Gunnison talks project economic study prelim results

Executive Summary

• Gunnison Copper released preliminary results of an independent University of Arizona economic impact study projecting multi‑billion‑dollar benefits and thousands of jobs from the flagship Gunnison copper project.
• The company received an initial conversion notice from Nebari Natural Resources Credit Fund I LP under its second amended and restated credit agreement, converting $500,000 into 2,384,358 common shares.
• Both items are disclosed as material updates to stakeholders regarding the project's economic potential and financing structure.

Key Details

• Economic Impact Study (University of Arizona) – Direct Annual Effects:
• Revenue: $625 million
• Employment: 524 jobs

• Labour income: $50 million

• Combined Direct, Indirect & Induced Annual Effects – National Level:

• Output: $1.43 billion
• Jobs: 2,676

• Labour income: $209 million

• Arizona‑wide Annual Effects:

• Output: $978 million
• Jobs: 1,739

• Labour income: $129 million

• District 6 (Cochise County) Annual Effects:

• Output: $880 million
• Jobs: 765

• Labour income: $64 million

• Cumulative Life‑of‑Mine Impacts – United States:

• Output: $14.6 billion
• Job‑years: 53,521

• Labour income: $2.07 billion

• Cumulative Life‑of‑Mine Impacts – Arizona:

• Output: $10.01 billion
• Job‑years: 34,783

• Labour income: $1.28 billion

• Cumulative Life‑of‑Mine Impacts – District 6 (Cochise County):

• Output: $9.02 billion
• Job‑years: 15,308

• Labour income: $633 million

• Credit Agreement Conversion Notice:

• Initial conversion amount: $500,000 USD at a conversion price of 20.97 cents per share (converted from 30 CAD cents).
• Shares issued to Nebari: 2,384,358 common shares.

• Nebari may convert additional amounts; resale restrictions limit sales to ≤10 % of daily TSX volume and require a minimum price ≥5 % discount to the prior‑day close, with cumulative discount caps of 25 % over any 120‑day period.

• Use of Proceeds (per prior announcement):

• Expected proceeds from sale of previously announced 48C tax credits will be used to repay the non‑convertible portion of the second ARCA, potentially allowing full repayment of that credit facility.

Notable Quotes

• “The projected multibillion‑dollar impact and thousands of jobs over the life‑of‑mine demonstrate the scale of the opportunity, reinforcing Gunnison’s importance to U.S. energy, defence and manufacturing supply chains.” – Craig Hallworth, SVP & CFO, Gunnison Copper.

This release contains forward‑looking statements regarding economic impacts and financing that are subject to risks and uncertainties, including completion of a feasibility study, financing, permitting, and market conditions.