Emerita Announces Positive IBW Pre-Feasibility Study Results Highlighting US$776 Million After-Tax NPV (8%), 23.51% IRR and 21-Year Mine Life

Emerita Resources Corp. (EMO) released the first independent NI 43-101 Pre-Feasibility Study (PFS) for its 100%-owned, royalty-free Iberian Belt West project in Huelva, Spain. Prepared by SLR Consulting and reviewed by a board technical committee, the study outlines an underground long-hole open stoping mine operating at 1.2 Mtpa for 21 years. The operation is designed to produce four saleable concentrates: copper, lead, zinc, and precious-metals-bearing pyrite.

The PFS defines a maiden Probable Mineral Reserve of 23.4 Mt at 2.30% Zn, 1.13% Pb, 0.45% Cu, 53 g/t Ag, 1.07 g/t Au, and 33.85% S. Based on the full release tables, the contained reserve metal totals approximately 538.7 kt Zn, 263.9 kt Pb, 104.9 kt Cu, 40.1 moz Ag, and 807 koz Au. The study also presents an updated Mineral Resource Estimate comprising 26.1 Mt Indicated at 2.27% Zn, 1.12% Pb, 0.45% Cu, 52 g/t Ag, 1.04 g/t Au, and 9.9 Mt Inferred at 2.13% Zn, 1.00% Pb, 0.50% Cu, 36 g/t Ag, 0.50 g/t Au. This resource is 37% larger in Indicated tonnage and 46% larger in Inferred tonnage compared to the 2025 MRE. The estimate is based on 352 holes and 123,241 m of drilling; total IBW drilling since 2021 stands at 138,400 m, with approximately US$34M spent. Inferred resources are excluded from the PFS mine plan and treated as waste in the reserve estimate, with no certainty that inferred material will be upgraded.

Economically, the project shows an after-tax NPV of US$776M at an 8% real discount rate and an after-tax IRR of 23.51%. The payback period is 1 year 11 months from production start and 6 years 11 months from initial investment. The profitability index is 2.37, with an NPV/initial capex ratio of 1.37. Life-of-mine EBITDA is projected at US$4,559M, and life-of-mine post-tax free cash flow at US$2,664M. At September 2026 spot metal prices, with pyrite held at the base case, the NPV rises to US$1,019M and the IRR to 27.13%, with a payback of 1 year 6 months from production.

Capital costs include an initial capital expenditure of US$566.7M, comprising 33% for underground development and infrastructure, 52% for surface facilities and plant, and 15% for owner costs and contingency. Sustaining capital is estimated at US$279.5M, with closure costs at US$12.0M, bringing total project capital to US$858.2M. The initial capital includes over 23 km of underground development and a roughly 7 km access decline to La Romanera and El Cura. Total on-site operating costs are US$2.028B, or US$86.49/t ore processed, while total off-site costs are US$886M, resulting in total operating costs of US$2.914B. Unit costs include mining at US$37.61/t, processing at US$30.20/t, G&A at US$2.97/t, and paste backfill at US$5.24/t. Water treatment and related costs are also material.

Production forecasts for Years 2-19 indicate average annual concentrate production of 43,489 dmt zinc concentrate at 50.1% Zn, 26,120 dmt lead concentrate at 26.76% Pb, 10,633 dmt copper concentrate at 20.43% Cu, and 694,620 dmt pyrite concentrate at over 48% S. Recoveries are estimated at Zn 78.65%, Pb 52.19%, Cu 41.48%, sulphur to pyrite 93.62%, silver to pyrite 87.63%, and gold to pyrite 88.42%. Pyrite concentrate contributes approximately 66% of total NSR, with zinc at 14%, lead at 10%, and copper at 10%. The pyrite stream carries about 78% of gold and 47% of silver in ore feed. Base case prices assume copper at US$11,470/t, lead at US$2,050/t, zinc at US$2,980/t, gold at US$3,750/oz, silver at US$52/oz, and pyrite concentrate at US$274/t. Sensitivity analysis identifies the pyrite concentrate price as the largest NPV driver; a 10% move in pyrite price takes NPV from US$681M to US$872M. On-site operating costs and initial capital are also material sensitivities.

