Mr. Fernando Ganoza reports

ATICO SIGNS THE INVESTMENT PROTECTION AGREEMENT WITH GOVERNMENT OF ECUADOR FOR ITS LA PLATA PROJECT

Further to Atico Mining Corp.'s news release on March 5, 2024, another milestone has been reached with the signing of the investment protection agreement (IPA). The agreement with the Ecuadorian state is for development of the La Plata mining project covering a total investment of $157.9-million (U.S.).

Fernando E. Ganoza, chief executive officer, commented: "The signing of the IPA for the La Plata project is a significant milestone that underscores our commitment to sustainable development and economic growth in Ecuador. This agreement, with its robust legal and tax stability provisions, not only safeguards current and future $157.9-million of investments throughout the life of the mine, but also strengthens investor confidence by ensuring a predictable and secure environment while positioning La Plata as a cornerstone for responsible mining and long-term value creation for all stakeholders."

Key benefits of the IPA:

• Grants legal and tax stability for the project during the life of the contract;
• Grants an income tax reduction of 5 per cent during the life of the contract;
• Allows for international arbitration in case of disputes.

The La Plata project's IPA provides comprehensive safeguards for investors ensuring legal stability by guaranteeing that sector-specific essential regulations remain unchanged for the duration of the project. Tax stability is granted for corporate income tax, covering rules determining the taxable base and tax due at the time of signing, though administrative procedures are excluded and investors may opt for the current tax regime if preferred. Similarly, tax incentive rules in place at signing are stabilized for the IPA term, with the option for investors to waive this stability. Property rights are robustly protected, with a ban on confiscation and expropriation of immovables permitted only for constitutional public purposes, conducted non-discriminatorily, at market value, and with just compensation. Investors to receive significant rights, including the right to produce and market lawful goods, set prices, and import and export, subject to laws and treaties. For dispute resolution, the IPA mandates amicable negotiations for 60 days upon written notice; if unresolved, disputes are settled through ICC arbitration with a tribunal of three arbitrators who do not share the parties' nationality unless agreed otherwise. The arbitration seat is New York, governed by Ecuadorian law for merits and procedure, and international investment principles as recognized by Ecuador's legal order and COPCI.

The La Plata project is at the very last stage of obtaining the environmental licence and other permits required by mining and environmental legislation. Once these permits are received, the plan is to begin its construction and operation activities, generating more than 600 direct employment positions, and between 1,200 to 1,800 indirect employment positions in the construction stage, and more than 300 direct employment positions, and between 600 and 900 indirect employment positions once in commercial production.

About Atico Mining Corp.

Atico is a growth-oriented company, focused on exploring, developing and mining copper and gold projects in Latin America. The company generates significant cash flow through the operation of the El Roble mine and is developing its high-grade La Plata VMS (volcanic massive sulphide) project in Ecuador. The company is also pursuing additional acquisition of advanced-stage opportunities.

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