Castillo Copper Limited approved further work on known targets within the highly prospective Luanshya Project in Zambia's copper belt. Based on current plans, the work is schedule to progress during first half 2023. Focusing on a 6km zone of copper surface anomalism, where 14 chargeable zones1 were delineated, the geology team plan to conduct an infill IP campaign.

The core objective is to further refine key targets and boost the confidence in identifying structurally controlled copper mineralisation. Due to extremely difficult equity market conditions, London-based Metallea Group (previously Hyperion Copper) have cancelled plans to list on AIM /LSE2. As a result, Castillo's Board has been advised the option to acquire the Zambia assets will not be exercised.

Note, Metallea Group paid Castillo a USD 100,000 (AUD 142,000) non-refundable deposit for the option. With all previous exploratory work indicating the Luanshya and Mkushi Projects are highly prospective for copper mineralisation, the Board remains committed to creating value for shareholders which could include 1) aligning with a development partner; or, 2) undertaking a trade sale for the Zambia copper assets or a transaction of a similar nature. The geology team plan to roll out an Induced Polarisation (IP) geophysics campaign to build on earlier work undertaken in 2021 which focused on a 6km zone of copper surface anomalism that delineated up to 14 chargeable zones: A key focus of the upcoming IP campaign will be to refine targets for test drilling and enhance the confidence of finding structurally controlled copper mineralisation.

The plans for development work follow London-based, Metallea Group's (previously Hyperion Copper) decision to cancel plans to list on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE)2, due to extremely difficult equity market conditions. As this was a key requirement to secure funds to progress development work, Metallea has further advised it will not be exercising the option - which delivered a USD 100,000 non-refundable deposit to Castillo - to acquire the Zambia assets. Moving forward, as Castillo's Board remains committed to aligning with a development partner or undertaking a trade sale for the Zambia copper assets, efforts will be re-doubled to deliver this outcome during 2023.