Quarterly Activities Report - September 2024

Castillo Copper ("Castillo" or "the Company" or "CCZ") is pleased to present its latest quarterly report for the period 1 July 2024 to 30 September 2024.

Highlights:

Consultant Appointed and Works Imminent at Big One Deposit, NWQ Project1

• Global Ore Discovery was appointed to carry out the Company's previously devised three-day surface sampling campaign, concentrating on eight areas across the Big One Deposit with historical anomalous surface copper/high conductivity zones.
• Campaign was developed with reference to an Induced Polarisation (IP) survey undertaken by Castillo Copper in 2020, which evidenced:

o Significant incremental copper mineralisation along north-trending fault structures, rather than within the trachyte dyke, and

o Significant untested bedrock conductor north of the line of lode, materially larger than the high-grade anomaly drilled in 2020.

• Works were carried out in August 2024, results released subsequent to quarter end.

Unlocking Value from Non-Core Assets

• CCZ previously announced its intent to align with partners to develop all remaining assets in NSW and Zambia, which had been designated as non-core assets.
• This resulted in the successful sale of Castillo's Broken Hill West Assets2, completed in the previous quarter.
• In the Company's Annual Report3 (noted as an event subsequent to the reporting period) Castillo Copper announced it was in advanced discussions with third parties regarding a possible transaction of another non-core asset. Subsequent to the Quarter, Castillo announced the Sale of Cangai Copper Mine to Infinity Mining Ltd.

Cash and Liquid Investments

• Cash on hand at end of quarter totalled $1.041 million.
• Rehabilitation Security Bonds totalled $314,361, of which $158,500 is expected to be converted to cash on completion of the sale of the Cangai Copper Mine tenements to ASX: IMI.
• CCZ held 13,440,861 Rimfire Pacific Mining Ltd (ASX: RIM) shares which as at 30 September 2024 had a market value of ~$632,000 and were sold subsequent to period end.

Eduardo Robaina, Non-executive Director, commented:

"The Board is pleased with the progress made this quarter with regards to the divestment of non-core assets, and development efforts at our NWQ Copper Project.

"Encouragingly, following the successful sale of the BHA West Project, we have received interest in several of our other non-core assets; and the Board maintains optimism that similar value can be achieved across our portfolio."

Surface Sampling Campaign at the Big One Deposit, NWQ Copper Project

In mid-August 2024, Castillo Copper announced that a geological consultant - Global Ore Discovery - had been appointed to carry out imminent development activities at the Big One Deposit, situated within the Company's NWQ Copper Project in Mt Isa's copper belt.

The premise of scheduled works was in alignment with Castillo Copper's previously announced surface sampling campaign strategy4.

CAMPAIGN OBJECTIVES

• Having previously delivered a JORC 2012 compliant inferred MRE at the Big One Deposit (2.1Mt @ 1.1% Cu for 21,886t contained copper metal)5 - leveraging results from prior drilling campaigns in 2020-21 - a key objective was to reconcile geochemical and geophysical data to identify targets to drill-test.
• Subsequent drill-test works would bear potential for the Company to identify extended mineralisation beyond the identified orebody, effectively paving the way to grow the known resource.
• The 2020 IP survey comprised six lines, ranging from 500-700m long, and spaced 200m apart over the 1,200m line of lode (Figure 1).

Figure 1: Line Locations Transversing Big One Deposit

Interpretations of the IP survey from CCZ's then geophysicist suggested there is a significant untested bedrock conductor north of the line of lode that is materially larger than the high-grade anomaly drilled in 20206 (Figure 2).

Figure 2: Line 3 - Newly Identified Bedrock Conductors

• Further, the geophysicist implied there is incremental copper mineralisation along the north-trending fault structures rather than constrained within the trachyte dyke.
• In addition, based on historical surface observations, circa 200m north of the line of lode is a sizeable, potentially mineralised gossan that needs to be thoroughly assessed for its copper potential.
• All samples from the current surface sampling campaign will be sent to the laboratory for assaying. Once the full suite of geochemical results are returned and reconciled with historical surface observations / IP survey, then high conviction test-drill targets can finalised to potentially extend known mineralisation.

