Ero Copper : First Quarter Results for the period ended March 31, 2024 - CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED

MARCH 31, 2024 AND 2023

Ero Copper Corp.
Table of Contents
CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Statements of Financial Position	1
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income	2
Condensed Consolidated Statements of Cash Flow	3
Condensed Consolidated Statements of Changes in Shareholders' Equity	4
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
General
Note 1. Nature of Operations	5
Note 2. Basis of Preparation	5
Note 3. Segment Disclosure	6
Statements of Financial Position
Note 4. Inventories	9
Note 5. Other Current Assets	9
Note 6. Mineral Properties, Plant and Equipment	10
Note 7. Exploration and Evaluation Assets	11
Note 8. Deposits and Other Non-currentAssets	11
Note 9. Accounts Payable and Accrued Liabilities	11
Note 10. Loans and Borrowings	12
Note 11. Deferred Revenue	13
Note 12. Other Non-currentLiabilities	14
Note 13. Share Capital	14
Statements of Earnings
Note 14. Revenue	18
Note 15. Cost of Sales	19
Note 16. General and Administrative Expenses	19
Note 17. Finance Expense	20
Note 18. Foreign Exchange (Loss) Gain	20
Other Items
Note 19. Financial Instruments	20
Note 20. Supplemental Cash Flow Information	24
Note 21. Commitment	24
Note 22. Subsequent Events	24

Ero Copper Corp.

Condensed Consolidated Statements of Financial Position

(Unaudited, Amounts in thousands of US Dollars)

				Notes				March 31, 2024			December 31, 2023
ASSETS
Current
Cash and cash equivalents			$	51,692	$	111,738
Accounts receivable						8,061			5,710
Inventories	4					35,092			42,254
Income tax receivable						2,788			500
Other current assets	5					32,327			39,285
									129,960			199,487
Non-Current
Mineral properties, plant and equipment	6					1,301,390			1,251,998
Exploration and evaluation assets	7					30,209			29,936
Deferred income tax assets						1,063			1,315
Deposits and other non-current assets	8					37,913			28,952
									1,370,575			1,312,201
Total Assets			$	1,500,535	$	1,511,688
LIABILITIES
Current
Accounts payable and accrued liabilities	9		$	109,095	$	120,704
Current portion of loans and borrowings	10					16,059			20,381
Current portion of deferred revenue	11					17,029			17,159
Income taxes payable						3,870			3,997
Current portion of derivatives	19					483			563
Current portion of lease liabilities						12,029			10,996
									158,565			173,800
Non-Current
Loans and borrowings	10					450,743			405,852
Deferred revenue	11					53,283			58,390
Provision for rehabilitation and closure costs						25,807			26,687
Deferred income tax liabilities						4,911			10,863
Lease liabilities						7,587			8,607
Other non-current liabilities	12					20,216			18,158
									562,547			528,557
Total Liabilities						721,112			702,357
SHAREHOLDERS' EQUITY
Share capital	13					271,759			271,336
Equity reserves						(39,867)			(16,616)
Retained earnings						542,389			549,530
Equity attributable to owners of the Company						774,281			804,250
Non-controlling interests						5,142			5,081
									779,423			809,331
Total Liabilities and Equity			$	1,500,535	$	1,511,688
Commitments (Notes 7, 11 and 21); Subsequent Events (Notes 10 and 22)
APPROVED ON BEHALF OF THE BOARD:
	"David Strang" , CEO and Director			"Jill Angevine" , Director

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Page 1

Ero Copper Corp.

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income

(Unaudited, Amounts in thousands of US Dollars, except share and per share amounts)

				Three months ended March 31,
	Notes		2024			2023
Revenue	14		$	105,793	$	100,956
Cost of sales	15			(74,616)			(60,848)
Gross profit				31,177			40,108
Expenses
General and administrative	16			(11,514)			(12,216)
Share-based compensation	13 (e)		(6,545)			(5,017)
Income before the undernoted				13,118			22,875
Finance income				1,468			4,138
Finance expense	17			(4,634)			(6,526)
Foreign exchange (loss) gain	18			(18,996)			8,621
Other income				361			58
(Loss) earnings before income taxes				(8,683)			29,166
Current income tax expense				(3,330)			(2,100)
Deferred income tax recovery (expense)				5,183			(2,566)
Income tax recovery (expense)				1,853			(4,666)
Net (loss) income for the period			$	(6,830)	$	24,500
Other comprehensive (loss) gain
Foreign currency translation (loss) gain				(24,680)			17,641
Comprehensive (loss) income			$	(31,510)	$	42,141
Net (loss) income attributable to:
Owners of the Company				(7,141)			24,154
Non-controlling interests				311			346
			$	(6,830)	$	24,500
Comprehensive (loss) income attributable to:
Owners of the Company				(31,621)			41,667
Non-controlling interests				111			474
			$	(31,510)	$	42,141
Net (loss) income per share attributable to owners of the Company
Basic	13 (f)	$	(0.07)	$	0.26
Diluted	13 (f)	$	(0.07)	$	0.26
Weighted average number of common shares outstanding
Basic	13 (f)		102,769,444			92,294,045
Diluted	13 (f)		102,769,444			93,218,281

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Page 2

Ero Copper Corp.

