Castillo Coppe. Regulatory News (CCZ)

CASTILLO COPPER LIMITED("Castillo" or the "Company" or the Group)

Castillo identifies 35 Drill-sites and secures approvals ahead of Big One Deposit drilling campaign

Visual evidence of supergene and massive sulphide mineralisation at surface supports theory the Big One Deposit has the potential to be part of a larger IOCG mineralised system

Castillo Copper Limited (LSE: CCZ; ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce the geology team has pegged 35 drill-sites at the Big One Deposit, within the Mt Oxide Pillar, in readiness for the drilling campaign getting underway. In addition, the team found visual evidence of supergene and massive sulphide mineralisation at surface, and potential linkages lending credence that the Big One Deposit could potentially be part of a larger iron oxide, copper, gold (IOCG) mineralised system.

Highlights

· 35 drill-sites pegged at the Big One Deposit1 in readiness for the upcoming drilling campaign

· Importantly, massive hematite / cuprite chalcocite vein mineralisation visually identified which provides credence that the Big One Deposit could be part of a larger IOCG mineralised system

· Concurrently, collected 24 rock chip samples along strike - for follow up analysis - from stockpiles and historic pit workings which visually confirmed the presence of supergene oxide (malachite) and massive sulphide (chalcocite) mineralisation at surface

· Further, the geology team visually confirmed copper mineralisation occurs within a strongly altered trachytic porphyritic dyke, with massive sulphide veins and disseminated sulphides apparent

· Incrementally, the team closely studied outcrop in pit walls, which provided the best insights into the underlying geology and ratified the potential presence of high-grade copper mineralisation across the Big One Deposit

· On logistics, the access track to the Big One Deposit is now complete while all necessary government regulatory approvals having now been secured

Next steps

· Appointment of drilling contractor following an extensive tender process to narrow the field down to two short-listed candidates

· Peg the Arya prospect and undertake a closer review of the surface geology, as part of the process to progress concurrent drilling campaigns

· Review Valparaisa2 and Eldorado2 prospects within the Mt Oxide Pillar

Simon Paull, Managing Director of Castillo Copper, commented: "Thanks to the dedicated hard work of our geology team, we are now clearly across logistics and regulatory approvals. Importantly, we are now fully prepared to move forward with our planned drilling campaign at the Big One Deposit. Moreover, the fresh geological insights the field team observed at site is extremely encouraging, especially finding high-grade supergene and massive sulphide mineralisation at surface."

Ged Hall, UK Director of Castillo Copper, said: "The insights the geology team were able to gather at site are outstanding, especially visual evidence there is high-grade copper mineralisation across the Big One Deposit. This is clearly a highly prospective target and our UK investors are very much looking forward to the drilling campaign getting underway."

In addition to this release, a PDF version of this report, with supplementary information can be found on the Company's website: https://www.castillocopper.com/asx-announcements/

Overview of Mt Oxide Project

Castillo is targeting the development of a viable copper mining operation at the Mt Oxide Project, which is located approximately 150km north of Mt Isa in northwest Queensland. The project is within the proximity of several historic and currently operating copper mines including Lady Annie and Capricorn Copper.

On 22 March 2017, the Company announced that it had entered into an agreement with certain sellers to acquire the entire issued capital of QComm, an Australian copper and cobalt company which owns three assets targeting high grade copper and cobalt systems in New South Wales and Queensland (including the Mt Oxide Project). On 4 July 2017, the Company completed the QComm Acquisition on 4 July 2017 and in August 2017, the Company received notice from Queensland's Department of Natural Resources and Mines that the final exploration application had been granted.

Currently, the main highlight within the Mt Oxide Project is the exploration targets known as Big One Deposit and the Ayra Prospect, which was identified through an airborne electromagnetic survey conducted by Geoscience Australia in March 2019. The Company's main objective is to progress with several site visits to conduct geochemical sampling and geophysical surveys on known exploration targets to facilitate an inaugural test drilling campaign for developing a clear exploration strategy.

Competent Person Statement

The information in this report that relates to Exploration Results for the Mt Oxide pillar for the 'Big One' deposit prospect' contained in this announcement is based on a fair and accurate representation of the publicly available information at the time of compiling the ASX Release, and is based on information and supporting documentation compiled by Matthew Stephens, a Competent Person who is Fellow of the Australian Institute of Geoscientists. Mr Stephens is Consultant Resource Geologist employed by Xplore Resources Pty Ltd. Mr Stephens has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Stephens consents to the inclusion in the report of the matters based on his information and the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

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Notes to Editors:

About Castillo Copper

Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia.

The three main projects across Australia and Zambia include:

Australia

Mt Oxide Project

Castillo is targeting the development of a viable copper mining operation at the Mt Oxide Project, which has significant exploration upside with several high-grade targets including an interpreted 130m thick by 1,500m by 450m massive sulphide bedrock conductor that is about to be drilled. The project is located approximately 150km north of Mt Isa in northwest Queensland. The project is within the proximity of several historic and currently operating copper mines including Lady Annie and Capricorn Copper.

Cangai Project

The Company's flagship project is the Cangai Project in northern New South Wales, where the Cangai Copper Mine is located, one of Australia's highest grading historic copper mines. The Company's core focus is the development and expansion of the Cangai Copper Mine, which comprises a volcanogenic massive sulphide deposit, with a JORC Code compliant Inferred Resource of 3.2Mt at 3.35 per cent. Cu. and up to 14.45 per cent. Cu in assayed diamond core intersections.

Zambia

Zed Projects

The Company is the sole shareholder of Zed, an Australian company which holds four high-quality prospective assets across Zambia's copper-belt, the second largest copper producer in Africa. Castillo Copper intends to initially focus on the Luanshya Project, which sits on the Zambian copper belt's Lufilian Arc geological structure. The second priority for the Company is the Mkushi Project, which contiguously surrounds an operating open-pit copper mine, in a region proven to be highly prospective for Cu-Au mineralisation. The Company is currently working towards establishing a Zambian in-country presence, utilising local geologists and joint venture partner teams.

Reference

1) CCZ ASX Release - 14 January 2020

2) CCZ ASX Release - 14 July 2020