Potential divestment of Broken Hill asset

Divestment strategies being considered for Prime Broken Hill asset, prospective for IOCG & BHT mineralisation

• Following a strategic review, factoring into account the excellent drill results from Big One Deposit, CCZ’s Board believes it is an opportune time to capitalise on the prevailing base & precious metal upcycle to fast-track creating additional shareholder value
• With significant resurgence of interest in groups with footprints around Broken Hill, notably ASX listed Cobalt Blue (ASX: COB), CCZ is considering divestment opportunities including a possible spin-off of its sizeable Broken Hill asset1 into a new vehicle which could be listed in either London or Australia
• The Board is currently liaising with its UK corporate advisor, SI Capital, on the optimal way to move this proposed corporate action forward in a timely manner
• CCZ’s BHA (Broken Hill Alliance) Project1 comprises a large footprint proximal to the world-class Broken Hill silver-zinc-lead deposit
• Notably, sophisticated work by the Geological Survey of NSW2
  (GSNSW), which generated advanced predictive geological models for major mineral systems, highlighted:
  • BHA’s tenure is highly prospective for Broken Hill Type (BHT – silver-zinc-lead) in the West Zone and Iron Oxide Copper Gold (IOCG) mineralisation in the East Zone1
• Consequently, this has generated numerous high priority drillable targets which delivers a significant pipeline of exploratory work ahead
• More significantly, much of the tenure has been under-explored over the past two decades which underscores the upside potential from rolling out a comprehensive exploration campaign
• Successfully divesting the BHA Project, which could include a spin off into a new vehicle, would enable the Board to channel more resources into developing the core Mt Oxide Project in Queensland’s copper-belt

Castillo Copper’s Managing Director Simon Paull commented: “The resurgence of interest in the Broken Hill region is timely, as it provides an excellent opportunity for CCZ to optimise the BHA Project and create value for shareholders. Moreover, the ground is under-explored yet highly prospective for BHT and IOCG mineralisation, with multiple drill-test targets already identified.”

Castillo Copper’s UK-based Director Ged Hall remarked: “The BHA Project is an excellent asset, as it comprises a substantial prospective footprint surrounding the world-famous Broken Hill silver-zinc-lead mine. We believe our intent to spin this asset out into a new vehicle will be well received and supported by UK investors.”

Castillo Copper Limited (“CCZ”) is delighted to announce that, following a strategic review, taking into account the prevailing base/precious metal upcycle and excellent progress at Big One Deposit, the Board has decided to consider divestment opportunities of its prime BHA Project which could include a spin off into a new vehicle.

The Board believes this is an optimal way to create incremental value for shareholders while freeing up resources to channel more effort into developing the core Mt Oxide Project in Queensland’s copper-belt. Currently, the Board is liaising with its UK corporate advisor, SI Capital, on the ideal way to move this proposed corporate action forward in a timely manner.

BHA PROJECT: PRIME LOCATION IN BROKEN HILL

Proximal to world-class mine The BHA Project comprises a sizeable, under explored footprint that is proximal to the world-class Broken Hill silver-zinc-lead deposit (Figure 1). The current base and precious metal upcycle has driven a resurgence of interest in the region, notably Cobalt Blue (ASX: COB) which has ground to the south of the West Zone.

FIGURE 1: BHA PROJECT RELATIVE TO WORLD-CLASS BROKEN HILL MINE