Corporate copper bonds and loan facility update

Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLY), the AIM-quoted USA-focused base and precious metals company, refers to the Company's proposed corporate copper bond financing which is intended to finance construction of the Empire open-pit copper mine in Idaho, USA and confirms that discussions remain at an advanced stage with a number of interested bond investors.

The relevant documentation relating to the creation of the bonds has now been finalised, the bond security has been recorded with the Custer County Recorder in Challis, Idaho, and the bonds have been deposited with the settlement agent. The issue of the bonds remains subject to the satisfactory conclusion of discussions with interested bond investors.

The Company also refers to the $2 million short-term loan facility (the "Facility") first announced on 24 March 2023, and confirms that it is in negotiations with the lender to roll the Facility into a new and larger facility to assist the Company with access to additional working capital, should it be required for purposes other than construction of the Empire open-pit copper mine.

Although there can be no certainty at this stage, the Directors remain confident that the bond financing will close and that the Facility will be rolled into a new facility. Further announcements relating to the bond financing and the Facility will be made as appropriate.

Environmental, Social, and Corporate Governance

Phoenix Copper Limited is a USA focused, base and precious metals emerging producer and exploration company, initially targeting copper, gold and silver production from an open pit mine.

Since 2017, Phoenix has carried out extensive drill programmes which have defined a NI 43-101 completed PEA (preliminary economic assessment) for an open pit heap leach solvent extraction and electrowinning ("SX-EW") mine, which was updated in October 2020. From the 2020 PEA, the measured and indicated resource is 22,909,059 tonnes at an average grade of 0.38% copper, 0.324 grammes per tonne ("g/t") gold, 10.3 g/t silver, and 0.19% zinc. The contained metal for the measured and indicated resource is 87,543 tonnes of copper, 238,406 ounces of gold, 7,595,198 ounces of silver and 43,871 tonnes of zinc.

In addition to Empire, the district includes the historic Horseshoe, White Knob and Blue Bird Mines, past producers of copper, gold, silver, zinc, lead and tungsten from underground mines. A new discovery at Red Star, 330 metres northwest of the Empire Mine proposed open pit, has revealed high grade silver / lead sulphide ore, and from three shallow exploration drill holes a maiden inferred resource of 103,000 tonnes containing 173.4 g/tonne silver, 0.85 g/tonne gold and 3.85% lead (1.6 million ounces silver equivalent) was reported in an NI 43-101 technical report published in May 2019. Additionally, the district includes Navarre Creek, a volcanic hosted precious metals target in a 16.09 sq km area. The Company's total land package at Empire comprises 8,434 acres (34.13 sq kms).

At Empire, it is estimated that less than 1% of the potential ore system has been explored to date and, accordingly, there is significant opportunity to increase the resource through phased exploration. The stated aim of the Company is to primarily fund this phased exploration through free cashflow generated by its initial mine. A Plan of Operations in respect of the initial open pit mine was filed with the relevant regulatory authorities in June 2021.