CQX.CN · 2023-06-30

Interra Copper Announces Completion of Its Phase 1 Drilling Program at the Tres Marias Copper Project in Chile

Exploration Programs

FORM 7

MONTHLY PROGRESS REPORT

Name of Listed Issuer: Interra Copper Corp. (the “Issuer”)

Trading Symbol: IMCX

Number of Outstanding Listed Securities: 22,345,600 (as at June 30, 2023)

Date: July 5, 2023

This Monthly Progress Report must be posted before the opening of trading on the fifth trading day of each month. This report is not intended to replace the Issuer’s obligation to separately report material information forthwith upon the information becoming known to management or to post the forms required by Exchange Policies. If material information became known and was reported during the preceding month to which this report relates, this report should refer to the material information, the news release date and the posting date on the Exchange website.

This report is intended to keep investors and the market informed of the Issuer’s ongoing business and management activities that occurred during the preceding month. Do not discuss goals or future plans unless they have crystallized to the point that they are "material information" as defined in the Policies. The discussion in this report must be factual, balanced and non-promotional.

General Instructions

(a) Prepare this Monthly Progress Report using the format set out below. The sequence of questions must not be altered nor should questions be omitted or left unanswered. The answers to the items must be in narrative form. State when the answer to any item is negative or not applicable to the Issuer. The title to each item must precede the answer.

(b) The term “Issuer” includes the Issuer and any of its subsidiaries.

(c) Terms used and not defined in this form are defined or interpreted in Policy 1 – Interpretation and General Provisions.

Report on Business

1. Provide a general overview and discussion of the development of the Issuer’s business and operations over the previous month. Where the Issuer was inactive disclose this fact.

The Issuer is a junior exploration and development company focused on creating shareholder value through the advancement of its portfolio of exploration assets that include the Tres Marias and Zenaida projects in the Antofagasta Region of Chile, Pitbull project in the Tarapaca Region of Chile, and the Thane and Chuck Creek projects in north-central British Columbia, Canada. The Issuer’s leadership team is comprised of senior mining industry executives who have a wealth of technical and capital markets experience and a strong track record of discovering, financing, developing, and operating mining projects on a global scale. The Issuer is committed to sustainable and responsible business activities in line with industry best practices, supportive of all stakeholders, including the local communities in which the company operates.

During the month of June 2023, the Issuer actively continued general and corporate operations. In late May, exploration activities began at the Tres Marias Copper project in Chile, beginning with the mobilization of the drilling company PerfoChile per the press release dated May 24, 2023, and drilling activities continued throughout June.

On June 27^th, the Annual General Meeting of Shareholders was held. Shareholders were asked to vote on several items of business as described in the Company’s Management Information Circular dated May 23, 2023 (the “Circular”), and all proposals put forward to the Company’s shareholders were approved. A total of 3,748,261 Common shares representing approximately 16.77% of the Company’s issued and outstanding shares were voted in person or by proxy at the Meeting. Shareholders fixed the number of directors to be elected at the Meeting at six and elected incumbent directors Chris Buncic, Rick Gittleman and Jason Nickel as well as new directors Mike Ciricillo, Dr. Mark Cruise, and Rich Levielle. At the Meeting, shareholders also supported the reappointment of D&H Group LLP, Chartered Professional Accountants, as auditor of the Company for the ensuing year and authorized the directors of the Company to fix the remuneration to be paid to the auditor. David McAdam and Scott Young ceased to be Directors of the Company. At a subsequent meeting of the Board of Directors, Paul Robertson was appointed as the Company’s Chief Financial Officer, and Oliver Foeste ceased to be Chief Financial Officer of the Company.

2. Provide a general overview and discussion of the activities of management.

During the month of June 2023, management continued to support and control the Issuer’s business activities, advance the assets of the Issuer, and develop the Issuer’s business. The Phase 1 drilling program continued in June, with details of the plans provided in the April 17, 2023 news release. These 2023 exploration plans are focused at its Tres Marias Copper Project (the “Project” or “Tres Marias”) in the Antofagasta region of Chile. Tres Marias is one of three copper projects that the Issuer acquired in 2021 from Minera Freeport- McMoRan South America Ltda. The Project is located within the Paleocene Copper Porphyry Belt, about 30 km west of the mining centre of Calama and 30 km north of BHP Chile's Spence Mine.

On April 10th, 2023, the Company first announced its 2023 exploration program consisting of a planned 10,500 m of Reverse-Circulation ("RC") drilling to test several high priority geological and geophysical anomalies located on the 16,250 ha Project.

Planning of the Phase 1 drill holes in the Western Central and Eastern target areas is based on the review of all geophysical surveys and interpretations, as well as the interpreted structures (i.e., faults), which were interpreted mainly from the MVI MAG sections (Figure 1).

