Algo Grande identifies exploration targets at Adelita

Mr. Enrico Gay reports ALGO GRANDE IDENTIFIES 32 HIGH-PRIORITY EXPLORATION TARGETS AT ADELITA AND COMMENCES HIGH-DEFINITION GROUND MAGNETIC SURVEY AND APPOINTMENT OF JOÃO ROCHA, VICE PRESIDENT OF EXPLORATION Algo Grande Copper Corp. (formerly Kenadyr Metals Corp.) has completed a comprehensive reprocessing and reinterpretation of historical geophysical and geochemical data sets at its 100-per-cent-owned Adelita project in Sonora, Mexico. The work confirms Adelita as a district-scale, structurally controlled porphyry-skarn mineral system with evidence for one or multiple porphyry intrusions at depth and has resulted in the identification of 32 high-priority copper-gold-silver exploration targets, including 14 targets generated through machine-learning-based prospectivity analysis. Highlights Confirmation of Adelita as a large porphyry-skarn mineral system with vertically extensive feeder structures; Identification of 32 priority exploration targets (18 targets via combination of geology, geophysics and geochemistry and 14 with machine learning models); Evidence for significant expansion potential beyond the known Cerro Grande skarn zone into Mezquital, Cerro Grande NW, Cerro Potrero and Las Tablas; Commencement of a high-definition ground magnetic survey over the Cerro Grande skarn zone and extension zones; Appointment of Joao Rocha (EurGeol) as vice-president of exploration, strengthening technical leadership as the company advances the Adelita project; Drilling at the Cerro Grande Skarn zone is continuing with 1,000 metres completed in 2025 and is planned to continue in the month of January and February. In parallel, the company has commenced a high-definition ground magnetic survey over the high-grade Cerro Grande skarn zone and extension zones, designed to further refine skarn geometry, structural controls and drill targeting. The integrated study was completed by independent consultants GSM Geoscience Pty. Ltd. and Southern Geoscience (SGC), both internationally recognized geophysical firms specializing in advanced data processing, 3-D inversion and integrated interpretation to support mineral exploration and drill targeting. Integrated geophysical results and target definition Confirmation of Adelita as a district-scale, structurally controlled porphyry-skarn mineral system with potential porphyry intrusions at depth, supported by integrated 3-D reprocessing of magnetic, IP, MT, VTEM and geochemical, and structural data sets; Identification of 32 high-priority copper-gold-silver exploration targets, including: 18 integrated targets defined by coincident geophysical anomalies, geochemistry, structural interpretation and historical drilling; 14 machine-learning-generated targets identified through AI-based prospectivity modelling, including targets outside existing geophysical coverage. Recognition of deep, vertically extensive conductive feeder structures linking interpreted porphyry intrusions to overlying magnetite-rich skarn mineralization; Definition of multiple drill-ready targets, including AD01, AD08 and AD18, each exhibiting strong multi data set convergence; Evidence for significant expansion potential beyond the central Cerro Grande skarn zone into Mezquital, Cerro Potrero and Las Tablas; Commencement of a high-definition ground magnetic survey over the Cerro Grande skarn zone intended to refine skarn geometry and structural controls; Advancement of a modern 3-D geological and geophysical models, enabling capital-efficient exploration and systematic drill targeting. Appointment of vice-president of exploration Algo Grande also announces the appointment of Joao Rocha (EurGeol) as vice-president of exploration, where he is leading the company's integrated geophysical reprocessing, AI-based target generation and continuing field programs at the Adelita project. Mr. Rocha is an exploration geologist with 10 years of international experience advancing early stage mineral exploration projects across North America, South America, Africa, Scandinavia and Europe through disciplined, data-driven exploration. Mr. Rocha holds a European geologist (EurGeol) title, a master's degree in geology, and is a member of the Portuguese Association of Geologists and the Society of Economic Geologists. Enrico Gay, chief executive officer of Algo Grande Copper Corp., commented: "Joao has been instrumental in combining modern exploration technologies with disciplined field execution and deep project knowledge from the Cascabel team. He was pivotal throughout the acquisition process and is a key contributor to the buildout of Algo Grande Copper as we advance Adelita." Commenting on his appointment, Mr. Rocha stated: "I am honoured to join Algo Grande Copper Corp. as vice-president of exploration at a pivotal time for global critical minerals. The Adelita project represents a high-quality copper-gold-silver skarn-porphyry system aligned with long-term fundamentals. The integration of modern 3-D geophysical reprocessing, AI-based target generation and a high-definition ground magnetic survey at Cerro Grande provides a strong technical framework