DLP Announces Positive Preliminary Economic Assessment ("PEA") for the Aurora Copper-Molybdenum Project, with Significant Multi-Phase Expansion Potential

DLP Resources Inc. released a positive Preliminary Economic Assessment for its 100%-owned Aurora copper-molybdenum-silver project in Peru. The base case after-tax NPV8% is US$2,703M, with an after-tax IRR of 18.5% and a payback period of 5.2 years from the start of production. Under spot-price sensitivity, the NPV8% rises to US$4,812M, the IRR reaches 24.9%, and the payback period shortens to 3.8 years.

Long-term price assumptions are set at US$4.90/lb Cu, US$25.40/lb Mo, and US$45.30/oz Ag. Spot prices used in the analysis were US$6.47/lb Cu, US$33.57/lb Mo, and US$68.50/oz Ag as of Aug 26, 2026. Initial capital costs are estimated at US$2,377M, including contingency, while sustaining and underground development capital is approximately US$1,160M. Closure and reclamation costs are estimated at ~US$121M.

The mine life is projected at 17.5 years, processing 402.9 Mt at a rate of 65,000 tpd. Average annual production is 90.5M lbs payable Cu, 37.4M lbs Mo, and 1.21M oz Ag. Life-of-mine gross revenue is ~US$26,072M, with total payable production of 1,629M lbs Cu, 673M lbs Mo, and 21.8M oz Ag. Mining will involve a 7-year open pit phase followed by a 15-year underground block cave phase. Recoveries are estimated at 85.5% Cu, 88.5% Mo, and 74.0% Ag. C1 cash costs are US$0.90/lb Cu and US$7.83/lb Mo on a co-product basis.

An updated Mineral Resource Estimate effective April 30, 2026, includes:

• Indicated: 614.84 Mt at 0.19% Cu, 0.06% Mo, 2.09 g/t Ag
• Inferred: 1,118.80 Mt at 0.18% Cu, 0.07% Mo, 1.95 g/t Ag
• Combined Indicated + Inferred: 1,733.64 Mt

The PEA mine plan uses 402.9 Mt, described as ~30% of the MRE. An NI 43-101 technical report is to be filed on SEDAR+ within 45 days. The release emphasizes future multi-phase underground expansion potential, but states explicitly that this expansion scenario was not economically evaluated in the current PEA.

DLP Resources Inc. (DLP) has completed a preliminary economic assessment (PEA) for its project, a milestone that follows several timeline updates shifting the expected release from Q1 2026 through Q3 2026. The study presents an updated mineral resource estimate (MRE) that is materially larger than the company’s maiden resource announced in February 2025. The prior estimate comprised 1,050 million tonnes (Mt) of inferred resources grading 0.44% copper equivalent (CuEq). The new estimate totals 1,733.64 Mt combined, with 614.84 Mt classified as Indicated.

The PEA outlines project-level economics that are significant relative to the company’s current market capitalization. The net present value at an 8% discount rate (NPV8%) is US$2,703 million, compared to a basic market cap near C$64 million. The assessment supports a long-life production profile with a high molybdenum contribution, which accounts for 65.6% of life-of-mine (LOM) gross revenue. The underground phase grades 0.20% molybdenum (Mo), peaking at 0.25% Mo in year 10. The proposed phased approach aims to maximize initial capital efficiency while preserving potential for a Phase 2 expansion beyond the initial 17.5-year plan.

The PEA is preliminary in nature and includes Inferred Mineral Resources, meaning it does not establish Mineral Reserves. The reported NPV reflects project-level economics rather than net value attributable to DLP equity. The company cannot fund the project independently, as the initial capital expenditure (capex) of US$2,377 million is substantial relative to its cash position and market cap. Realizing value will require a strategic partner, a major mining company, or significant financing.

Base case commodity prices in the PEA are substantially higher than those used in the 2025 maiden resource estimate. Copper is priced at $4.90 per pound versus $4.00 per pound; molybdenum at $25.40 per pound versus $20.00 per pound; and silver at $45.30 per ounce versus $23.00 per ounce. Revenue is heavily weighted toward molybdenum, and a sensitivity analysis shows that a 25% reduction in Mo prices reduces the NPV8% to US$1,745 million and the internal rate of return (IRR) to 15.5%. The underground block cave plan also carries geotechnical and ramp-up risks, and the economic analysis applies to material that remains partly Inferred.

DLP Resources Inc. shares have already re-rated from C$0.17 in early June 2026 to C$0.36 as of August 31, 2026, prior to this release. Consequently, the PEA may be partially priced in. The project remains dependent on financing and de-risking efforts, with no strategic investment, takeover, or financing arrangement currently announced.

DLP Resources Inc. is a Canadian exploration and development company listed on the TSXV under ticker DLP, the OTCQB under DLPRF, and the FSE under J8C. The company holds 100% ownership of two projects in southern Peru: Aurora and Esperanza.

The Aurora project is a 12,500-hectare copper-molybdenum-silver porphyry deposit located in Cusco province. Updated resource estimates indicate an Indicated resource of 614.84 million tonnes at 0.19% copper, 0.06% molybdenum, and 2.09 grams per tonne silver. The Inferred resource stands at 1,118.80 million tonnes at 0.18% copper, 0.07% molybdenum, and 1.95 grams per tonne silver. A preliminary economic assessment base case projects an after-tax NPV8% of US$2,703 million and an internal rate of return of 18.5%, with initial capital expenditures estimated at US$2,377 million. According to investor materials, the community land use and exploration agreement for Aurora has been extended through 2032.

The second project, Esperanza, covers 22,500 hectares and is described as a district-scale copper-gold target near Cerro Verde. A maiden drill program consisting of 3,000 meters is planned for the third quarter of 2026.

Management includes Ian Gendall as President and CEO, a registered professional geologist with porphyry copper discovery experience. Scott Davis serves as CFO, and Gautam Iyer is the VP of Corporate Development and Investor Relations.

Provided materials do not disclose royalty information. While the release describes 100% ownership, it does not state whether the properties carry royalties or are royalty-free. No analyst price targets or coverage ranges were provided in the materials.