Azucar Minerals Ltd. announced that it has completed drilling a second hole into the large lithocap target. Similar to the first hole, the second hole in this area (EC-22-115) passed through typical clay dominant lithocap alteration into phyllic alteration. Large intervals of brecciated rock were intersected possibly reflecting a diatreme like body that may have disrupted any earlier porphyry alteration zonation in this area.

Alteration data has been collected from the core using a Terraspec infrared spectrometer along with samples for assay and fluid inclusion analysis. Any future drilling in this area will be guided by the results and interpretation of these analyses from both holes. The drill rig has been demobilised from the pad where these two holes were drilled as any future drilling to test this lithocap target will need to be conducted in other accessible portions of this very large area.

About the El Cobre Project: 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 USD 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 and 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).

Further details of the resource estimate are provided below. Past drilling campaigns have returned significant porphyry copper and gold assays from multiple targets. High grade intersections from these targets highlight the potential for significant mineral endowment and for higher grade porphyry mineralisation including those tabularised below.

The known targets include the Villa Rica, Porvenir, Encinal and Primo Zones. At the Villa Rica Zone, located about 1.8 km south of the Norte Zone, initial drilling in 2017 (on the Raya Tembrillo Target area) intersected two styles of mineralisation; hypogene copper-gold porphyry mineralisation and near surface enriched copper mineralisation with an apparent tabular distribution. At the Encinal Zone, located 4.3 kilometres to the southeast of the Norte Zone, Azucar reported the results of initial drilling on an exposed stockwork zone (Hole EC-17-025) that returned results including 34.47 metres grading 0.73 g/t Au and 0.20% Cu.

The Company continues to review the geology and past exploration results in order to plan future exploration programs.