December 2023 Quarterly Activities Report

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to present shareholders its latest quarterly report for the period 1 October 2023 to 31 December 2023.

HIGHLIGHTS:

STRATEGIC ASSET PORTFOLIO REVIEW

• A wholesale asset portfolio review was completed to support the definition of next steps and optimal pathways to create shareholder value.
• The review identified which assets remain core and highly prospective to prioritise exploration capital and leverage future opportunities with strategic development partners.

NWQ COPPER PROJECT, QUEENSLAND

• The Board collectively endorsed the geology team's motion to earmark the NWQ Copper Project as a core asset.
• Growing geological understanding of the 20+ prospects is now a Board focus, in readiness of engaging potential strategic partners.
• Field trips commenced to map and fully assess future exploration targets across the asset.

CORPORATE

• Former Managing Director Dr Dennis Jensen tendered his resignation during the Quarter.
• Mr Jack Sedgwick (BEng BCom MBA - Distinction) GAICD transitioned from interim Executive Director to Non-Executive Director.
• Cash on hand at the end of quarter totalled $1,747,000.
• Rehabilitation Security Bonds which will convert to cash within 12 months totalled $311,000 at quarter end.

STRATEGIC ASSET PORTFOLIO REVIEW

Identification of Core and Non-Core Assets

During the quarter, a strategic asset review was completed to assess the location, timing and sequence of planned exploration activities across Castillo's existing portfolio.

Assets deemed to be core will be developed, potentially with the support of a strategic partner, while assets deemed non-core will be divested.

NWQ COPPER PROJECT

Core Asset Identification

During the quarter as part of the strategic asset portfolio review, the Company's NWQ Copper Project - situated in Mount Isa's copper-belt - was identified as a core asset.

This classification acknowledges the NWQ Copper Project (see Figure 1) as an asset that aligns with Castillo's future development plans.

Next Steps

The Board will be embarking on a campaign to deepen its understanding of the 20+ prospects across the tenure (excluding the Big One Deposit) ahead of engaging with potential strategic partners.

As part of the review process, members of the geology team visited the Boomerang and Josephine Prospects to assess their exploration potential. Both have been interpreted as prospective for structurally controlled copper mineralisation.

Historical Highlights

The historical highlights of these prospects are as follows:

Boomerang Prospect(1-4)

Mineralisation is hosted in the Surprise Creek Formation and is through to be associated with secondary faulting related to the Mt Gordon Fault, a regional NE trending structure.

In 1975, Dampier Mining conducted an exploration campaign that included geological mapping, rock sampling and drilling of nine RAB holes, to delineate a sandstone hosted copper oxide mineralisation over an 800m strike length. Secondary copper staining was observed along the strike length.

Josephine Prospect(1-4)

Occurs within a fault-bounded block of middle-lower Surprise Creek Formation. The host rock consists of buff, brown and grey thin bedded fine feldspathic and labile sandstone, ferruginous sandstone and micaceous siltstone.

Figure 1: NWQ Project Prospect Map

Field Trip and Rock Chip Sampling

The field trip was undertaken to complete a small program of rock chip sampling (refer ASX Announcement dated 24 October 2023) taken across various geological formations.

This preliminary work was undertaken to determine the prospectivity for copper mineralisation and facilitate the next phase of a more systematic exploration campaign if suitable targets are determined.

CORPORATE

Board changes: On 10 October 2023 Managing Director Dr Dennis Jensen resigned from the Castillo Copper Board.

Rehabilitation Security Bonds

Rehabilitation Security and Bonds which will convert to cash within 12 months totalled $311,000 at quarter end.

During the quarter $225,000 was paid to related parties of the Company relating to executive and non-executive director fees and exploration consulting fees paid to an entity controlled by a related party.

A summary of the exploration expenditure incurred during the quarter is set out below:

Table 1: Summary of Exploration Expenditure

Castillo Copper is listed on the LSE and ASX under the ticker "CCZ".

References

• CCZ London Listing Prospectus - 28 July 2020
• CCZ ASX Announcement - 17 October 2023
• CCZ ASZ Announcement - 23 January 2023
• Nowland, M. L. (2020-22). EPM 26462 Big Oxide North Annual Report for period 29th August 2021 to 28th August 2022. Prepared by ROM Resources for Castillo Copper Limited.

APPENDIX A: Key PROJECTS

Figure 2: West and East Zone - BHA Project, Broken Hill Region (Source: CCZ Geology Team)

Figure 3: Zambia Copper-Belt Projects (Source: CCZ Geology Team)

Figure 4: NWQ Copper Project, Mt Isa Region (Source: CCZ Geology Team)

APPENDIX B: Interest in mining tenements held

Table 2: Jackaderry (Cangai), New England Orogen in NSW

Table 3: Broken Hill, located within a 20km radius of Broken Hill in NSW

Table 4: Mt Oxide, Mt Isa region in North West Queensland

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

Castillo Copper Ltd

• entities
• tenements
• property, plant and equipment
• investments
• other non-current assets

1 Comprises director's fees for the quarter. 2 Comprises consulting fees paid to the Managing Director and exploration expenditure paid to Field Crew Pty Ltd, a related entity of director David Drakeley.

Answer: N/A

Answer: N/A

Answer: N/A

Compliance statement

2 This statement gives a true and fair view of the matters disclosed.

Date: 30 January 2024

Authorised by: The Board of Directors

(Name of body or officer authorising release - see note 4)

Notes