Kutcho Copper Corp. announce that it has entered into an amendment agreement with Wheaton Precious Metals Corp. in respect of the Precious Metals Purchase Agreement dated December 14, 2017, as amended.

The Original Agreement, as amended by the Amendment, is referred to as the "PMPA". The Amendment provides for the settlement and termination of the Company's debt instruments and loan agreement, both as amended with Wheaton, totalling in aggregate approximately CAD 38,400,000 as consideration for: (i) the issuance to Wheaton of USD 7,500,000 of common shares in the capital of Kutcho; and (ii) the removal of the Stream Reduction, as defined below together with certain amendments to the Original Agreement as detailed below. Please refer to Kutcho's news releases of August 10, 2017 and December 15, 2017 regarding the Original Agreement and the Convertible Debenture, the November 15, 2019 news release regarding the Loan Agreement and certain amendments to the Convertible Debenture, and the June 30, 2021 news release regarding recent interest deferrals.

Under the Original Agreement, the precious metals stream was to be reduced from 100% to 66.67% of payable gold and silver production after the delivery of 5.6 million ounces of silver and 51,000 ounces of gold ("Stream Reduction"). In connection with the settlement and termination of the Convertible Debenture and Loan Agreement, the Amendment removes the Stream Reduction and the additional expansion payment of up to USD 20 million that was to be payable by Wheaton in the event of future processing capacity increases as contemplated in the Original Agreement. The amount settled under the Convertible Debenture and Loan Agreement, less the value of the Common Shares issued to Wheaton, will comprise an additional deposit of Wheaton under the PMPA.

Wheaton remains obligated to pay the remaining upfront deposit of USD 58 million (being the balance remaining from the original deposit amount of USD 65 million), subject to the terms and conditions of the PMPA, and will also make continuing cash payments equal to 20% of the applicable spot price of silver and gold for each ounce delivered under the PMPA.