Copperstone Resources : Q3 2021

Kiruna, November 19, 2021

INTERIM REPORT JULY - SEPTEMBER 2021

JULY - SEPTEMBER 2021

• Result of the period amounted to -3,069(-7,239) KSEK.
• Earnings per share was 0.00 (-0.01) SEK.
• Capitalized exploration assets at the end of the period amounted to 408,033 (325,712) KSEK which follows the communicated plan.
• The cash flow during the period was -15,490(-6,618) KSEK.
• The liquidity at the end of the period was 169,894 (12,665) KSEK.

JANUARY - SEPTEMBER 2021

• Result of the period amounted to -11,774(-9,304) KSEK.
• Earnings per share was -0.01(-0.02) SEK.
• Total assets at the end of the period were 585,371 (344,548) KSEK.
• The cash flow during the period was 168,942 (-6,433) KSEK.
• Shareholders' equity at the end of the period increased by 95% to 546,187 (280,438) KSEK due to the new issues of shares that was carried out in the first and second quarter 2021.

SIGNIFICANT EVENTS DURING THE PERIOD

• Copperstone's exploitation concession Viscaria k no. 7 confirmed by the Swedish Government.
• Copperstone Resources scales up the Viscaria project and explores the possibility of an increased yearly milled run-rate production to 3 Mton and an increased future potential net profit to 850 MSEK after ramp- up.

SIGNIFICANT EVENTS AFTER THE PERIOD

• • In October Copperstone Resources appoints Markus Petäjäniemi as Deputy Chairman of the Board of Directors.
• The high pace in Copperstone´s journey to reopen the Viscaria mine, continued during the third quarter. We have gained several new colleagues at the head office and at the end of September we had many eminent investors on a site visit in Kiruna. During the same day we also announced our plans to make projects significantly larger - with a potential increased yearly milled run-rate and an increased production capacity in our planned concentrator. The overall positive attitude from stakeholders to the project gives us energy and we are now working hard and focused on our environmental permit, which we aim to submit to the Land and Environment Court in March 2022." comments CEO Anna Tyni.

In case of any discrepancy between the English version and the Swedish original text, the Swedish version shall prevail.

Copperstone Resources AB Org. nr 556704-4168

Q3 2021 1

CEO COMMENTS

The high pace in Copperstone's journey to reopen the Viscaria mine, continued during the third quarter. We have gained several new colleagues to the head office in Kiruna, and we have had continuous dialogue and collaboration with various stakeholders in the local area which has been very inspiring. The overall positive attitude from stakeholders to the project gives us energy and we are now working hard and focused on our environmental permit, which we aim to submit to the Land and Environment Court in March 2022.

At the end of September, we had many eminent investors on a site visit in Kiruna - a successful day where we delved into several of the factors that make the Viscaria mine completely unique, with exceptionally good conditions. On the same day, we also announced our plans to make the project significantly larger - with a potential increased yearly milled run-rate and an increased production capacity in our planned concentrator. This is based on positive indications from our core drilling and the general situation in the copper market.

Our plans have been scaled up

The latest drilling campaign in Viscaria has shown positive results from the southern deposit of the B-zone, where only limited mineral resources have previously been secured. We now anticiapte that the exploration target for Viscaria will reach 89-109 Mton copper-bearing rock in the medium term (3-5 years), which at a copper grade of 1.11-1.13% corresponds to 1-1.2 Mton copper (currently 727,000 tonnes). We are planning and now modeling for a yearly milled run-rate production of 3 Mton, with an opportunity to increase capacity further to 5 Mton. This can be compared with previous assumptions of 2 Mton. The estimated future potential annual net profit after the increase is thus estimated to rise from SEK 400 million to approximately SEK 850 million. At the same time, the total investment need is expected to increase from SEK 1.5 billion to approximately SEK 3-4 billion. Of course, this presupposes a successful conversion of mineral resources into reserves, an approved environmental permit and financing.

It is very gratifying that we are gradually making progress in the reopening of the Viscaria mine and that the combined team efforts and the promising market conditions have enabled a better and more comprehensive project than we previously planned for.

Positive data on sustainable production

Our growing team of experts is constantly finding new solutions that provide a more optimized and more sustainable production. During the autumn, we have thus taken clear steps in our vision to provide sustainably produced copper to enable a zero-carbon future. To be able to do this in a systematic way, we have carried out a thorough mapping of greenhouse gas emissions in each component and each step of production. Based on this analysis, we are convinced that we can already from start of production be one of the best copper mines in the world when it comes to low CO2-emissions.

We have also begun work on identifying which additional areas of sustainability that are important to us to understand in future strategy work and goal formulations. The work will be presented in the coming annual report.

Copper has a central role in Sweden's and Europe's climate adaptation. It is a key component for all forms of electricity transmission. The sharp rise in copper prices over the past year indicates that the future supply of copper will fall below the demand. With that in mind, the reopening of Viscaria is important from a global perspective and there is, in my opinion, no better place than Sweden and specifically in the Viscaria brownfield area, to open a mine in. We have a strong environmental legislation here, which means that the mines that opens here will be among the best and most sustainable in the world. We who work at Copperstone are Kiruna residents and we are all strongly driven by making sure that we open a mine with as minimal environmental impact as possible. We'll make sure of that.

Anna Tyni, CEO Copperstone Resources

Copperstone Resources AB Org. nr 556704-4168

Q3 2021 2

ENVIRONMENTAL PERMIT

Copperstone Resources intends to resume mining operations at the Viscaria mine in Kiruna. The ore in question mainly contains copper, but also iron in form of magnetite. The planned mining operations are subject to a permit requirement, and it is in this application process that the company is involved. Preliminary studies, environmental surveys and other information collection are carried out on an ongoing basis to create well-founded baseline data and information for the environmental impact assessment that is part of the application. It includes surveys in surface and groundwater, impacts on nature, outdoor life, and the local community.

