26 May 2026

Atalaya Mining Copper, S.A.

("Atalaya" or the "Company")

Q1 2026 Financial Results

Good financial performance to begin 2026 despite lower production

Atalaya Mining (LSE: ATYM) is pleased to announce its unaudited first quarter financial results for the period ended 31 March 2026 ("Q1 2026" or "the Period") together with its interim financial statements.

Highlights

·      Copper production of 9.9 kt, which was impacted by unfavourable weather 

·      Cash Costs of US$2.52/lb and AISC of US$3.20/lb, which are consistent with FY2026 cost guidance despite lower copper production

·      EBITDA of €48.0 million, which represents solid performance to begin FY2026

·      Robust balance sheet, including net cash of €266.4 million, which supports Atalaya's pipeline of copper growth projects in Spain

·      Positive progress at Touro, where the environmental impact statement (DIA) is expected to be finalised before the summer

Q1 2026 Financial Results Summary

(1)      Includes restricted cash and bank borrowings at 31 March 2026 and 31 March 2025.

Alberto Lavandeira, CEO, commented:

"We delivered solid financial performance in Q1 2026 despite our lower production during the quarter. Since April, we have recovered a portion of this shortfall and remain focused on making further progress throughout the year.

We are also closely monitoring potential cost pressures arising from the conflicts in the Middle East, particularly in relation to the diesel price and other consumables. In this uncertain environment, Atalaya benefits from a robust balance sheet, supported by ongoing cash generation and the recent equity offering. Together, these provide us with a strong platform to advance our near- and medium-term copper growth projects in Spain.

At Touro, we are very pleased with the feedback received to date and encouraged by the positive comments from officials in Galicia regarding the expected timing for finalising the environmental impact statement. Thanks to our financial strength and the extensive preparatory work already completed by our dedicated team in Galicia, we are well-positioned to begin development as soon as the required approvals are received.

Looking ahead, we are increasingly confident in the outlook for both our business and the copper market. Despite ongoing geopolitical uncertainty, copper demand remains robust, while the industry's supply response continues to face challenges from operational issues at major copper mines globally."

Results Presentations

Analyst and Investor Presentation

Alberto Lavandeira (CEO) and César Sánchez (CFO) will host a webcast for analysts and investors today at 9:00 BST.

To access the SparkLive webcast, please visit:

Atalaya Mining Q1 2026 Results | SparkLive | LSEG

Investor Meet Company Presentation

In addition, the Company will be holding a live presentation via the Investor Meet Company platform today at 11:00 BST.

To access the Investor Meet Company presentation, please visit:

https://www.investormeetcompany.com/atalaya-mining-copper-sa/register-investor

Management will also answer questions that have been submitted via the Investor Meet Company dashboard.

Q1 2026 Operating Results Summary

(1)      Represents the Cerro Colorado pit only.

Mining

Ore mined was 3.4 million tonnes in Q1 2026 (Q1 2025: 3.7 million tonnes). As previously disclosed, unusually high rainfall in late January and early February 2026 reduced access to certain mining areas in the Cerro Colorado pit. 

Waste mined was 10.2 million tonnes in Q1 2026 (Q1 2025: 11.3 million tonnes). In addition, waste stripping activities continued at the San Dionisio area.

Processing

Ore processed was 4.1 million tonnes in Q1 2026 (Q1 2025: 4.2 million tonnes), representing strong plant performance.

Copper grade was 0.30% in Q1 2026 (Q1 2025: 0.42%). During the Period, the plant feed was supplemented with low-grade ore stockpiles in order to compensate for pit access limitations following the heavy rainfall events in late January and early February 2026.

Copper recovery was 81.54% in Q1 2026 (Q1 2025: 80.98%).

Production

Copper production was 9,939 tonnes in Q1 2026 (Q1 2025: 14,291 tonnes), which was impacted by lower grades following the heavy rainfall events during the Period. In addition, silver contained in copper concentrate was 0.20 million ounces in Q1 2026 (Q1 2025: 0.28 million ounces).

On-site copper concentrate inventories were 5,083 tonnes at 31 March 2026 (31 March 2025: 19,031 tonnes).

Copper contained in concentrates sold was 9,767 tonnes in Q1 2026 (Q1 2025: 14,687 tonnes).

Cash Costs and AISC Breakdown

(1)      Represents the Cerro Colorado pit only.

Note: Some figures may not add up due to rounding.

Cash costs were US$2.52/lb payable copper in Q1 2026 (Q1 2025: US$2.25/lb), which increased due to lower production and a stronger EUR/USD exchange rate but were partly offset by strong silver credits and lower treatment charges.

AISC were US$3.20/lb payable copper in Q1 2026 (Q1 2025: US$2.74/lb), with the increase in costs due to the same factors that impacted cash costs as well as higher capitalised stripping costs at Cerro Colorado. AISC excludes investments in the tailings dam (consistent with prior reporting) and waste stripping at the San Dionisio area.

Q1 2026 Financial Results Highlights

Income Statement

Revenues were €117.3 million in Q1 2026 (Q1 2025: €130.7 million), as a result of lower copper production but partly offset by higher copper prices, higher silver credits and lower offsite costs.

Operating costs were €69.2 million in Q1 2026 (Q1 2025: €78.2 million), as a result of lower concentrate sales, lower electricity costs and higher inventory balances at the end of the period.

EBITDA was €48.0 million in Q1 2026 (Q1 2025: €52.5 million), as a result of lower revenues but partly offset by lower operating costs.

Profit after tax was €28.3 million in Q1 2026 (Q1 2025: €30.5 million) or 19.0 cents basic earnings per share (Q1 2025: 21.6 cents).