to accelerate discovery and derisk the project. When combined with geochemistry, trenching and oriented core drilling, this data will significantly improve our ability to predict additional high-grade skarn zones along strike and at depth. I look forward to advancing Adelita through disciplined, data-driven exploration." Geophysical reprocessing and interpretation The reprocessing program included modern 3-D magnetic vector inversion (MVI and QMVI), 3-D DCIP inversion and magnetotelluric (MT) modelling, integrated with normalized geochemical data sets and updated structural interpretations. The results define a coherent mineral system characterized by: Resistive intrusive bodies interpreted as porphyry centres; Magnetite-rich skarn horizons associated with high-grade copper-gold-silver mineralization; Deep, vertically extensive conductive corridors interpreted as feeder structures linking the porphyry source to overlying skarn mineralization. These feeder zones are consistently observed across multiple MT profiles and are interpreted to play a key role in the emplacement of mineralization throughout the Adelita system. Geophysical IP and VTEM reprocessing and interpretation by Southern Geoscience The reprocessing of historical data by Southern Geoscience had the objective of reprocessing and interpreting the IP, VTEM and magnetic historical data sets on a licence-wide scale, bringing the data into modern technology standards, validating historical interpretations and generating new targets and concepts. This work included: IP data processing and 3-D modelling: Use of SGC proprietary IP processing software; QA/QC (quality assurance/quality control) all data; Prepare and model data with RES3-DINV. Enhance VTEM and magnetic data processing: Gridding of magnetic data; Grid filtering of TMI, to RTP; Image processing and enhancement of EM; Image processing enhancement of TMI. The highlights of this work, include: The largest and most resistive body sits beneath existing drilling under the Cerro Grande Skarn discovery zone; The main resistive bodies have anomalous magnetic signatures adjacent to them; Chargeability results highlight a four-times background value anomaly in the northern part of the survey; Chargeability anomalies in the property have not been drill tested. This work has been completed in partnership with Southern Geoscience (SGC). Geophysical reprocessing and interpretation, lineament analysis and machine-learning assisted target generation by GSM Geoscience Algo Grande completed an advanced, fully integrated geophysical and geochemical interpretation over the project, aimed at refining the geological model and generating high-confidence exploration targets within the property. This work included: Interpretation of airborne magnetic data, including reduced-to-pole products and 3-D magnetic vector inversion (MVI); Review and interpretation of ground geophysical data sets, including 2-D and 3-D DCIP inversions and magnetotelluric (MT) sections; Multivariate geochemical analysis using robust statistical normalization, metallogenic indices and special clustering; Machine-learning-based prospectivity modelling using airborne magnetic derivatives and structural proximity metrics; 2-D and 3-D integration of all datasets to define exploration targets and prioritize follow-up drilling. This work was completed by GSM Geoscience, and focused on characterizing the geometry, controls and extent of the skarn-porphyry system in the property. The main findings of this work include: 1. Definition of a coherent porphyry-skarn mineral system The integrated interpretation confirms that Adelita hosts a porphyry-skarn mineral system developed in a compressional to transgressional tectonic regime. The system architecture is consistent with globally recognized porphyry-skarn models, comprising: A deep structural feeder zone; A resistive intrusive body interpreted as a potential porphyry stock; A laterally extensive skarn horizon developed at the intrusion-carbonate contact; Structurally controlled fluid pathways governing mineral distribution; The upper contact of the resistive body, interpreted as a porphyry body, corresponds to the skarn horizon in Cerro Grande, that has been historically intersected by drilling. This mineral system framework is independently supported by geophysics, geochemistry and drilling. 2. Identification of a deep, structurally controlled feeder zone (MT) Magnetotelluric sections consistently image a deep-rooted, vertically extensive conductive corridor close to the Cerro Grande area and extending into the southern part of the project. This conductive feature is interpreted as: A major structural zone or shear corridor; The primary pathway for magmatic and hydrothermal fluids; The feeder structure linking deeper magmatic sources to the upper skarn and porphyry environment. The geometry, continuity from depth and repetition of this feature across multiple MT lines provide a high level of confidence in the presence and geological significance. This vertical feature is planned to be targeted by drilling to the concluded in February, 2026. 