Kobrea expands El Destino porphyry target in Argentina

Executive Summary

• Kobrea Exploration Corp. has announced the expansion of its interpreted porphyry copper-gold-molybdenum target at the El Destino project in Argentina, extending the system to 2.8 km by 2.0 km based on new airborne magnetometry data.
• The company has received ratification of the environmental impact statement for mineral exploration on December 9, 2025, allowing field crews to begin work to bring the El Destino project to "drill-ready" status, with drilling planned for the current season.
• The release also details the grant of security-based compensation, including 2.65 million stock options and 600,000 RSUs to employees, consultants, and directors.

Key Details

• Geophysical Results:
  • Airborne magnetometry survey completed in April and May 2025.
  • Data processed by a third-party consultant, accounting for microlevelling, magnetic remanence, and spatial positioning.
  • Interpretation expands the porphyry system footprint to 2.8 km by 2.0 km.
  • Magnetic response indicates the system continues north and south under Pleistocene-aged ignimbrite cover rock.
  • ASTER analysis and historic mapping outline a porphyry system exposed through an erosional window.
• Project Status & Drilling:
  • El Destino is a 9,487-hectare project in the Western Malargüe Mining District, Mendoza Province, Argentina.
  • No drilling has occurred at El Destino to date.
  • Environmental impact statement for exploration and drilling was ratified by the provincial legislature on December 9, 2025.
  • Field crews will begin work this season to prepare the site for drilling, concurrent with road building and drilling at the nearby El Perdido project.
• Geological Context:
  • Target is a porphyry copper-gold-molybdenum system.
  • Historical sampling shows anomalous gold within a leached capping area of approx. 1,800 by 600 meters.
  • Historical copper anomalies up to 1,500 ppm found where phyllic overprint is less intense.
  • Mineralization includes pyrite/chalcopyrite disseminations and quartz stockwork veins associated with dacitic porphyry dikes.
  • Presence of hydrothermal breccias noted, similar to major regional deposits like El Teniente and Los Bronces.
• Compensation Grant:
  • Total of 2.65 million stock options and 600,000 Restricted Share Units (RSUs) granted.
  • Recipients include employees, consultants, and directors.
  • Each vested option/RSU exercisable/redeemable for one common share.
  • 1.4 million options granted to directors, constituting a related party transaction under Multilateral Instrument 61-101.
  • Company exempt from formal valuation and minority shareholder approval requirements for this specific grant.

Notable Quotes

• "The results of the airborne magnetometer survey support our hypothesis that the limits of the El Destino porphyry system extend to the north and south under younger volcanic cover rock," commented James Hedalen, chief executive officer of Kobrea. "Our interpretation is supported further by historical alteration mapping which outlined a large porphyry system exhibiting strong alteration at the margins of the exposed portion of the system. The recent approval of the environmental impact statement for El Destino allows us to work towards drilling at this prospective target that has never seen a drill hole."