Cash Flow Statement

Cash flows from operating activities before changes in working capital were €47.4 million in Q1 2026 (Q1 2025: €52.8 million) and €29.8 million after working capital changes (Q1 2025: €26.0 million). Working capital changes were impacted by higher trade and other receivables at period end.

Cash flows used in investing activities were €29.5 million in Q1 2026 (Q1 2025: €22.4 million). Key investments in Q1 2026 included €0.9 million in sustaining capex, €7.4 million in capitalised stripping at Cerro Colorado, €7.1 million related to the San Dionisio area, €2.9 million to expand the tailings dam, €1.8 million at Proyecto Touro, €0.5 million at Proyecto Masa Valverde, as well as €8.5 million in relation to the acquisition of shares in Lara Exploration Ltd.

Cash flows from financing activities were positive €113.7 million in Q1 2026 (Q1 2025: positive €13.6 million), which included €150.2 million in gross proceeds from the January 2026 equity offering, net repayment of borrowings of €31.0 million and transaction costs from the equity offering.

Balance Sheet

The Company's balance sheet is robust with consolidated cash and cash equivalents of €279.7 million as at 31 March 2026 (31 December 2025: €166.3 million), which includes the net proceeds from the January 2026 equity offering.

Current and non-current borrowings were €13.4 million, resulting in a net cash position of €266.4 million as at 31 March 2026 (31 December 2025: €122.0 million).

Inventories of concentrate valued at cost were €6.1 million at 31 March 2026 (31 December 2025: €3.8 million). The total working capital surplus was €254.4 million at 31 March 2026  (31 December 2025: €93.8 million).

Outlook for 2026

Production

The heavy rainfall events in late January and early February 2026 resulted in Q1 2026 copper production that was below budget. Subsequent to the Period, copper production has exceeded plans and therefore a portion of Q1 2026's production shortfall has been recovered.

The Company expects production for FY2026 to remain within the original guidance range of 50,000 to 54,000 tonnes of copper, along with silver contained in copper concentrate of 0.9 to 1.1 million ounces, although production is currently trending towards the low end of the guidance ranges.

Operating Costs

The recent conflicts in the Middle East have disrupted supply chains and resulted in higher prices for fossil fuels, especially diesel. At present, there is significant uncertainty around the short-term and long-term impacts of the conflict to date, and also around the likelihood that the conflict could escalate for a sustained period.

For certain consumables Atalaya has fixed price agreements in place, and in relation to electricity, Atalaya expects to benefit from its solar plant, long-term PPA and grid power that relies on a diversified energy mix.

Assuming the prices of diesel and explosives remain at current levels for the remainder of FY2026, the impact on Cash Costs and AISC would be US$0.15 - 0.20/lb higher than the FY2026 guidance provided in the Company's 2025 Annual Results (Cash Costs of US$2.60 - 2.90/lb and AISC of US$3.10 - 3.40/lb copper payable).

Non-Sustaining Capital Investments

Certain items included within the Company's capital investment guidance could also be impacted by higher diesel and explosives costs, such as waste stripping and tailings facility expansion, however, total non-sustaining capital investments for FY2026 are unlikely to exceed the previous guidance range of €75 - 102 million.

Corporate Activities Update

Fundraise

In January 2026, the Company completed an equity offering that raised gross proceeds of £130 million (or approximately €150 million). Proceeds from the fundraise will allow Atalaya to accelerate the development of its copper growth projects in Spain, and also be used to enhance financial flexibility and for potential new acquisition opportunities and regional partnerships.

Investment in Lara Exploration Ltd. (Subsequent Event)

On 2 April 2026, Atalaya announced that it had acquired 4,500,000 shares of Lara Exploration Ltd. (TSX-V: LRA) for C$13.5 million (or approximately €8.5 million). The shares were acquired via private placement at a price of C$3.00 per share and represent approximately 7.3% of Lara's issued and outstanding shares following completion of Lara's recent financings. Atalaya acquired the shares for investment purposes.

Asset Portfolio Update

Proyecto Riotinto

Stripping activities at San Dionisio continued during the Period, with total waste mined of 3.3 million tonnes in Q1 2026. San Dionisio represents a key component of Atalaya's strategy to increase copper production by sourcing higher-grade material from deposits throughout the Riotinto District to be blended with ore from Cerro Colorado.

At San Antonio, the polymetallic deposit located immediately east of the Cerro Colorado pit, infill and step-out drilling continued with the objective of increasing resource confidence and confirming deposit limits.

Atalaya continues to advance engineering works associated with processing plant modifications that would allow for the simultaneous treatment of polymetallic and copper ores at Riotinto, including refining the layout of the new circuits within the existing plant footprint in order to optimise capital and operating costs.

E-LIX Phase I Plant

In Q1 2026, trials were completed at the E-LIX facility in order to test the technology's suitability for processing ores with high silver content.

At present, the E-LIX plant is processing copper concentrates with high zinc content in order to extract zinc and produce zinc precipitates. Operating continuously and demonstrating consistent costs and plant performance are the core objectives for FY2026. 

Riotinto District - Proyecto Masa Valverde ("PMV")

Infill drilling continue at the Masa Valverde deposit, where the focus remains on copper-rich stockwork-style zones, which are expected to be amenable for processing at the existing Riotinto facilities. Preparatory work is ongoing ahead of a final Board decision regarding the access ramp.

PMV has been granted the two key permits required for development - the Unified Environmental Authorisation (or in Spanish, Autorización Ambiental Unificada ("AAU")) and the exploitation permit.

