World Copper Advancing Copper Projects in Chile and Arizona

• World Copper Limited is a Vancouver-based junior mining company with advanced-stage exploration and early-stage development assets in Chile (Escalonis and Cristal) and Arizona (Zonia project).
• Both the Escalonis and Zonia projects have established 43-101 resource statements and preliminary economic assessments, demonstrating their potential economic value.
• World Copper was a spin-off from Wealth Minerals and went public in January 2021. A significant portion of the company's shares are tightly held, leading to limited trading on a regular basis.
• The company places emphasis on valuation, with a focus on the potential economic value of their projects. There has been selling pressure in the market, affecting the stock valuation.
• World Copper is actively seeking partnerships and strategic investments, believing in the upcoming super cycle for copper and is positioning itself for significant growth in the future.

World Copper Limited (TSXV: WCU) is a Canadian copper developer with two advanced exploration and early-stage development assets located in mining-friendly jurisdictions. The company is significantly undervalued compared to peers, presenting a compelling investment opportunity.

Two Advanced Copper Assets with Significant Upside

World Copper's flagship project is the Escalones copper-gold project located in central Chile, one of the world's premier mining jurisdictions. The project hosts a large oxide copper resource amenable to heap leach SX/EW processing, with an NI 43-101 compliant resource of 97 million tonnes at 0.36% copper in the Measured & Indicated categories for 797 million pounds of copper.

A 2021 preliminary economic assessment (PEA) outlines robust economics for a 90,000 tonne per year SX/EW operation at Escalones, including:

• After-tax NPV8 of $1.5 billion and 46% IRR at $3.60/lb copper
• Initial capital cost of only $438 million
• Just 2.2 year payback period

The project benefits from low upfront capex relative to comparable development projects, along with low operating costs of $1.13/lb copper. Significant exploration upside remains at Escalones, with the potential to expand the resource.

World Copper’s second advanced project is the Zonia copper-oxide project located in Arizona, USA. Zonia hosts a resource of 6.6 million tonnes at 0.52% copper in the Indicated category for 76 million pounds of copper. A 2014 PEA outlines the potential for a 24,000 tonne per year SX/EW operation with low capex of $213 million.

Zonia benefits from being located entirely on private patented land, which allows for a faster and simpler permitting process of just 3-4 years compared to projects on public land. The 2014 PEA shows an after-tax NPV8 of $191 million at $3.15/lb copper. Zonia provides World Copper with a near-term development opportunity in a top-tier mining jurisdiction.

Massively Undervalued Compared to Peers

Despite having two advanced copper projects with robust economics, World Copper trades at a steep discount to the net asset value of its projects. The current market capitalization is just C$18 million, representing a staggeringly low ~2% of the NPV8 of its flagship Escalones project.

This disconnect is even more apparent when comparing the company to development peers. Marimaca Copper, which is developing a similar copper oxide project in Chile, trades at a market cap representing 36% of its after-tax NPV8. Other development companies such as Filo Mining and NGEx Minerals trade at multiples of 15-25% of NPV.

World Copper's tiny market cap relative to NAV indicates the company could provide 10x+ returns for investors should it trade in line with peers. The current share price fails to reflect the quality of its assets and provides a compelling entry point.

Unwarranted Selling Pressure Provides Buying Opportunity

World Copper became a public company in early 2021 via a transaction with Gold Springs Resources. The company has since sold off pressure from early shareholders despite significant progress in advancing its projects. Along with weak overall market conditions in 2022, this has pushed the share price to unjustified lows.

However, the discounted valuation appears primarily driven by unwarranted selling rather than any issues with the copper projects themselves. With much of the early selling pressure likely cleared out, World Copper now represents a deep value opportunity trading at a fraction of its upside potential.

As copper market conditions improve, the company could rapidly re-rate towards a valuation in line with the quality of its assets. World Copper provides substantial leverage to higher copper prices which are expected over the long term.

Near-Term Catalysts

Upcoming catalysts for World Copper include an updated resource and PEA for the Zonia project within the next few months. These updates will incorporate additional data and reflect the current copper price environment. The company also recently completed a successful drill program at Escalones which confirmed additional mineralization south of the main deposit.

World Copper offers substantial upside potential from its current low valuation. Near-term share price catalysts combined with improved copper market conditions could spark a rapid re-rating of the stock price. The company's discounted valuation relative to peers provides a highly attractive risk/reward profile for investors.

Here are 5 key takeaways for copper investors regarding World Copper:

1. Advanced Assets - World Copper has two advanced copper projects with large resources, positive economics, and exploration upside. The projects are located in top mining jurisdictions. This de-risks the investment compared to early exploration plays.
2. Reasonable Economics - The preliminary economic assessments for both Escalones and Zonia demonstrate these projects can deliver strong financial returns at reasonable copper prices. The IRRs are very attractive.
3. Low Capex - The capital costs for World Copper's projects are relatively low compared to many other copper development projects. This reduces financing risk and increases potential returns.
4. Rerate Value - World Copper is trading at a tiny fraction (2%) of the NPV of its flagship Escalones project. This massive disconnect indicates upside potential if the company re-rates closer to peers.
5. Near-Term Catalysts - Resource updates and PEA updates over the next 6-12 months for both projects provide near-term catalysts for a potential re-rating of the stock. Exploration results could also act as catalysts.

World Copper offers advanced assets with robust economics and significant upside potential, but trades at a deep discount to peers. Near-term catalysts and an improving copper market could spark a major re-rating. The risk-reward profile appears highly attractive for copper bulls.