Mr. Darryl Jones reports

STAR COPPER ANNOUNCES EXECUTION OF ARRANGEMENT AGREEMENT FOR SPIN-OUT OF OKEOVER PROJECT

Star Copper Corp. has entered into an arrangement agreement dated March 14, 2025, with Alpha Copper Corp. (Spinco), a wholly owned subsidiary of Star Copper, pursuant to which the company proposes to spin out to the company's shareholders its 100-per-cent interest in the Okeover copper-molybdenum project, which consists of a property encompassing 4,613 hectares (11,399 acres) located immediately north of the coastal city of Powell River, B.C.

The spinout will provide investors with an ownership stake in two separate specialized companies. Star Copper will continue to focus on the advancement of the Star project and Quesnel project, while Spinco will focus on advancing the Okeover project. In contemplation of the spinout, the company has filed a technical report in respect of the Star project, available under the company's profile at SEDAR+.

Darryl Jones, chief executive officer, president and director of Star Copper, stated: "We are pleased to progress with this exciting opportunity for the company and its shareholders. Creating a stand-alone company focused on holding and advancing Star Copper's flagship asset, the Star project, and a stand-alone focused company to pursue the Okeover project will diversify our shareholders' investments and allow each respective company, Star Copper and Alpha Copper, to focus on advancing their respective assets."

Spinout

The spinout will be completed as part of a strategic reorganization intended to unlock value for the company's shareholders by allowing Star Copper to focus on advancing the Star project and Spinco to advance the Okeover project.

The spinout will proceed by way of a statutory plan of arrangement in accordance with the provisions of the Business Corporations Act (British Columbia), whereby all of the issued and outstanding common shares of Spinco will be distributed to the company's shareholders of record as of the effective time of the completion of the arrangement. The Spinco shares will be distributed to Star Copper's shareholders in proportion to their respective holdings of common shares of Star Copper at the effective time.

Completion of the proposed arrangement requires the approval of the company's shareholders, the approval of the Supreme Court of British Columbia and the approval of the Canadian Securities Exchange.

The arrangement agreement, court approval and shareholder approval

In accordance with the arrangement agreement, Star Copper will apply for an interim order from the Supreme Court of British Columbia authorizing Star Copper to call an annual and special meeting of the company's shareholders to approve the arrangement by special resolution. The meeting is expected to take place on April 30, 2025.

The arrangement involves, among other things, the distribution of Spinco shares to Star Copper shareholders such that each Star Copper shareholder will receive for each Star Copper share held immediately prior to the effective time: (i) one new common share of Star Copper; and (ii) one-third of one Spinco share.

Immediately following completion of the arrangement, which is expected to occur in second quarter 2025, Star Copper's shareholders, other than any dissenting shareholders, will own 100 per cent of Spinco. Stock options exercisable to acquire Star Copper shares, which are issued and outstanding as at the effective time, will also be exchanged pursuant to the arrangement, such that each Star Copper optionholder will receive for each Star Copper option held immediately prior to the effective time: (i) one new stock option of Star Copper exercisable to acquire one new Star Copper share; and (ii) one stock option of Spinco exercisable to acquire one-third of a Spinco share. Upon the arrangement becoming effective, it is expected that Spinco will consolidate the issued and outstanding Spinco options on a one-for-three basis such that each Spinco option will then be exercisable to acquire one Spinco share.

No fractional Spinco securities will be distributed under the arrangement. Any fractions of Spinco shares resulting from the arrangement will be rounded down to the nearest whole number without any compensation in lieu of such fraction.

More detailed information regarding the arrangement and the exchange of securities thereunder, as described above, will be set out in Star Copper's management information circular that will be mailed to shareholders in connection with the meeting.

After careful consideration, the board of directors of Star has unanimously determined that the arrangement is fair to shareholders and is in the best interests of the company. A description of the various factors considered by the board of directors in arriving at this determination will be provided in the circular.

After the arrangement is completed, it is expected the new Star Copper shares will continue to be listed for trading on: (i) the Canadian Securities Exchange in Canada under the symbol STCU; (ii) the Frankfurt Stock Exchange in Germany under the symbol PPOO; and (iii) the OTC market in the United States under the symbol STCUF.

