Marimaca Copper Makes Tier 1 Discovery with 12% Grades Rivaling World-Class Copper Systems

• Marimaca's Pampa Medina drilling intersected 6m of 12.0% Cu within 26m of 4.1% Cu in hole SMRD-13, representing ultra high-grade bornite-chalcopyrite mineralization
• The discovery confirms Pampa Medina is part of a significant, flat lying, sediment hosted (stratiform) manto system, unique in Chile, that appears more analogous to the Kupfershiefer or African sediment hosted Cu deposits
• High-grade sedimentary-hosted copper mineralization has been defined across a 600m east-west x 1,000m north-south area, with further drilling indicating potential extensions to 1.4km x 1.2km
• Company maintains focus on advancing the Marimaca Oxide Deposit (MOD) to production while allocating increased exploration budget to define Pampa Medina's full potential
• Pampa Medina's location provides proximity to existing mines, powerlines, water pipelines, major ports and minimal permitting risks in an extremely arid location

Marimaca Copper Corp has announced what appears to be a transformational discovery at its Pampa Medina project in Chile's Atacama Desert, with drilling results that have prompted comparisons to world-class sediment-hosted copper systems. The Vancouver-based company's recent drilling campaign has intersected exceptional high-grade copper mineralization that represents a rare geological occurrence in Chile and could significantly expand the company's production profile beyond its flagship Marimaca Oxide Deposit.

Exceptional Drilling Results Drive Discovery Recognition

The standout intersection from hole SMRD-13 delivered 6m of 12.0% Cu from 594m downhole within 26m of 4.1% Cu from 580m and a broader 100m of 1.3% Cu from 580m. These results represent some of the highest-grade copper intersections reported in recent Chilean exploration, with the mineralization consisting primarily of bornite and chalcopyrite hosted in sedimentary units.

President and CEO Hayden Locke emphasized the significance of these results in the context of Chilean geology: 

"The highest grade one is 6 meters at 12% and that's all copper. There's no byproducts. There's no gold. There's no silver included in that." 

The pure copper nature of the mineralization, without dilutive byproducts, enhances the economic potential of the discovery.

Complementing SMRD-13, hole SMD-02 intersected 40m of 2.1% Cu from 282m downhole within 132m of 1.0% Cu from 278m, while hole SMD-01 delivered 68m of 1.2% Cu including 20m of 2.3% Cu from 298m downhole. These consistent high-grade intersections across multiple drill holes demonstrate the robust nature of the mineralized system.

Unique Geological Setting Draws Global Comparisons

What sets Pampa Medina apart is its geological classification as a sediment-hosted manto system, which is exceptionally rare in Chile. VP Exploration Sergio Rivera, with four decades of experience in Chilean copper exploration, provided crucial context: 

"Sergio says he's never seen a deposit like this other than in very small areas in Chile. So his view is that it's much more analogous to the Kupfershiefer in Poland and Germany and then the African sedimentary copper basin."

This geological comparison is significant, as the Kupfershiefer deposits in Europe and the African Copperbelt represent some of the world's most prolific copper-producing regions. 

The sedimentary units hosting the mineralization are characterized by interbedded sandstones, shales, conglomerates and tuffs that are generally flat-lying with gentle easterly dip. The company's geological interpretation suggests this was originally a flat-lying sedimentary basin that was mineralized over a large surface area before subsequent faulting, uplift and intrusive activity.

Extensive Mineralized System Shows District-Scale Potential

The drilling campaign has successfully defined mineralization across an impressive geographic footprint. High-grade (>1.0% CuT), sedimentary-hosted copper mineralization has been defined by diamond drilling across a 600m east-west x 1,000m north-south area, with further drilling intersections indicating potential extensions to 1.4km x 1.2km.

Locke highlighted the consistent hit rate achieved during exploration: 

"We've drilled six or seven drill holes and five out of the seven have hit this high-grade mineralized zone, which is a pretty remarkable hit ratio when you start considering how broad the step outs are." 

This success rate provides confidence in the continuity of mineralization and supports the company's thesis of a large-scale system.

The geological controls appear to be related to specific sedimentary horizons, with highest grades corresponding to interbedded shales, sandstones, conglomerates and tuffs. The company has identified that post-mineral faulting and intrusive activity have not disrupted the primary mineralization, suggesting excellent preservation of the original sedimentary-hosted system.

