SUMMARY

• Production in Q3 2022 was 16.5 million pounds of copper equivalent, including 13.2 million pounds of copper, 6,053 ounces of gold, and 64,331 ounces of silver.

• Revenue for Q3 2022 was $58.3 million from the sale of 12.3 million pounds of copper, 4,902 ounces of gold, and 59,790 ounces of silver.

• C1 cash cost (1) per pound of copper produced in Q3 2022 was US$3.70.

• All-in sustaining cost (“AISC”) (1) per pound of copper produced in Q3 2022 was US$4.50 and all-in cost (“AIC”) (1) per pound of copper produced was US$4.95.

• Net loss for Q3 2022 was $39.4 million, or ($0.15) per-share, and adjusted net loss (1) was $22.9 million, or ($0.11) per-share (1).

• Cash flow from operating activities for Q3 2022 was negative $7.5 million, or $(0.04) per-share (1).

• Cash, cash equivalents, and restricted cash at September 30, 2022 was $49.6 million.

• Announced a 57% increase in mineral reserves at the Copper Mountain Mine supporting a new life of mine plan with a mill expansion to 65,000 tonnes per day (“tpd”), producing a total of 4.1 billion pounds of copper equivalent over a mine life of 32 years, based on mineral reserves only, with robust economics including an after-tax net present value at an 8% discount rate of $1.24 billion (2).

• Released the Company’s inaugural Environmental, Social and Governance Report.

• Subsequent to the quarter-end:
o On October 6, 2022, the Company announced an agreement to sell the Eva Copper Project and the Australian exploration tenements to Harmony Gold Mining Company Limited for gross proceeds of up to US$230 million, which includes upfront cash consideration of US$170 million.
o Announced the appointment of Letitia Wong as the Company’s Chief Financial Officer.
o In early October, the expansion to the rougher flotation circuit was successfully commissioned, with all plant improvement and optimization projects planned at the mine now complete.
o The Company is commencing a public succession planning process for its President and Chief Executive Officer, Gil Clausen. Mr. Clausen has been engaged with the Board for the past year on executive succession planning as he begins to prepare for his long-contemplated retirement. The Company has engaged Korn Ferry to assist with the process, which will include a comprehensive global executive search. Mr. Clausen will remain as President and CEO until a successor is in place.

(1) The Company reports the non-GAAP financial measures of C1 cash cost, AISC, and AIC per pound of copper produced, adjusted net loss and cash flow from operating activities per share to manage and evaluate its operating performance. See “Cautionary Note Regarding Non-GAAP Performance Measures” in this press release.

(2) Based on a C$1.30 to US$1.00 exchange rate and consensus metal prices for years 1, 2, 3 and long-term, respectively, of: US$3.73, US $3.86, US$3.94 and US$3.60 per pound copper; US$1,796, US$1,762, US$1,749 and US$1,650 per ounce of gold; and US$21.86, US$22.30, US$22.24 and US$21.35 per ounce of silver.

Gil Clausen, Copper Mountain’s President and CEO commented, “Our third quarter clearly did not meet our expectations. Lower grade and lower mill throughput impacted our copper output. We experienced a grade reduction as most of the ore processed in the third quarter came from the lower-grade North Pit as opposed to the planned Phase 4 of the main pit. Our higher-grade main pit Phase 4 ore release lagged due to spotty ore continuity in the upper benches of that pushback. In the second half of September, we advanced mining to consistently large zones of continuous higher-grade ore in Phase 4. We expect that result to continue throughout the fourth quarter and solidify into higher-grade ore production through 2023. The North Pit ore impacted recoveries due to the higher oxide content in the upper benches of pioneering that pit. We also encountered a SAG mill steel grinding ball quality issue, forcing reduced milling rates for about a month. The balls were breaking apart in the mill, significantly affecting throughput during August and into September. Overall, a disappointing quarter and nine months of 2022.”

“However, we are now past an inflection point in the operation with main waste movement of Phase 4 completed. Ore grades are higher, recoveries are up, and the North Pit development has advanced beyond the higher oxide transitional zone. Our project team has also completed all our plant optimization projects. The mill has been operating at the designed 45,000 tpd throughput rate and achieving daily rates up to 53,000 tpd in October, with AIC reduced materially. In the fourth quarter, we expect AIC to improve significantly and be in the US$2.90 to US$3.10 per pound range from our operational turnaround and benefit from the higher grades from Phase 4, where we expect an average of 0.27% Cu in Q4.”

“Although we experienced challenges at the mine, we completed several primary corporate objectives: growing reserves and resources at the Copper Mountain Mine, including a 70% increase in measured and indicated mineral resources compared to the prior technical report dated November 30, 2020; publishing a new NI 43-101 life of mine/ mill expansion study to 65,000 tpd; announcing a definitive agreement for the sale of the Eva Copper project; and publishing the Company’s inaugural ESG report” added Mr. Clausen.

Please find further information in the attachement.