggregated within geological confines of major mineral zones.
* Includes 10.3 ft (3.2 m) of missing core
True widths are not known

Table 2: Drilling Details

Note: Drill locations are based on drill plans and hand-held GPS locators and may be adjusted slightly when properly surveyed.

Quality Assurance / Quality Control

Drilling completed on the project between 2020 and 2023 was supervised by on-site ASCU personnel who prepared core samples for assay and implemented a full QA/QC program using blanks, standards, and duplicates to monitor analytical accuracy and precision. The samples were sealed on site and shipped to Skyline Laboratories in Tucson AZ for analysis. Skyline’s sample prep, analytical methodologies, and quality control system complies with global certifications for Quality ISO9001:2008.

Technical aspects of this news release have been reviewed and verified by Allan Schappert – CPG #11758, who is a qualified person as defined by National Instrument 43-101– Standards of Disclosure for Mineral Projects.

Links from the Press Release

Figures 1-8: https://arizonasonoran.com/projects/cactus-mine-project/press-release-images/
February 21, 2024: https://arizonasonoran.com/news-releases/arizona-sonoran-announces-a-positive-pre-feasibility-study-for-the-cactus-mine-project-with-a-us-509m-post-tax-npv-and-55-kstpa/
January 30, 2024: https://arizonasonoran.com/news-releases/arizona-sonoran-announces-2024-work-plan/
January 10, 2024: https://arizonasonoran.com/news-releases/arizona-sonoran-extends-mineralization-674-ft-205-m-below-cactus-west-mineral-resource-shell-drills-731-ft-223-m-of-0.92-cut-of/

Neither the TSX nor the regulating authority has approved or disproved the information contained in this press release.

About Arizona Sonoran Copper Company (www.arizonasonoran.com | www.cactusmine.com)

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.

For more information

Alison Dwoskin, Director, Investor Relations
647-233-4348
adwoskin@arizonasonoran.com

George Ogilvie, President, CEO and Director
416-723-0458
gogilvie@arizonasonoran.com

Forward-Looking Statements

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ASCU to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain regulatory or shareholder approvals.

“News stories of hurricanes and wildfires, droughts and floods are everywhere. It’s easy to feel paralyzed or give up.” Despite the headlines, Cecilia Perla is optimistic. “We need to pay attention to the problem, but also direct our efforts into action rather than despair.”

She’s spent over a decade reshaping copper analysis and decarbonization, and contributing her expertise to governments, universities and NGOs worldwide. And as the United Nations recognizes World Environment Day this June, there’s no better time than now to be enthusiastic about the future of ecosystem restoration.

Cecilia Perla, Sustainability VP at Nuton Technologies, is spearheading efforts to establish a more sustainable future for the copper mining industry.

U.N. Sustainable Development Goals (SDG) Applied to Copper Mining

Perla, the Sustainability VP for Nuton Technologies, sees good things ahead. “We need to double down on humanity’s capacity to change, our creativity and what Hannah Ritchie calls ‘pragmatic optimism’,” she says referring to sustainability data scientist, researcher and author of the 2024 book, Not the End of the World: How Can We Be the First Generation to Build a Sustainable Planet. Recognized by Bill Gates as “eye-opening and essential,” Ritchie’s book points to progress made in lowering carbon emissions, deforestation and air quality. “She’s a glass-half-full type of person, just like me.”

Though for Nuton this is a year-round effort, the U.N.’s World Environment Day in June provides an opportunity to showcase how the mining industry — historically associated with environmental degradation — can become a key innovator for ecosystem restoration.

Nuton’s heap leaching technology, in particular, is a source of great hope in the efforts to find new ways to produce copper with a lower environmental footprint. Nuton embraces a ground-up-to-global mindset for copper extraction driven by a company ethos of sustainability and alignment with the United Nations’ sustainable development goals.

“We must have a vision of what the post-mining land use for the site is and how we get there,” says Perla referring to Nuton’s ambition to accelerate opportunities for land restoration, one of the five pillars of Positive Impact Strategy. “In the big scheme of things, mining is a temporary land use. We should keep an open mind about what it can become once mining concludes.”

Along with land, Nuton’s Positive Impact Strategy encompasses four additional pillars—water, energy, materials, and society. “This year, we are seeing Nuton germinate, having announced the first industrial-scale deployment of our technology at the Johnson Camp Mine, owned and operated by our partner Excelsior Mining,” Perla says. “We will have more exciting news to share as we mature as a venture and show our partners and the market the full value of Nuton technologies.”

The World Environment Day 2024 Motto: #GenerationRestoration

This year’s World Environment Day focuses on land restoration, desertification and drought resilience under the slogan, “Our land. Our future. We are #GenerationRestoration.”

The United Nations sponsors World Environment Day to encourage worldwide awareness and action to protect our environment.

Since 1973, World Environment Day has been the largest global platform for environmental public outreach. Its mission reads, “To keep global warming below 1.5°C [34.7°F] this century, we must cut annual greenhouse gas emissions in half by 2030. Without action, exposure to air pollution beyond safe guidelines will increase by 50 percent within the decade, and plastic waste flowing into aquatic ecosystems will nearly triple by 2040.”

The Future of Sustainable Copper Mining Is Gaining Traction

Nuton is right in line with #GenerationRestoration, this year’s motto for World Environment Day. According to Perla, “Nuton is built on this spirit. Here’s a new technology unlocking opportunities to meet copper demand with a much lighter footprint and less stress on our planet than conventional copper processing technologies.”

As for the future of sustainable copper mining? It´s on its way. Here’s how Nuton’s heap leaching technology already alleviates environmental impact and increases profits.

Lighter Environmental Impact to Meet Copper Demand

It’s simple, according to Perla. “Nuton exists because we need to produce more copper, but we need to do it more sustainably. We focus not only in the what, but also on the how copper is produced.”

“The vast majority of copper comes from primary sulfides, which traditionally go through a process of concentration, smelting and refining,” she says. “Nuton technologies provide an alternative to leaching copper sulfide ores with the help of our carefully cultivated bacteria and unique catalysts and reagents.”

Stronger Economic Impact for Sustainable Copper Mining

Nuton’s ambition to produce copper with a lower carbon footprint, while conserving water, energy, and costs, aligns with the goals of World Environment Day.

World Environment Day 2024 is just one day this summer. But thanks to Perla and the Nuton team, ecosystem restoration and conservation is an everyday ambition.