Azucar Minerals Ltd. announced that it has commenced drilling the large lithocap target discussed in its release of March 10, 2022. The target area and lithocap characteristics are provided in Figure 1. The target area is defined by several overlapping target methodologies, including geophysics, mineralogy, geochemistry and past drilling campaigns at the property, which have returned significant high grade porphyry copper and gold assays from multiple zones, which appear to mantle and surround this area in a roughly arcuate shape of high magnetic response. This area has been targeted for drilling on the basis of the following data set: 2021 mineral vectoring study (“MVS”) completed at the CODES Analytical Laboratory of the University of Tasmania utilizing chlorite and epidote samples collected from the El Cobre project in 2021; Mineral vectoring has been established as an effective tool for exploration targeting at porphyry projects around the world through published studies at systems such as the El Teniente, Resolution, Arizona and Batu Hijau, porphyry systems; The MVS indicates that the El Cobre district likely contains a fertile medium to large sized porphyry system; The most prospective area in the MVS is located in the centre of the project (approximately 1 km southeast of the established resource at the Norte target) where there has been little previous exploration drilling; This area coincides with a deep IP geophysical anomaly, which does not crop out, within an area of moderate magnetic response.

The deep IP anomaly is the deep core to the broad near surface anomaly which encompasses all the currently known areas of porphyry mineralisation on the project; The closest hole to this deep core IP anomaly, which did not test the anomaly, intersected intense quartz pyrite sericite (QSP) phyllic alteration which provides further support to this new target representing a possible porphyry centre; The MVS target also overlaps with a large area of mapped pyrophyllite (approximately 700 metre (E-W) x 550 metre (N-S)), an alteration mineral often observed overlying porphyry copper-gold mineralisation; Recent spectral mineral mapping and sampling in this area has further defined a strong alteration signature with clear zoning including a central diaspore-pyrophyllite-shallow alunite/dickite and concentric halos of paragonitic and muscovitic white mica and inner propylitic epidote halo; Observed illite crystallinity shows consistent high crystallinity over the entire target. Iron oxide rockchip mapping shows a hematite core zone and a goethite halo as well. A detailed summary of the project is provided on the Company's website but, in brief, the El Cobre project covers a 5 km trend of porphyry copper-gold associated alteration and mineralisation along which five separate zones have now been identified and explored in past drilling campaigns.

On September 29, 2020, the Company released an initial mineral resource estimate on the project from only the Norte Zone. The base case resource estimate (using a net smelter return cutoff of US$12/tonne) for the Norte Zone is comprised of an indicated resource of 1.2 Moz AuEq (47.2 million tonnes grading 0.49 g/t Au, 0.21% Cu 1.4 g/t Ag) and an inferred resource of 1.4 Moz AuEq (64.2 million tonnes grading 0.42 g/t Au, 0.18% Cu and 1.3 g/t Ag). At the Villa Rica Zone, located about 1.8 km south of the Norte Zone, the Company plans to further explore the Raya Tembrillo Target.

Initial drilling in 2017 on the Raya Tembrillo Target intersected two styles of mineralisation; hypogene copper-gold porphyry mineralisation (115.00 metres of 0.57 g/t gold and 0.27% copper) and near surface enriched copper mineralisation with an apparent tabular distribution (94.00 metres of 1.36% copper). At the Encinal Zone, located 4.3 kilometres to the southeast of the Norte Zone, the Company is conducting a more thorough review of the geological, geochemical and geophysical datasets in order to design a future drill program to follow-up past drill results. On June 29, 2017, Azucar announced the results of initial drilling on this exposed stockwork (Hole EC-17-025) that returned results including 34.47 metres grading 0.73 g/t Au and 0.20% Cu.

Past drilling campaigns have returned significant porphyry copper and gold assays from multiple targets around the recently defined mineral vector target area. The previously tested and known porphyry mineralisation, including the Norte deposit on which the Company has developed a resource, appear to mantle and surround this new target area in a roughly arcuate zone of high magnetic response. High grade intersections from these targets highlight the potential for significant mineral endowment and for higher grade porphyry mineralisation including the following.