During the summer, an open consultation process was carried out where stakeholder groups were given the opportunity to express their views and the company informed the public about how the process will proceed. After the consultations, the information has been compiled and will become part of the application material. During the third quarter, the decision was made that the application will be submitted to the Land and Environment Court during Q1 2022. During the autumn, the company revised and expanded the total resource and production ambition for the reopening of Viscaria, which means increased mining production and enrichment capacity. Read more about the expanded deposits at www.copperstone.se.

SUSTAINABILITY

Copperstone intends to conduct credible and genuine sustainability work. For this to be possible, well-founded knowledge and data are required. One of the steps for collecting data is that the company has developed a bottom- up model for identifying and quantifying the mine's future carbon dioxide emissions. According to the calculations, Viscaria will have the opportunity to become one of the mines with the lowest emission levels in the world, with the help of high-technological vehicles and fossil-free energy sources. The model includes Scope 1 and 2, which means direct emissions from production in Scope 1 and indirect emissions from operations such as ventilation and electricity consumption in Scope 2. Based on these calculations, the group has a good foundation to stand on and sees good prospects of being able to belong to the tenth of all mines in the world that are most carbon dioxide efficient.

Copperstone has also begun to have an active dialogue with both external and internal stakeholders regarding the group's sustainability work. This is to identify which areas they perceive as essential for Copperstone to focus on and to generate a basis for future strategy work and goal formulations. The company intends to present an integrated sustainability report in its annual report for 2021.

Vision

To provide sustainably produced copper to enable a zero-carbon

future

Copperstone Resources AB Org. nr 556704-4168

Q3 2021 3

ABOUT COPPERSTONE RESOURCES

Copperstone Resources AB is a company now scaling up to become a modern and responsibly producing mining company through the reopening of the Viscaria mine in Kiruna, Sweden. The deposit's high copper grade assessed mineral resources, geographical location and growing team of experts provides good opportunities to become a key supplier of quality and responsibly produced copper - a metal that plays a critical role in Sweden's and Europe's climate change towards an electrified society. In addition to the Viscaria mine, Copperstone holds a number of other exploitation concessions and exploration permits in Arvidsjaur (Eva, Svartliden, Granliden) and Smedjebacken (Tvistbogruvan), all in Sweden. The parent company's shares are traded on the Nasdaq First North Growth Market (ticker COPP B). Augment Partners is the company's Certified Adviser, [e-mail], [phone].

GROUP OF COMPANIES

Copperstone Resources AB owns the following four subsidiaries (100%), all of which changed names during Q1 2021: Copperstone Viscaria AB, Copperstone Arvidsjaur AB, Copperstone Tvistbo AB and Copperstone Incentive AB. The above companies form the Group for financial documentation purposes as reported below. For more information on the Group structure and subsidiaries please refer to the Annual Report 2020.

Copperstone Resources AB Org. nr 556704-4168

Q3 2021 4

GROUP FINANCIAL INFORMATION

JULY TO SEPTEMBER 2021

During the third quarter of 2021, Copperstone´s focus was primarily on the Viscaria Project. Capitalized exploration assets at the end of the period increased to 408,033 KSEK (325,712 by September 30, 2020).

Net sales for the quarter were 0 (0) KSEK and result of the quarter amounted to -3,069 KSEK (-7,239).

The cash flow during the quarter was -15,490 KSEK (-6,618). The cash flow from operations were 5,326 KSEK (2,520). Net investments amounted to -29,259 KSEK (-9,211). Net change in liquidity from financing during period was 8,443 KSEK (73).

JANUARY TO SEPTEMBER 2021

Net sales for the period were 0 (0) KSEK and result of the period amounted to -11,774 KSEK (-9,304).

The cash flow during the period was 168,942 KSEK (-6,433). The cash flow from operations were

-28,981 KSEK (-4,521). Net investments amounted to -64,208 KSEK (-22,347). Net change in liquidity from financing during period was 262,131 KSEK (20,435).

FINANCIAL POSITION AS PER SEPTEMBER 30, 2021

Assets as per September 30, 2021

Capitalized Mining and Exploration assets of 408.0 MSEK (325.7 as per September 30, 2020).

Cash at hand amounted to 169.9 MSEK, compared to 12.7 MSEK as per September 30, 2020. In July 2021, another

8.46 MSEK in cash was raised (please refer to Norrlandsfonden below).

Interest-bearing debt as per September 30, 2021

Norrlandsfonden held 16.06 MSEK worth of convertibles at ~5% interest rate per annum. For more information on Norrlandsfonden's investments in Copperstone please refer to the Group's Annual Report 2020.

PARENT COMPANY FINANCIAL INFORMATION

JULY TO SEPTEMBER 2021

Net sales for the period were 0 (0) KSEK and result before taxes amounted to -3,006 KSEK (-7,035).

During the period, the capitalized expenditure for exploration has amounted to 394 KSEK (227). Total operating expenses amounted to 5,365 KSEK (5,121).

JANUARY TO SEPTEMBER 2021

Net sales for the period were 0 (0) KSEK and the result for the period amounted to -11,758 KSEK (-8,990).

During the period, the capitalized expenditure for exploration has amounted to 1,510 KSEK (883). Total operating expenses amounted to 20,981 KSEK (12,151).

Copperstone Resources AB Org. nr 556704-4168

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