Operational Update on Copper and Lithium Assets

9 November 2021

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

Operational Update: Copper and Lithium Assets

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to provide an update on the Company's copper and lithium assets.

OPERATIONAL OVERVIEW

Since the start of H2 2021, Castillo Copper has seen significant advances on several fronts in progressing its copper operations in Queensland and Zambia. Concurrently, the Company's geology team are conducting due diligence on the Litchfield and Picasso Lithium Projects, located in the Northern Territory and Western Australia, respectively.

Arya Prospect, North-West Queensland Copper Project

· Pioneering drilling has progressed at the Arya Prospect, overcoming challenging operational conditions

· Interest in the Mt Isa copper-belt continues to grow, with Rio Tinto recently acquiring contiguous ground1 on the eastern boundary of the NWQ Copper Project which is proximal to the Arya Prospect

· A more detailed update will be released within the next week.

Litchfield Lithium Project, Northern Territory

· Desktop due diligence on the Litchfield Lithium Project completed

· The geology team are now awaiting over 650 surface sample assays2 to be returned from laboratories in Adelaide and Vancouver

· Results to be received imminently, which will enable geology team to determine the potential for contiguous mineralisation with Core Lithium's (ASX: CXO) proximal Finniss Lithium Project2.

Picasso Lithium project, Western Australia

· Visit to the Picasso Lithium Project completed

· Samples collected and assessed for the extent of pegmatite outcropping along the eastern boundary3

· A full update with the team's findings will be published shortly.

Luanshya Project, Zambia

· Interpretation of 14 potential targets following Induced Polarisation (IP) survey at the Luanshya Project

· Work is now focused on formulating the inaugural drilling campaign4.

Mkushi Project, Zambia

· Work on the IP Survey at the Mkushi Project, which is focusing on known surface copper anomalies5, is now in progress

· Upon completion, a geophysical interpretation report will be published which will determine the next course of action.

Simon Paull, Managing Director of Castillo Copper, commented: "We are pleased to report that we have made significant advances on several fronts in our copper operations in Queensland and Zambia. Specifically, the team on site at the Arya Prospect have overcome harsh conditions to progress our pioneering drilling campaign forward and we look forward to reporting on the full progress in the coming week."

In addition to this release, a PDF version with supplementary information and images can be found on the Company's website: https://castillocopper.com/investors/announcements/ 

For further information, please contact: 

About Castillo Copper 

Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects: 

· A large footprint in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region. 

· Four high-quality prospective assets across Zambia's copper-belt which is the second largest copper producer in Africa. 

· A large tenure footprint proximal to Broken Hill's world-class deposit that is prospective for zinc-silver-lead-copper-gold. 

· Cangai Copper Mine in northern New South Wales, which is one of Australia's highest grading historic copper mines. 

The group is listed on the LSE and ASX under the ticker "CCZ." 

References

1) GSQ Open Data Portal. Available at: https://geoscience.data.qld.gov.au/dataset?type=report&q=%22EPM%2028093%22, and https://geoscience.data.qld.gov.au/dataset?type=report&q=%22EPM%2026439%22

2) CCZ ASX Release - 20 October 2021

3) CCZ ASX Release - 27 October 2021

4) CCZ ASX Release - 25 October 2021

5) CCZ ASX Release - 1 July 2021

Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled or reviewed by Mr Geoffrey Reed, a Non- Executive Director of CCZ. Mr Reed is both a shareholder and director of Bluespoint Mining Services, a company which is a shareholder of Castillo Copper Limited. Bluespoint Mining Services provides ad hoc geological consultancy services to Castillo Copper Limited. Mr Reed is a member of the Australian Institute of Mining and Metallurgy (CP) (member #250422) and has sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, and Mineral Resources. Mr Reed is a member of the Australian Institute of Geoscientists. Further, Mr Reed consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The London Stock Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.