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ADEQ Issues Amended Aquifer Protection Permit to Arizona Sonoran’s Cactus Mine

Arizona Sonoran Copper Company Inc. ("ASCU" or the "Company"), an emerging US-based copper developer and near-term producer is pleased to announce that the Arizona Department of Environmental Quality ("ADEQ") has granted its Cactus Mine an amended Aquifer Protection Permit ("APP"). On July 29, 2021, the Company was granted an APP for the Stockpile Project, which has now been amended to add the Cactus Mine open pit and underground operations to the Stockpile Project.

Arizona Sonoran Copper Company Chief Operating Officer, Ian McMullan commented, "The issuance of this permit is a key milestone for ASCU in advancing the re-start of operations at the Cactus Mine and further de-risking of the project. Our team worked closely with ADEQ to obtain the amended permit within expected timelines and to ensure that our anticipated future operation will meet environmental laws and regulations. As we advance our technical studies and near a construction decision, we are poised to benefit from this bullish copper cycle fueled by the global transition to a green economy."

The ADEQ is Arizona's lead agency for the regulation of groundwater quality. APPs are a key component of the agency's safeguards for the protection of groundwater. The APP permit program establishes specific discharge limits and monitoring, as well as reporting requirements. The program also evaluates and requires special measures to protect human health and the environment from harmful pollutants. In granting the permit, ADEQ determined that ASCU's plans to re-activate the mine (located 4 km west of Casa Grande) were in line with standards to protect the groundwater and met all applicable state and federal rules and regulations. The amended APP permit has been granted subject to demonstration of applicable surety posting (required to be in place prior to commencement of construction).

Other key permits such as the Mined Land Reclamation Permit will be applied for after completing final engineering and will be closely followed by construction and industrial permits (following making a positive construction decision), anticipated in the next 12 months.

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