Interview with President & CEO, Hayden Locke

Strategic Development Approach Balances Multiple Opportunities

Despite the exceptional nature of the Pampa Medina discovery, Marimaca maintains a disciplined approach to capital allocation. The company's near-term strategy remains focused on advancing the Marimaca Oxide Deposit to production, with the DFS nearing completion. Locke explained the strategic rationale: 

"Our number one focus is on getting that into production. The second aspect is the oxide opportunity at Pampa Medina and Madrugador. We've paused the PEA in terms of going to release it and the only reason we've done that is we found more oxides."

The phased development approach recognizes the different maturity levels of the company's assets. While Pampa Medina represents significant long-term potential, the sulfide nature of the mineralization requires extensive additional drilling and metallurgical studies. The company plans to allocate increased exploration budget to Pampa Medina while maintaining progress on its oxide projects.

Locke emphasized the anti-dilutive benefits of this strategy: 

"Our shareholders benefit from us not continually diluting regardless of share price. Once we get into production, we can use our cash flow to take these projects forward as we see fit."

Infrastructure & Permitting Advantages

Pampa Medina benefits from exceptional infrastructure positioning within Chile's established mining region. The location provides proximity to other mines and associated infrastructure: 28km from the MOD, 64km from Sierra Gorda (South32/KGHM), 40km from Mantos Blancos (Capstone Copper), 77km from Spence (BHP), 54km from Antucoya (Antofagasta Minerals).

The project's location in a flat "pampa" valley provides practical advantages for future development, including sufficient space for future facilities and infrastructure, proximity to existing powerlines, water pipelines, major ports and regional populations. Importantly, the project benefits from no private land ownership, limited human impact with no nearby local or indigenous population, and extremely arid location indicating low permitting risks comparable or superior to the MOD.

Systematic Exploration Program Targets Resource Definition

The company has implemented a comprehensive drilling program designed to systematically define the extent of mineralization. With a second diamond drill rig added at Pampa Medina and a budgeted 14-hole follow up program targeting extensions and delineation of the mineralized manto, Marimaca is accelerating exploration activities.

The drilling strategy follows a methodical approach, starting with broad step-out holes on 300-350m spacing to define system limits before infill drilling. The Company is completing 10,000m of drilling across 14 diamond holes in the next phase, with the objective to try to define the limits of the prospective sedimentary units to understand the full potential of the Pampa Medina opportunity.

Financial Positioning & Funding Strategy

The company has identified potential funding sources to support the expanded exploration program. Locke noted the availability of warrant exercises: 

"We obviously have two lots of optional warrants. One held by Mitsubishi Corp. which expires in the next two weeks... and then also Assore International Holdings, our other partner, has warrants expiring at the end of the year, also in the money."

The strategic partnerships with Mitsubishi and Assore provide both financial support and technical expertise. These relationships position the company to fund the extensive drilling programs required to advance Pampa Medina while maintaining focus on bringing the MOD into production.

The Investment Thesis for Marimaca Copper

• Tier 1 Discovery Potential: Pampa Medina represents a rare sediment-hosted copper system in Chile with ultra high-grade intersections (12% Cu) across a potential 1.4km x 1.2km area, comparable to world-class Kupfershiefer and African Copperbelt deposits
• Multi-Asset Production Profile: Near-term cash flow from MOD production (targeted 70,000 tonnes copper cathode annually) funds exploration of Pampa Medina sulfides, creating anti-dilutive growth pathway
• Infrastructure Competitive Advantage: Exceptional location with proximity to existing mines, power, water, ports and minimal permitting risks in established mining jurisdiction
• Experienced Team with Proven Track Record: Leadership team with deep Chilean experience and VP Exploration Sergio Rivera's 40-year career provides geological expertise for complex sediment-hosted systems
• Strategic Partnership Support: Mitsubishi Corp and Assore International Holdings provide financial backing and warrant exercises totaling significant funding for exploration expansion
• Systematic Resource Development: Methodical drilling approach designed to define system limits before resource calculation, with 10,000m program targeting extensions across multiple drill rigs

Macro Thematic Analysis

The discovery at Pampa Medina aligns with a critical global copper supply theme as the world faces an unprecedented copper deficit driven by energy transition demands. Sediment-hosted copper deposits represent some of the world's most significant copper resources, including the Kupfershiefer deposits that have produced copper for over 750 years and the African Copperbelt that supplies over 70% of global cobalt alongside substantial copper production. These geological systems typically offer advantages including large tonnage potential, consistent grades across extensive areas, and often contain valuable byproducts.

Chile's position as the world's largest copper producer makes the discovery of a Kupfershiefer-style system particularly significant, as such deposits are exceptionally rare in South American geology. The sedimentary-hosted nature suggests potential for discovery of additional deposits in similar geological settings, possibly extending the productive life of mining districts well beyond traditional porphyry and skarn deposits that dominate Chilean production.