The Iberian Belt West project holds strategic project status from the Regional Government of Andalusia and has access to the Project Acceleration Unit. The environmental permitting process is underway through the Unified Environmental Authorization (AAU). The PFS notes that timing and outcome remain subject to regulatory review, public consultation, conditions, financing, engineering, and other risks. The MD&A states the final AAU decision is expected in 2027, following an environmental opinion and a 15-day hearing. The release is a pre-feasibility study; no construction decision or project financing has been announced.

The PFS was originally targeted for Q2 2026. On June 30, 2026, Emerita delayed the release to Q3

Emerita Resources Corp. (EMO) released a Preliminary Feasibility Study (PFS) for the IBW project, marking the first independent third-party assessment of the asset. The study converts a significant portion of the resource into a maiden 23.4 Mt probable reserve and outlines a 21-year mine life. At consensus prices, the project demonstrates a US$776 million after-tax net present value (NPV) and a 23.51% internal rate of return (IRR). At September 2026 spot prices, the NPV exceeds US$1 billion. This valuation is roughly an order of magnitude larger than the company’s current nominal market capitalization, with an NPV-to-initial capital expenditure ratio of 1.37.

The equity impact of the study is constrained by three primary factors. Initial capital requirements stand at US$566.7 million, which is substantial relative to the company’s C$9.1 million in cash, C$9.0 million in total debt, and C$86 million market capitalization. No project financing, strategic partner, streaming agreement, or offtake prepayment has been announced. Additionally, permitting remains incomplete; the final Alternative Approval Unit (AAU) decision is expected in 2027, followed by the exploitation licence. Furthermore, 66% of the net smelter return (NSR) is derived from pyrite concentrate, which is not exchange-traded and lacks negotiated commercial terms. The PFS relies on a Claight market study and a US$274/t base case for pyrite, creating revenue concentration risk given that pyrite price is the largest NPV sensitivity.

The release also signals a shift from earlier metallurgical narratives. Previous communications highlighted the Albion and CLEVR routes for high silver and gold recoveries, but the PFS base case utilizes a conventional flowsheet producing a saleable pyrite concentrate. This approach lowers capital and operating costs and reduces the tailings footprint, but it excludes the higher silver recoveries previously discussed. The PFS presents a positive outlook based on conventional assumptions, though it does not include financing.

Shares of Emerita Resources Corp. closed at C$0.29 on October 29, 2026, near a 52-week low of C$0.26. The release occurred after market close, and the provided price data do not include the next trading session, preventing an assessment of the immediate market reaction. The shares have been in a downtrend and did not anticipate the PFS positively in the weeks leading up to the release.

Emerita Resources Corp. (EMO) is a pre-revenue mineral exploration and development company listed on the TSXV, OTCQX, and FSE. Its flagship asset is the 100%-owned, royalty-free Iberian Belt West project in the Iberian Pyrite Belt, Huelva Province, Spain. The IBW project covers approximately 1,546 hectares and contains three high-grade polymetallic VMS deposits: La Romanera, El Cura, and La Infanta. A pre-feasibility study (PFS) envisions a 21-year underground mine operating at 1.2 Mtpa to produce copper, lead, zinc, and pyrite concentrates. The project benefits from regional infrastructure, proximity to the Port of Huelva, and strategic status with the Andalusian government.

Emerita also holds the San Antonio exploration area, the Nuevo Tintillo project, and the disputed Aznalcollar claims. The company has no revenue and no production history. Its value is driven by IBW development, permitting, resource conversion, and legal outcomes. The PFS represents the first independent study on IBW. A prior corporate presentation featured an older mineral resource estimate (MRE) of 18.96 Mt Indicated and 6.80 Mt Inferred. The new MRE of 26.1 Mt Indicated and 9.9 Mt Inferred is consistent with the stated 37% and 46% increases. The presentation did not contain NPV, IRR, capex, or mine-life figures; the PFS now fills those gaps.