Operational Update

Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLY), the AIM-quoted USA-focused base and precious metals emerging producer and exploration company is pleased to provide an update on the Company's operations in Idaho, USA.

Highlights:

• Pre-Feasibility Study ("PFS") for the proposed Empire Open-Pit copper, gold, and silver deposit nearing completion

Ryan McDermott, CEO of Phoenix Copper Limited, said: "I am pleased to provide an update regarding the ongoing work on our Empire Open-Pit Mine project in Idaho. The PFS for the Empire Open-Pit Mine is nearing completion, and barring any unforeseen delays is anticipated for delivery to the Company by early Q2 2024. The final PFS report will include a comprehensive mine plan, mineral processing design, compliant mineral reserves calculated as deliverable metal for smelting or refining, net of mining dilution, detailed operating and capital cost estimates, and final economic analysis and cashflow. The completion of this report will represent a significant milestone for the Company and will enable us to make final amendments to the Plan of Operations for permitting purposes, and to commence procurement of certain relevant capital equipment items.

"The critical part of the Empire Open-Pit PFS process has been to test the viability of a variety of mining and processing options, optimize multiple options, and conduct numerous checks on laboratory and engineering findings to help ensure that we have maximum flexibility prior to moving forward with the final stages of development engineering. This PFS process has been "result" oriented. In these types of studies, the initial results and findings can often lead to further studies, all helping to ensure that the final plans are as robust as possible.

"The Company endeavors to meet the timelines it develops for itself and shareholders. It is of particular importance to me that everyone understands that the nature of the studies we undertake to ensure the best mining and production outcomes can be time-consuming and not always predictable. I appreciate everyone's patience as we complete each step of the PFS. Mining is a long-term, capital-intensive business, and we believe the time spent on optimizing the mine plan and processing design at this stage can bring significant financial benefits to the project over the life of the mine.

"I would also like to provide an update on the Navarre Creek gold exploration program. As we reported in October 2023, 400 acres of additional unpatented mining claims were staked contiguously to the southwest end of our existing claim block following our initial review of the results from the 2023 drilling program. Since that reporting, the Phoenix team has been focused entirely on the analysis and engineering required for the Empire PFS. However, our expanded land position at Navarre Creek affords us the time to further assess the exploration data and develop a strategy for the next phase of drilling to be conducted this year. We will report more information regarding Navarre Creek as soon as time allows."

Pre-Feasibility Study (PFS)

The Empire Open-Pit Mine PFS was commissioned in early 2023 and began with comprehensive metallurgical engineering studies, using metallurgical core obtained during the 2022 metallurgical drilling programme and assay results that became available from the laboratory in early 2023. In addition to metallurgy, the PFS will include a comprehensive analysis of geological models, mine design, mineral processing design, environmental assessment and analysis, estimation of operating and capital costs, and final economic analysis and cashflow modeling.

Process Design and Metallurgical Testing

The metallurgical test work and process design engineering completed to date as part of the PFS, indicates that oxide flotation + tank leach tails processing will provide the most optimal results.

The process design/metallurgical engineering team has completed preliminary test work on electrical load calculations, comminution testing, flotation concentrate smelter penalty analysis, variability testing, thickening testing, leach residue analysis, and cementation. Additional sample composites representing several mining phases are currently undergoing final laboratory testing. Additionally, laboratory checks and some final grinding studies, rougher/cleaner flotation testing, and leach tails analysis are in process in the laboratory and anticipated for completion during Q1 2024. The results of all of the work will be incorporated into the PFS.

Environmental, Social, and Corporate Governance

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/t silver, 0.85 g/t 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).