Cerro de Pasco Resources Provides Operational Review, Project Progress and Corporate Update

The most recent series of news releases (December 2025 to January 2026) signals a transition from administrative and legal cleanup to active project execution. The January 09, 2026, operational review confirms the completion of Phase 1 workstreams for the Quiulacocha Tailings Project. This follows two major de-risking events in December 2025: a $2.0 million CAD settlement with Trevali Mining Corp (eliminating approximately $4.08 million USD in historical liabilities) and a pivotal resolution from Peru’s Mining Council. This resolution clarifies the administrative path for the Ministry of Energy and Mines to formalize the company’s tailings reprocessing application, effectively lowering the regulatory hurdle for the project’s development. Furthermore, the company formalized a two-year surface use agreement with the local Quiulacocha community, securing the necessary "social license" for Phase 2 drilling.

The impact of recent developments is Materially Positive for several reasons: - Financial Liability Reduction: The Trevali settlement is a significant "cleanup" of the balance sheet. By paying $2.0 million CAD to eliminate over $4.0 million USD in contingent and purchase price liabilities, management has improved the company's net asset value and removed a long-standing litigation overhang. - Regulatory De-risking: The Peru Mining Council resolutions in November 2025 are arguably the most critical operational milestone. Historically, Peruvian permitting is a bottleneck; clear administrative instructions from the Council reduce the risk of bureaucratic "limbo" for the Tailings Reprocessing Application. - Social Stability: Securing a formalized agreement with the local community is a prerequisite for any mining activity in Peru. This prevents the type of social unrest that has halted major projects elsewhere in the region. - Institutional Backing: The November 2025 financing ($22.7M CAD), which included Eric Sprott, provided the necessary capital to move from "survival" to "feasibility." This institutional endorsement supports the current valuation and provides a floor for the stock.

Cerro de Pasco Resources focuses on the El Metalurgista concession in Peru. The flagship Quiulacocha Tailings Project aims to reprocess approximately 75 million tonnes of historical tailings from the Cerro de Pasco mine. - Resource Nature: This is an "above-ground" resource, meaning no traditional blasting or underground mining is required, significantly lowering CAPEX and OPEX. - Metal Mix: Primarily Silver (Ag), Zinc (Zn), and Lead (Pb), with significant "strategic metal" upside from Gallium (Ga) and Indium (In). Recent assays showed 5.5 oz/t AgEq. - Environmental Angle: Reprocessing the tailings helps mitigate historical acid mine drainage, which assists in maintaining social license and ESG standing.