NEWS RELEASE, 4 OCTOBER 2022

LOS PELAMBRES DESALINATION PROJECT UPDATE

On 12 September the Company announced that severe sea swells had overturned a construction platform working on the marine works of the Los Pelambres desalination plant project. At that time, the environmental regulator, the SMA, halted all marine works pending the recovery of the lost equipment and materials. This restriction expired on 3 October and has not been extended.

Sea conditions continue to prevent the complete recovery of all the lost equipment and this has prevented the resumption of marine construction work since this restriction was enforced in September. As a result, the suspension of the works has impacted the completion schedule for the desalination plant project. A revised schedule incorporating this delay together with the impact of continued sea swells on the remaining marine works is being finalised.

There is not expected to be a material increase in the total capital cost of the project as a result of the delayed resumption of works.

Despite the revision of the completion date of the desalination plant, water availability this year at Los Pelambres will allow Group copper production in 2022 to reach the lower end of the 640-660,000 tonne guidance range.

The completion of the desalination plant is now estimated to impact previously planned production in 2023 by approximately 30,000 tonnes. This will be reflected in the Group's total copper production guidance for the year which will be announced in the Company's Q3 Production Report on 19 October.

The overturned platform has caused no significant environmental impact to date.

Cautionary Statement

This announcement contains certain forward-looking statements. All statements other than historical facts are forward-looking statements. Examples of forward-looking statements include, without limitation, those regarding the Group's strategy, plans, objectives or future operating or financial performance, reserve and resource estimates, commodity demand and trends in commodity prices, growth opportunities, and any assumptions underlying or relating to any of the foregoing. Words such as "intend", "aim", "project", "anticipate", "estimate", "plan", "believe", "expect", "may", "should", "will", "continue" and similar expressions identify forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that are beyond the Group's control. Given these risks, uncertainties and assumptions, actual results, performance or achievements could differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, which apply only as at the date of this report. These forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. Important factors that could cause actual results, performance or achievements to differ from those in the forward-looking statements include, but are not limited to: natural events, global economic and financial conditions (which may affect our business, results of operations or financial condition); various political, economic, legal, regulatory, social and other risks and uncertainties across jurisdictions in which the Group operates; changes to mining concessions or the imposition of new mining royalties, or changes to existing mining royalties in the jurisdictions in which the Group operates; the Group's ability to comply with the extensive body of regulations governing the mining industry, as well as the need to manage relationships with local communities; the ongoing effects of the global COVID-19 pandemic; demand, supply and prices for copper and other long-term commodity price assumptions (as they materially affect the timing and feasibility of future projects and developments); trends in the copper mining industry and conditions of the international copper markets; the effect of currency exchange rates on commodity prices and operating costs; the availability and costs associated with mining inputs and labour; operating or technical difficulties in connection with mining or development activities;  risks, hazards and/or events and conditions inherent to the mining industry, which may affect our operations or facilities; employee relations; climate change as well as the effects of extreme weather conditions; the outcome of any litigation arbitration, regulatory or administrative proceedings to which the Group is and may be subject in the future; and actions and activities of governmental authorities, including changes to laws, regulations or taxation.

Except as required by applicable law, rule or regulation, the Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Past performance cannot be relied on as a guide to future performance.

No statement in this announcement is intended as a profit forecast or estimate for any period. No statement in this announcement should be interpreted to indicate a particular level of profit and, as a consequence, it should not be possible to derive a profit figure for any future period from this report.