ATEX Resources - Resource Expansion in Major Copper-Gold Project in Chile

• ATEX Resources is advancing the Valeriano gold-copper project in Chile's Atacama region
• Recent drilling has demonstrated scalability and optionality, with a growing resource now at 1.4 billion tons
• High-grade trends and new discoveries provide potential for a large, long-life mining operation
• ATEX is looking to bring in a strategic partner and raise capital to accelerate drilling and development
• Regional consolidation could create synergies with nearby major copper projects

ATEX Resources, a junior mining company exploring the Valeriano gold-copper project in Chile, has made significant progress in demonstrating the scale and economic potential of its key asset. With a current resource of 1.4 billion tons and growing, Valeriano is shaping up to be a major copper-gold system capable of supporting a long-life, low-cost mining operation.

Advancing Valeriano

Over the past three years, ATEX has rapidly advanced Valeriano from a small exploration project to a multi-billion ton porphyry copper-gold system. The company recently completed its Phase 4 drill program, which President & CEO Ben Pullinger says delivered "scalability and optionality."

Key intercepts from Phase 4 include:

• Hole ATXD26: 68m @ 2.02% copper equivalent (CuEq)
• Hole ATXD25: Mineralization over entire hole length, demonstrating continuity
• Hole ATXD16A: 112m @ 1.42% CuEq

These results have allowed ATEX to trace a high-grade trend that is 200-300m wide, 600-700m long, and open in multiple directions. This high-grade core sits within a larger mineralized envelope measuring 1.2km x 500m x 700m. Pullinger estimates this envelope alone could contain close to a billion tons of mineralization, with an additional 2-3 tons of mineralized wall rock for every ton of high-grade diorite.

"Phase 4 has been a big game changer in terms of scalability," says Pullinger. "We've gone from having 300-400 million tons of mineralized early porphyry in the resource to now having an envelope that's 1.2 x 0.5 x 0.7 km. If you do the math on that, you get close to a billion tons just in the granite diorite. Then you add 2-3 wall rock tons on top of that. That's a pretty big system."

Interview with President & CEO, Ben Pullinger

Robust Economics

Valeriano's expanding size is matched by robust grade and favorable metallurgy. The high-grade diorite cores grade in the 0.9-1.5% CuEq range (at $3.50/lb Cu and $1800/oz Au), for a rock value of $60-100/ton—well above the ~$20/ton average cost for block cave mining. Recent metallurgical test work shows recoveries of 94-95% for both copper and gold.

This combination of scale, grade and metallurgy gives Valeriano the potential to be a Tier 1 copper asset, with a long mine life and low operating costs. Pullinger sees potential for "a 10 million ton per annum processing facility" generating "$600 million in free cash flow" annually at a 2:1 margin over costs. A larger operation could produce over $1 billion in annual cash flow.

Strategic Partnerships

To realize Valeriano's full potential, ATEX is actively seeking a strategic partner to help fund an expanded drill program and complete economic studies. Pullinger notes they are "ambitious and practical" in their approach.

"There's no secret that at some point between now and the end of the year, we'd love to either bring in a partner or raise some capital that gets us to the number that we need to put five drill rigs on this project," he says.

ATEX is well-positioned to attract a top-tier partner, with a tight share structure, strong institutional backing, and $14 million in cash. The company has also strengthened its management and board, recently adding Chris Beer, a 24-year veteran of RBC Global Asset Management.

Regional Consolidation

Looking longer-term, ATEX sees potential for regional consolidation. Valeriano is located in a prolific mineral belt that includes several other world-class porphyry copper systems. Pullinger believes consolidating Valeriano with nearby projects like NuevaUnion and El Morro-La Fortuna could create a production hub with over 10 billion tons of combined copper resource.

"There's true synergy there," says Pullinger, "and in an environment where we're seeing Chile step up and say 'we understand the world needs Chilean resources'... I think that changes the shape of what we're doing."

With the Chilean government looking to streamline mine permitting and increase copper output, ATEX is well-positioned to participate in what could become a major new copper production center.

Conclusion

With a rapidly growing resource, robust economics, and prime location in Chile's copper belt, ATEX Resources presents a compelling investment opportunity. Positive drill results and an expanded geological model show Valeriano has the potential to become a Tier 1 copper mine. The company is now looking to bring in a strategic partner and raise funds to accelerate resource growth and advance the project. Longer-term, regional consolidation could make ATEX part of a world-class copper production hub.

As the world's demand for copper continues to grow, driven by global electrification and the energy transition, projects like Valeriano will be critical to meeting supply needs. ATEX offers investors leveraged exposure to both copper prices and to the value created by exploration and development. With a proven management team, strong financial backing, and a rapidly advancing asset, ATEX is an attractive target for investors looking to capitalize on the coming bull market in copper.

The Investment Thesis for ATEX Resources

• Exposure to major copper-gold porphyry system in Chile with expanding multi-billion ton resource
• High-grade core provides potential for low-cost, high-margin operation
• Strategic partnership and funding to accelerate resource expansion and advance to production
• Potential for regional consolidation to create world-class copper production hub
• Leveraged to rising copper prices driven by electrification and renewable energy
• Strong management team, institutional backing and solid financial position
• Attractive valuation with significant near-term catalysts
• Potential takeout target as major miners look to secure long-term copper supply

Copper's Critical Role in the Energy Transition

The world is undergoing a massive transformation as countries and industries transition towards renewable energy and electrification to combat climate change. This shift will require an unprecedented amount of copper - a key metal used in electric vehicles, charging infrastructure, solar and wind power, and electricity transmission.

Experts estimate copper demand from clean energy sectors could jump by nearly 600% by 2030 as countries aim to meet Paris Agreement goals. On the supply side, a lack of new mine development and declining grades at existing operations has analysts projecting major deficits starting in the mid-2020s.

Without new copper supply, the energy transition could be in jeopardy. Projects like Valeriano will be critical to meeting the world's future copper needs and enabling the low-carbon economy.

As ATEX's CEO Ben Pullinger noted, "If copper reached $10/lb tomorrow, it's too late - we are not going to be able to produce copper in the quantities that we are going to need it."

The world will need hundreds of new mines, or major expansions at existing mines, to close the supply gap.

This impending supply crunch has experts calling copper the new oil. The winners will be those companies that control the next generation of low-cost, long-life copper projects. With Valeriano, ATEX is well-positioned to help fill the copper supply gap and create significant value for shareholders in the process.