20 December 2022

CASTILLO COPPER LIMITED

("Castillo" or the "Company")

Completed auger sampling campaign targets 6.5km2 REE mineralisation zone  

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce an auger sampling campaign, focused on a 6.5km² area proximal to the Fence Gossan Prospect - within the Rare Earth Element ("REE") exploration footprint - has now been completed (Figure 1 & Appendix A). The objective of the auger sampling campaign is to determine the full extent of REE mineralisation within the area sampled and identify new targets to test-drill.  Samples have been taken at depths of 0.1 - 0.4m by hand auger.

HIGHLIGHTS:

·    Following the receipt of drill assays for the Fence Gossan, Tors Tank and partly Reefs Tank Prospects, which confirmed that shallow REE mineralisation is more widely apparent across the BHA Project's East Zone than initially envisaged¹, the Board commissioned an extensive auger sampling campaign

·    The auger sampling campaign, which has now concluded and covered a 6.5km² area proximal to the Fence Gossan Prospect, was designed to identify the full extent of REE mineralisation and new targets to test-drill:

o  All samples have been sent to the laboratory for further analysis, with results expected back for full interpretation in the next four to six weeks

·    In addition, the Board expects to receive the final three RC drill assays for Reefs Tank and diamond core for Tors Tank in the next 4 to 6 weeks

·    The Board will provide a full review once all the results are assessed holistically, as collectively they will aid charting the next phase of REE-focused exploration across the BHA Project's East Zone

·    During 1Q 2023, Castillo's geology team plan to visit several prospects at the NWQ Copper Project to determine the potential to host copper mineralisation - further details will be published shortly

Dennis Jensen, Managing Director of Castillo Copper, commented: "Without question, the highlight event for 2022 has been the shallow REE discovery within BHA Project's East Zone. The Board is eagerly awaiting assay results from the drilling and auger sampling campaigns, as they will enable us to chart the next phase of exploration. In addition, the Board has commissioned a site visit to several prospects within the NWQ Copper Project during 1Q 2023 to determine which should be prioritised for further development work. Overall, the Board remains focused on developing projects within the portfolio that deliver the greatest potential to create value for shareholders." 

FIGURE 1: BHA PROJECT's EAST ZONE EXTENSIVE REE MINERALISATION

Source: CCZ geology team

Auger sampling campaign targets REE mineralisation     

The decision to commission the auger sampling campaign follows the receipt of drill assays for Fence Gossan, Tors Tank and partly Reefs Tank (refer Figure 2) which confirmed shallow REE mineralisation is more widely apparent within the BHA Project's East Zone than initially expected¹.

Once assays for the auger sampling campaign and final three RC drill results for Reefs Tank / diamond core for Tors Tank are returned, the Board will determine the next phase of REE-focused exploration across the BHA Project's East Zone.

Source: CCZ geology team

NWQ Copper Project

Castillo's geology team have been reviewing all the prospects within the NWQ Copper Project and have selected several to visit during 1Q 2023. The key objective of the upcoming site visit will be to ascertain the potential for these to host copper mineralisation and further follow up development work. More details on the prime targets will be published shortly.  

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 and platinoids.   

·    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."  

Competent Person's Statement

The information in this report that relates to Exploration Results and Mineral Resource Estimates for "BHA Project, East Zone" is based on information compiled or reviewed by Mr Mark Biggs.  Mr Biggs is a director of ROM Resources, a company which is a shareholder of Castillo Copper Limited.  ROM Resources provides ad hoc geological consultancy services to Castillo Copper Limited.  Mr Biggs is a member of the Australian Institute of Mining and Metallurgy (member #107188) and has sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, and Mineral Resources. Mr Biggs holds an AusIMM Online Course Certificate in 2012 JORC Code Reporting.  Mr Biggs also consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

References

1)        CCZ ASX Release - 15 & 23 November 2022

APPENDIX A: BHA PROJECT'S EAST ZONE

FIGURE A1: BHA PROJECT

Source: CCZ geology team