Mr. Richard Lock reports

OROCO OPTIONS HIGHLY PROSPECTIVE NEARBY CONCESSION

Oroco Resource Corp.'s wholly owned Mexican subsidiary, Minera Xochipala S.A. de C.V., has entered into an agreement with Aztec Zinc de Mexico S.A. de C.V. to acquire, by way of option, a 100-per-cent interest in the Vainilla mineral concession, located in the mineral-rich Choix district of northern Sinaloa, Mexico.

The Vainilla concession (title No. 236,443) covers approximately 2,974 hectares of ground within a porphyry copper belt anchored by the company's Santo Tomas project. The concession incorporates or surrounds multiple zones of historical and active polymetallic mineralization, including skarns, breccia pipes and vein systems that are inferred to relate to monzonite intrusions, and offers immediate exploration opportunities for copper and associated metals.

"The Vainilla acquisition option extends Oroco's control of the Santo Tomas porphyry copper district, presenting immediate exploration upside and the potential for meaningful near-term results from multiple porphyry, skarn and breccia targets," stated Ian Graham, president of Oroco. "The acquisition was encouraged in part by the transformational community, state and federal governments' support for the Santo Tomas project as part of its inclusion in Plan Mexico and Plan Sinaloa. Vainilla is highly complementary to Santo Tomas's development, both geologically and, potentially, economically. It aligns very well with Oroco's strategic and operational objectives and in no way impedes or detracts from our development plans at Santo Tomas. We see this as potentially a key acquisition for the company."

Geological overview: a district-scale opportunity

The Vainilla concession occupies a strategic position along the southern extension of the Santo Tomas porphyry copper trend, which traces southwards from Bahuerachi through Santo Tomas to Vainilla/La Cobre where (locally altered) monzonites/quartz monzonites of likely Laramide age are mapped and where a known skarn iron producer operates. The geological setting includes:

• Magnetite copper-gold skarn deposits (Mazomique, iron producer);
• Hydrothermal breccia pipes (El Platano);
• Quartz-sericite stockwork vein systems (Mina Cristina).

These mineralized zones are interpreted as distal and proximal expressions of an adjacent concealed porphyry system related to the mapped monzonitic intrusions. The concession encompasses areas of intense surface alteration, indicative of porphyry-related fluid pathways and mineralization. A location and geology map of the Vainilla concession and its relationship to the Santo Tomas porphyry district trend.

Copper recoveries at Mazomique iron-copper skarn

The Mazomique skarn, partly extending into the Vainilla concession, is a currently producing magnetite orebody with copper potential. Laboratory testing of skarn-hosted chalcopyrite-rich magnetite from an internal concession (unrelated to the transaction) has shown that production of a copper concentrate (up to 24.6 per cent Cu in concentrate) is feasible via flotation. The extension of the magnetite (Cu) skarn onto the Vainilla concession represents a potential opportunity for magnetite (copper) production suitable for direct shipping to regional iron processors, consistent with Oroco's low-capex strategy.

Oroco intends to launch a staged exploration program commencing with 2-D IP survey lines over the breccia pipe and porphyry targets with concurrent geological mapping, geochemical and mineral sampling. Short hole scout drilling targeting surface expressions of breccia, skarn and porphyry targets will follow. A 3-D induced polarization (IP) geophysics survey may be considered following the initial program.

Key terms of the option agreement

The option grants Oroco's wholly owned subsidiary, Xochipala Gold S.A. de C.V., the sole and exclusive right to acquire a 100-per-cent interest in the Vainilla concession. Initial consideration includes payment of $75,000 (U.S.) in cash and 100,000 common shares of Oroco issued to the vendor. The option will be maintained by semi-annual payments of $25,000 (U.S.) cash and 100,000 Oroco shares. The option will be exercised upon payment of $500,000 (U.S.) in cash and the issuance of two million Oroco shares to the vendor. Upon exercise of the option, a 1.5-per-cent net smelter returns royalty will be granted in favour of third parties designated by Aztec Zinc. For the term of the option, Xochipala is responsible for 100 per cent of the concession duties payable. Closing is subject to TSX Venture Exchange approval.

About Oroco Resource Corp.

The company holds a net 85.5-per cent interest in those central concessions that comprise 1,173 hectares, the core concessions of the Santo Tomas project, located in northwestern Mexico. The company also holds an 80-per-cent interest in an additional 4,948 hectares of mineral concessions surrounding and adjacent to the core concessions (for a total project area of 6,121 hectares, or 15,125 acres). The project is situated within the Santo Tomas district, which extends up to the Jinchuan Group's Bahuerachi project, approximately 14 kilometres to the northeast. The project hosts significant copper porphyry mineralization initially defined by prior exploration spanning the period from 1968 to 1994. During that time, the project area was tested by over 100 diamond and reverse circulation drill holes, totalling approximately 30,000 metres. Commencing in 2021, Oroco conducted a drill program (phase 1) at Santo Tomas, with a resulting total of 48,481 metres drilled in 76 diamond drill holes.

Subsequent to the drilling at Santo Tomas, the resource estimates and engineering studies led to a revised MRE and an updated PEA being published and filed in August of 2024, which studies are available on-line at the company's website and by reviewing the company profile on SEDAR+.

The Santo Tomas project is located within 170 km of the Pacific deepwater port at Topolobampo and is serviced via highway and proximal rail (and parallel corridors of trunk grid power lines and natural gas) through the city of Los Mochis to the northern city of Choix. The property is reached, in part, by a 32-kilometre access road originally built to service Goldcorp's El Sauzal mine in Chihuahua state.

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