Marimaca Copper Announces Major Metallurgical Breakthrough, Positioning the Company for Strong Growth

• Marimaca Copper has completed Phase 6 of metallurgical testing for its Marimaca Oxide Copper Project in Chile.
• The testing achieved a 25% reduction in projected acid consumption, from 40 kg/t to 30 kg/t, through optimization of leaching conditions.
• Lower acid consumption should substantially reduce operating costs, as acid makes up 30-40% of costs.
• Test results also confirmed copper recoveries of 74.9%, in line with previous metallurgical phases.
• Marimaca can further reduce acid consumption if needed, with minimal impact on overall copper recoveries.

About Marimaca Copper

Marimaca Copper Corp. is a Chilean copper exploration and development company focused on advancing its flagship Marimaca Oxide Copper Project located in the Antofagasta Region of northern Chile. The company has been systematically derisking and advancing the project since acquisition in 2016. Marimaca’s management team has extensive mining industry experience and connections in Chile and globally. The Marimaca deposit represents a rare, oxide-only copper project with simple metallurgy, low strip ratios and strong economic metrics which position it as one of the leading global copper development projects.

Interview with President & CEO, Hayden Locke

Metallurgical Testing Confirms Significant Reduction in Operating Costs

In a November 6th press release, Marimaca Copper announced positive results from the Phase 6 metallurgical test program for its Marimaca Oxide Copper Project. The program yielded excellent results, confirming a 25% reduction in projected acid consumption relative to previous estimates. This reduction in acid consumption is expected to materially lower Marimaca's projected life-of-mine operating costs.

The Phase 6 metallurgical program consisted of column leach tests designed to optimize acid consumption and copper recovery from the Marimaca ores. The tests evaluated the impacts of leach time, acid concentration and curing on these key economic factors.

The headline result was a 25% decrease in projected acid consumption, from 40.6 kg/tonne to 30.6 kg/tonne, based on optimized leaching conditions. Given acid can represent 30-40% of total operating costs, this reduction provides major upside for Marimaca's cost profile moving forward.

Alongside lower acid consumption, the tests also confirmed average copper recoveries of 74.9%, in line with results from previous metallurgical programs. Further, the testing showed flexibility to reduce acid usage further if needed, with minimal impact on recoveries.

Overall, the Phase 6 results confirm Marimaca can significantly beat its projected operating costs while maintaining strong copper recovery rates. This positions the project as a globally competitive, low-cost copper development asset.

Major Benefits for Marimaca’s Economics

The Phase 6 metallurgical breakthrough has highly positive implications for Marimaca Copper across multiple fronts:

• Lower Operating Costs: The 25% reduction in acid consumption points to materially lower life-of-mine operating costs versus previous studies. With acid representing 30-40% of costs, Marimaca is now projected to produce copper at a C1 cost of $1.00 - 1.10 per pound versus previous estimates of $1.30 - $1.40 per pound. This positions the project in the lowest quartile of the global copper cost curve.
• Increased Margins & Resilience: The projected cost reduction significantly improves Marimaca's profit margins at conservative long-term copper prices of $3.25-$3.50 per pound. Perhaps more importantly, the operating flexibility provides resilience against spikes in acid pricing, preserving margins during inflationary periods.
• Enhanced Economics: The Phase 6 results support a material increase in Marimaca's net present value at feasibility study stage. Using previous parameters, a 25% reduction in operating costs points to NPV uplift of 40-50%. This creates substantial equity upside for investors as Marimaca moves toward production.
• De-Risking Milestone: The confirmation of optimized metallurgy further de-risks the project as it heads into feasibility study and ultimately project financing. Marimaca has systematically removed technical risks through extensive metallurgical test work phases.
• Long Mine Life & Low Capital Intensity: Beyond operating costs, Marimaca also benefits from low strip ratios, simple open pit mining and a compact, effective processing flow sheet. This supports a multi-decade, scalable mine life with low upfront development capex relative to peers.

Advancing Toward Production

With the Phase 6 program complete, Marimaca Copper is now positioned to deliver a robust definitive feasibility study for the Marimaca Project in 2025. This will incorporate the optimized metallurgy as well as completed mine design, engineering and costing studies.

The enhanced project economics from Phase 6 also provide flexibility in engaging with potential financial partners and off-takers. An offtake agreement, joint venture partnership or strategic equity investment would further derisk Marimaca as it moves into the final development stages.

Looking ahead, Marimaca remains on track to submit environmental permits in mid-2024 and break ground on construction in 2025. First copper production is slated for 2026, positioning Marimaca to benefit from the coming copper supply deficit driven by growing demand from electric vehicles, renewable energy and global electrification.

With the Phase 6 metallurgical milestone, Marimaca has clearly cemented itself as one of the leading global copper development projects. It provides investors with a compelling growth opportunity, leveraged to the electric vehicle revolution and structurally underpinned by world-class economics.

Conclusion

For investors, Marimaca Copper represents a compelling copper growth play with world-class development metrics:

• Large, oxide-only copper resource with significant expansion potential
• Straightforward metallurgy and processing flowsheet now optimized through extensive test work
• Clear path to production by 2026 with permitting underway
• Tier 1 mining jurisdiction in Chile with established infrastructure
• Projected position in global bottom quartile of the copper cost curve
• Clean balance sheet and tight capital structure with only 130M shares outstanding
• Highly experienced management team with track record of success in Chile
• Immense leverage to surging copper demand from EVs and global electrification

With its Phase 6 metallurgical breakthrough, Marimaca has clearly elevated itself into the top tier of global copper developers. It offers investors a ripe opportunity to capitalize on the coming copper boom at the start of a multi-decade growth trajectory. Marimaca deserves serious consideration for investors seeking copper exposure with world-class discovery potential and near-term production growth.