Condensed Consolidated Statements of Cash Flow

(Unaudited, Amounts in thousands of US Dollars)

				Three months ended March 31,
	Notes		2024			2023
Cash Flows from Operating Activities
Net (loss) income for the period			$	(6,830)	$	24,500
Adjustments for:
Amortization and depreciation				23,296			16,506
Income tax (recovery) expense				(1,853)			4,666
Amortization of deferred revenue	14			(5,923)			(4,039)
Share-based compensation				6,545			5,017
Finance income				(1,468)			(4,138)
Finance expenses				4,634			6,526
Foreign exchange loss (gain)				19,498			(8,448)
Other				(9)			2,886
Changes in non-cash working capital items	20			(20,574)			(27,751)
				17,316			15,725
Advance from NX Gold PMPA	11			1,105			2,439
Derivative contract settlements				2,126			(853)
Provision settlements				(688)			(554)
Income taxes paid				(2,627)			(364)
				17,232			16,393
Cash Flows used in Investing Activities
Additions to mineral properties, plant and equipment				(106,589)			(83,317)
Additions to exploration and evaluation assets				(1,201)			(3,045)
Proceeds from short-term investments and interest received				731			117,439
				(107,059)			31,077
Cash Flows used in Financing Activities
Lease liability payments				(3,110)			(2,606)
New loans and borrowings, net of transaction costs	10			50,135			1,120
Loans and borrowings repaid	10			(2,617)			(2,159)
Interest paid on loans and borrowings	10			(13,352)			(13,299)
Other finance expenses paid				(1,286)			(1,910)
Proceeds from exercise of stock options				298			2,952
				30,068			(15,902)
Effect of exchange rate changes on cash and cash equivalents				(287)			638
Net (decrease) increase in cash and cash equivalents				(60,046)			32,206
Cash and cash equivalents - beginning of period				111,738			177,702
Cash and cash equivalents - end of period			$	51,692	$	209,908
Supplemental cash flow information (note 20)

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Page 3

Ero Copper Corp.

Condensed Consolidated Statements of Changes in Shareholders' Equity

(Unaudited, Amounts in thousands of US Dollars, except share and per share amounts)

			Share Capital			Equity Reserves
																					Non-
			Number of					Contributed			Foreign		Retained					controlling
	Notes		shares			Amount			Surplus		Exchange			Earnings			Total			interest		Total equity
Balance, December 31, 2022			92,182,633	$	148,055	$	11,185	$	(77,374)	$	456,726	$	538,592	$	3,573	$	542,165
Income for the period			-			-			-			-			24,154			24,154			346			24,500
Other comprehensive income for the period			-			-			-			17,513			-			17,513			128			17,641
Total comprehensive income for the period			-			-			-			17,513			24,154			41,667			474			42,141
Shares issued for:
Exercise of options			337,779			4,218			(1,266)			-			-			2,952			-			2,952
Share-based compensation	13 (e)	-			-			720			-			-			720			-			720
Dividends to non-controlling interest			-			-			-			-			-			-			(54)			(54)
Balance, March 31, 2023			92,520,412		$	152,273		$	10,639		$	(59,861)		$	480,880		$	583,931		$	3,993		$	587,924
Balance, December 31, 2023			102,747,558	$	271,336	$	8,497	$	(25,113)	$	549,530	$	804,250	$	5,081	$	809,331
Income (loss) for the period			-			-			-			-			(7,141)			(7,141)			311			(6,830)
Other comprehensive loss for the period			-			-			-			(24,480)			-			(24,480)			(200)			(24,680)
Total comprehensive income (loss) for the			-			-			-			(24,480)			(7,141)			(31,621)			111			(31,510)
period
Shares issued for:
Exercise of options			21,886			423			(125)			-			-			298			-			298
Share-based compensation	13 (e)	-			-			1,354			-			-			1,354			-			1,354
Dividends to non-controlling interest			-			-			-			-			-			-			(50)			(50)
Balance, March 31, 2024			102,769,444	$	271,759	$	9,726	$	(49,593)	$	542,389	$	774,281	$	5,142	$	779,423

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Page 4

Ero Copper Corp.

