How did the 2024 PEA for the Cactus project help attract financial interest, including Hudbay's investment?

In August 2024, we published a PEA for the Cactus project which contemplated a sizeable copper cathode operation with robust projected economics and a low capital intensity estimate. The 2024 PEA demonstrated a lower risk open pit copper project on private land in Arizona, with in place and proximate infrastructure and permits already underway. The 2024 PEA subsequently attracted considerable attention. In January 2025, Hudbay Minerals invested ~CA$20 million to acquire a 9.99% stake in ASCU, and invested another ~CA$5.8 million following the June 2025 bought deal financing that raised CA$51.75 million, thus maintaining its 9.99% equity position. Hudbay's decision to invest in ASCU has been a very strong endorsement for our project and our management team. 

By way of background, Hudbay is developing their Copper World project, also located in Arizona, approximately 200 kilometers south of Cactus. The proximity of our projects creates the potential for synergies in operations and development, particularly, in relation to sequencing the commissioning of assets. 

Another positive endorsement was the acquisition by Royal Gold in December 2024, of the royalties originally granted to Tembo Capital.

What impact did MainSpring have, and how does it compare against other projects?

We purchased MainSpring, the contiguous 520acre private land parcel, in late 2023. We have since completed two drilling programs on the parcel, the first of which defined continuous mineralization south from Parks/Salyer to an Inferred mineral resource categorization, and a just completed second program, which is anticipated to upgrade the Inferred mineral resource estimate to the indicated category from within the Parks/Salyer pit shell as part of a mineral resource estimate update expected in Q4 2025. Drilling has determined mineralization at MainSpring trends towards the surface, within 42 meters, making the entire Parks/Salyer deposit amenable to open-pit mining. 

Our team is currently advancing through technical studies from the 2024 PEA to the Prefeasibility Study, anticipated in Q4 2025. It is Parks/Salyer as an open pit, with the addition of MainSpring, that plays a central role within the projected mine plan. 

With respect to other projects, Cactus is one of five copper cathode projects being developed in the USA at this time. We believe that the Cactus project is attractive on many different fronts. As a brownfield asset, the project is connected via proximate highways, nationwide rail roads, power lines, nearby skilled labour sources and a known, State-led permitting process. With respect to the mineral resource, the project has in excess of 7 billion pounds of copper in the Measured & Indicated category, and that number is expected to increase with the completion of the aforementioned PFS-related drill program. Building upon the leachable mine plan in the 2024 PEA, we would expect a long mine life, with opportunities for continued growth. Our social license is strong, as evidenced in a recent perception survey which showed 87% support from the community, and a local, involved team within the City of Casa Grande.

How does your copper cathode production align with U.S. domestic needs?

Copper is now being proposed as a critical metal to the USGS in 2025, first and foremost. Secondly, cathodes as the finished product, can be sold directly to US industry without requiring further processing abroad. We are already seeing interest from potential strategic industry partners requiring copper cathode for their own supply chains, as they reach out to us and follow project progress closely. This demand could play a role in our project financing process, as end users look to secure their copper supply by potentially partnering directly with us.

What are ASCU's next steps and timeline?

On the permitting front, the mine is already substantially permitted, but permit amendments are required as mine design evolves. The permitting amendment process will begin after the PFS is complete. Since the Cactus project is located on private land with no Federal nexus, permitting is more straightforward under a State-led process, and we expect to have the final permits in hand in late 2026, aligned with anticipated project financing and completion of a definitive feasibility study. This sequence of derisking steps positions us to make a final investment decision on the project as early as Q4 2026 and commence construction and development thereafter.