Proyecto Touro

Atalaya's local entity Cobre San Rafael ("CSR") has received positive feedback on the permitting process, which is being advanced under the Galician legislation that awarded Touro with the status of strategic industrial project (or in Spanish, Proyecto Industrial Estratégico ("PIE")) in 2024.

In recent weeks, senior officials of the Galicia regional government have stated in public that the environmental impact statement ("DIA") for Touro is well-advanced, with recent comments indicating favourable progress in relation to the remaining sectoral reports and that the DIA is expected to be finalised before the summer.  

In addition, the Xunta de Galicia recently announced plans to launch a new tender of mining rights, and senior officials have also commented about the opportunity for Galicia to begin exploiting the many minerals found in the region that have been classified as critical by the EU.

While it awaits the conclusion of the permitting process, CSR continues to advance early works including detailed engineering and procurement, documentation, limited land purchases and exploration drilling.

Proyecto Ossa Morena

A drilling programme is ongoing at the Guijarro gold project, where a total of 17 holes are planned in the current phase.

Proyecto Riotinto East

A drilling campaign is ongoing at the Cerro Negro permit.

Skellefte Belt and Rockliden (Sweden)

In November 2024, Atalaya announced that it had entered into two binding agreements with Mineral Prospektering i Sverige AB ("MPS") pursuant to which Atalaya can earn an initial 75% interest in two separate land packages in Sweden. The Skellefte Belt land package ("Skellefte Belt Project") and the Rockliden land package ("Rockliden Project") are located in two notable districts that host many large-scale volcanogenic massive sulphide ("VMS") deposits and mines owned by Boliden AB. Both regions are underexplored and could increase Atalaya's exposure to critical minerals in Europe.

The 2026 winter drilling campaign was completed in late March. While complete assays remain pending and detailed geological interpretations are currently underway, initial results have yielded several positive insights. The programme successfully extended known mineralisation from previous drill holes at both the Skellefte Belt and Rockliden projects. Furthermore, the campaign confirmed the efficacy of ground FLEM (Fixed Loop Electromagnetic) geophysics in refining airborne VTEM targets and successfully detecting sulphide mineralisation.

In 2026, a total of 23 drill holes (6,930 metres) were completed at the Skellefte Belt Project and 9 drill holes (1,812 metres) were completed at the Rockliden Project. Since the commencement of the earn-in agreements, cumulative drilling has totalled 43 holes (12,617 metres) at the Skellefte Belt Project and 25 holes (4,593 metres) at the Rockliden Project.

Over the coming months, ground geophysics will continue across high-priority target areas. This data will be used to define the next phase of drilling, which will focus on testing numerous regional targets and further extending known mineralisation zones.

The person responsible for arranging release of this Announcement on behalf of the Company is Cesar Sanchez.

This announcement contains information which, prior to its publication constituted inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Contacts:

About Atalaya Mining Copper, S.A.

Atalaya is a European copper producer that owns and operates the Proyecto Riotinto complex in southwest Spain. Atalaya's shares trade on the London Stock Exchange's Main Market under the symbol "ATYM" and Atalaya is a FTSE 250 Index constituent.

Atalaya's operations include the Cerro Colorado open pit mine and a modern 15 Mtpa processing plant, which has the potential to become a central processing hub for ore sourced from its wholly owned regional projects around Riotinto, such as Proyecto Masa Valverde and Proyecto Riotinto East. In addition, Atalaya has a phased earn-in agreement for up to 80% ownership of Cobre San Rafael S.L., which fully owns the Proyecto Touro brownfield copper project in the northwest of Spain, as well as a 99.9% interest in Proyecto Ossa Morena. For further information, please visit www.atalayamining.com

ATALAYA MINING COPPER, S.A.

MANAGEMENT'S REVIEW AND

UNAUDITED CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

31 March 2026

Notice to Reader

The accompanying Unaudited Condensed Consolidated Interim Financial Statements of Atalaya Mining Copper, S.A. have been prepared by and are the responsibility of its management.

Introduction

This report provides an overview and analysis of the financial results of operations of Atalaya Mining Copper, S.A. and its subsidiaries ("Atalaya", the "Company" and/or "Group"), to enable the reader to assess material changes in the financial position between 31 December 2025 and 31 March 2026 and results of operations for the three months ended 31 March 2026 and 2025.

This report has been prepared as of 25 May 2026. The analysis, hereby included, is intended to supplement and complement the Unaudited Condensed Consolidated Interim Financial Statements and notes thereto ("Financial Statements") as at and for the period ended 31 March 2026. The reader should review the Financial Statements in conjunction with the review of this report and with the audited, Consolidated Financial Statements for the year ended 31 December 2025. These documents can be found on Atalaya's website at www.atalayamining.com.

Atalaya prepares its Annual Financial Statements in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU) and the interpretations of the IFRS Interpretations Committee (IFRS IC) approved by Regulations of the European Commission, and its Unaudited Condensed Consolidated Interim Financial Statements in accordance with International Accounting Standard 34: Interim Financial Reporting. The currency referred to in this document is the Euro, unless otherwise specified.

Forward-looking statements

This report may include certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitute forward-looking statements. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based include that all required third party regulatory and governmental approvals will be obtained. Many of these assumptions are based on factors and events that are not within the control of Atalaya and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in this report and other documents filed with the applicable securities regulatory authorities. Although Atalaya has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Atalaya undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

1.    Incorporation and description of the Business

Atalaya Mining Copper S.A. was incorporated in Cyprus on 17 September 2004 as a private company with limited liability under the Companies Law, Cap. 113 and was converted to a public limited liability company on 26 January 2005. Its registered office after the cross-border conversion finished on 10 January 2025 is Paseo de las Delicias, 1, 3, 41001, Sevilla, Spain.

