Massive Copper-Gold Project in Canada Offers Potentially Lucrative Investment

• Western Copper and Gold is developing the Casino copper-gold project in Yukon, Canada.
• This project is the largest critical minerals development initiative in Canada, boasting nearly 11 billion pounds of copper and 21 million ounces of gold.
• Rio Tinto became a strategic investor showing continued commitment by renewing their agreement and maintaining their position despite other financings.
• Mitsubishi Materials has recently come on board as another strategic investor with a $21.3 million dollar investment, currently holding 5% of the company.
• The primary focus for the upcoming period is the permitting process and collaboration efforts with Mitsubishi.
• New agreements with Rio Tinto are expected before the end of the year, and any strategic developments on this front could be a significant driver for the company's stock price.

Western Copper and Gold Positions Casino as Largest Critical Minerals Development in Canada

Western Copper and Gold Corporation (TSX: WRN | NYSE: WRN) is developing the Casino copper-gold project in Yukon, Canada. With nearly 11 billion pounds of copper and 21 million ounces of gold, Casino is poised to become the largest critical minerals mine in Canada.

The company recently released a feasibility study showing the project has an impressive after-tax net present value of $2.3 billion and an internal rate of return of 18.1%. With major miners Rio Tinto and Mitsubishi Materials validating the project and investing in the company, Casino offers investors major upside potential.

Interview with President & CEO Paul West-Sells

Strategic Partners Validate Potential of Flagship Casino Project

Over the past two years, Western Copper and Gold has attracted strategic investments from two of the largest players in the mining industry.

In May 2021, Rio Tinto took an initial stake in the company to cooperate on technical studies for Casino. Based on positive results, Rio Tinto renewed the agreement in November 2022 for another year. Most recently, Rio Tinto topped up its investment to maintain its stake after Mitsubishi Materials came on board.

Rio Tinto's steadily increasing commitment and extension of the technical cooperation agreement signals growing confidence in the project. The two companies are in continuous discussions on Casino's advancement.

In February 2023, Japan's Mitsubishi Materials also acquired a 5% stake in Western Copper and Gold. The investment resulted from extensive due diligence, including a week-long site visit and meetings with stakeholders. Mitsubishi brings extensive expertise in copper concentrates and global marketing networks.

Notably, Mitsubishi and Rio Tinto have successfully partnered on other major copper mines. Their collaboration and belief in Casino provide strong third-party validation of the project's merits.

Massive Scale Creates Tremendous Value Potential

As one of the world's largest undeveloped copper-gold projects, Casino contains tremendous inherent value. With copper and gold prices currently near record highs, the project economics are extremely compelling.

Based on metals prices in January 2023, the after-tax NPV increases to $5.3 billion - more than 10 times the company's current market valuation. After spending $3.6 billion in capital to build the mine, the project is projected to generate $5.3 billion in after-tax cash flow.

This enormous disparity highlights the dislocation between Western Copper and Gold's modest market capitalization and the huge value contained in its flagship asset. As major producers look to add new Tier 1 assets to their portfolios, Casino offers outstanding leverage to strengthening copper and gold markets.

Attractive Location in Mining-Friendly Yukon Jurisdiction

The Casino project is strategically located in Yukon, Canada - one of the most mining-friendly jurisdictions in the world. The territorial government has been highly supportive of responsible resource development.

Major upgrades to key infrastructure, including roads, power transmission capacity and port facilities, help enable large-scale projects like Casino. Constructive relationships with First Nations groups also provide a crucial social license to operate.

With its massive size, multi-decade mine life and key supporting infrastructure, Casino has many characteristics of a Tier 1 asset. The project's location in a stable Canadian jurisdiction adds to its scarcity value and appeal to major miners.

Project De-Risking on Schedule - Permits Expected in 2027

Western Copper and Gold has been methodically derisking Casino through extensive engineering studies, economic assessments and environmental work.

The company remains on track to submit its permit applications in early 2024, about a year from now. The permitting process is anticipated to take approximately 3 years, putting final approvals on track for 2027.

While still an extended timeline, getting through the permitting process will significantly de-risk Casino and reveal more of its inherent value. Major partners like Rio Tinto and Mitsubishi provide expertise to help navigate this crucial stage efficiently.

Management Focused on Maximizing Shareholder Returns

The Western Copper and Gold management team, led by President and CEO Paul West-Sells, is fully aligned with shareholders.

The company's central goal is to monetize Casino at an attractive valuation to deliver maximum returns to shareholders. Rather than dilute by fully financing the project's massive capex itself, the focus is securing a highly accretive buyout or development partnership with a major miner.

With Rio Tinto and Mitsubishi Materials already invested at modest levels, the door remains wide open for new potential partners. The company continues holding discussions with numerous major mining companies.

Strong Cash Position Funds Advancement

Financially, Western Copper and Gold is in a solid position with no debt and $46 million in cash. The recently closed $21 million private placement from Mitsubishi puts the company on strong footing.

The current cash balance fully funds permitting work and operations through 2023. It provides a buffer through the completion of the permitting process, expected in 2027.

Unlike many mining companies, Western Copper and Gold has not had to raise dilutive financing in a challenging market environment. Its cash position enables advancing Casino on schedule while waiting for the optimal time to monetize the project.

Major Catalysts Could Drive Revaluation in 2023

Western Copper and Gold offers investors multiple potential catalysts and substantial upside in 2023:

• Continued strength in copper and gold prices enhancing project economics
• Ongoing de-risking through permitting advancement
• New investments and partnerships validating Casino's large-scale potential
• Possible takeover or development deal to monetize Casino

As the market recognizes Casino's scarcity value and Western Copper and Gold's share price reconnects with the project's inherent value, significant upside potential exists.

The strategic partners, massive size and advanced stage make Casino a truly unique copper-gold development opportunity. For investors with a bullish outlook on copper and gold, Western Copper and Gold provides differentiated leverage through its world-class Canadian project.