OROCO RESOURCE CORP. APPOINTS NEW CEO

• Management Change: Charles Cryer appointed as Chief Executive Officer and Director, effective June 16, 2026.
• Incentive Structure: Grant of options to purchase up to 900,000 common shares at an exercise price of $0.65 per share.
• Vesting Terms: Five equal instalments of 180,000 shares commencing June 16, 2026, with additional vesting every three months thereafter over a three-year term.
• Executive Background: Cryer brings experience in global capital markets (Nomura, Bank of America Merrill Lynch) and field engineering (Schlumberger).
• Project Context: Appointment is intended to lead the development of the Santo Tomás copper project through its Pre-Feasibility Study (PFS) phase.
• Chairman Commentary: Executive Chairman Craig Dalziel cites Cryer's capital markets track record as ideal for this pivotal stage.

• Governance Stability: The appointment resolves the uncertainty created by Richard Lock's resignation in March 2026 (rated Material - Negative). Stabilizing leadership is critical for a junior miner advancing to PFS, but it does not immediately alter asset value or cash flow.
• Capital Markets Capability: Cryer's background in investment banking and equity sales addresses the company's need to raise capital for future phases. This reduces execution risk regarding future financings but does not guarantee immediate funding.
• Option Pricing Risk: The option exercise price ($0.65) is significantly above the current trading range (~$0.41). While this aligns incentives with upside, it indicates management expects a substantial re-rating of the stock to realize value from these options. It does not signal immediate insider buying confidence at market prices.
• Market Expectation: Given the resignation was announced in March 2026 with a search committee formed, the appointment in May is anticipated rather than unexpected. Therefore, it lacks the "surprise" element required for a Material - Positive rating.
• Conclusion: The news is positive for operational continuity and investor confidence but does not constitute a fundamental shift in project economics or immediate capital injection. It mitigates previous negative sentiment regarding leadership turnover.

• Company: Oroco Resource Corp. (TSXV: OCO).
• Flagship Project: Santo Tomás Porphyry Copper Project, Sinaloa, Mexico.
• Project Status: Development stage; PEA completed (August 2024), advancing to Pre-Feasibility Study (PFS).
• Resource Estimate: Indicated 540.6 Mt at 0.37% CuEq; Inferred 530.3 Mt at 0.35% CuEq.
• Economic Metrics (PEA): After-tax NPV(8%) of US$1.48 billion, IRR of 22.2%, 22.6-year mine life.
• Infrastructure: Proximity to Port of Topolobampo, highway, rail, and power grid reduces CAPEX risk compared to remote projects.