Fitzroy Minerals: Creating Capital Value in Chile Through Copper & Gold Exploration

• Fitzroy Minerals (TSX-V: FTZ, OTCQB: FTZFF) is focused on copper and gold exploration in Chile with a portfolio of four key projects.
• The company has approximately C$5 million in treasury and is executing an ambitious 12-month drilling program across three active projects.
• Their flagship Buen Retiro copper project features shallow oxide mineralization with low capital intensity development potential.
• At Caballos, their first drill hole revealed a new Cu-Mo-Au-Re mineralizing system with significant strategic metal potential.
• Management's strategy emphasizes three pillars: growth (resource expansion), momentum (well-funded operations), and value (short timelines to production).

Building Value Through Strategic Resource Development

Fitzroy Minerals is a mineral exploration company creating capital value through its strategic copper and gold projects in Chile. Listed on the TSX Venture Exchange (FTZ) and OTCQB (FTZFF), the company is building a portfolio of high-reward assets in established mining districts with near-term, low-cost development potential. In today's challenging capital markets for junior miners, Fitzroy has structured its strategy around three key pillars designed to deliver shareholder value.

Under the growth pillar, the company focuses on expanding resource envelopes, demonstrating mineralization continuity, and targeting projects with both good grade and favorable mineralogy. The momentum pillar is supported by a well-funded treasury (approximately C$5 million), strong share register, active drill programs generating news flow, and operational freedom without impediments. The value pillar emphasizes projects with short timelines to production, low capital intensity potential, and a focus on copper, gold, and strategic metals that are increasingly in demand globally.

Strategic Project Portfolio with Ambitious Development Timeline

Fitzroy's portfolio consists of four distinct projects across Chile and Argentina, each with specific characteristics that align with the company's strategic approach. The portfolio is backed by an ambitious drilling and exploration program spanning the next 12 months. Both Buen Retiro and Caballos are described as already in "discovery mode," with significant work planned across all active projects.

The Buen Retiro copper project near Copiapo, Chile, features shallow leachable minerals, geophysical targets, sulphide potential, and excellent infrastructure just 60km from Copiapo and 35km from the coast. Phase 2 drilling (8,000m) is running from Q2 through Q4 2025 with a C$3 million budget, followed by Phase 3 drilling in Q1-Q2 2026.

At Caballos in Chile, Fitzroy has identified a new Cu-Mo-Au-Re mineralizing system with significant strike potential, simple sulphide mineralogy, and valuable by-product potential. Phase 2 drilling is split between Q2 2025 and Q4 2025-Q1 2026 with a C$1.5-2 million budget.

The Polimet Au-Cu-Ag project features an epithermal system with historical workings in a mining district with Phase 1 drilling in Q2 2025 and potential Phase 2 drilling in Q4 2025-Q1 2026, supported by a C$0.7-1 million budget.

The Taquetren gold project in Argentina represents a non-core asset with regional exploration potential currently under data review through Q3 2025 with a modest C$150,000 budget allocation. This aggressive exploration timeline positions the company for multiple potential discovery catalysts throughout 2025.

Buen Retiro: Flagship Copper Project with Near-Term Potential

The Buen Retiro project represents a de-risked discovery opportunity leveraged to a copper bull market. Located in an established mining district with seven major deposits in Punta del Cobre, the project shares geological similarities with major regional mines like Manto Verde (Capstone Copper) and lies on the same shear structure as Candelaria (Lundin Mining).

The project offers high reward potential through low capital intensity, short-timeline permitting and development options. The fully consolidated land position (~13,000 ha) contains surface oxides, chalcocite, and notable occurrences of native copper, with mineralization open along approximately 4km of identified strike. Heap leach potential and the option for Pregnant Leach Solution (PLS) trucking to Punta del Cobre further enhance the project's economic profile.

Extensive Mineralization System with Multiple Target Zones

Extensive surface mineralization at Buen Retiro has been confirmed through Phase 1 drilling with highlights including 38m @ 3.33% Cu and 135m @ 0.73% Cu. The project features multiple mineralized trends: the NE Trend is defined by DTH drilling, drill hole BR-DD03, geophysics, with 1,300m potential strike along magnetic and IP anomalies; the Central, South, and Southwest Trends are defined by drill holes #4-13 and geophysics with 2,700m potential strike along magnetic and IP highs.

These structural zones average 35m thickness, with stratigraphic zones being wider. The current 8,000m Phase 2 drilling program allocates 85% to targeting oxide resources in the top 100m, with 15% targeting deeper sulphides.

Near-Surface Oxides with Favorable Development Characteristics

The oxide mineralization at Buen Retiro offers particularly attractive development characteristics with friable, shallow deposits featuring favorable mineralogy. The dominant minerals include tenorite (CuO, 80% Cu), chalcocite (CuS, 80% Cu), and native copper (100% Cu), all typically leachable with or without oxidizing agents. Minor amounts of chrysocolla (38% Cu) and malachite (58% Cu) are also present.

