Kobrea expands El Destino porphyry target in Argentina

Mr. James Hedalen reports KOBREA EXPANDS PORPHYRY TARGET AT EL DESTINO - WESTERN MALARGÜE MINING DISTRICT - MENDOZA PROVINCE, ARGENTINA Kobrea Exploration Corp. has presented results of airborne magnetometry and interpretation at the El Destino porphyry system within the company's Western Malargue copper projects. The 9,487-hectare El Destino project is host to a porphyry copper-gold-molybdenum system that has been defined at surface by historical operators but has not seen any drilling to date. Kobrea holds the right to earn a 100-per-cent interest in seven projects totalling 733 square kilometres in southwestern Mendoza province, Argentina (see the company's Aug. 19, 2024, news release for details). As a result of environmental impact statement for mineral exploration ratified in the provincial legislature on Dec. 9, 2025, which includes exploration activities and drilling, field crews will begin field work at the newly approved El Destino project to bring it to a drill-ready status. This work will take place this season in conjunction with the road building and drilling at El Perdido. Highlights: Kobrea expands the interpreted system to 2.8 kilometres by two kilometres; Porphyry copper-gold-molybdenum system: ASTER analysis and historic mapping/sampling outlines porphyry system exposed through an erosional window; The magnetic response indicates the system continues to the north and south under Pleistocene-aged (postmineral) ignimbrite cover rock. "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." 2025 airborne magnetometer survey -- El Destino Processing of recently acquired magnetic data over El Destino supports the company's interpretation that the hydrothermal alteration footprint of the porphyry system continues to the north and south beneath a thin, Pleistocene-aged ignimbrite sequence. The property-wide magnetic survey completed by Kobrea in April and May, 2025, was processed by a third party geophysical consultant, which accounted for microlevelling of collected data, magnetic remanence and spatial positioning of magnetic data measurements. About the El Destino project The 9,487-hectare, road-accessible El Destino project is host to a porphyry copper-gold system that is exposed through an erosional window of younger (Pleistocene-aged) volcanic deposits which persist on the northern and southern margins of a 2.8-kilometre-by-one-kilometre colour anomaly. Calcareous shales and siltstones, likely belonging to the Upper Jurassic-Lower Cretaceous Mendoza group, are overlain by a stratified sequence of intermediate pyroclastic volcanic rocks which are possibly part of the basal series of the Huincan eruptive cycle. These units are intruded by various magmatic pulses dating from the Miocene to Pliocene and include porphyritic diorite, andesitic to dacitic porphyritic dikes and plugs, and both quartz-tourmaline and anhydrite cemented hydrothermal breccia units. Alteration assemblages within the El Destino porphyry system are dominated by laterally extensive phyllic alteration locally overprinting potassic and propylitic alteration assemblages. Exposed rocks within the porphyry system footprint have been subjected to significant leaching, although there exists anomalous gold within the leached capping over an area measuring approximately 1,800 by 600 metres. Anomalous copper up to 1,500 parts per million has been sampled historically where the phyllic overprint of potassic alteration is less intense resulting in a lesser degree of leaching, which occurs locally. Mineralization occurs as pyrite plus or minus chalcopyrite as disseminations and within quartz plus or minus biotite plus or minus magnetite plus or minus pyrite plus or minus chalcopyrite sinuous stockwork veins (A-type) spatially associated with dacitic porphyry dikes and plugs. Early stage veining is typically cut by late-stage quartz-sericite-pyrite planar veins (D-type). The presence of hydrothermal breccias at the El Destino porphyry system is significant, as hydrothermal breccias, both mineralized and unmineralized, are important components of the mineral systems within the Late Miocene-Early Pliocene porphyry copper belt, as seen at the El Teniente, Los Bronces-Rio Blanco and Los Pelambres copper deposits. Grant of security-based compensation Kobrea also announces that a total of 2.65 million stock options and 600,000 restricted share units (the RSUs) have been granted to certain employees, consultants and directors of the company pursuant to the company's equity incentive plan. Each vested option and RSU may be exercised or redeemed, as applicable, for one common share in the capital of the company. The options and RSUs will have the terms as shown in the attached table. One million four hundred thousand of the options have been granted to directors of the company and, accordingly, such grant constitutes a related party transaction pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with the grant of options to related parties in reliance on the exemptions contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, respectively. Qualified person The scientific and technical information in this news release has been reviewed and approved by Rory Ritchie, PGeo, vice-president of exploration and director of Kobrea and a qualified person under National Instrument 43-101. Some of the technical information referenced in this news release relates to historical exploration completed by previous operators of the property and the company has not verified such historical results. About Kobrea Exploration Corp. Kobrea Exploration is a mineral exploration and development company focused on the acquisition and exploration of base metal projects. Kobrea holds the right to earn a 100-per-cent interest in seven projects totalling over 733 square km in southwestern Mendoza province, Argentina (see the company's Aug. 19, 2024, news release for details). The properties are considered highly prospective for porphyry copper and porphyry copper-gold deposits. Numerous porphyry copper targets have been outlined to date exhibiting multikilometre hydrothermal alteration footprints, anomalous copper plus or minus gold plus or minus molybdenum geochemistry, quartz stockwork veining, localized hydrothermal breccias and Miocene aged dacitic to dioritic porphyry intrusions. Kobrea also holds a 100-per-cent interest in the Upland copper project in British Columbia, Canada. We seek Safe Harbor.