Marimaca Copper's ESG Excellence & Strategic Financing Towards Sustaining Mining

• Marimaca Copper hosted a successful Open House in Mejillones, demonstrating strong community engagement
• Company achieves "A" rating in 2023 Digbee Sustainability Assessment, up from "BBB" in 2022
• Marimaca Project highlighted for its unique ESG credentials, including water conservation and low emissions
• Company launches C$20 million ATM Program for flexible financing of exploration and development
• Marimaca positions itself as a sustainable and community-oriented copper developer in Chile

In an era where responsible mining practices are increasingly crucial, Marimaca Copper Corp. (TSX:MARI) is emerging as a standout player in the copper industry. The Vancouver-based company is developing its flagship Marimaca Oxide Deposit (MOD) in Chile, with a clear focus on sustainability, community engagement, and strategic growth. Recent developments, including a successful community open house, top-tier ESG rating, and the introduction of a flexible financing mechanism, underscore Marimaca's commitment to responsible development and shareholder value creation.

Marimaca Copper Corp. is a TSX-listed copper exploration and development company focused on its Marimaca Oxide Deposit in northern Chile. The company aims to become a new copper oxide producer in the Antofagasta region, leveraging the project's favorable location and unique ESG attributes. With a strong emphasis on sustainable practices and community partnership, Marimaca is positioning itself as a next-generation mining company aligned with global environmental and social responsibility standards.

Community Engagement: Building Trust & Transparency

Mejillones Open House: A Milestone in Stakeholder Relations

In a significant step towards fostering community relations, Marimaca Copper recently hosted its first Open House event in Mejillones, the nearest town to the Marimaca Project. This initiative demonstrates the company's commitment to transparent communication and participatory project development. The event featured an open-forum structure, allowing direct interaction between community members and Marimaca's management team. Nearly 80 community members participated, indicating high local interest in the project.

During the Open House, Marimaca's team outlined the development plan and key milestones for 2024, including the planned project permitting submission in Q3 and the ongoing Definitive Feasibility Study (DFS). Initial feedback from attendees was encouraging, suggesting a favorable community perception of the Marimaca Copper Project. The company has already scheduled a follow-up Open House for July 2024, underlining its commitment to continuous community dialogue.

The success of this inaugural Open House event is a crucial indicator for investors. It suggests that Marimaca is proactively addressing one of the mining industry's most significant challenges: securing and maintaining a social license to operate. By engaging early and openly with the local community, the company is laying the groundwork for smoother project development and potentially reducing future operational risks.

ESG Excellence: Setting a New Standard in Sustainable Mining

Digbee Assessment: Validating Marimaca's ESG Credentials

In a significant achievement for the company, Marimaca Copper has secured an "A" rating in the 2023 Digbee Sustainability Assessment, improving from its "BBB" score in 2022. This independent evaluation underscores the company's commitment to environmental, social, and governance (ESG) best practices.

The Digbee ESG framework, specifically designed for the mining sector and endorsed by leading industry stakeholders, provides a comprehensive and credible assessment of a company's sustainability performance. Marimaca's improved rating reflects its ongoing efforts to integrate ESG considerations into its core business strategy.

Unique ESG Attributes of the Marimaca Project

The Digbee assessment highlighted several standout features of the Marimaca Project that contribute to its strong ESG profile. The project's ability to utilize recycled seawater for life-of-mine operations mitigates potential impacts on local groundwater resources. This approach not only reduces environmental stress but also minimizes potential conflicts with local communities over water usage. Additionally, the planned SX-EW (Solvent Extraction-Electrowinning) processing operation eliminates the need for wet tailings discharge, significantly reducing environmental risks associated with traditional mining methods.

By producing copper cathode on-site, Marimaca eliminates Scope 3 emissions typically associated with the smelting and refining of copper concentrates. This positions the company favorably in an increasingly carbon-conscious market. The project also benefits from a straightforward and transparent land and ownership structure, reducing potential legal and social complications. Furthermore, the Marimaca Project's proximity to existing regional infrastructure minimizes the need for extensive new development, reducing both costs and environmental impact.

For investors, Marimaca's strong ESG performance is increasingly important. As global markets place greater emphasis on sustainable investments, companies with robust ESG credentials are likely to attract more capital and potentially command premium valuations. Marimaca's "A" rating from Digbee positions it as a leader in sustainable copper development, potentially opening doors to ESG-focused funds and environmentally conscious investors.

Strategic Financing: Ensuring Flexibility for Future Growth

ATM Program: A Prudent Approach to Capital Management

In a strategic move to enhance its financial flexibility, Marimaca Copper has announced the establishment of an At-The-Market (ATM) equity program. This financing mechanism allows the company to issue and sell up to C$20 million of common shares from treasury to the public, as needed. The ATM Program offers significant flexibility, enabling the company to issue shares at its discretion and raise capital opportunistically based on market conditions and project needs.