The Company was first listed on the Alternative Investment Market (AIM) of the London Stock Exchange in May 2005, trading under the symbol ATYM. On 29 April 2024, the Company was admitted to the premium listing segment of the Official List maintained by the FCA and to trading on the main market of the London Stock Exchange. After completion of the cross-border conversion, the Company's shares commenced trading under "Atalaya Mining Copper, S.A." on 10 January 2025 and the nominal value of the Company's shares were also adjusted from 7.5p to €0.09 per share.

Atalaya is a European mining and development company. The strategy is to evaluate and prioritise metal production opportunities in several jurisdictions throughout the well-known belts of base and precious metal mineralisation in Spain, elsewhere in Europe and Latin America.

The Company has interests in four mining projects: Proyecto Riotinto, Proyecto Touro, Proyecto Masa Valverde and Proyecto Ossa Morena. In addition, the Group has an earn-in agreement to acquire two investigation permits at Proyecto Riotinto East.

In November 2024, Atalaya entered into earn-in agreements on two exploration projects in Sweden (the Skellefte Belt and Rockliden) located in prospective volcanogenic massive sulphide ("VMS") districts.

Proyecto Riotinto

The Company owns and operates through a wholly owned subsidiary, "Proyecto Riotinto", an open-pit copper mine located in the Iberian Pyrite Belt, in the Andalusia region of Spain, approximately 65 km northwest of Seville. A brownfield expansion of this mine was completed in 2019 and successfully commissioned by Q1 2020.

Proyecto Touro

As described in the Annual Report 2025, the Group initially acquired a 10% stake in Cobre San Rafael, S.L. ("CSR"), the owner of Proyecto Touro, under an earn-in agreement that allowed the Group to acquire up to 80% of the copper project. Proyecto Touro, located in Galicia (north-west Spain), is currently in the permitting process.

In July 2017, the Group announced that it had executed the option to acquire 10% of CSR, a wholly owned subsidiary of Explotaciones Gallegas S.L. The earn-in agreement was structured in four phases, enabling the Group to gradually increase its stake in CSR up to 80%:

-     Phase 1 - The Group paid €0.5 million to secure and exclusive right to fund up to a maximum of €5.0 million to support the permitting and financing stages.

-     Phase 2 - Upon receipt of permits, the Group is required to pay €2.0 million to acquire an additional 30% interest in the project (cumulative 40%).

-     Phase 3 - Once development capital is secured and construction commences, the Group is required to pay €5.0 million to acquire an additional 30% interest in the project (cumulative 70%).

-     Phase 4 - Upon declaration of commercial production, the Group purchases an additional 10% interest (cumulative 80%) in consideration for a 0.75% Net Smelter Return royalty, with a buyback option.

The agreement was structured to ensure that payments would be made progressively as the project is de-risked, permitted, and becomes operational.

On 24 June 2024, Atalaya announced that Proyecto Touro, through CSR, had been declared a Strategic Industrial Project ("Proyecto Industrial Estratégico" or "PIE") by the Council of the Xunta de Galicia ("XdG"). Under Galician legislation, PIE status sought to simplify administrative procedures and aimed to shorten permitting timelines.

This declaration highlighted the XdG's commitment to promoting new investment in the region and aligned with the objectives of the European Union. As copper was considered a strategic raw material by the EU, the project was recognised for its potential to become a sustainable European source of copper production.

The XdG continued its review under the simplified procedures applicable to PIE projects. The public information period, which informed nearby communities and organisations about the proposed project, concluded on 31 January 2025. At that time, CSR was focused on analysing and responding to feedback from the public and assessing sectoral reports issued by various departments of the XdG.

As a result of developments during 2024, the Group concluded that it was likely that phases 2, 3 and 4 of the Touro project would be completed. Accordingly, in line with the Group's accounting policy on contingent payments, it recognised an intangible asset of €16.5 million as of year-end, together with the related contingent liabilities.

In accordance with the Group's policy on non-controlling interests, 20% of the newly recognised intangible asset was allocated to non-controlling interests, amounting to €3.3 million.

As also disclosed in the Annual Report 2024 and reflecting the Group's updated expectations regarding the completion of future phases, the Group reversed a previously recorded impairment from 2019 of €6.9 million, which related to capitalised expenses associated with Proyecto Touro.

In parallel, the Company continued to engage with local stakeholders through recruitment initiatives and maintained its water treatment operations to improve water quality in rivers around Touro.

Furthermore, the Company carried out infill and step-out drilling programmes, focused on areas within the initial mine plan where mineralisation remained open.

Proyecto Masa Valverde

On 21 October 2020, the Company announced that it had entered into a definitive purchase agreement to acquire 100% of the shares of Cambridge Mineria España, S.L. (since renamed Atalaya Masa Valverde, S.L.U.), a Spanish company which fully owns the Masa Valverde polymetallic project located in Huelva (Spain). Under the terms of the agreement Atalaya will make an aggregate €1.4 million cash payment in two approximately equal instalments. The first payment is to be executed once the project is permitted and the second and final payment when first production is achieved from the concession.

In November 2023, the exploitation permit for the Masa Valverde and Majadales deposits was officially granted. Following this milestone, in January 2024, the Company made a payment of €0.7 million as part of the process associated with the granted permits.

Proyecto Ossa Morena ("POM)

In December 2021, Atalaya announced the acquisition of a 51% interest in Rio Narcea Nickel, S.L., which owned 9 investigation permits. The acquisition also provided a 100% interest in three investigation permits that are also located along the Ossa-Morena Metallogenic Belt. In Q3 2022, Atalaya increased its ownership interest in POM to 99.9%, up from 51%, following completion of a capital increase that will fund exploration activities. During 2022 Atalaya rejected 8 investigation permits.