Notes to Condensed Consolidated Interim Financial Statements

(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

1. Nature of Operations

Ero Copper Corp. ("Ero" or the "Company") was incorporated on May 16, 2016 under the Business Corporations Act (British Columbia) and maintains its head office at Suite 1050, 625 Howe Street, Vancouver, British Columbia, Canada, V6C 2T6. The Company's shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol "ERO".

The Company's primary asset is its 99.6% ownership interest in Mineração Caraíba S.A. ("MCSA"), held indirectly through its wholly-owned subsidiary, Ero Brasil Participaçoes Ltda. The Company also currently owns a 97.6% ownership interest in NX Gold S.A. ("NX Gold") indirectly through its wholly-owned subsidiary, Ero Gold Corp. ("Ero Gold").

MCSA is a Brazilian copper company which holds a 100% interest in the Caraíba Operations and the Tucumã Project (formerly known as the Boa Esperança Project). MCSA's predominant activity is the production and sale of copper concentrate from the Caraíba Operations, located in Bahia, Brazil, with gold and silver produced and sold as by-products. The Tucumã Project, which is currently under construction with production of copper concentrate scheduled to commence in the second half of 2024, is located within the municipality of Tucumã in the southeastern part of the state of Pará, Brazil.

NX Gold is a Brazilian gold mining company which holds a 100% interest in the Xavantina Operations and is focused on the production and sale of gold as its main product and silver as its by-product. The Xavantina Operations are located approximately 18 kilometers west of the town of Nova Xavantina, in southeastern Mato Grosso State, Brazil.

2. Basis of Preparation

1. Statement of Compliance
   These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standards ("IAS") 34, Interim Financial Reporting and follow the same accounting policies and methods of application as the Company's most recent annual consolidated financial statements for the year ended December 31, 2023.
   These condensed consolidated interim financial statements do not include all of the information required for full consolidated annual financial statements and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended December 31, 2023, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
   These condensed consolidated interim financial statements were authorized for issue by the Board of Directors of the Company (the "Board") on May 7, 2024.
2. Use of Estimates and Judgments
   In preparing these condensed consolidated interim financial statements, management has made judgments, estimates and assumptions that affect the application of the Company's accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ. Significant judgments made by management in applying the Company's accounting policies and key sources of estimation uncertainty were the same as those applied in the most recent annual audited consolidated financial statements for the year ended December 31, 2023.

Notes to Financial Statements | Page 5

Ero Copper Corp.

Notes to Condensed Consolidated Interim Financial Statements

(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

(c) New Accounting Policies, Standards and Interpretations

On January 1, 2024, the Company adopted the following amendments to accounting standards:

• In January 2020, the IASB issued Classification of Liabilities as Current or Non-current (Amendments to IAS 1) which amended IAS 1, Presentation of Financial Statements ("IAS 1"), to clarify the requirements for presenting liabilities in the statement of financial position. The amendments specify that the Company must have the right to defer settlement of a liability for at least 12 months after the reporting period for the liability to be classified as non-current.In addition, the amendments clarify that: (a) the Company's right to defer settlement must exist at the end of the reporting period; (b) classification is unaffected by management's intentions or expectations about whether the Company will exercise its right to defer settlement; (c) if the Company's right to defer settlement is subject to the Company complying with specified conditions, the right exists at the end of the reporting period only if the Company complies with those conditions at the end of the reporting period, even if the lender does not test compliance until a later date; and (d) the term settlement includes the transfer of the Company's own equity instruments to the counterparty that results in the extinguishment of the liability, except when the settlement of the liability with the Company transferring its own equity instruments is at the option of the counterparty and such option has been classified as an equity instrument, separate from the host liability.
• In October 2022, the IASB issued amendment Non-currentLiabilities with Covenants to IAS 1 to clarify that covenants of loan arrangements which the Company must comply with only after the reporting date would not affect classification of a liability as current or non-current at the reporting date. The amendment also introduces additional disclosure requirements related to such covenants to include: (i) the nature of the covenants and the date by which the Company must comply with the covenants; (ii) the carrying amount of the related liabilities; and (iii) facts and circumstances, if any, that indicate that the Company may have difficulty complying with covenants

The adoption of these amendments did not have a material impact on the Company's condensed consolidated interim financial statements.

3. Segment Disclosure

Operating segments are determined by the way information is reported and used by the Company's Chief Operating Decision Maker ("CODM") to review operating performance. The Company monitors the operating results of its operating segments independently for the purpose of making decisions about resource allocation and performance assessment.

