Cerro de Pasco Resources Inc. announced the results of the Preliminary Economic Assessment for its brownfield Pipe Project ("the Project" or "the Santander Pipe"). The Project forms a strategic cornerstone for CDPR's 100% owned Santander Mine, located in central Peru. A NI 43-101 technical report will be filed on SEDAR and will be available on the Company's website within 45 days.

All dollar amounts are in US dollars, unless otherwise noted. The Project is part of the Santander Property and is close to the active Magistral Mine, which is a 2,500 tpd operation that has produced over 7.0 Mt @ 3 - 5% Zn, during 2013 - 2022. The Project used to be the old Santander Mine owned and operated by Compañía Minerales Santander from 1957 to 1992, and according to historical records, produced over 8 million tonnes (Mt) @ 7% Zn with significant Pb-Ag content and minor copper credits.

The PEA determines 2 years of pre-production development and a five-year production schedule, with annual production average of 62.7 thousand tonnes of zinc concentrate at average cash costs ("C1) and all-in sustaining costs per tonne of zinc of USD 0.82 and USD 1.05, respectively. Santander Pipe Mineral Resource Estimate: Indicated Mineral Resources of 3.23 Mt @ 6.94% Zn and 0.17% Cu, with contained metal in the order of 224 thousand tonnes of Zn and 5.5 thousand tonnes of Cu. Inferred Mineral Resources of 1.78 Mt @ 5.95% Zn and 0.15% Cu, with contained metal in the order of 106 thousand tonnes of Zn and 2.7 thousand tonnes of Cu.

The PEA describes additional geologic potential for the Project in two main components: The first upside potential is the Pipe North zone, an extension of the Santander Pipe mineral corridor, discovered in June 2022. DRA reviewed the exploration and validated the discovery of the Pipe North zone as a new exploration target. CDPR has budgeted more drilling for 2023 - 2024 to further explore and define the Santander Pipe North Extension, which is part of a 900 m long mineralization corridor that includes the Santander Pipe.

The second upside potential comprises the unmined mineralization in the Upper Zone of the Santander Pipe, within the old mined out areas. The PEA MRE does not consider this area due to the old supporting information not being fully complemented and validated at the time of this report; the area should be further characterized once CDPR has access to the old Santander mine. Recent estimates indicate a potential resource of between 3 and 4 Mt in these upper levels.

The mine access trade-off study supports the option to dewater and rehabilitate the old La Cuñada Shaft for mineral hoisting, and the use of the ongoing Exploration Tunnel, from the Magistral Mine to the Santander Pipe, to execute the underground drilling program for resource definition and to mobilize personnel and equipment. The PEA supports the use of Avoca mining method with waste rock backfill and 20 and 15 m high sublevels in the Upper and Lower Zones, respectively. This is based on the geometry of the mineralized zones, geotechnical conditions, optimized stope recovery and dilution, and increased productivity up to 2,500 tpd production rate.

The PEA metallurgical testwork indicates the possibility of upgrading the existing Santander Processing Plant to accommodate the additional capacity requirements to process both the Santander Pipe and Magistral Mine material. The upgrade of the Santander concentrator would involve the retrofit of additional equipment to the existing Pb circuit which will allow this circuit to also produce copper concentrate. The PEA metallurgical testwork show that the quality of concentrate is similar to the one achieved historically in the old Santander Mine.

It is possible to obtain saleable commercial grade concentrates with no significant presence of deleterious elements leading to penalty. The PEA supports the use of existing infrastructure to support the Project operation, i.e., processing plant and TSF, power grid, magazines, drainage tunnel, workshops, roads, and auxilliary facilities.