Kutcho Resource

The mineral resource estimates are form coherent bodies of mineralisation that are considered amenable to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper US$3.50/lb, Zinc US$1.15/lb, Silver US$20.00/oz, Gold US$1600/oz. Projected operating costs: Mining (underground) C$56.58/t, Mining (open pit) C$3.49/t, Processing C$26.97/t, G&A C$7.89/t. Process recoveries Main and Sumac: Copper 87.6%, Zinc 64.3%, Gold 58.0%, Silver 57.9%. Process recoveries Esso: Copper 94.5%, Zinc 89.3%, Gold 66.0%, Silver 71.2%. Pit slope angle 48.9 degrees.
Copper-equivalent grades at Main and Sumac are calculated based on the formula: CuEq = (Cu% x 0.876) + (Zn% x 0.241) + (Au g/t x 0.441) + (Ag g/t x 0.006). Copper-equivalent grades at Esso are calculated based on the formula: CuEq = (Cu% x 0.945) + (Zn% x 0.310)+(Ag g/t x 0.006)+(Au g/t x 0.466). The base case cut-off grade for mineral resources considered amenable to open pit extraction methods at the Main deposit is 0.45% CuEq while the cut-off grade for mineral resources considered amenable to underground extraction methods at Main and Sumac deposits is 1.05% CuEq and is 0.95% Cu at the Esso deposit.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. It is reasonably expected that the majority of inferred mineral resources could be upgraded to measured or indicated mineral resource with continued exploration.
All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.
The estimate of mineral resources was calculated based on the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions.
The effective date of the estimate of mineral resources is July 30, 2021. Kutcho Copper is not aware of political, environmental, or other risks that could materially affect the potential development of the mineral resources.

Kutcho Project

Kutcho is an accessible project with on-site and nearby infrastructure situated within subtle terrain

The Kutcho property is located approximately 120 km east of Dease Lake in northern British Columbia, and consists of one mining lease and 46 mineral exploration claims covering an area of approximately 17,060 hectares. The site is accessible via a 900 m long gravel airstrip located 10 km from the deposit and a 100 km long seasonal road from Dease Lake suitable for tracked and low-impact vehicles.

Property Highlights

High Grade Copper Zinc development project with 22.8 Mt in the Measured and Indicated resources category at 2.26% CuEq¹ representing over 1.1 billion pounds of copper equivalent contained metal (“CuEq”)¹

Strong Financial Support – Major Shareholders, Capstone Mining and Wheaton Precious Metals, support with financing package of C$100 million; over C$34 million already invested

Exploration Upside Potential – Significant upside potential through near resource expansion and drill infilling of current Inferred resources. Blue sky green fields/regional exploration potential

Infrastructure – Existing field camp and airstrip; 100km of year-round ground access to be upgraded to haul road; port facilities within 400km paved highway access; moderate terrain

Top Tier Jurisdiction – Situated in northern British Columbia, Canada, one of the safest mining jurisdictions globally with producing mines in the region including Brucejack (Pretium) and Red Chris (Imperial Metals)

Permitting – Transparent and prescribed process, supportive First Nations, local stakeholders and Government. Subject only to the British Columbia Environmental Assessment review process

¹ Click here to view more information on Kutcho Resource

Accessibility

120 km of existing ground access; Airstrip on property

Port facilities

in Stewart ~400 km from Dease Lake via Highway 37

Existing field camp

with 900m long gravel airstrip adjacent to camp

First Nations

ongoing engagement with Tahltan & Kaska First Nations

2021 Feasibility Study Highlights

* The Feasibility Study and data in this slide includes no cost inflation or re-assessment of costs. 1 Metal prices: Cu US$5.00/lb, Zn US$1.15/lb, Ag US$20/oz. Au US$1,600/oz. 2 CuEqR calculation based on base case metal prices. 3 All-in sustaining cost estimation stated in appendix. 4 See appendix in Corporate Presentation for Mineral Resource Estimate table. 5 Wheaton Capital from stream applied

Kutcho Resource

Click here to view more information on Kutcho Resource

Kutcho Project Resource Lenses Contains Over 1 Billion lb’s Copper Equivalent in M&I

