Arizona Sonoran Advances FS Drill Program and Updated Mineral Resource Modelling, Including Definition of a "Measured" Zone in the Parks/Salyer Starter Pit

The most recent news release (February 11, 2026) reports the advancement of the Feasibility Study (FS) drill program at the Cactus Project, specifically the Parks/Salyer deposit. Key highlights include: - Completion of 70% of the FS drill program (19,600m of 28,000m planned). - Results from five core holes confirm the continuity of high-grade mineralization in the "starter pit" zone, which is intended to provide the first 2-2.5 years of production. - Drill intercepts include high-grade enriched zones such as 28m at 1.72% CuT (ECM-477) and 147m at 0.55% CuT (ECM-480). - Management reports a "high Mineral Resource conversion rate" with the goal of declaring Proven Mineral Reserves in the upcoming Feasibility Study. - Grades in the starter pit are expected to be ~0.3% CuT, increasing significantly to 0.51% in Year 3 and over 1.0% in Year 12.

This news is categorized as Routine - Positive. While the drill results are strong and confirm the geological model, they are largely in line with previous expectations set during the November 2025 Pre-Feasibility Study (PFS). - High Resource Conversion: The move from "Inferred" and "Indicated" to "Measured" (and eventually "Proven" reserves) is a standard but necessary de-risking step for project financing. - Strategic Pivot: This follows the significant December 2025 announcement that ASCU is moving to a standalone development model, terminating the Nuton (Rio Tinto) joint venture discussions. - De-risking: The drill success specifically targets the early years of the mine plan, which is critical for debt service coverage ratios (DSCR) during the project financing phase. - Timing: The company is maintaining its timeline for a Final Investment Decision (FID) in late 2026, with first production in 2H 2029.

Arizona Sonoran is developing the 100%-owned Cactus Project in Pinal County, Arizona. - Flagship Project: Cactus Project (including Cactus West, Cactus East, and Parks/Salyer deposits). - Location: Private land in a Tier-1 jurisdiction with existing infrastructure (rail, road, power, water). - Stage: Feasibility Study. - Process: Conventional open-pit and underground mining with heap leach and SXEW to produce LME Grade A copper cathode. - Economics (PFS Nov 2025): After-tax NPV8% of US$2.3 Billion, IRR of 22.8%, and a 22-year mine life.