Oroco Intersects 228 m of 0.49% CuEq and 212 m of 0.44% CuEq at Santo Tomas

• Drilling Results: Initial assay results from Phase 2 drilling at Santo Tomas confirm higher-grade mineralization in the South Zone.
• Key Intersections: Drill hole S022 intersected 228.55 m at 0.38% Cu / 0.49% CuEq, including 64.86 m at 0.53% Cu / 0.69% CuEq.
• Grade Validation: Results indicate a potential higher-grade core at depth with elevated molybdenum grades compared to previous estimates.
• Program Status: Phase 2 program has drilled 3,606 meters in 14 holes; 3 holes reported assays, 4 additional holes pending lab results.
• Future Plans: Four additional holes planned south and east of the current pad to test the higher-grade core.
• Strategic Goal: Program focused on converting Inferred resources to Indicated classification for a Pre-Feasibility Study (PFS) targeted for Q2/Q3 2027.

• Validation vs. Surprise: The news validates the company's development plan rather than introducing unexpected upside. Phase 2 drilling was announced in February and April 2026, making these results an expected milestone.
• Grade Quality: While the grades (0.49% CuEq) are encouraging and higher than the average resource grade (0.37%), they do not yet constitute a resource update that would materially alter the NPV calculation immediately. The impact is incremental confidence in the PFS outcome.
• Market Expectations: The market has already priced in the financing ($23M bought deal) and the CEO change (May 11, 2026). This news supports the thesis but does not fundamentally shift the risk/reward profile significantly enough to be classified as "Material - Positive" without a resource update.
• Risk Mitigation: The results reduce technical risk regarding grade continuity in the South Zone, which is critical for mine planning. However, the reliance on future PFS completion (2027) keeps execution risk high.

• Project: Santo Tomas Porphyry Copper Project in Sinaloa, Mexico.
• Status: Development stage (PEA completed; moving toward PFS).
• Resource Estimate: 540.6 Mt Indicated at 0.37% CuEq and 530.3 Mt Inferred at 0.35% CuEq.
• Economic Metrics (2024 PEA): After-tax NPV(8%) of US$1.48 billion, IRR of 22.2%, 22.6-year mine life.
• Infrastructure: Located near Port of Topolobampo with highway and rail access; grid power available.
• Ownership: Oroco holds an 87% net interest in Core Concessions (1,173 ha) and 80% in surrounding concessions.