Camino Minerals: Developer Details Timeline for Fully-Permitted Chilean Copper Project

• Camino Minerals is acquiring a fully permitted copper asset in Chile called Puquios through a 50/50 partnership with Nittetsu Mining.
• Camino is also exploring their Los Chapitos copper project in Peru where drilling will resume in January. Nittetsu has invested $7M to earn a 35% stake so far.
• The Puquios project is purchase ready and can be in production within 2-3 years. Debt financing is expected to take 6-12 months followed by a 24-30 month build period.
• Puquios is an SX-EW project that could initially mine an enriched chalcocite-oxide resource with a 10-14 year mine life at 9,000 tpa copper production based on historical DFS work.
• CEO Jay Chmelauskas is confident in the industry and Camino's strategy, taking a 10% stake in their current financing round. He believes their share price is undervalued with significant upside.

With the global transition to clean energy accelerating, the world needs more copper than ever before. Industry experts project the copper market will face major supply deficits later this decade as demand outstrips supply fueled by exponential growth in electric vehicles, renewable power, and energy storage. Copper explorers and developers able to bring new production online are poised to benefit enormously from this powerful macro trend.

Canadian-based Camino Minerals (TSX-V:COR) has strategically assembled a portfolio of advanced-stage copper projects in prime jurisdictions to position itself for this opportunity. The cornerstone is their recently announced acquisition of the fully permitted and construction-ready Puquios copper project in Chile, one of the world's top copper producing countries. Camino CEO Jay Chmelauskas in a recent interview explains,

Copper will have its next cycle here based off of electrification. We saw copper go through a cycle during the 'China cycle' from 1999 to 2011, and we see a similar price move in copper going forward. So that was the basis for getting into the copper business, and then where do we go - we go where the geology is the best. Chile.

A Strategic Partnership with Nittetsu Mining

Camino is acquiring Puquios through an innovative 50/50 partnership with the experienced Japanese miner Nittetsu Mining. Nittetsu is contributing half the purchase price in cash while Camino is paying the other half in shares. Critically, Nittetsu will take over as operator once a production decision is made, leveraging their technical expertise while freeing up Camino's team to continue building the rest of their portfolio.

To win this deal, having the partnership with Nittetsu Mining was what helped us. Nittetsu brings in 50% of the purchase through cash and we provide 50% of the acquisition through stock. And then Nittetsu is going to build and operate, which helps us with our overall strategy.

Nittetsu is an ideal partner for Camino. Beyond their financial backing, the group is building their own $400M copper mine just 50 km from Puquios, providing valuable synergies.

Fast-Tracked to Production

The Puquios project boasts a number of key advantages that enable a fast-track to production. First, it is fully permitted for construction and essentially shovel-ready today. Second, as an SX-EW project, the processing will utilize proven, off-the-shelf technology to produce copper cathode. Third, the near-surface enriched chalcocite and oxide mineralization will be mined via simple open pit methods. Finally, the project is located in Chile's copper-rich Antofagasta region with excellent access to power, water and transport infrastructure.

Based on the historical data, Puquios contemplates a 10 to 14 year mine life producing 9,000 tonnes of copper per annum. Camino and Nittetsu’s due diligence confirmed the robust economics, and they are now updating the DFS to bring it current which is expected by the end of January 2025.

Once complete, the critical path item will be arranging debt financing, which CEO Jay Chmelauskas estimates will take 6 to 12 months. Assuming that is in place by early 2026, construction could begin later that year leading to potential first production in late 2027 or early 2028 based on a 24 to 30 month build schedule. In the meantime, value engineering and detailed engineering work will proceed to optimize the project.

Interview with CEO Jay Chmelauskas

Opportunities for Expansion and Mine Life Extension

While the base case for Puquios is compelling, there are also significant opportunities for expansion and mine life extension. Beneath the near-surface oxide resources lies a substantial sulphide deposit which is not currently included in the mine plan.

Camino has been working with a number of groups who specialize in sulphide leaching technologies that could unlock the value of this larger resource. Geometallurgy will also be a focus to optimize production from the different mineralized zones.

Additionally, the company is exploring ways to incorporate mineralization from local Chilean miners to augment the mine life. This could involve toll treating as well as mining additional satellite deposits in the district.

Exploration Upside in Peru

In parallel with advancing Puquios in Chile, Camino will be resuming exploration at their Los Chapitos copper project in southern Peru. The company has already outlined a modest resource there, but the real upside lies in making a major new discovery.Nittetsu Mining certainly sees the potential, having invested $7 million to earn a 35% interest in the project so far with another $3 million pending. Drilling is slated to restart by the end of January, targeting 11 high-priority targets.

Camino has identified two major deep-seated structures cutting through the 12 km long property that could host significant mineralization. These are the types of structures known to control other major Peruvian copper deposits. Even more intriguing, mining giant Rio Tinto has recently staked ground along the extensions of these same structures.

Every time we stepped out, we didn't step out 50 meters, we stepped out 1 to 2 kilometers. And this is the exciting part of the business. We could wake up in February or March when we get our assays back and suddenly this company is in a completely different world.

The Investment Thesis for Camino Minerals

• Exposure to rising copper prices driven by electrification and renewable energy
• Near-term production potential in 2-3 years to capture upside
• Significantly de-risked project via partnership with experienced operator
• Potential for major copper discovery in Peru with ongoing exploration
• Opportunities for expansion and mine-life extension in Chile
• Proven management team with track record of developing mines

The copper market is poised to enter an unprecedented period of undersupply later this decade. Demand for the red metal is forecast to surge due to its critical role in the global energy transition. Electric vehicles use 4x more copper than gasoline-powered cars. Renewable energy generation and storage is up to 5x more copper intensive than conventional fossil fuel power. Governments globally have already committed billions to building out EV charging infrastructure.

At the same time, copper supply growth is constrained. The average grade of operating copper mines globally has fallen as higher-grade deposits deplete. Water and power constraints, along with rising geopolitical risks, further threaten production from major producing regions like Chile and Peru. Even when new world-class deposits are discovered, it can take decades for permit, finance, and construction of a new mine.

The result will be a structural supply deficit that some analysts believe could reach 5 million tonnes by 2030. Camino Minerals CEO Jay Chmelauskas summed up the opportunity:

It's an excellent time to invest in the copper space. Investing in small companies like Camino that have a business plan and that are going to come out with production, that's a really good place to be.