Nevada Copper Provides Operations Update; Announces Filing of Q1 2021 Financial Statements and MD&A - Seite 2

Open Pit and Property Exploration Plans

• During Q1 the Company released its property development objectives, including:
  
  
  • Open Pit:
    
    
    • Follow-up on internal studies which indicate optimized project scaling has potential to improve project economics, including a concurrent phase 1 and phase 2, plus potential larger ultimate production scale; and
    • Plans to undertake infill and extension drilling with aim to bring newly defined mineral inventory into reserves, providing the potential to further improve project economics, followed by release of a resource and reserve update.
  • Exploration:
    
    
    • Plans to follow-up on new exploration targets added through the further expansion of the Company’s properties to the east and analysis of geophysical surveys.
  • Underground Future Extension:
    
    
    • Additional inferred resources to be in-filled as underground mining advances into new zones;
    • Underground mine extension targets to be further evaluated, including a new potentially large target to the east of the main shaft that is previously untested; and
    • Study of future expansion potential.

Finance Updates

• During 2021, the Company completed certain financing transactions, including:
  
  
  • The Company completed a public offering of units for aggregate gross proceeds of approximately C$38 million and concurrent private placement for aggregate gross proceeds of approximately C$13.1 million.
  • The Company also entered into a credit facility with Pala providing for US$15 million, plus a further US$15 million accordion which Pala has confirmed will be made available to the Company as required (the “2021 Credit Facility”). The Company has drawn the full US$15 million under the original 2021 Credit Facility and US$7.5 million under the accordion feature.
  • Pala has further confirmed it will provide up to an additional US$10 million to the Company through an increase to the 2021 Credit Facility or other form of financing as may be agreed with the Company, in order to provide additional financial resources needed to address the impact of slower development progress through the dike structure during ramp-up.
  • The availability of funds under the Company’s working capital facility with Concord Resources Limited was also increased from US$35 million to US$40 million.

• During Q1, the Company’s wholly-owned subsidiary, Nevada Copper, Inc., settled legacy disputes with two contractors which improved the Company’s working capital position.

Q1 2021 Financial Statements