For the three months ended March 31, 2024, the Company's reporting segments include its two operating mines in Brazil, the Caraíba Operations and the Xavantina Operations, its development project, the Tucumã Project in Brazil, and its corporate head office in Canada. Significant information relating to the Company's reportable segments is summarized in the tables below:

Notes to Financial Statements | Page 6

Ero Copper Corp.

Notes to Condensed Consolidated Interim Financial Statements

(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

Three months ended March 31,			Caraíba			Xavantina			Tucumã		Corporate and
2024			(Brazil)			(Brazil)			(Brazil)			Other		Consolidated
Revenue	$	73,856	$	31,937	$	-	$	-	$	105,793
Cost of production			(42,227)			(7,255)			-			-			(49,482)
Depreciation and depletion			(17,561)			(5,283)			-			-			(22,844)
Sales expense			(1,818)			(472)			-			-			(2,290)
Cost of sales			(61,606)			(13,010)			-			-			(74,616)
Gross profit			12,250			18,927			-			-			31,177
Expenses
General and administrative			(6,354)			(1,601)			-			(3,559)			(11,514)
Share-based compensation			-			-			-			(6,545)			(6,545)
Finance income			820			116			-			532			1,468
Finance expenses			(3,392)			(968)			-			(274)			(4,634)
Foreign exchange (loss) gain			(19,058)			1			-			61			(18,996)
Other income (expenses)			290			75			-			(4)			361
(Loss) income before taxes			(15,444)			16,550			-			(9,789)			(8,683)
Current tax expense			(5)			(1,801)			-			(1,524)			(3,330)
Deferred tax recovery (expense)			5,396			(213)			-			-			5,183
Net (loss) income	$	(10,053)	$	14,536	$	-	$	(11,313)	$	(6,830)
Capital expenditures(1)
		41,604			4,406			50,039			1,124			97,173
Assets
Current	$	76,717	$	21,654	$	4,956	$	26,633			129,960
Non-current			887,555			92,727			372,997			17,296			1,370,575
Total Assets		$	964,272		$	114,381		$	377,953		$	43,929		$	1,500,535
Total Liabilities	$	120,940	$	90,991	$	34,502	$	474,679			721,112

1. Capital expenditures include additions to mineral properties, plant and equipment and additions to exploration and evaluation asset, net of non-cash additions such as change in estimates to mine closure costs, capitalized depreciation expense, capitalized borrowing costs, and additions of right-of-use assets.

During the three months ended March 31, 2024, Caraíba earned revenues from one customer (March 31, 2023 - two) while Xavantina earned revenues from two customers (March 31, 2023 - two).

Notes to Financial Statements | Page 7

Ero Copper Corp.

Notes to Condensed Consolidated Interim Financial Statements

(Unaudited, Tabular amounts in thousands of US Dollars, except share and per share amounts)

Three months ended March 31,			Caraíba			Xavantina			Tucumã		Corporate and
2023			(Brazil)			(Brazil)			(Brazil)			Other		Consolidated
Revenue	$	77,300	$	23,656	$	-	$	-	$	100,956
Cost of production			(36,285)			(6,107)			-			-			(42,392)
Depreciation and depletion			(12,468)			(3,936)			-			-			(16,404)
Sales expenses			(1,875)			(177)			-			-			(2,052)
Cost of sales			(50,628)			(10,220)			-			-			(60,848)
Gross profit			26,672			13,436			-			-			40,108
Expenses
General and administrative			(6,548)			(1,309)			-			(4,359)			(12,216)
Share-based compensation			-			-			-			(5,017)			(5,017)
Finance income			2,005			285			-			1,848			4,138
Finance expenses			(826)			(1,109)			-			(4,591)			(6,526)
Foreign exchange gain			8,592			-			-			29			8,621
Other income (expenses)			66			(6)			-			(2)			58
Income (loss) before taxes			29,961			11,297			-			(12,092)			29,166
Current tax expense			(385)			(1,195)			-			(520)			(2,100)
Deferred tax expense			(2,467)			(99)			-			-			(2,566)
Net income (loss)	$	27,109	$	10,003	$	-	$	(12,612)	$	24,500
Capital expenditures			54,419			5,905			26,520			2,015			88,859
Assets
Current	$	112,272	$	32,707	$	7,408	$	178,854			331,241
Non-current			681,843			79,646			117,685			11,425			890,599
Total Assets		$	794,115		$	112,353		$	125,093		$	190,279		$	1,221,840
Total Liabilities	$	99,064	$	103,704	$	9,238	$	421,910			633,916

Notes to Financial Statements | Page 8