Castillo Copper : Exploration to resume at Mt Oxide - new targets identified

CASTILLO COPPER

LIMITED

ASX Release

7 April 2021

CASTILLO COPPER

LIMITED

ACN 137 606 476

45 Ventnor Avenue,

West Perth,

Western Australia 6005

Tel: [phone]

Contact:

Simon Paull

Managing Director

E-mail:

[e-mail]

For the latest news:

www.castillocopper.com

Directors / Officers:

Rob Scott

Simon Paull

Gerrard Hall

ASX/ LSE Symbol:

CCZ

Exploration resuming as Mt Oxide's geological

potential enhanced with 11 new targets

1. With the wet season drawing to a close across the Mt Isa copper-belt, CCZ's geology team are heading to site and resuming exploratory work at the flagship Mt Oxide Project:
2. • A geophysical survey campaign1, designed to extend known mineralisation at the high-grade Big One Deposit, will commence this month;
   • More significantly, the drilling crew is due to resume work at the Big One Deposit and then move across to the Arya Prospect2 to test several sizeable bedrock conductors; and

1. More recently, the Queensland government's Department of Resources granted the final key tenement (EPM 27440) - directly north of the Big One Deposit - that expands the core Mt Oxide Project footprint by circa 23% to 980km2

1. Within the newly granted ground are five well-profiled targets (Crescent, Pancake, Flapjack, The Wall & Johnnies) that are prospective for IOCG, Mt Isa Style & shear-hosted copper mineralisation3

1. Further forensic work by CCZ's geology team has uncovered the following:
2. • Historical reports showing there are potentially more targets within the vicinity of the Arya Prospect4; and
   • An incremental 11 targets within the tenure that are prospective for various styles of copper-gold mineralisation4

o Encouragingly, complementing 10 already documented prospects3, there are now 21 targets that will feature in forward exploration plans

1. Overall, these are timely developments that enhance the Mt Oxide Project's exploration potential for copper mineralisation, at a time when there is an impending global supply deficit

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Castillo Copper's Managing Director Simon Paull commented: "Behind the scenes our geology team has been flat out readying for a resumption of exploration work at the flagship Mt Oxide Project. The Board is targeting to have drilling teams back to site as soon as practical to complete work at the Big One Deposit then commence at the Arya Prospect. Holistically, with 21 targets across the Mt Oxide Project, CCZ now has a significant pipeline of copper-focused exploratory work ahead, coinciding with an impending global supply deficit."

Castillo Copper Limited ("CCZ") is delighted to confirm that improving weather conditions should enable a resumption of exploratory work at the core Mt Oxide Project in the Mt Isa copper-belt during April 2021. In addition, further forensic work has uncovered eleven targets and more details on the Arya Prospect's geological potential4.

EXPLORATION WORK TO RESUME

With an improvement in weather conditions, CCZ's geology team are planning a return to site and resuming exploration activities at the Mt Oxide Project. Within the next few weeks, a geophysical survey1 will be undertaken at the Big One Deposit that will focus on extending known mineralisation and uncovering additional anomalies.

Once these results are known, the drilling team will complete the campaign at the Big One Deposit then move across to the Arya Prospect to test several sizeable bedrock conductors. Interestingly, recent forensic work by CCZ's geology team found several more anomalies proximal to the Arya Prospect4.

Tenure grant

Recently, the Queensland government's Department of Resources granted the northern most tenement that comprises the Mt Oxide Project. As a result, the footprint has increased by circa 23% to 980km2 and formally brings five well profiled copper prospects into the fold (Figure 1 and Appendix A) that were part of the 2020 geological study3.

FIGURE 1: KNOWN PROSPECTS WITHIN NEWLY GRANTED TENURE

Crescent	IOCG target with Mt Isa style mineralisation potential
Flapjack	IOCG target
Pancake	IOCG target with Mt Isa style mineralisation potential
Johnnies	Shear-hosted copper and supergene ore potential
The Wall	Mt Isa style mineralisation potential

Source: CCZ geology team (Refer ASX Releases - 14 January, 10 & 19 February 2020)

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Eleven new targets

Ongoing forensic work by CCZ's geology team identified an incremental 11 targets4 across the Mt Oxide Project which are prospective for various styles of copper-gold mineralisation (Figure 2 & Appendix B).

As such, on a combined basis, there are now 21 viable targets across the Mt Oxide Project for copper mineralisation which delivers a significant pipeline of development work ahead and enhances forward exploration potential.

FIGURE 2: ELEVEN NEW TARGETS AT MT OXIDE PROEJCT

	Prospect			Mineralisation style			Anomalous
							elements
	Amanda			IOCG			Au, Co, Ni
	Big Ben			Gold - Copper		Cu, Co
	Black Mountain			Copper Manganese and Uranium - structural		Cu, Co, Zn, Ag, Mn
				enrichment
	Bomb Gorge			Gold		Cu, Co, Zn, Ag, Au
	Crow Bar			Shear-hosted copper and supergene ore potential			Cu, Co
	Josephine			Copper		Cu, Co
	Little Nathan			Gold - Copper			Cu
	Mercy			Shear/Dyke hosted Epigenetic Copper		Cu, Co
	Old Man Creek			Shear/Dyke hosted Epigenetic Copper			Cu
	Pom Pom			Gold		Cu, Co
	Unicorn			Mt Isa style			Cu-Pb-Zn

Source: DNRME CR Numbers - 24734, 23516, 24523, 5714, 23661, 23516, 23516, 5748

Next steps

Within the next few weeks, the geology and geophysical teams intend to visit site and commence work at the Big One Deposit and Arya Prospect.

Once the geophysical survey has been complete and reconciled, the next phase of the drilling campaign will commence.

For and on behalf of Castillo Copper

Simon Paull

Managing Director

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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:

• The Mt Oxide project 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. CCZ ASX Release - 1 February 2021
2. CCZ ASX Release - 3 March 2021
3. CCZ ASX Release - 6 October 2020
4. Queensland Department of Resources CR Numbers - 24734, 23516, 24523, 5714, 23661, 23516, 23516, 5748. Available at: https://www.resources.qld.gov.au/

Competent Person Statement

The information in this report that relates to Exploration Results for "Big One Deposit" is based on information compiled or reviewed by Mr Mark Biggs. Mr Biggs is both a shareholder and director of ROM Resources, a company which is a shareholder of Castillo Copper Limited. ROM Resources provides ad hoc geological consultancy services to Castillo Copper Limited. Mr Biggs is a member of the Australian Institute of Mining and Metallurgy (member #107188) 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 Biggs holds an AusIMM Online Course Certificate in 2012 JORC Code Reporting. Mr Biggs also consents to the inclusion in this report of the matters based on information in 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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APPENDIX A: PROSPECTS WITHIN THE MT OXIDE PROJECT

FIGURE A1: MT OXIDE PROJECT

Source: CCZ geology team

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