Base of gravel drilling has highlighted a greater than 150m-wide anomaly that remains open along strike on the North trend. These oxide resources typically offer low capital intensity development options, which aligns with Fitzroy's strategic focus on value creation.

Deep Exploration Upside with Sulphide Potential

Beyond the near-surface oxide potential, Buen Retiro shows significant promise for deeper sulphide mineralization. Geophysical studies reveal a North-South magnetic section showing a major anomaly with deep roots in the southern portion of the property, complemented by a major IP anomaly that remains open at depth.

This combination of geophysical signatures suggests potential for a substantial sulphide system below the oxide cap, with identified mineralized structural zones reaching depths of up to 500m. This dual-opportunity profile - near-term oxides with longer-term sulphide potential - provides Fitzroy with both near-term development options and significant exploration upside.

Strategic Partnership Structure Mitigates Risk

A notable strategic advantage at Buen Retiro is Pucobre S.A.'s 30% clawback right on the Buen Retiro Option (encompassing Buen Retiro and Manto Negro concessions, but not the Sierra Fritis concessions). Under this arrangement, if Pucobre exercises its clawback right, Fitzroy would receive a payment equal to 30% of three times the invested capital to date. For example, with a hypothetical $20 million investment, the calculation would be $20M × 3 = $60M, and then $60M × 0.3 = $18M payment to Fitzroy. This structure potentially de-risks Fitzroy's exploration expenditure by providing a significant capital return mechanism while maintaining a 70% project interest.

Historical context is provided by the nearby Manto Negro Mine, which produced approximately 1.3 million tonnes at 1.2% soluble copper according to Pucobre internal reports.

Caballos: Early Success in a New Mineral District

The Caballos Copper project represents a new exploration frontier with a successful proof-of-concept drill hole that has opened a previously unrecognized mineralized corridor. Located 210km by road from Santiago at an elevation of 2,000m, the project encompasses 18,000 hectares of strategic licenses positioned along more than 10km of the 'Pocuro Fault Zone.'

The area features two 1,200m-long IP, soil, and rock anomalies—the Mule Hill and Chincolco anomalies. The Mule Hill anomaly shows a 1,300m strike length with copper soil and IP anomalies, while the Chincolco anomaly, where the initial drilling was conducted, exhibits a 1,200m strike with IP anomalies, Cu-Mo rock anomalies, and hydrothermal breccia.

Promising Initial Drill Results with Strategic Metal Credits

Fitzroy's initial drill program at Caballos has already achieved significant success with its first drill hole in the Chincolco anomaly. Drill hole CAB-DDH001 intersected 200m at 0.46% Cu, 591ppm Mo, and 0.07g/t Au (0.81% CuEq), including higher-grade zones of 98m at 0.78% Cu, 1,071ppm Mo, and 0.12g/t Au (1.47% CuEq), and a core zone of 42m at 1.20% Cu, 1,764ppm Mo, and 0.23g/t Au (2.26% CuEq). True widths of the intercepts are estimated at approximately 75% of down-hole intervals.

The mineralization consists entirely of sulphides with no oxides or transition zones, and the surface anomaly has been mapped over 1,150m by 150m. The molybdenum grades are particularly notable at 4.5-5 times the copper values (in ppm vs. percentage) with payable potential, while gold and rhenium provide additional value potential.

District-Scale Potential with Critical Mineral Upside

The Caballos project shows significant scale potential with valuable and strategic by-products that represent critical minerals in an increasingly polarized global market. The property is situated in a prolific district surrounded by major mining companies including Freeport-McMoRan, Newmont, Antofagasta Minerals, Codelco, and Los Andes Copper.

The mineralized zone at Chincolco features a brecciated, altered zone approximately 150m wide extending for 1.2km. Molybdenum values are notably high-grade relative to typical Cu-Mo porphyries, while gold shows a positive correlation with molybdenum. Rhenium, a rare strategic metal for which Chile provides 50-60% of global production, represents an additional potential value stream. Phase 2 drilling of approximately 1,500m is scheduled before mid-June 2025 to further evaluate the system's potential.

Polimet: Historical High-Grade Gold-Copper Production

The Polimet Au-Cu-Ag project represents a proven epithermal system surrounded by mine infrastructure in an established mining district. Located 170km by road from Santiago, the 1,860-hectare property sits just 13km south of the 1 million-ounce El Bronce gold mine at an elevation of approximately 1,800m. The project features a mapped vein system extending approximately 5km.

Historical production from the Santa Margarita adit, documented through ENAMI (Chile's state-owned mining company) ore sales certificates, shows impressive grades: 617,925kg of sulphide ore averaging 4.7g/t Au, 10g/t Ag, and 1.0% Cu, plus 117,050kg of direct shipping ore averaging 33.5g/t Au, 55g/t Ag, and 6.9% Cu, for a total production of 734,975kg at 9.3g/t Au, 17g/t Ag, and 2.0% Cu.