2021 Mineral Resource¹

TOTAL

M&I 22.8 Mt @ 2.26% CuEqR
INFERRED 12.9 Mt @ 1.62% CuEqR

MAIN

M&I 20.2 Mt @ 1.97% CuEqR
INFERRED 2.1 Mt @ 1.66% CuEqR

SUMAC

INFERRED 9.1 Mt @ 1.49% CuEqR

ESSO

INDICATED 2.6 Mt @ 4.40% CuEqR
INFERRED 1.6 Mt @ 2.15% CuEqR

1 see 2021 Feasibility Study for detailed Estimate notes

The Kutcho Project Covers 90% of the Prospective Kutcho Formation rocks

The prospective volcanic rocks are folded, repeating the mineralized horizon threefold on the project, including the deposit.

The long strike length of the favorable horizon and folding delivers many targets for exploration.

Mineralization & Alteration

Mineralization at Kutcho comprises three known “Kuroko-type” VMS deposits aligned in a westerly plunging linear trend. The largest, the Main deposit, comes to surface to the eastern end, followed by Sumac down plunge, and Esso to the western end which occurs at depths of about 400 m below surface.

“Kuroko-type” VMS deposits are typically related to felsic volcanism in island arc or back-arc tectonic settings. Features of the Kutcho deposits suggest that they formed at or near the water-seafloor interface in a structurally controlled depression, such as a half-graben type structure. The chemical composition of the alteration around the Kutcho deposits is well zoned about the hydrothermal vent areas. Mineralization consists of a pyritic footwall with zoned copper and zinc towards a sharp hanging wall contact.

Geophysics in exploration

Deeper penetrating ZTEM (DT/90Hz) covers 90% of the project

has provided definition, clarity and allowed target prioritization

ZTEM can detect the Esso deposit and returns a similar ZTEM anomaly over the Esso West target

Extension of shallower penetrating VTEM surveys to compliment ZTEM data

Kutcho Copper Project is a District Scale VMS Target Rich Environment that Remains Under-Explored

Over 10 untested near-resource & regional targets exhibiting ZTEM conductivity highs

Hamburger / The Gap / Esso West – drill ready VMS targets near to and down dip of known mineralization trend

Jack along strike of the Main mineralization

Jenn / Mother / Far East targets on potential fold repeat of productive horizon

Josh Creek / Kris / Bow targets in a mafic dominant volcanic stratigraphy

Kutcho Copper Project Near Resource Targets

Untested ZTEM conductivity highs near to the known mineralization – strongly supported by geology, magnetic, and seismic data to 850 m depth

Hamburger - Largest Untested ZTEM Target

A large high priority target area of over 2.8 km² – an area more than double the current known Resource

Geological indicators give room for multiple exploration target types, including downfaulted mineralization or parallel mineralization trends.

Four historic drillholes hit Kutcho time horizon rocks with positive alteration and pyrite indicators up dip of the ZTEM high conductivity target.

Three drillholes are planned to test highest confidence locations.

The Gap - Strong Conductivity Trends

A large high priority target area of over 1.3 km² – a nexus of trends

Geological indicators allow for multiple exploration target trends, including both cross-potentially downfaulted and parallel trends.

Historic drilling has positive indicators of carbonate alteration and intersections of pyrite mineralization of lengths of up to 15m.

Two holes are planned to test each of the conductivity trends in the highest confidence model areas.

Esso West - New Technology Changes Targeting

Current ZTEM modelling and seismic surveys improve targeting ability

🔵 Limited historical drilling results lacked current targeting ability and yet include:

EO94B3 7.17 m 1.96% Cu & 5.25% Zn,
EO94B1 0.64 m 1.15% Cu & 0.33% Zn,
EO94B2 2.31 m 1.28% Cu & 0.15% Zn

🟡 1980 & 1983 Exploration drilling – all hit sulphide mineralization (<0.1% Cu) but missed the ZTEM conductivity target.

Planned drillholes are in the highest confidence area of the Esso West anomaly.

Qualified Persons

The technical or scientific information on this website has been reviewed and approved by Andrew Sharp, P.Eng BC (Lic. No. 47907), FAusIMM, Chief Operating Officer for Kutcho Copper, who serves as a qualified person under the definition of National Instrument 43-101