This approach is typically more cost-effective compared to traditional equity offerings, helping to preserve shareholder value. Additionally, the shares are sold at prevailing market prices, ensuring fair valuation. The funds raised through this program will be strategically deployed to finance exploration activities, particularly at the Mercedes and Sierra de Medina property block targets, and to support key business objectives for 2024.

The ATM Program's Structure: Advantages for Investors

The ATM Program offers additional benefits to Marimaca Copper and its shareholders. By allowing the company to raise smaller amounts of capital as needed, rather than a large lump sum, potential dilution is spread out and potentially reduced. This approach to capital raising aligns well with the company's ongoing exploration and development activities, providing funds as projects progress.

Moreover, the program may increase trading volume in Marimaca's shares, potentially benefiting overall market liquidity. This improved liquidity can be attractive to a broader range of investors and may contribute to more efficient price discovery in the market. Perhaps most importantly, the flexibility to access capital as needed allows management to make timely decisions on exploration and development activities, potentially accelerating value creation. This strategic resource allocation capability enables Marimaca to respond quickly to opportunities or challenges as they arise, enhancing the company's operational agility.

Project Development: Charting the Path to Production

A Unique Copper Opportunity

The Marimaca Oxide Deposit represents the core of the company's value proposition. Located in Chile's Antofagasta Region, a world-renowned copper mining jurisdiction, the MOD benefits from excellent infrastructure and a supportive regulatory environment. The MOD boasts a significant copper oxide resource with favorable metallurgy for low-cost processing, positioning it as a potentially high-value asset in the global copper market.

The company is pursuing a staged approach to development, potentially allowing for earlier cash flow generation and reduced initial capital requirements. This phased strategy could help mitigate financial risks and provide flexibility as the project advances. Furthermore, ongoing exploration in the surrounding area, including the Mercedes and Sierra de Medina targets, offers the possibility of resource expansion and extended mine life. These exploration efforts could significantly enhance the overall value of the Marimaca project, providing additional upside potential for investors.

2024 Milestones: Catalysts for Value Creation

Investors should keep an eye on several key milestones expected in 2024:

• Q3 2024: Planned submission of project permitting documentation
• Ongoing: Completion of the Definitive Feasibility Study (DFS)
• July 2024: Second community Open House event
• Throughout 2024: Continued exploration activities at Mercedes and Sierra de Medina

These milestones represent potential catalysts for share price appreciation as the company de-risks the project and moves closer to production.

Copper's Critical Role in the Green Economy

As Marimaca Copper advances its flagship project, the broader copper market continues to show strong fundamentals. Copper's essential role in renewable energy technologies, electric vehicles, and grid infrastructure positions it as a critical metal for the global transition to a low-carbon economy.

Key market drivers include:

• Electrification Trend: The ongoing shift towards electric vehicles and renewable energy is expected to significantly increase copper demand.
• Supply Constraints: Declining ore grades at existing mines and a lack of new major discoveries are tightening global copper supply.
• Infrastructure Spending: Government initiatives worldwide to upgrade infrastructure are likely to boost copper consumption.
• Urbanization in Emerging Markets: Continued urban development in countries like China and India will sustain long-term copper demand.

These macro trends provide a favorable backdrop for Marimaca's development plans, potentially enhancing the project's economic attractiveness as it moves towards production.

Conclusion

For investors considering Marimaca Copper, the company presents a unique opportunity in the copper mining sector. The combination of a high-quality asset, strong ESG credentials, community support, and strategic financial management positions Marimaca favorably in an industry facing increasing scrutiny and challenges.

Marimaca's "A" rating from Digbee demonstrates its commitment to sustainable practices, potentially attracting a broader investor base and reducing long-term operational risks. The company's proactive stakeholder management, as evidenced by the successful Open House, may lead to smoother project development and operational stability. Financially, the ATM Program provides a tool for opportunistic capital raising, supporting the company's ability to advance the project efficiently. Ongoing exploration activities offer the potential for resource expansion and increased project value, while strong long-term fundamentals for copper align well with Marimaca's development timeline.

While all mining investments carry inherent risks, Marimaca Copper's approach to sustainable development, community engagement, and strategic growth sets it apart in the junior mining sector. As the company progresses towards key milestones in 2024 and beyond, it offers investors exposure to the attractive copper market through a project that aligns with evolving ESG expectations. Investors should conduct their own due diligence and consider their risk tolerance when evaluating Marimaca Copper. However, for those seeking exposure to the copper sector through a company committed to responsible development practices, Marimaca presents a compelling opportunity to participate in the future of sustainable copper production.