Atalaya will pay a total of €2.5 million in cash in three instalments and grant a 1% net smelter return ("NSR") royalty over all acquired permits. The first payment of €0.5 million was made following execution of the purchase agreement. The second and third instalments of €1 million each will be made once the environmental impact statement ("EIS") and the final mining permits for any project within any of the investigation permits acquired under the agreement are secured. In accordance with the agreement, these outstanding instalments are disclosed as a non-current payable to the sellers.

Proyecto Riotinto East

In December 2020, Atalaya entered into a Memorandum of Understanding with a local private Spanish company to acquire a 100% beneficial interest in three investigation permits (known as Peñas Blancas, Cerro Negro and Herreros investigation permits), which cover approximately 12,368 hectares and are located immediately east of Proyecto Riotinto. After a short drilling campaign, the Los Herreros investigation permit was rejected in June 2022. Proyecto Riotinto East consists of the remaining two investigation permits, Peñas Blancas and Cerro Negro, totalling 10,016 hectares.

Skellefte Belt Project and Rockliden Project

During 2024, the Group entered into earn-in agreements with Mineral Prospektering i Sverige AB ("MPS") in relation to the Skellefte Belt Project and the Rockliden Project, both situated in well-established volcanogenic massive sulphide districts renowned for their mineral resource potential.

Investment in Lara Exploration Ltd

On 2 April 2026, Atalaya announced that it had acquired 4,500,000 shares of Lara Exploration Ltd. (TSX-V: LRA) for C$13.5 million. The shares were acquired via private placement at a price of C$3.00 per share and represent approximately 7.3% of Lara's issued and outstanding shares following completion of the private placements as announced by Lara on 1 April 2026. Atalaya acquired the shares for investment purposes.

2.    Overview of Operational Results

Proyecto Riotinto

The following table presents a summarised statement of operations of Proyecto Riotinto for the three months ended 31 March 2026 and 2025, respectively.

(1) Represents the Cerro Colorado pit only.

(*) Refer Section 5 of this Management Review.

(1)   Represents the Cerro Colorado pit only.

Note: Some figures may not add up due to rounding.

Three months operational review

Mining

Ore mined was 3.4 million tonnes in Q1 2026 (Q1 2025: 3.7 million tonnes), compared with 3.9 million tonnes in Q4 2025.

Waste mined was 10.2 million tonnes in Q1 2026 (Q1 2025: 11.3 million tonnes), compared with 9.2 million tonnes in Q4 2025. In addition, waste stripping activities continued at the San Dionisio area.

Processing

The plant processed 4.1 million tonnes of ore in Q1 2026 (Q1 2025: 4.2 million tonnes) compared to 4.1 million tonnes in Q4 2025. This reflects ongoing strong plant performance, above the 15 million tonne per annum nameplate capacity.

Copper grade in Q1 2026 was 0.30% (Q1 2025: 0.42%) compared to 0.33% in Q4 2025.

Copper recovery was 81.54% in Q1 2026 (Q1 2025: 80.98%), compared with 83.87% in Q4 2025.

Production

Copper production was 9,939 tonnes in Q1 2026 (Q1 2025: 14,291 tonnes), compared with 11,550 tonnes in Q4 2025. Lower production in Q1 2026 was mainly due to unusually high rainfall in late January and early February 2026, which restricted access to certain mining areas within the Cerro Colorado pit.

On-site copper concentrate inventories stood at 5,083 tonnes at the end of Q1 2026, compared with 4,050 tonnes at 31 December 2025.

Copper contained in concentrates sold was 9,767 tonnes in Q1 2026 (Q1 2025: 14,687 tonnes), compared with 11,823 tonnes in Q4 2025.

3.    Outlook

The forward-looking information contained in this section is subject to the risk factors and assumptions contained in the cautionary statement on forward-looking statements included in the Basis of Reporting. Should the Company consider the current guidance no longer achievable, then the Company will provide a further update.

Operational guidance

Proyecto Riotinto operational guidance for 2026 is as follows:

(1)      Represents the Cerro Colorado pit only. Waste guidance is 57 - 67 million tonnes when including the San Dionisio pit.

(2)      Low end.

Production

The heavy rainfall events in late January and early February 2026 resulted in Q1 2026 copper production that was below budget. Subsequent to the Period, copper production has exceeded plans and therefore a portion of Q1 2026's production shortfall has been recovered.

The Company expects production for FY2026 to remain within the original guidance range of 50,000 to 54,000 tonnes of copper, along with silver contained in copper concentrate of 0.9 to 1.1 million ounces, although production is currently trending towards the low end of the guidance ranges.

Operating Costs

The recent conflicts in the Middle East have disrupted supply chains and resulted in higher prices for fossil fuels, especially diesel. At present, there is significant uncertainty around the short-term and long-term impacts of the conflict to date, and also around the likelihood that the conflict could escalate for a sustained period.

For certain consumables Atalaya has fixed price agreements in place, and in relation to electricity, Atalaya expects to benefit from its solar plant, long-term PPA and grid power that relies on a diversified energy mix. Assuming the prices of diesel and explosives remain at current levels for the remainder of FY2026, the impact on Cash Costs and AISC would be US$0.15 - 0.20/lb higher than the FY2026 guidance provided in the Company's 2025 Annual Results (Cash Costs of US$2.60 - 2.90/lb and AISC of US$3.10 - 3.40/lb copper payable).