Schedule of Works (Stage 1 - August 2024)

The schedule of works completed by Global Ore Discovery included:

• pXRF rock chip sample readings undertaken concurrently with the mapping of 8 x target areas.
• Assessment of drill sites (pegging and photographing pre-disturbance records).
• Limited soil sampling orientation survey over a number of the key areas.

Unlocking Value from Non-Core Assets

The Board's strategy to partner with Companies and unlock value through Joint Ventures (JV) or the sale of non-core assets was catalysed earlier in the year via a transaction with Rimfire Pacific Mining Ltd; (ASX: RIM) whereby Castillo Copper divested itself of two tenements composing a portion of the greater Broken Hill Project (Broken Hill West).

Notably, the 13.4m ASX: RIM shares CCZ received as consideration for the BHA West tenements grew significantly and were valued at $670,000 as at 30 September 2024, and which were sold subsequent to period end.

Increasingly, with a level of consolidation now apparent across the copper sector, the Board stated their optimism that a similar arrangement could be replicated with the remaining non-core assets, once the right partners are secured.

At the date of the release of Castillo's Annual Report the Company provided an update on their divestment efforts, stating that the Company was in advanced discussions with third parties regarding a possible transaction in relation to its non-core assets; but signed agreements or binding terms were still outstanding, and subsequent to period end Castillo announced the Sale of Cangai Copper Mine to Infinity Mining Ltd (ASX: IMI).

Cash and Liquid Investments

CASH ON HAND

Cash on hand at end of quarter totalled $1.041 million.

REHABILITATION SECURITY BONDS

Rehabilitation Security Bonds totalled $314,361, of which $158,500 is expected to be converted on completion of the sale of the Cangai Copper Mine tenements to ASX: IMI.

LISTED INVESTMENTS

CCZ held 13,440,861 Rimfire Pacific Mining Ltd (ASX: RIM) shares which as at 30 September 2024 had a market value of ~$632,000, which were sold subsequent to period end.

R&D TAX INCENTIVE

An income tax refund of $182,756 due to the R&D Tax Incentive claim by CCZ is expected to be received within 2 months.

Information Required Under ASX Listing Rules

ASX LR 5.3.5

During the Quarter $47,000 was paid to related parties of the Company relating to non-executive director fees and exploration consulting fees paid to an entity controlled by a related party.

ASX LR 5.3.1

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

Table 1: Summary of Exploration Expenditure

ASX LR 5.3.3

In accordance with ASX Listing Rule 5.3.3, a schedule of Company's tenements as at 30 September 2024 can be found at Appendix B.

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

ASX LISTING RULE 5.23.2

Castillo Copper Ltd confirms that it is not aware of any new information or data that materially affects the information included in this market announcement and, in the case of estimates of mineral resources, that all material assumptions and technical parameters underpinning the estimates in this market announcement continue to apply and have not materially changed.

APPENDIX A: Key Projects

Figure 1: 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 East, located within a 20km radius of Broken Hill in NSW

Table 3: Mt Oxide, Mt Isa region in North West Queensland

Notes:

• All Resource tonnages rounded to nearest 1,000 tonnes.
• Refer to JORC Table 1 for details on data and estimation.
• Insitu tonnages calculated as a guide only, no recovery factor, loss or dilution considered.

Source: CCZ geology team

Refer to ASX announcement dated 25 July 2024

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

Castillo Copper Ltd

1 Comprises director's fees for the quarter.

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: 29 October 2024

Authorised by: The Board of Directors

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

Notes

[1]CCZ ASX Release 12 August 2024 - Consultant Appointed, Works Imminent at the NWQ Copper Project

[2]CCZ ASX Release 21 March 2024 - Completion of Broken Hill Acquisition

[3]CCZ ASX Release 26 September 2024 - Annual Report to Shareholders

[4]CCZ ASX Release 27 May 2024 - Plans for Big One Cu Deposit Surface Sampling Campaign

[5]CCZ ASX Release 1 June 2022 - Maiden Mineral Resource Estimate 21,556t Contained Cobalt at Broken Hill