25 October 2021

CASTILLO COPPER LIMITED
("Castillo", "CCZ" or the "Company")

Up to 14 drill targets identified at Luanshya Project post-IP survey

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce the completion of the Induced Polarisation ("IP") survey campaign at the Luanshya Project in Zambia's copper-belt, identifying up to 14 targets for test-drilling which potentially comprise disseminated copper sulphide mineralisation.

Highlights

·    Up to 14 chargeable zones identified in the recent IP survey - within a 6km zone of copper surface anomalism - which represent excellent drill targets at the Luanshya Project¹

·    Modelling was undertaken by CCZ's consultant geophysicist, who interpreted the IP survey results, which covered the 6km long soil anomaly, which were defined after extensive soil sampling campaigns  

·    Encouragingly, the geophysicist noted there are "several zones of high chargeability with associated copper anomalism, which are potential bodies of disseminated copper sulphide mineralisation²"

·    In addition, the geophysicist highlighted the high-chargeability zones are coincident with a previously identified NW-SE trendline^2,3 that is ~5-10km wide and hosts historic / current operating mines and deposits³

o  This is positive as it suggests any underlying mineralisation could be structurally controlled, with the potential for mafic sources of copper anomalism in the region²

There is now ample data to fully map out an inaugural drilling campaign for the Luanshya Project to test the identified targets and commence negotiations with drilling contractors to formalise a timeline. Meanwhile, the IP survey is now underway at the Mkushi Project, focusing on areas delineated from previous sampling campaigns.

Simon Paull, Managing Director of Castillo Copper, commented: "The geophysicists' interpretations on the Luanshya Project is welcome news and highlights the exploration potential across this 6km soil anomaly. With the global copper market in the midst a strong upcycle, due to perceived tight supplies, the Board is moving forward to expedite developing the Zambia copper assets. This provides geographic exploration diversity across our copper asset portfolio, whilst we concurrently progress due diligence on the Litchfield and Picasso Lithium Projects."

INTERPRETED DRILLABLE TARGETS

The geophysicists' terms of reference were to interpret and map potential disseminated copper sulphide mineralisation, associated with observed soil copper geochemical anomalism across the 6km strike event at the Luanshya Project. Out of the IP survey lines completed, 11 were selected for closer analysis.

Of these, Lines 3, 5, 7, 9, 11, 13, 14, 16, 18 and 20 had chargeability linked to copper surface anomalism which identified up to 14 drillable targets. For Line 1, however, the chargeability was not associated with copper surface anomalism, rather anti-formal structures.

Overall, the geophysicist noted in the report there are "several zones of high chargeability with associated copper anomalism, which are potential bodies of disseminated copper sulphide mineralisation²."     

A key point highlighted by the geophysicist was the fact all the chargeability zones are coincident with a previously identified NW-SE trendline that is ~5-10km wide and hosts historic / current operating mines & deposits³. 

This is positive as it suggests any underlying mineralisation could be structurally controlled, with the potential for mafic sources of copper mineralisation in the region².

Based on the foregoing, there is now ample data to fully map out an inaugural drilling campaign for the Luanshya Project to test the identified targets and commence negotiations with drilling contractors to formalise a timeline.

Next steps

There are several ongoing steps for the Zambia operations, including:

o  IP survey progress updates at the Mkushi Project then analyse the results for incremental targets for test-drilling; and

o  Commence work on the inaugural drilling campaign at the Luanshya Project.

For the lithium projects:

o  Ongoing due diligence for the Picasso and Litchfield Lithium Projects, including return of assay results for surface sampling campaigns.

In Queensland, the following is set to take place over the coming weeks:

o  Updates on drilling at Arya Copper Prospect.

In addition to this release, a PDF version with supplementary information and images can be found on the Company's website: https://castillocopper.com/investors/announcements/ 

For further information, please contact:

About Castillo Copper

Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects:

·    A large footprint in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region.

·    Four high-quality prospective assets across Zambia's copper-belt which is the second largest copper producer in Africa.

·    A large tenure footprint proximal to Broken Hill's world-class deposit that is prospective for zinc-silver-lead-copper-gold.

·    Cangai Copper Mine in northern New South Wales, which is one of Australia's highest grading historic copper mines.

The group is listed on the LSE and ASX under the ticker "CCZ."

References

1)     CCZ ASX Release - 1 July and 31 August 2021

2)     Geophex Surveys Limited. Available at: <http://africa.geovale.com/assosciates/geophex-surveys-limited/>

3)     CCZ ASX Release - 16 September 2019

Competent Person Statement

The information in this announcement that relates to exploration results is based on and fairly represents information reviewed or compiled by Mr Matt Bull, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Bull is a beneficiary of Southern River Investments, a trust which is a shareholder of Castillo Copper Limited. Mr Bull is a shareholder and director of Trilogy Metals Pty Ltd, a company which provides ad hoc geological consultancy services to Castillo Copper Limited. Mr Bull is a Consultant of Castillo Copper Limited. Mr Bull has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Bull has provided his prior written consent to the inclusion in this announcement of the matters based on information in the form and context in which it appears.

The London Stock Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Disclaimer Regarding Forward Looking Statements

This announcement (Announcement) contains various forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and factors which could cause actual values or results, performance, or achievements to differ materially from the expectations described in such forward-looking statements.

Castillo Copper Limited does not give any assurance that the anticipated results, performance, or achievements expressed or implied in those forward-looking statements will be achieved.

APPENDIX A: REGIONAL MAP (Available to view on ASX announcement)

APPENDIX B: INCREMENTAL IP SURVEY RESULTS (Available to view on ASX announcement)