Non-Sustaining Capital Investments

Certain items included within the Company's capital investment guidance could also be impacted by higher diesel and explosives costs, such as waste stripping and tailings facility expansion, however, total non-sustaining capital investments for FY2026 are unlikely to exceed the previous guidance range of €75 - 102 million.

4.    Overview of Financial Results

The following table presents summarised consolidated income statements for the three months ended 31 March 2026, with comparatives for the three months ended 31 March 2025.

Three months financial review

Revenues for the three-month period ended 31 March 2026 amounted to €117.3 million (Q1 2025: €130.7 million). The decrease in revenues was mainly due to lower copper concentrate volumes sold offset with higher realised copper prices and lower offsite costs.

Realised prices excluding quotation periods ("QPs") were US$5.87/lb copper during Q1 2026 compared with US$4.26/lb copper in Q1 2025. The realised price, including QPs was approximately US$5.40/lb during the quarter (Q1 2025: US$4.20/lb).

Cost of sales for the three-month period ended 31 March 2026 amounted to €59.3 million, compared with €72.3 million in Q1 2025. Lower costs were primarily attributable to lower concentrate sales volumes and lower electricity costs.

Cash costs of US$2.52/lb payable copper during Q1 2026 compared with US$2.25/lb in the same period last year. The increase in unit cash costs was mainly due to lower copper production in the quarter, combined with a weaker US Dollar/Euro exchange rate compared to Q1 2025. AISC for Q1 2026 excluding one-off investments in the tailings dam and San Dionisio stripping was US$3.20/lb payable copper compared to US$2.74/lb payable copper in Q1 2025. The increase was primarily due to higher cash costs and an increase in capitalised stripping.

Sustaining capex for Q1 2026 amounted to €0.9 million compared with €1.6 million in Q1 2025, mainly related to the new crusher and enhancements in the processing systems. In addition, the Company continues to invest in the tailings dam project storage capacity, having invested €2.9 million in Q1 2026 (Q1 2025 €4.0 million). Stripping costs capitalised for Cerro Colorado during Q1 2026 amounted to €7.4 million (Q1 2025: €7.2 million) and capex associated with the San Dionisio area amounted to €7.1 million.

Corporate expenses amounted to €6.4 million (Q1 2025: €2.6 million) and include non-operating costs of the Cyprus office, corporate legal and consultancy fees, listing costs, officers and directors' emoluments, corporate office salaries, administrative expenses and E-LIX costs.

Exploration costs on Atalaya's project portfolio for Q1 2026 were €3.7 million, compared to €3.3 million in Q1 2025, mainly related to the Skellefte Belt and Rockliden projects.

Care and maintenance costs were €13k for the three-month period ended 31 March 2026 (Q1 2025: €9k).

EBITDA for the three months ended 31 March 2026 amounted to €48.0 million compared with Q1 2025 of €52.5 million. The lower EBITDA primarily reflected lower sales volumes, partially offset by higher realised copper prices.

Depreciation and amortisation for the quarter totalled €13.9 million (Q1 2025: €12.9 million).

Net foreign exchange gain of €1.6 million was the result of the depreciation of the Euro against the US Dollar over the quarter.

Net financing costs for Q1 2026 amounted to €0.3 million compared with €0.1 million in the same period in 2025.

Copper prices

The average realised copper price (excluding QPs) increased 37.8% from US$4.26 per pound in Q1 2025 to US$5.87 per pound in Q1 2026.

The average price of copper for the three months ended 31 March 2026 and 2025 respectively are summarised below:

Realised copper prices for the reporting period noted above have been calculated using payable copper and excluding the impact of provisional pricing adjustments and final QP settlements. The realised price during Q1 2026, including the QP, was approximately US$5.40/lb.

5.    Non-GAAP Measures

Atalaya has included certain non-IFRS measures including "EBITDA", "Cash Costs per pound of payable copper", "All-In Sustaining Costs" ("AISC") "realised prices" and "Net Cash/Debt" in this report. Non-IFRS measures do not have any standardised meaning prescribed under IFRS, and therefore they may not be comparable to similar measures presented by other companies. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for indicators prepared in accordance with IFRS.

EBITDA includes gross sales net of penalties and discounts and all operating costs, excluding finance, tax, impairment, depreciation and amortisation expenses. Cash Costs per pound of payable copper includes cash operating costs, including treatment and refining charges ("TC/RC"), freight and distribution costs net of by-product credits. Cash Costs per pound of payable copper is consistent with the widely accepted industry standard established by Wood Mackenzie and is also known as the C1 Cash Costs.

AISC per pound of payable copper includes C1 Cash Costs plus royalties and agency fees, expenditures on rehabilitation, capitalised stripping costs, exploration and geology costs, corporate costs and recurring sustaining capital expenditures but excludes one-off sustaining capital projects, such as the tailings dam project.

Realised price per pound of payable copper is the value of the copper payable included in the concentrate produced including the discounts and other features governed by the offtake agreements of the Group and all discounts or premiums provided in commodity hedge agreements with financial institutions if any, expressed in USD per pound of payable copper. Realised prices do not include period end mark to market adjustments in respect of provisional pricing. Realised price is consistent with the widely accepted industry standard definition.

6.    Liquidity and Capital Resources

Atalaya monitors factors that could impact its liquidity as part of Atalaya's overall capital management strategy. Factors that are monitored include, but are not limited to, the market price of copper, foreign currency rates, production levels, operating costs, capital and administrative costs.

The following is a summary of Atalaya's cash position as at 31 March 2026 and 31 December 2025 and cash flows for Q1 2026 and 2025.