3. Mapping of mineralized skarn horizons The skarn horizons known in the Cerro Grande discovery zone, is consistently identified at the contact between the intrusive body and the carbonate host rocks, as imaged by MT, DCIP and supported by historical drilling. Drilling intersecting this zone encountered: Garnet skarns, hornfels and exo-skarns assemblage; Cu-Au-Ag (copper-gold-silver) mineralization; Alteration assemblages consistent with proximal skarn environment. DCIP inversions highlight polarizable responses associated with this horizon, while resistivity models indicate the skarn occurs within a relatively resistive domain compared with the surrounding rocks. 4. Integrated exploration targets Based on the integration of all data sets, 18 geologically and geophysicaly constrained targets (AD01-AD18), and 14 additional machine-learning targets were defined and ranked according to the strength and coherence of their signatures: Priority 1: strong convergence of MT conductivity, IP chargeability, magnetic responses, structural setting and geochemical anomalies; Priority 2 and 3: represent progressively more distal or structurally complex positions within the system; Machine learning targets, extending prospectivity into areas without ground magnetic geophysical coverage. These targets reflect strong airborne geophysical similarities to known mineralized areas. These targets represent immediate opportunities for model validation. These are planned to be field tested in the first months of 2026 and drill tested if merit is verified. This work has been completed in partnership with GSM Geoscience. High-definition ground magnetic survey Algo Grande has commenced a high-definition ground magnetic survey over the high-grade Cerro Grande skarn zone at the Adelita project. The survey is being conducted by the University of Sonora, through its department of geology, leveraging its regional expertise and academic specialization in applied geophysics. The survey utilizes high-precision Overhauser magnetometer technology (GEM GSM-19) to acquire total field magnetic data across the target area. Data are being collected along closely spaced east-west-oriented survey lines at approximately 20-metre spacing, providing substantially higher resolution than historical airborne magnetic data. The program is designed to: Delineate the geometry and continuity of magnetite-rich skarn bodies; Improve definition of faults and structural corridors controlling mineralization; Identify subtle magnetic responses associated with buried intrusions and feeder zones. Survey data will be processed and interpreted using specialized geophysical software, with results fully integrated into the company's existing 3-D geological and geophysical model, alongside reprocessed IP, MT and magnetic data sets, to support continuing and future drilling programs. Exploration implications and next steps The results of the geophysical reprocessing, AI-based prospectivity analysis and commencement of high-definition ground magnetic surveying materially enhance the company's understanding of the scale, architecture and controls of mineralization at the Adelita project. Algo Grande is now in the process of integrating multiple high-quality data sets to build a robust geological thesis for the system. This integrated approach combines: Reprocessed 3-D magnetic, IP and MT data sets; Results from the current drill program, representing the first use of oriented core drilling at Adelita; Continuing surface mapping, sampling and upcoming trenching program; Geochemical data from soil and rock sampling programs. Together, these data sets are being incorporated into an evolving 3-D geological and structural model to improve understanding of skarn geometry, continuity and controls on mineralization. The objective is to systematically reduce geological uncertainty and generate well-constrained, derisked drill targets. Qualified person The disclosure of scientific and technical information contained in this news release has been reviewed and approved by Lorne Warner, PGeo, who is a qualified person within the meaning of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Warner is responsible for the technical content of this news release. Mr. Warner is independent of the company. About Algo Grande Copper Corp. Algo Grande Copper is a growth-focused mineral exploration company advancing the Adelita project -- a district-scale, multisystem copper-gold-silver opportunity positioned in the prolific Arizona-Sonora copper belt. The company is dedicated to unlocking the full mineral potential of this underexplored corridor through disciplined data-driven exploration, technical excellence and a firm commitment to value creation for shareholders. The 5,895-hectare Adelita project is anchored by the high-grade Cerro Grande Cu-Au-Ag skarn discovery, which exhibits strong continuity along a defined corridor extending over six kilometres. Reprocessing of legacy geophysical data and field mapping indicate the presence of a potential porphyry system at depth, suggesting a classic skarn-porphyry mineralization model similar to major deposits found throughout northwestern Mexico. We seek Safe Harbor.