Copperstone Resources : Year-end report 2021

Kiruna, March 4, 2022

YEAR-END REPORT 2021

OCTOBER - DECEMBER 2021

• Result of the period amounted to -4,475 (16,213) KSEK.
• Earnings per share was -0.01 (0.03) SEK.
• The cash flow during the period was -45,603 (- 11,713) KSEK.
• The liquidity at the end of the period was 124,291 (952) KSEK.

JANUARY - DECEMBER 2021

• Result of the period amounted to -16,249 (6,909) KSEK.
• Earnings per share was -0.01 (0.01) SEK.
• Total assets at the end of the period were 606,941 (347,823) KSEK.
• The cash flow during the period was 123,339 (-18,146) KSEK.
• Shareholders' equity at the end of the period increased by 83% to 542,350 (296,802) KSEK.
• Capitalized exploration assets at the end of the period amounted to 454,363 (344,655) KSEK.

SIGNIFICANT EVENTS DURING THE PERIOD

• In November Copperstone Resources appoints Markus Petäjäniemi as Deputy Chairman of the Board of Directors.

SIGNIFICANT EVENTS AFTER THE PERIOD

• • In February a directed share issue was completed through an accelerated book building procedure, raising proceeds of 147.9 MSEK before transaction costs.
• We are increasingly convinced that we have a unique chance to open a modern mine with an financial and ecological model beyond the ordinary. Based on our analyzes, we are convinced that right from the start of production, we will be one of the leading copper mines in the world when it comes to low CO2 emissions." comments CEO Anna Tyni.

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

Copperstone Resources AB Org. nr 556704-4168

Q4 2021 1

CEO COMMENTS

The end of 2021 and the beginning of 2022 have remained intense for us at Copperstone. As been communicated previously, our goal is to reopen the Viscaria mine in Kiruna, and virtually the entire organization has focused on the work on the environmental permit application that is planned to be submitted to the Land and Environment Court later this month. There is extensive documentation that must be in place and completed. Our ambition for this documentation is very high, and I dare to say that we will submit an pedagogical and thorough application of the highest quality. What now remains is to collect and compile views from the parties, internally and externally, where different sections of the application have been shared for consultation.

Intensive application process

Overall, our investments have increased considerably during the quarter, partly as a result of the intensification of the process regarding the environmental permit application, and partly due to the continued high investment rate in core drilling and geophysical surveys at the Viscaria site. During the period, we have hired more consultants than before, which have been crucial in the work with technical documentation, investigations and reports that must be included. We have carried out in-depth studies on water purification technology to reach or even undercut required limit values, and which can also provide us with an opportunity to bring forward a timely pumping of mining water, constituting a possibility to save both time and investments subsequent to a rewarded environmental permit. We are increasingly convinced that we have a unique chance to open a modern mine with a financial and an ecological model beyond the ordinary. As reported in September 2021, we have adapted the plans to a significantly enlarge the future mining operation, compared to previous plans, with a potentially higher yearly milled run-rate and an increased production capacity in our processing plant. This is based on positive indications at our core shed and the general situation in the copper market.

Opportunities in existing tailing ponds

In February, we also applied for an exploitation concession for the tailing ponds in Viscaria, as there is a possibility of re-enriching the sand from the previous mining operations. This is fully in line with our ambitions for a sustainable business. We have carried out extensive studies of the tailings and ensured economic potential regarding the levels of copper, gold, zinc, cobalt and silver.

Financial reinforcement

We are also strong financially. At the beginning of February, we successfully completed a directed share issue that raised SEK 147.9 million before transaction costs. The directed share issue was subscribed for by institutional and qualified investors, including Santhe Dahl Invest AB, Skandinavkonsult i Stockholm AB and RoosGruppen AB.