Liquidity information

⁽¹⁾           Includes borrowings

Unrestricted cash and cash equivalents, which include balances at both Group and Operation levels, increased to €279.7 million as at 31 March 2026, up from €166.3 million at 31 December 2025. This increase was primarily driven by cash inflows from the January 2026 capital increase, partially offset by investment outflows and moderate financing movements. At the Group level, cash rose from €146.5 million to €249.9 million, while Operation-level cash increased from €19.8 million to €29.8 million.

The Group generated €29.8 million in net cash from operating activities during the first three months of 2026, supported by solid EBITDA and limited tax payments, partially offset by working capital outflows, including higher trade and other receivables. Cash outflows from investing activities totalled €29.5 million, mainly reflecting the investment in Lara Exploration Ltd, capital expenditure at San Dionisio, ongoing tailings dam development and processing plant upgrades. Net financing cash flows were positive at €113.7 million, primarily reflecting the January 2026 capital increase, which generated net proceeds of €145.0 million, partly offset by net loan repayments of €31.0 million.

As of 31 March 2026, the Group reported a working capital surplus of €254.4 million, compared with €93.8 million at 31 December 2025. The improvement in working capital reflects a stronger cash position. The Group also maintained a net cash position of €266.4 million, up from €121.9 million at year-end 2025, underscoring its solid liquidity profile.

Overview of the Group's cash flows

Three months cash flows review

Total net cash inflow for the three months ended 31 March 2026 was €113.4 million, primarily driven by cash inflow from financing activities. Cash from operating activities amounted to €29.8 million, while investing activities consumed €29.5 million, and financing activities contributed a net inflow of €113.7 million.

Cash generated from operations before changes in working capital was €47.4 million. During the quarter, inventories increased by €2.4 million, trade and other receivables increased by €8.2 million, and trade and other payables decreased by €5.0 million, resulting in a net working capital outflow.

Investing activities consumed €29.5 million, mainly related to the acquisition of a 7.3% stake in Lara Exploration Ltd, the investments associated with the San Dionisio deposit, capitalised stripping at Cerro Colorado, ongoing development works at the tailings dams, and continued upgrades to processing infrastructure.

Financing activities resulted in net cash inflows of €113.7 million, mainly reflecting the equity offering, which generated a cash inflow of €145 million, partly offset by €31.0 million of net borrowing outflows.

Foreign exchange

Foreign exchange rate movements can have a significant effect on Atalaya's operations, financial position and results. Atalaya's sales are denominated in U.S. dollars ("USD"), while Atalaya's operating expenses, income taxes and other expenses are mainly denominated in Euros ("EUR") which is the functional currency of the Group, and to a much lesser extent in British Pounds ("GBP").

Accordingly, fluctuations in these exchange rates can potentially impact the results of operations and carrying value of assets and liabilities on the balance sheet.

During the three months ended 31 March 2026, Atalaya recognised a foreign exchange gain of €1.6 million (€2.1 million foreign exchange loss in Q1 2025). Foreign exchange gain mainly related to the devaluation of the EUR against the USD, as sales proceeds are generally held in USD.

The following table summarises the movement in key currencies versus the EUR:

7.    Sustainability

Corporate Social Responsibility

Atalaya continued its commitment to social investment through Fundación Atalaya during the first quarter of 2026, with initiatives focused on training, employability, sports, culture, and social inclusion across the Cuenca Minera region.

A key initiative during the quarter was Fundación Atalaya's participation in a training and employment programme developed within the framework of the Andalusian Regional Strategy for Social Cohesion and Inclusion (ERACIS+). The programme provides training and practical experience in gardening and maintenance activities for people at risk of social exclusion, including professional certification to improve future job opportunities. This initiative reinforces Fundación Atalaya's commitment to social inclusion and employability within the region. The foundation also continued developing the sixth edition of its Mining Facilities Technical Operator Course. After completing several technical modules focused on machinery handling, high-risk operations, drilling and blasting procedures, students began practical placements in companies across the Cuenca Minera. The programme also included occupational safety training and the use of personal protective equipment, combining theoretical and practical learning to strengthen employability in the mining sector. Support for local sports remained an important area of activity during the quarter. Fundación Atalaya renewed its collaboration with local football clubs and sports organisations, while also supporting the first Spanish and Andalusian Cross Country Championship held in Zalamea la Real.

Cultural and heritage initiatives also featured during the quarter. Fundación Atalaya supported the IV National Poetry Contest "Huellas de Cobre," the publication of the book "Riotinto: Historia, técnica e innovación minera (1556-1963)", and restoration works at the San Juan Bautista parish church in Berrocal.

Through these initiatives, Fundación Atalaya continued contributing to community development and social engagement across the Cuenca Minera region during the first quarter of 2026.

Health and Safety

During the first quarter of 2026, six lost-time accidents were recorded, all of them classified as minor incidents, one of which involved an Atalaya employee. As a result, Atalaya's accident rates stood at 5.20 for the Frequency Rate (FR) and 0.08 for the Severity Rate (SR). However, when including contractor companies, the overall figures for the first quarter amounted to 9.74 for the FR and 0.19 for the SR. With regard to compliance with accident rate targets, the SR target was achieved, whereas the FR target was not met, as it exceeded the target value established for 2026. In relation to Industrial Hygiene, during the first quarter all measurements scheduled for the period were completed, including respirable crystalline silica and dust, organic and inorganic vapours, metals and asbestos fibres, as well as respiratory protective equipment fit testing for ARM personnel.

Likewise, the first round of annual medical examinations, including chest X-rays, was carried out in accordance with the annual schedule.

As regards the First Response Brigade, the specific training activities planned for the first quarter were completed.