Classic Epithermal System with Grade Zonation Potential

The Polimet project represents a fully-preserved epithermal system with significant gold and copper potential. Regional studies of similar deposits in the Petorca district demonstrate clear vertical zonation, with high-grade mineralization typically occurring between 1,000m and 1,600m elevation, as exemplified by the El Bronce mine.

This zonation model shows distinct mineral assemblages at different elevations: an upper barren zone with chalcedonic quartz and carbonate (Zone A), an intermediate zone with quartz, carbonates, barite, and sub-economic precious and base metals (Zone B), a high-grade zone with economic values of gold, silver, and base metals featuring quartz, pyrite, sphalerite, chalcopyrite, and carbonates (Zone C), and a lower zone with anhedral granular quartz, pyrite, and chlorite with sub-economic values (Zone D).

The elevation of Polimet places it in the prospective range for high-grade mineralization according to this regional model.

Experienced Leadership with South American Expertise

Fitzroy is led by an experienced team focused on delivering growth, momentum, and value through copper and gold discoveries. Chairman Campbell Smyth brings significant capital markets experience as chairman for Orange Minerals and director for both Goldstone Resources and Carlton Precious.

President and CEO Merlin Marr-Johnson contributes 30 years in the minerals sector including roles as an exploration geologist for Rio Tinto, an analyst for HSBC, and a portfolio manager for Blakeney Management.

Chief Operating Officer and Country Manager Gilberto Schubert has over 30 years of experience across all stages of the mining chain, including 22 years with Vale in progressively senior roles.

The team is complemented by Director John Seaman (22+ years in mining finance), Director Mary Gilzean (25+ years in international exploration), Technical Advisor Ken McNaughton (30+ years as a geological engineer with companies like P2 Gold, Pretium Resources, and Silver Standard), and CFO Queenie Kuang (17+ years in financial services).

Favorable Timing in the Commodity Cycle

The current macroeconomic environment presents an ideal backdrop for Fitzroy's exploration strategy. Copper prices have increased in nominal terms since 2000 but remain relatively flat in real terms when measured against gold, suggesting significant upside potential.

Demand fundamentals remain strong, with data showing that 15% of the global population (primarily in developed economies) uses more copper than the rest of the world combined.

This "development gap" represents enormous potential demand growth as developing economies progress, particularly in light of increasing electrification and AI-driven demand. The chart of GDP per capita versus installed stock of copper by region highlights the significant growth potential as countries like China, India, and other emerging economies continue to develop their infrastructure and manufacturing capabilities.

Industry Consolidation Highlights Asset Value

Major mining companies and mid-tier players are increasingly competing to secure quality copper and gold assets through strategic investments and partnerships. Recent examples include Freeport-McMoRan's US$110 million investment in Amarc Resources' Joy Project, Boliden's US$90 million investment in Amarc's Duke Project, Mitsubishi's C$20 million investment in Marimaca Copper, Barrick's US$23.4 million investment in Hercules Metals, and multiple investments by Teck in American Eagle.

More recent transactions include Rio Tinto's staged US$250 million investment for 20% in Aldebaran Resources' Altar project, South32's C$29 million investment for 20% in American Eagle, Sumitomo's staged US$254 million for 30% in Rio Tinto's Winu Cu-Au project, and Freeport-McMoRan's US$75 million investment in C3 Metals for 75% of the Bellas Gate Project.

This environment of increasing consolidation and strategic investment highlights the value potential in quality exploration assets like those in Fitzroy's portfolio.

The Investment Thesis for Fitzroy Minerals

• Strategic Metals Portfolio: Exposure to copper, gold, molybdenum, and rhenium—metals critical to global electrification, AI development, and industrial applications in an increasingly resource-constrained world.
• De-risked Discovery Potential: The company's flagship Buen Retiro project offers shallow oxide mineralization with low capital intensity development potential, while also maintaining significant upside through deeper sulphide targets.
• Capital Efficiency: With approximately C$5 million in treasury and a strategic partnership structure at Buen Retiro (Pucobre's 30% clawback right), Fitzroy has structured risk-mitigated exploration with potential for significant returns on invested capital.
• Execution Capability: An experienced management team with deep expertise in South American resource development and a track record of bringing companies to public markets.
• Macro Environment: Positioned to benefit from increasingly favorable copper market dynamics, with nominal prices trending upward while real prices (Cu/Au) remain at historically moderate levels, suggesting significant upside potential as the development gap between emerging and developed economies continues to drive demand.
• Multiple Near-term Catalysts: With active drilling programs across three projects and over 12,000m of drilling planned for 2025, Fitzroy offers investors exposure to multiple potential discovery announcements and resource delineation milestones throughout the coming year.
• Strategic Location: All three active projects are located in Chile, the world's largest copper producer, with excellent infrastructure, established mining codes, and proximity to major producers and potential strategic partners.

Disclaimer: Employees and directors of Ptolemy Capital, owners of Crux Investor, are shareholders of Fitzroy Minerals.