Approximately 70 percent of the directed share issue was subscribed for by for the company new investors. The proceeds from the directed share issue will accelerate continued investments ahead of the reopening of the Viscaria mine in Kiruna. A priority investment area is core drilling in order to secure and expand the mineral resources. With a stronger balance sheet, we will strengthen our position in dialogues with various stakeholders and future suppliers, which will be intensified during the year. This applies to partners and contractors for our planned processing plant. During March/April, we also plan to restart core drilling in Arvidsjaur. Viscaria is

still our main focus, as this project is closer to mining, yet we are optimistic about the possibility of developing Arvidsjaur in parallel and see good opportunities to expand our mineral resources there as well.

Deepened sustainability work

We have also continued to work with our framework for the sustainability reporting that will be part of the annual report. It means that we are reviewing which areas Copperstone will have the largest impact and how we, with our business, can contribute to a sustainable future in the best way possible. We have thus continued to take clear steps in our vision to deliver sustainably produced copper to enable a carbon-neutral future. Based on our analyzes, we are convinced that right from the start of production, we will be one of the leading copper mines in the world when it comes to low CO2 emissions.

Anna Tyni, CEO Copperstone Resources

Copperstone Resources AB Org. nr 556704-4168

Q4 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, gold, cobalt, and zinc. The planned mining operations are subject to an environmental 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, reindeer herders, outdoor life, and the local community.

During the summer 2021, 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 2021, the decision was made that the application will be submitted to the Land and Environment Court during first quarter 2022. During the autumn, the group 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 continued 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. Alongside with this work, Copperstone is working with collecting additional data and material to continue to develop the sustainability work in line with the group's vision. Copperstone intends to present a 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

Q4 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

Q4 2021 4

GROUP FINANCIAL INFORMATION

OCTOBER - DECEMBER 2021

During the fourth quarter of 2021, Copperstone´s focus was primarily on the Viscaria Project. Capitalized exploration assets within the Copperstone Group at the end of the period increased to 454,363 KSEK (344,655 by December 31, 2020).

Net sales for the quarter were 0 (0) KSEK and result of the quarter amounted to -4,475 KSEK (16,213).

The cash flow during the quarter was -45,603 KSEK (-11,713). The cash flow from operations were 5,006 KSEK (32,414). Net investments amounted to -47,846 KSEK (-19,084). Net change in liquidity from financing during period was -2,763(-25,043) KSEK.

JANUARY - DECEMBER 2021

Net sales for the period were 0 (0) KSEK and result of the period amounted to -16,249 KSEK (6,909).

The cash flow during the period was 123,339 KSEK (-18,146). The cash flow from operations were

24,157 KSEK (27,893). Net investments amounted to -112,039 KSEK (-41,431). Net change in liquidity from financing during period was 259,535 (-4,608) KSEK.

FINANCIAL POSITION AS PER DECEMBER 31, 2021

Assets as per December 31, 2021

Capitalized Mining and Exploration assets of 454.4 MSEK (344.7 as per December 31, 2020).

Cash at hand amounted to 124 MSEK, compared to 1 MSEK as per December 31, 2020.

In February 2022, a directed share issue was completed, raising 148 MSEK, with the purpose to procure capital in a time and cost-effective manner prior to the forthcoming submission of the company's environmental application in March 2022 and diversify the ownership base.

Interest-bearing debt as per December 31, 2021

Norrlandsfonden held 15.8 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

OCTOBER - DECEMBER 2021

Net sales for the period were 0 (0) KSEK and result before taxes amounted to -4,333 KSEK (-4,941).

During the period, the capitalized exploration assets has amounted to 725 (199) KSEK. Total operating expenses amounted to 6,984 KSEK (7,673).

JANUARY - DECEMBER 2021

Net sales for the period were 0 (0) KSEK and the result for the period amounted to -16,091 KSEK (-13,930).

During the period, the capitalized exploration assets has amounted to 2,235 (1,083) KSEK. Total operating expenses amounted to 27,965 KSEK (19,824).

Copperstone Resources AB Org. nr 556704-4168

Q4 2021 5