Controls for psychoactive substances (alcohol and other drugs) continued to be carried out at access control points and in the medical unit.

Regarding the Zero Harm Challenge project, during the first quarter the proposals put forward by the working groups were being finalised, and the "When Nobody Sees You" programme was launched, following the same approach as in the previous phase and achieving a participation rate of 96%. In this respect, the results were communicated to Management, department heads and participants. The working groups for the second quarter are scheduled to commence shortly.

During the first quarter, the annual reports of the Prevention Service were prepared, together with the health and safety document accompanying the annual Operational Plan, the preventive activity plan for 2026, and the annual prevention plan. In addition, in relation to the management system, management data and indicators were finalized, including those relating to the sustainability report.

It should also be noted that Field Leadership activities continued, achieving a 93% completion rate during the first quarter.

Finally, it is worth highlighting that ARM continues to work on occupational health and safety matters at Atalaya Masa Valverde, including the development of specific procedures, workplace assessments and the project for a medical unit in order to apply for the corresponding healthcare accreditation.

Environment

During Q1 2026, the Environmental Department continued advancing its environmental monitoring efforts and natural resource management initiatives, including:

·      Two environmental incidents were reported during this period. On 2 March and 4 March, during municipal waste collection, improper waste was observed in containers located in contractor areas at the mine and the plant, respectively. After verifying the origin of the waste, those responsible for it proceeded to remove and properly manage it. A total rainfall of 499,6 l/m2 was recorded in Q1 2026. The total rain collected for the hydrological year (October 2025 to March 2026) is 790,8 l/m2, which is 15% lower than the rainfall recorded in the previous hydrological year (same period).

·      On 5 February, the Company received the authorisation from the Regional Ministry of Public Works for the construction of the north-western bypass of the A-461 road. This authorisation represents an important milestone for the execution of the associated infrastructure works. On 19 February, the Company received the authorisation from the Regional Ministry of Culture approving the so-called Global Plan III, a management plan for the singular heritage elements associated with the project.

·      During the first quarter of the year, two applications for a non-substantial modification of the AAU were submitted:

o  4 February: the application for a non-substantial modification of the AAU related to the Raw Material Supply Optimisation Project was submitted.

o  30 March: the application for a non-substantial modification of the AAU related to the adaptation of the Cerro Colorado waste rock dump was submitted.

·      In addition, two resolutions were received regarding non-substantial modifications to the AAU as a result of the following projects: "Optimization of the Crushing Process", "Management of Drainage and Runoff at the South Waste Rock Dump" and "Raw Material Supply Optimization".

·      Annual Mandatory Reports were submitted to the Environmental Administration, including Annual Waste Report (Hazardous and No Hazardous), the E-PRTR (pollutant emissions) and protected species (Erica andevalensis and chiropterous) management reports.

·      The additional measures contemplated in the action plan against dust continued to be implemented, intensifying periodic irrigation, implementing new coordination measures, and carrying out exhaustive monitoring of the emissions generated in the operation.

·      Environmental Department continues working in the Restoration Plan in both areas, operational and historical.

·      All the periodic internal controls of non-channelled emissions into the atmosphere have been carried out, and the results of the controls are within the limit values set out in the regulations. The rest of periodic and mandatory controls have been carried out without incidents. In addition, during the quarter, several reports were handed to the Administration bodies.

·      Environmental inspections were performed daily, mainly focused on chemical storage and handling, housekeeping, waste management, uncontrolled releases and environmentally friendly practices carried out in the project by ARM's and contractors' personnel. Additionally, dust control and drainage system inspections were performed regularly. A total of 54 inspections were carried out during the first quarter, including, plant, mine area and the contractors' camps.

8.    Risk Factors

Due to the nature of Atalaya's business in the mining industry, the Group is subject to various risks that could materially impact the future operating results and could cause actual events to differ materially from those described in forward-looking statements relating to Atalaya. Readers are encouraged to read and consider the risk factors detailed in Atalaya's audited Consolidated Financial Statements for the year ended 31 December 2025.

The Company continues to monitor the principal risks and uncertainties that could materially impact the Company's results and operations, including the areas of increasing uncertainty such as the impact of macro-economic uncertainty on the business and geopolitical developments or the risks inherent in the development of new technologies.

In particular, Atalaya continues to monitor the risks associated with its investment in the E-LIX technology together with Lain Technologies Ltd ("Lain"). Although the E-LIX technology has been performing broadly in line with the design parameters, progress towards achieving sustainable, commercially viable throughput levels has been slower and more challenging than originally anticipated due to operational bottlenecks identified at the Industrial Plant (Note 8). The Group continues to assess the operational and commercial outlook for the technology and the recoverability of related assets.

9.    Critical accounting policies, estimates, judgements, assumptions and accounting changes

The preparation of Atalaya's Financial Statements in accordance with IFRS requires management to make estimates, judgements and assumptions that affect amounts reported in the Financial Statements and accompanying notes. There is a full discussion and description of Atalaya's critical accounting policies in the audited Consolidated Financial Statements for the year ended 31 December 2025.

As at 31 March 2026, whilst there are no significant changes in critical accounting policies or estimates to those applied in 2025. We highlight the assumptions made in relation to Lain Technologies and the progress on the Industrial Plant in Note 8.

10. Other Information

Additional information about Atalaya Mining Copper, S.A. is available at www.atalayamining.com

Unaudited Condensed Consolidated Interim Financial Statements on subsequent pages.

By Order of the Board of Directors,

___________________________________

Neil Gregson

Chair, Atalaya Mining Copper, S.A.

Seville, 25 May 2026