Mr. Guy Goulet reports

CERRO DE PASCO RESOURCES ADVANCES COMPREHENSIVE PHASE 2 DRILLING ACROSS THE QUIULACOCHA TAILINGS FACILITY

Cerro de Pasco Resources Inc. has made progress on the phase 2 drilling campaign at the Quiulacocha tailings storage facility in Cerro de Pasco, Peru. Drilling began on Aug. 25, 2026, and covers 97 locations authorized by the Peruvian National Water Authority (Autoridad Nacional del Agua, ANA). Phase 2 follows the 40-hole phase 1 program completed in 2025, the results of which were reported in the company's news release of April 9, 2025. The phase 2 drilling campaign has been designed to generate the geological, hydrogeological, geotechnical and environmental data for the first mineral resource estimate (MRE) for the Quiulacocha tailings and for the environmental impact assessment (EIA) of the Quiulacocha tailings reprocessing project. It follows the definitive agreements with Activos Mineros SAC (AMSAC) announced on Oct. 21, 2026, which consolidated the company's rights over 100 per cent of the Quiulacocha tailings.

Highlights:

• Two sonic rigs on site: a compact rig on the dry zone since Aug. 25 and an amphibious helicopter-sonic rig on the ponded zone since Oct. 1;
• 34 holes completed for 1,039 metres and 773 samples collected as of Nov. 1, 2026;
• 97 drilling locations authorized by ANA: 79 investigation holes and 18 piezometers;
• Drilling expected to be completed in Q2 2027 with the first MRE targeted for Q3 2027;
• Phase 2 drilling is a defined activity under the $5-million (U.S.) project development funding agreement with the U.S. International Development Finance Corp. (DFC).

Guy Goulet, chief executive officer of Cerro de Pasco Resources, commented: "Following the consolidation of our rights over 100 per cent of the Quiulacocha tailings, we are advancing the most comprehensive drilling campaign undertaken at the facility to date. With 97 authorized drilling locations and two sonic rigs operating across both the dry and ponded areas, we are building the technical foundation for our first mineral resource estimate, targeted for the third quarter of 2027, and for the technical and permitting studies of the project. Supported by the U.S. International Development Finance Corp., this campaign represents another significant milestone in transforming Quiulacocha into a flagship resource recovery and environmental remediation project."

Drilling program

Cerro de Pasco Resources del Peru SAC (CDPR Peru) contracted ConeTec Peru SAC, a subsidiary of the ConeTec Group of Canada, in April 2026, to carry out the phase 2 program. In June, 2026, ANA authorized 97 drilling locations for the investigation of the facility, its hydrogeological study and the environmental baseline of the EIA: 79 investigation holes and 18 Casagrande piezometers, located both within the El Metalurgista concession and in the sector of the Quiulacocha TSF outside the concession, over which the company holds surface access under its agreements with AMSAC. Together with the 40 holes drilled in phase 1, the program brings the combined coverage of the Quiulacocha TSF to 116 geological drill holes and 18 piezometers.

The compact sonic rig was mobilized on Aug. 20, 2026, and began drilling on the dry, trafficable zone of the facility on Aug. 25. The amphibious fleet, comprising a helicopter-sonic rig, an amphibious platform and an amphibious excavator, was assembled from Sept. 9 and began drilling on the ponded zone on Oct. 1, 2026. Sonic drilling produces a continuous core through the full tailings column and allows sampling at 1.5-metre intervals. Resource definition holes are drilled to foundation. Geotechnical and hydrogeological holes are drilled by sonic and diamond methods into the underlying sediments and bedrock and include undisturbed Shelby tube samples, seismic cone penetration tests (SCPTu), downhole geophysical logging and the installation of standpipe piezometers.

Progress to date

As of Nov. 1, 2026, 34 holes had been completed, for a total of 1,039 metres drilled. As of the cut-off date, 773 samples had been collected and a total of seven drill holes had been logged at the company's core facility in Ate, Lima. Samples are stored under frozen-transport conditions from field collection to laboratory processing, maintaining chain of custody.

