Ero Copper Corp. announced it has entered into a binding term sheet ("Term Sheet") with Salobo Metais S.A, part of the Vale Base Metals business ("VBM") to advance its Furnas copper project ("Furnas" or the "Project") located in the Carajas Mineral Province in Para State, Brazil. The Term Sheet contemplates Ero Copper earning a 60% interest in the Project upon completion of several exploration, engineering and development milestones over a period of five years from the execution of a definitive earn-in agreement.

In exchange for its 60% interest, Ero will solely fund a phased exploration and engineering work program during the earn-in period and grant VBM up to an 11.0% free carry on future Project construction capital expenditures. No adjustment for metallurgical recoveries has been made when calculating CuEq. To earn a 60% interest in the project, the Term Sheet requires Ero to complete three phases of work: Phase 1: Ero to conduct a minimum of 28,000 meters of exploration drilling and produce a scoping study within 18 months of completing Phase 1; Phase 3: Ero to conduct an additional minimum of 45,000 meters of exploration drilling, unless otherwise mutually agreed, and produce a definitive feasibility study ("DFS") within 24 months of completing Phase 2; Following the completion of a DFS, subject to customary technical review periods, and with Ero positive investment approval, the parties will enter into a joint venture agreement whereby VBM will transfer 60% of the equity interest in the Project to Ero, and Ero will grant VBM a "free carry" on certain capital expenditures related to Project development; Ero to grant VBM an initial 11% free carry, funding 71% of the first $1.0 billion of Project capital expenditures; If applicable, Ero to grant VBM a subsequent 5.5% free carry, funding 65.5% of the next $1.0 billion of project capital expenditures; If applicable, each party to fund its then pro rata share of capital expenditures beyond $2.0 billion; As long as VBM maintains greater than 30% ownership, it will have 100% offtake rights on the copper concentrate produced by the Project; Prior to a positive Ero investment decision and the formation of a joint venture, VBM will retain 100% ownership of the Project with Ero solely responsible for funding the phased exploration and engineering work programs related to the Project as well as ongoing payments to maintain the property in good standing.

Failure of Ero achieving the prescribed milestones within the earn-in period, will have the earn-in option drop away; The free carry will apply only to initial capital expenditures and future growth capital related to the expansion of mining and milling capacities, and will not apply to any sustaining capital required for the operations.