Mr. Randy Buffington reports

NEVADA COPPER PROVIDES PUMPKIN HOLLOW OPERATIONS UPDATE

Nevada Copper Corp. has provided updates on restart activities at its Pumpkin Hollow underground mine.

Randy Buffington, president and chief executive officer of Nevada Copper, stated: "Since restarting mining and milling operations, we've made progress in a number of areas, including completion of life-of-mine projects such as the Geho dewatering system and phase 2 of the underground crushing and ore handling system, development of significant stope inventory underground, and realignment of the site operations team, under the leadership of Chuck Pollard as assistant general manager. However, several unforeseen setbacks impacted our progress on meeting operational targets. We took critical steps and refocused resources to mitigate and address these issues. The hoisting and ore handling system has returned to full capacity and mill operations continue to incrementally improve with over two months of mill feed stockpiled on surface. While I am disappointed that these challenges have negatively impacted our ability to meet hoisting and processing targets, we continue to ramp up toward steady-state operations."

Recent operating developments:

• Hoisting improvements implemented, hoisting increased in the fourth quarter;
• Over 135,000 tons of ore stockpiled on surface; over 190,000 tons of stope ore ready to mine;
• Unexpected bottlenecks encountered in process plant systems are being mitigated;
• Third ore pass and temporary use of ore bin from new life-of-mine (LOM) ore handling system provides material handling capacity to meet plan until underground crusher is installed;
• Paste plant fully commissioned;
• LOM fuel, paste lines in progress;
• LOM dewatering system in place;
• Development contractor ramping up development and expected to meet targets.

Operational status

As noted above, several key milestones have been achieved across many aspects of the mine, including completion of critical LOM projects and restart of all significant operations; however, key fourth quarter operational targets were not met. The following challenges impacted the company's progress in the fourth quarter:

1. Underground dewatering -- a buildup of water underground from increased development activities prior to completing the Geho dewatering pump project caused several delays in progress, including hoisting, capital projects construction, development and operations. The Geho pumps were successfully commissioned in November, 2023, doubling pumping capacity, and all efforts were focused on removing the water from critical areas of the mine, which has now been cleared. Smaller pockets remaining are not expected to impact progress on stope mining or other development activities going forward. Full hoisting capabilities resumed in December, 2023, and, with commissioning of the Geho system and additional surface infrastructure in place, the company should now have sufficient pumping capacity to manage any temporary surges that are encountered. Additionally, Nevada Copper is implementing water reduction strategies, including grouting programs, to help reduce water inflows to mining areas.
2. Ore handling -- completion of the ore handling portion of the underground crusher and ore handling system and a third ore pass in late 2023 has provided additional ore handling capabilities. Material handling is being routed through three existing ore passes and the recently completed ore handling facility noted above. Automation improvements to the hoisting system were made in December to increase reliability and consistency in operations with the expectation that further increases in hoisting rates would be achieved. Hoisting rates in January have improved dramatically, having achieved a daily record of 4,475 tons. Stope mining is planned to resume in February, 2024, and ore handling and hoisting capabilities are expected to meet underground material deliveries and process plant operations.
3. Process plant -- the mill restarted in October, 2023, and operated intermittently throughout the fourth quarter of 2023. The milling and flotation circuits operated well, achieving expected recoveries during periods of stable operations; however, unanticipated bottlenecks were encountered in the thickener and tails filter presses that caused repeated mill shutdowns. With the assistance of a technical consultant, upgrades to the filter presses, thickener equipment and operating protocols were made through December and into January. The second phase of the paste plant that delivers thickened tails directly to the paste plant has been fully constructed. Commissioning of the second phase is planned for February as stope mining resumes. Approximately 40 to 45 per cent of the thickened tails will bypass the filter presses and go directly to paste plant in full operation, reducing the operational demand on the filter presses.

Life-of-mine infrastructure

In addition to the completion and commissioning of the Geho dewatering system and the second phase of the ore handling system, other LOM infrastructure improvements include the drilling of a new fuel delivery hole, drilling of a second paste hole that will provide life-of-mine paste delivery for EN zone stopes and improvements to the water infiltration system on surface to handle excess surge capacity. A scope of work is being issued to potential contractors for the final phase of the ore handling system, which includes installation and commissioning of the crushing system.

Financing matters

Considering the unexpected challenges described above, the company has generated lower sales through the ramp-up process than previously anticipated, negatively impacting financing requirements. As previously disclosed, the company has fully drawn $25-million (U.S.) of debt pursuant to a deferred financing agreement with its two largest shareholders, Pala Investments Ltd. and Mercuria Holdings (Singapore) Pte. Ltd. Pala has since been providing sole financing for the company's operating needs in the form of debt on similar terms to the company's October, 2022, credit facility with Pala, except such debt is unsecured and not guaranteed by the company's subsidiaries and the interest rate on the debt is secured overnight financing rate plus 10 per cent and it matures in December, 2024.

The company requires additional financing in order to complete the ramp-up of the underground mine. While Pala has continued to support the company, it is under no obligation to do so. The company is also in discussions with other third parties. There is no assurance that additional financing will be obtained in a sufficient amount, or at all. In the absence of securing sufficient financing from Pala or other third parties, the company will not be able to continue carrying on business.

Exploration opportunities

As previously reported, the company completed its 2023 drill program with a total of 11 holes (3,305 feet) drilled on the Copper Ridge target and nine holes (1,653 feet) on the Dimples target. Preliminary assays continue to be received and analyzed by the company and indicate that mineralization and alteration found at surface has been intersected in the drill holes. Further updates will be made once the final assays and quality assurance/quality control samples are expected to be received in the first quarter of 2024.

Qualified persons

The technical information and data in this news release have been reviewed by Steven Newman, registered member -- SME, vice-president, technical services, for Nevada Copper, and Greg French, CPG, vice-president, exploration, for Nevada Copper, who are non-independent qualified persons within the meaning of National Instrument 43-101.

About Nevada Copper Corp.

Nevada Copper is the owner of the Pumpkin Hollow copper project located in Nevada, United States, with substantial reserves and resources, including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, which was recently restarted and is undergoing a ramp-up of operations to nameplate capacity, and a large-scale open-pit prefeasibility-study-stage project.

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