Phoenix Copper Limited / Ticker: PXC / Sector: Mining

1 March 2022

Phoenix Copper Limited

('Phoenix' or the 'Company')

PHOENIX ADVANCES ESG AGENDA AND CREATES COMMUNITY ADVISORY TEAM

Phoenix Copper Ltd (AIM: PXC, OTCQX ADR: PXCLY), the AIM-quoted USA-focused base and precious metals emerging producer and exploration company, is pleased to announce an update on the Company's environmental, social and governance ("ESG") activities. Phoenix's continued efforts to build meaningful relationships in the communities near the Empire Mine Project in Idaho, USA will be enhanced by the newly formed community committee, the Konnex Community Advisory Team ("KCAT").

KCAT

KCAT is composed of three representatives from Phoenix and Konnex Resources Inc ("Konnex"), Phoenix's 80% owned operating subsidiary in Idaho, plus ten independent residents of Custer and Butte Counties, Idaho. The residents bring diverse experience from the following sectors: citizens, municipal, land-users, socio-economic (business) and research/training.

The team will meet at least four times each year and will elect its own independent facilitator. The Company anticipates that KCAT's roles will include, but not be limited to:

·    Facilitating communication between the Company and the community to include a wider audience of stakeholders.

·    Forming a Good Neighbor Agreement, modelled on similar arrangements which have worked successfully elsewhere.

·    Formulating a grievance process designed to address concerns and complaints and to be instrumental in resolving them.

·    Identifying ways for the Company to best benefit the community and local schools, including scholarship recipients.

·    Compiling a local vendor/contractor/supplier list so the Company can better support local businesses whenever possible.

Catherine Evans, Non-executive Director and Chairman of the ESG & Sustainability Committee said: "We believe it is critical to involve all of the residents and business owners in closest proximity to our Empire Mine project and have therefore invited applications for the KCAT from all residents of Custer and Butte Counties. The Company is fortunate to have widespread local support, but we do not take this for granted and would like to foster an open dialogue with any individual or group who may have questions and concerns about the impact of our proposed future operations.

"The Company has always fostered a culture of openness with investors and stakeholders, and the formation of the KCAT continues this tradition. We very much look forward to working directly with community representatives to foster goodwill and to ensure a wider understanding of the Company's operations.

"The first KCAT meeting is scheduled early this month. A summary of the meeting's discussion points and agreed actions will be posted on our website."

Environmental, Social, and Corporate Governance

Phoenix is committed to meeting and exceeding the environmental standards required by law as a core value of the Company.  The baseline environmental data collected to date will be used for furthering the permitting process, but as importantly, will be used as the building blocks for the Company's ongoing Environmental, Social, and Corporate Governance (ESG) platform, overseen by the Company's ESG & Sustainability Committee.

Contacts

For further information please visit https://phoenixcopperlimited.com or contact:

Notes

Phoenix Copper Limited is a USA focused, base and precious metals emerging producer and exploration company, initially targeting copper and zinc production from an open pit mine from late 2022.

Phoenix's primary operations are focused near Mackay, Idaho in the Alder Creek mining district, at the 80% owned Empire Mine property, which historically produced copper at grades of up to 8%, as well as gold, silver, zinc and tungsten, from an underground mine. 

Since 2017, Phoenix has carried out extensive drill programmes which resulted in the publication of a NI 43-101 PEA in October 2020 for an open pit heap leach solvent extraction and electrowinning ("SX-EW") mine, which was updated in October 2020. The contained metal in all NI 43-101 compliant categories of resources, measured, indicated, and inferred, stand at 129,641 tonnes of copper, 355,523 ounces of gold, 10,133,772 ounces of silver and 58,440 tonnes of zinc. Phoenix updated its economic model in February 2021 to include the processing of all contained metals through a two phased approach.

In addition to Empire, the district includes the historic Horseshoe, White Knob and Blue Bird Mines, past producers of copper, gold, silver, zinc, lead and tungsten from underground mines. A new discovery at Red Star, 330 metres northwest of the Empire Mine proposed open pit, has revealed high grade silver / lead sulphide ore and from three shallow exploration drill holes. A maiden resource of 103,000 tonnes containing 173.4 g/tonne silver, 0.85 g/tonne gold and 3.85% lead (1.6 million ounces silver equivalent) was reported in an NI 43-101 technical report published in May 2019. Additionally, the district includes the Navarre Creek Project, a volcanic hosted, precious metals target in a 14.48 sq km area. The Company's total land package at Empire comprises 8,034 acres (32.51 sq kms).

At Empire, it is estimated that less than 1% of the potential ore system has been explored to date and, accordingly, there is significant opportunity to increase the resource through phased exploration. The stated aim of the Company is to fund this phased exploration through free cashflow generated by its initial mine. A Plan of Operations in respect of the initial open pit mine was filed with the relevant regulatory authorities in June 2021.

Phoenix also has two wholly owned cobalt properties on the Idaho Cobalt Belt to the north of Empire. An Earn-In Agreement has been signed with Electra Battery Materials Corporation (formerly First Cobalt Corporation), Toronto, in respect of one of those properties.

Phoenix is listed on London's AIM (PXC), and trades on New York's OTCQX Market (PXCLF and PXCLY (ADRs)). More details on the Company, its assets and its objectives can be found on PXC's website at https://phoenixcopperlimited.com.