Objectives of the campaign

The campaign has four objectives:

• Geology and resource definition: define the stratigraphy, thickness and base of the tailings across the facility and complete the drill hole density required for a first MRE under National Instrument 43-101 and the CIM (Canadian Institute of Mining, Metallurgy and Petroleum) definition standards;
• Hydrogeology: characterize groundwater flow, hydraulic connectivity and water quality through hydraulic conductivity testing, downhole geophysics and the 18 piezometers;
• Geotechnics: obtain the parameters for the physical stability assessment of the facility from the SCPTu tests and laboratory testing of undisturbed Shelby tube samples;
• Environmental baseline: provide the geochemical, hydrogeological and geotechnical information on the tailings and their foundation that the EIA requires.

Tailings beneath the Excelsior stockpile

Historical data, including a 2009 reverse circulation drilling campaign by Volcan Compania Minera SAA described in the company's NI 43-101 technical report dated March 15, 2021, indicate that part of the Quiulacocha tailings lie beneath the adjacent Excelsior stockpile. The company is evaluating a drilling program at the toe of the stockpile to define the geology, geotechnics and hydrogeology of that portion of the tailings, subject to surface access and required permits. No mineral resource has been established for the tailings beneath the stockpile.

Support from the U.S. International Development Finance Corp. (DFC)

As announced on March 2, 2026, the company entered into a project development funding agreement with DFC, under which DFC will provide up to $5-million (U.S.) in milestone-based project development funding to support defined project development activities for the Quiulacocha tailings reprocessing project. The defined activities include sonic drilling, geotechnical and hydrogeological drilling, completion of a feasibility study and engineering program, and preparation of a comprehensive environmental and social impact assessment, with Cerro de Pasco Resources contributing matching funds for the applicable workstreams. The sonic drilling and the geotechnical and hydrogeological drilling of the phase 2 campaign are among those defined activities, and the funding is disbursed on a milestone basis subject to the conditions of the agreement.

Laboratory, quality assurance/quality control and qualified person oversight

Samples will be analyzed at a commercial certified lab in Lima, yet to be defined under a continuing bidding process. Sample preparation comprises drying at 105 C and riffle splitting to obtain a representative pulp sample of 100 grams. Analytical methods include ICP MS/OES, atomic absorption, fire assays, sulphur and carbon through LECO, and volumetric iron content.

The company will implement a quality assurance/quality control program consisting of the insertion of twin samples, coarse and pulp duplicates, certified reference materials and coarse blanks, with check assays at a second laboratory, consistent with the protocol applied to the phase 1 program and described in the company's news release of April 9, 2025. Core logging, sampling and the QA/QC program are supervised by the company's qualified person, and an independent qualified person will carry out data verification and the MRE. The company expects to release assay results in the next four to six weeks, after validation of each batch under the QA/QC program.

Schedule and next steps

The company expects to complete the phase 2 drilling campaign in the second quarter of 2027, with assays following the progress of drilling, and targets the first MRE for the Quiulacocha tailings in the third quarter of 2027. These expectations depend on drilling performance during the rainy season, laboratory turnaround and the results of the QA/QC program, and there can be no assurance that the campaign or the MRE will be completed as planned.

Qualified person

Alfonso Palacio Castilla, professional member of the Institute of Materials, Minerals and Mining (MIMMM), chartered engineer (CEng) of the United Kingdom Engineering Council, and senior project manager for Cerro de Pasco Resources, has reviewed and approved the scientific and technical information contained in this news release. Mr. Palacio is a qualified person for the purposes of reporting in compliance with NI 43-101. Mr. Palacio has verified the phase 2 drilling data reported herein, consisting of drill hole locations, depths, core recovery and sample intervals, by reviewing the field logs and the drilling contractor's daily reports against the company's drill hole database. No analytical results are reported in this news release.

About Cerro de Pasco Resources Inc.

Cerro de Pasco Resources is focused on developing its 100-per-cent-owned El Metalurgista concession in central Peru, which hosts silver-rich tailings and stockpiles accumulated over more than a century of mining in one of the most prolific polymetallic districts in the Americas. The company's strategy is to reprocess historic mining waste to recover value while addressing the long-term environmental liabilities associated with these tailings.

We seek Safe Harbor.