The Spinco shares will not be listed on any stock exchange upon completion of the arrangement, but Spinco will operate as a reporting issuer in the provinces of British Columbia, Alberta and Ontario, and will comply with its continuous disclosure obligations under applicable Canadian securities laws. More detailed information regarding the Spinco shares and postarrangement Spinco will be set out in the circular.

Okeover project

The Okeover project consists of a property encompassing 4,613 hectares (11,399 acres) located immediately north of the coastal city of Powell River, B.C. Since its discovery in 1965, the Okeover project has been explored by several companies including Noranda Exploration, Asarco Exploration, Falconbridge Nickel Mines Ltd., Duval International Corp., Lumina Copper Corp. and Eastfield Resources Ltd.

The property currently exhibits eight zones of mineralization which have so far been discovered over a north-south-striking trend of approximately five kilometres. Of note, the North Lake zone received a 2006 historic resource calculation with an inferred 87 million tonnes grading 0.31 per cent copper and 0.014 per cent MoS2 (N. Carter for Eastfield Resources Ltd., filed on SEDAR+, Nov. 17, 2006). However, the North Lake historical resource estimate does not comply with Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM council, May 19, 2014, as required by National Instrument 43-101 (Standards of Disclosure for Mineral Projects). The company cautions that a qualified person has not done sufficient work to classify the historical resource estimate as current mineral resources or mineral reserves. The reliability of the historical estimate is considered reasonable; however, there can be no certainty, following further evaluation and/or exploration work, that the historical resource estimate can be upgraded or verified as mineral resources or mineral reserves in accordance with NI 43-101. The historical inferred estimate was prepared by manually calculating six drill sections based on 3,819 metres of diamond drilling in 18 holes and 180 metres of percussion drilling in three holes. Please see Section 6 of the company's technical report on the Okeover project dated Jan. 31, 2024, available under the company's SEDAR+ profile for more information. Between 1966 and 2008, 116 drill holes totalling 19,000 metres have been completed.

The exploration focuses at the Okeover project shifted to target generation aimed at evaluating probable continuation of mineralization north and south of the North Lake zone historic resource area. This work consisted of 1,923 soil samples, with 377 rock samples collected, and 28 line kilometres of induced polarization surveying completed since 2010. No drilling was completed between 2008 and 2023, although an airborne geophysical (magnetic and radiometric) program was completed over the property in 2021. In 2023, the company (then Alpha Copper Corp.) conducted a further 1258 metres of drilling across four diamond drill holes into the North Lake target to verify historic drilling and move toward completing a resource estimate.

The North Lake zone historic resource is situated on the western side of a strong chargeability anomaly, and extends a further 250 metres westward beyond the edge of the induced polarization feature. Comparable signatures extend a further 1.4 kilometres in a northerly direction and approximately 1.0 kilometres in a southerly direction defining a target area of approximately 500 metres by 3,000 metres. Hole 72-15, with 0.29 per cent copper and 0.027 per cent MoS2 over 59.5 metres, from 115.8 metres, is found in this target area approximately 400 metres north of the North Lake historic resource area while hole 66-01 contains 0.34 per cent Cu and 0.021 per cent MoS2 over 101 metres from 2.7 metres, and is located 1,750 metres south of the North Lake zone.

Located just 45 minutes by vehicle from Powell River, the mineralization at the Okeover project shares several commonalities with the Hushamu deposit on Vancouver Island (Northisle Copper and Gold Inc.) and the Berg deposit in west-central British Columbia (Surge Copper Corp., optioned from Centerra Gold).

Qualified person

The scientific and technical information in this news release has been reviewed and approved by Jeremy Hanson, PGeo, a qualified person as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

About Star Copper Corp.

Star Copper is focused on contributing to the green economy by finding and developing copper resource assets in stable jurisdictions. The company is positioned to earn a 60-per-cent interest in the Indata copper-gold project located in north-central British Columbia. After the acquisition of Cavu Energy Metals, the company has acquired 100 per cent of the Star copper-gold porphyry project in the Golden Triangle of British Columbia, as well as the 100-per-cent-owned Quesnel project in the middle of the Quesnel trough, host to a number of alkalic copper-gold porphyry deposits running northwest across western British Columbia. The company also holds a 100-per-cent interest in the Okeover copper-molybdenum project north of Powell River.

We seek Safe Harbor.