March 2024 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 January 2024 to 31 March 2024.

HIGHLIGHTS:

Strategic Asset Portfolio Update

• A strategic portfolio review undertaken in Q4 2023 determined which assets would remain core and highly prospective.
• In this quarter, Castillo Copper divested itself of two Exploration Licenses, which formed part of the larger Broken Hill Project.

Rimfire (ASX:RIM, "Rimfire") acquires two Exploration Licenses from Castillo Copper

• Rimfire acquired an unencumbered 100% ownership of Exploration Licenses 8572 and 8599 (Castillo tenements).
• Rimfire announced the acquisition on 11 January and completed it on 21 March 2024.

Corporate

• Mr Jack Sedgewick BEng BCom MBA (Distinction) GAICD stepped down from his role as Non-Executive Director on 14 Mar.
• Dr David Drakeley stepped down from his role as Non-Executive Director on 14 Mar.
• Mr Eduardo Robaina BEng assumed the role of Non-Executive Director on 14 Mar.
• Mr Joel Logan BSc assumed the role of Non-Executive Director on 14 Mar.

Cash and Liquid Investments

• Cash on hand at end of quarter totalled $1.387m.
• Rehabilitation Security Bonds totalled $486,960 at quarter end, of which $172,900 is expected to convert to cash within 3 months.
• CCZ holds 13,440,861 Rimfire Pacific Mining Ltd (ASX: RIM) shares which as at 26 March 2024 had a market value of ~$417,000.

Eduardo Robaina, Non-Executive Director, commented: "I am very much looking forward to assuming an active role on the Castillo Copper Board, seeking to bolster Company efforts in executing the asset strategy that has been devised in the later stages of 2023.

"This strategy has included making a considered assessment of our existing tenements - whilst all prospective in their own right - to identify those that we deem core or complementary to our team's collective strengths and our Company objectives at current.

"Subsequently, the rationalisation of our Australian and Zambian portfolio has to date resulted in the successful divestment of two of our four tenements at Broken Hill to Rimfire, an established explorer in this district.

"In addition to this divestment, future activity will further enable the Company to optimise its capital allocation, which will prove critical to making advancements at our core asset - the NWQ Project - situated in the established Mount Isa copper belt and consisting of over 20 prospects of interest.

"2023 was undoubtedly a year to reset and redirect Company efforts. Now, with a renewed Corporate structure and clear path forward, Castillo Copper looks forward to returning focus upon delivery."

STRATEGIC ASSET PORTFOLIO UPDATE

Prospect Interpretations at Core Asset

During Q4 2023, a strategic review was completed to assess the location, timing and sequence of planned exploration activities across Castillo's existing portfolio.

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

Sale Price of Exploration Licenses 8572 and 8599

It was determined that Company assets deemed non-core would be sold. Castillo Copper divested itself of two tenements at Broken Hill this quarter, selling Exploration Licenses 8572 and 8599 to Rimfire Pacific Mining Ltd (ASX: RIM) (Rimfire). These assets were prospective of cobalt, copper and pegmatite rare earth elements.

As per the agreement terms, Rimfire issued 8,064,516 Rimfire Ordinary Shares (Consideration Shares) to Castillo Copper being $150,000 worth of shares at an issue price of $0.0186 (Consideration Shares Issue Price).

Rimfire issued a further $150,000 worth of Rimfire Ordinary Shares (Subsequent Shares) at an issue price of $0.0279, which was 50% above the Consideration Shares Issue Price (Subsequent Shares Issue Price). As a result, Rimfire issued Castillo Copper 5,376,345 Shares at this price.

At 26 March 2024, CCZ's shareholding in Rimfire had a market value of ~$417,000.

CORPORATE BOARD CHANGES

Outgoing Non-Executive Directors

As of 14 March 2024, Jack Sedgewick and David Drakeley stepped down as Non-Executive Directors. Chairman, Gerrard Hall personally thanked Jack and David for assisting in guiding the Company's reinvigorated development strategy in recent months.

"No doubt we find ourselves facing a challenging market at present, however with core assets identified - as well as a commitment to advance development at these operations with targeted exploration activity - the company is well-equipped to forge ahead. Castillo wishes Jack and David all the best in their future endeavours," Gerrard Hall said.

Incoming Non-Executive Directors

As of March 2024, Eduardo Robaina and Joel Logan joined Castillo Copper in the capacity of Non-Executive Directors.

"To bolster our developmental efforts in 2024 and beyond, we are incredibly excited to welcome aboard Eduardo and Joel to the Castillo Copper Board. Each possesses a unique calibre of experience, the Company looks forward to maximising Company value with the adage of their joint expertise," Gerrard Hall said.

About Mr Eduardo Robaina, Non-Executive Director

Eduardo Robaina is an accomplished Managing Director and Engineering Consultant with an executive and technical skillset that will greatly complement that of the Castillo Board.

Possessing over two decades of experience working in the resources sector, spanning both technical and leadership positions at foremost businesses - including the likes of Woodside, Mineral Resources, Santos and most recently Add Energy (part of ABL Group) - Mr Robaina brings an all encompassing understanding of business operations.

In his most recent position as Managing Director at Add Energy, Mr Robaina was responsible for overseeing the business operating model, which saw the Company achieve significant financial growth over a 4-year period. He was an active member in Add Energy's Executive team during its 2022/23 acquisition and integration into ABL Group.

About Mr Joel Logan, Non-Executive Director

Joel Logan is an Exploration Geologist with an impressive breadth of work experience in exploration, development and producing assets. These operations have hosted a variety of resources such as copper, uranium, gold, lithium, nickel, cobalt and PGEs.

Over the course of his professional career, Mr Logan has developed strong theoretical and practical skills, enabling the delivery of geoscientific outcomes to notable Companies and operations, including the likes of BHP's Olympic Dam Project and Azure Minerals Ltd's Andover Project.

Mr Logan's role at Azure Minerals saw him design and execute exploration and drill hole strategies, in addition to resource development of highly mineralised LCT pegmatities. This experience in driving early-stage activity will be invaluable to furthering Castillo's asset development strategy.

CASH AND LIQUID INVESTMENTS

Cash on Hand

Cash on hand at end of quarter totalled $1.387m.

Rehabilitation Security Bonds

Rehabilitation Security Bonds totalled $486,960 at quarter end, of which $172,900 is expected to convert to cash within 3 months.

Listed investments

CCZ holds 13,440,861 Rimfire Pacific Mining Ltd (ASX: RIM) shares which as at 26 March 2024 had a market value of ~$417,000.

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

APPENDIX A: Key Projects

Figure 1: BHA Project, Broken Hill Region (Source: CCZ Geology Team)

Figure 2: Zambia Copper-Belt Projects (Source: CCZ Geology Team)

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Figure 3: Historic drilling results in SYG's Mining Lease (Source: Refer to CCZ ASX Release 11 November 2019)

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

APPENDIX B: Interest in mining tenements held

Table 1: Jackaderry (Cangai), New England Orogen in NSW

Table 2: Broken Hill, located within a 20km radius of Broken Hill in NSW

Table 3: 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
• exploration & evaluation
• investments
• other non-current assets

• 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 April 2024

Authorised by: The Board of Directors

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

Notes