Adventus Mining Poised to Become Next Major Copper Producer in Ecuador

• Adventus Mining (ADZN) - $13M Drawdown and Final Stage EIA Permit
• Adventus Mining is a TSXV-listed company with a market cap of around $100 million.
• The company is developing the El Domo copper-gold VMS project and is about 7-9 months away from full-scale construction.
• The president of Ecuador has signed a pre-legislative consultation decree, indicating a new consultation process for environmental impact assessments (EIA).
• This decree gives confidence to Adventus to draw down $13 million for final detail engineering and pre-construction works, as the consultation process is now in motion.

About Adventus Mining Corporation

Adventus Mining Corporation (TSXV: ADZN) is a copper and gold development company focused on advancing its El Domo project in Ecuador. With a market capitalization of approximately $100 million, Adventist is on track to begin construction of El Domo within the next 6-9 months. Once completed, El Domo will be one of the lowest-cost copper mines in the world.

Interview with President & CEO Christian Kargl-Simard

Permitting Process Provides Clarity

A major milestone was recently achieved with the signing of a pre-legislative consultation decree by the President of Ecuador. This decree outlines the permitting and consultation process required for new industrial projects like El Domo to receive final environmental permits.

While the process is more extensive than in the past, the decree provides much needed clarity on the path forward according to Christian Kargl-Simard, President and CEO of Adventus Mining. With the consultation process expected to take 7-9 months, Cardwell believes Adventus Mining can receive its final permits within the next 18 months.

The government's commitment to formalizing the permitting process indicates that Adventist's El Domo project will likely be among the first to advance in Ecuador following recent political turmoil. No shortcuts are being taken, but the momentum building around El Domo's permits gives management confidence in the project's timeline.

El Domo's Compelling Economics

Once constructed, El Domo is expected to produce approximately 115 million pounds of copper equivalent per year over a 14-year mine life. With cash costs projected below $1.00 per pound, the asset will be in the lowest quartile of global copper producers.

Additional factors contributing to El Domo's industry-leading economics include:

• High-grade resource averaging 5% copper equivalent
• Capex of only $250 million keeps initial investment low
• After-tax IRR of 28% and 2 year payback period

El Domo also benefits from key infrastructure already in place, including access to roads, power and water. This eliminates many of the challenges faced by projects in more remote locations.

Financing Secured, Detailed Engineering Underway

Construction of a new copper mine typically requires at least $1 billion in capital investment. This poses a major hurdle for junior mining companies. However, Adventist has already secured a $13 million early deposit from Wheaton Precious Metals for El Domo's gold production.

This non-dilutive financing provides sufficient capital for Adventus Mining to advance detailed engineering and pre-construction activities. The company estimates detailed engineering will be 60-100% complete prior to construction, significantly derisking both the timeline and cost profile.

In addition, Adventus Mining has already secured a highly reputable mining contractor in STRACON. With much of the mining fleet equipment ready and waiting in Peru, this removes uncertainty around one of the largest capital items.

The combination of advanced engineering and minimal inflation in Ecuador gives management confidence in El Domo's feasibility study numbers. Updated guidance will be provided in April 2023 as part of the final control budget.

Positioned at the Front of the Queue in Ecuador

With many large mining projects delayed or cancelled around the world, El Domo finds itself at the front of the queue in Ecuador. This strategic positioning is allowing Adventus Mining to negotiate improved terms with contractors eager for new work.

The company also benefits from close relationships with government officials who are incentivized to see El Domo advance smoothly. In addition to the consultation decree, Adventus Mining was recently granted an Investment Protection Agreement with the government. This agreement safeguards Adventist's investment in Ecuador, providing further reassurance to shareholders.

5 Key Takeaways for Investors

1. Near-term construction start - Final permits are expected within 6-9 months, allowing full construction to begin shortly after.
2. Attractive economics - El Domo is projected to have cash costs under $1/lb copper, top-tier IRR and rapid payback period.
3. Derisked execution - Detailed engineering 60-100% complete minimizes cost/schedule overruns.
4. Preferred positioning - Advanced stage and strong government support make El Domo a priority project.
5. Capital needs met - $13M early deposit from Wheaton finances pre-construction activities. No near-term dilution is expected.

Adventus Mining represents a rare opportunity to invest in a junior copper developer on the cusp of construction. With permitting progressing, detailed engineering underway, financing secured and strong government support, El Domo could be primed to transition to Ecuador's next major copper mine. However, social licence and the Ministry for Mines remain the main barriers to advancing the project in a timely fashion. Investors need to understand the willingness and backing of both of these groups before investing in Adventus Mining.

Shares currently trade near 52-week lows, presenting a compelling entry point for investors seeking leveraged exposure to the impending copper supply deficit. As construction activities accelerate in 2023, Adventus Mining's valuation should rerate significantly higher.