Mr. Vincent Metcalfe reports

PECOY COPPER ANNOUNCES C$49.8 MILLION STRATEGIC FINANCING LED BY HUDBAY MINERALS

Pecoy Copper Corp. has entered into subscription agreements with Hudbay Minerals Inc. and an additional strategic investor. Under these subscription agreements, subject to the terms and conditions thereof, Hudbay and the strategic investor have agreed to subscribe for 14,914,100 and 9,762,425 common shares of the company, respectively, on a non-brokered private placement basis at a price of $2.02 per common share for aggregate gross proceeds to the company of approximately $49.8-million.

The net proceeds from the private placement are expected to be used to advance exploration and development activities at the company's flagship Pecoy copper-gold project in southern Peru, including continuing drilling, resource definition and expansion activities, geological and metallurgical studies, and technical work supporting the company's planned updated mineral resource estimate, as well as for general corporate and working capital purposes.

Highlights:

• The investments by Hudbay and the strategic investor in Pecoy Copper further strengthen the company's shareholder base and demonstrate confidence in the long-term potential of the Pecoy project.
• Hudbay will invest approximately $30.1-million and the strategic investor will invest approximately $19.7-million, each at the issue price, for aggregate gross proceeds of approximately $49.8-million.
• The issue price represents a 10-per-cent premium to the 10-day volume-weighted average price (VWAP) of the common shares on the TSX Venture Exchange as of Oct. 30, 2026.
• The strategic investments will provide additional financial flexibility to advance exploration, resource definition and technical studies at Pecoy, including the company's planned updated mineral resource estimate.

Vincent Metcalfe, president and chief executive officer of Pecoy Copper, commented: "We are extremely pleased to announce these strategic equity investments in Pecoy Copper, representing an important milestone for our company. We believe these capital commitments reflect the substantial geological potential of Pecoy and the progress achieved through our exploration programs. This additional capital further strengthens our financial position as we continue to expand our understanding of the mineralized system, pursue resource expansion, growth opportunities and advance technical work required to support the next phase of the project's development. We look forward to building on our relationships with both organizations."

Peter Kukielski, chief executive officer of Hudbay, commented: "Pecoy is an exciting copper development project in Peru, a jurisdiction where Hudbay has been operating successfully for over a decade. This investment helps to facilitate project derisking activities and increases our exposure to a high-quality development project in an attractive copper belt."

Immediately following the private placement, each of Hudbay and the strategic investor is expected to hold approximately 9.99 per cent of the issued and outstanding common shares, calculated on a partially diluted basis.

In connection with the private placement, the company and Hudbay will enter into, subject to closing of the private placement with Hudbay, an investor rights agreement (the Hudbay IRA). The terms of the Hudbay IRA will grant Hudbay certain rights, provided that it maintains certain ownership thresholds in the company, including: (a) the right to participate in equity financings and top-up holdings in relation to dilutive issuances in order to maintain pro rata ownership (up to 9.99 per cent); and (b) the right to nominate one person to the board of directors of the company (or the right to nominate two persons, if the board of directors of the company comprises 10 or more directors).

Closing of the private placement with each investor is expected to occur on or about Nov. 5, 2026, and is subject to the satisfaction of customary closing conditions and the receipt of customary regulatory approvals, including the acceptance of the TSX Venture Exchange. The common shares to be issued in connection with the private placement will be subject to a statutory hold period in accordance with applicable securities laws.

About Pecoy Copper Corp.

Pecoy Copper is advancing the Pecoy copper-gold-molybdenum-silver project and the Tororume project, which together cover approximately 19,800 hectares in southern Peru's Arequipa region. Pecoy is a large, undeveloped porphyry system located at approximately 1,650 metres above sea level, with access to established infrastructure, power, water and Pacific ports.

Prior to the company's current drill program, less than 49,000 metres of historical drilling had been completed at Pecoy, defining a broad mineralized system with potential for expansion along strike and at depth.

The common shares trade on the TSX-V under the symbol PCU, on the Frankfurt Stock Exchange under the symbol D5E and on the OTCQX under the symbol PCUUF.

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