Figure 1. General view of the Tres Marias Project (blue boundary) showing the three target areas, planned drill hole collar locations, 3D-IP/GSDAS survey lines (green), and the UAV MAG survey lines (purple).

Target Areas

Three target areas (Eastern, Central, and Western targets) were identified using a series of geophysical surveys, which included the reprocessing of 110 km² of ZTEM airborne survey completed by Freeport-McMoRan Inc. ("Freeport") in 2013. The results of this geophysical reprocessing and 3D-inversion were processed using Machine Learning algorithms, with the new results supporting magnetic and resistivity anomalies in the three target areas.

As follow-up work, detailed magnetic surveys (UAV MAG) on E-W flight lines were completed over the three target areas: East Target (36 lines, each 6 km long, 100 m spacing, totalling 216 line-km); Central Target (21 lines, each 6 km long, 150 m spacing, totalling 126 line-km; and West Target (21 lines, each 8 km long, totalling 168 line-km) (Figure 1).

Results of the UAV MAG inversion supported the ZTEM magnetic anomalies located in the three target areas and based on these results, six 3D-Induced Polarization (3D-IP GSDAS) profiles were completed: East Target (2 lines, each 4.95 km long, totalling 9.9 line-km); Central Target (1 line, 6 km long, totalling 6 km); and West Target (3 lines, totalling 13.05 line-km) (Figure 1). The results of the 3D-IP geophysical survey outlined encouraging chargeability and resistivity results in all three target areas.

Historical Exploration Results

Historical exploration results from the Eastern Target area, which include surface rock samples and drill holes completed by Freeport (Figure 2), outline anomalies indicative of porphyry copper deposit ("PCD") mineralization. Intersections from the Freeport drill holes are interpreted as representing the upper part of a hydrothermally altered system containing Zn-Ag-Pb-Cu polymetallic mineralization which correspond to the periphery of a possible PCD system. Notable historical diamond (TMD) and RC (TMRC) drill hole intercepts include TMD-15-02: 2.40 m @ 3.1% Cu and 19 ppm Ag (Manto-style mineralization); TMD-15-05: 386.50 m @ 1,162 ppm Zn and 363 ppm Pb; TMRC-18-01: 4.00 m @ 4.5% Cu and 121.5 ppm Ag (Manto-style mineralization); TMRC-18-02: 476.00 m @ 662 ppm Zn and 355 ppm Pb, including 34 m (238- 272 m) @ 0.31% Zn and 0.26% Pb. More information can be found from the Company's Technical Report entitled, "Independent NI 43-101 Technical Report on the Tres Marías Copper Project," effective February 28, 2023, and can be found on the Company's website HERE. This drill hole evidence, combined with geophysical and geological interpretations, suggest a distal base metal front associated with a potential PCD system to the west-southwest of historical Freeport drilling, with structures such as the Guacate East and Guacate West faults allowing for the transfer of mineralizing fluids from a deeper intrusive target and into the sedimentary Quehuita Formation. Additionally, on the surface and west of the alteration zone (close to historical drill hole TMD-15-01), Type-D veinlets and traces of green copper oxide are observed, supporting a deeper exploration target to the west.

Phase 1 Exploration Program

The Phase 1 exploration program, comprising 3 RC drill holes, will focus on the Eastern Target area of the Project, immediately to the west of a previously identified alteration zone and in the area where Freeport completed diamond (core) and RC drilling (Figure 2).

Figure 2. Plan view of the Eastern Target area with locations of planned first three priority RC drill hole collars relative to the two Guacate Faults (east and west) and the previously identified alteration zone (yellow oval).

Figures 3 through 5 show the three planned drill holes (23R-001, 23R-002, and 23R-003) overlain on geophysical plan (Residual TMI) and cross-sections (ZTEM Resistivity, MVI (Magnetic Vector Inversion), UAV MAG SOM (Self Organizing Map), and 3D-IP Chargeability and Resistivity).

The objective of 23R-001 (Figure 3) is to test a TMI magnetic low associated with a zone of high magnetization, coinciding with a strong chargeability anomaly. North-south trending faults are reflected in the 3D-IP data and another well-delineated E-W fault reflected by the magnetic data.

The objective of 23R-002 (Figure 4) is to test a chargeability high and moderate resistivity anomaly associated with the Guacate Fault (suggests fault dipping east). The anomalous geophysical response at the edge could reflect phyllic alteration which is commonly associated with porphyry copper deposits.

The objective of 23R-003 (Figure 5) is to test a moderate ZTEM resistivity anomaly with weak to moderate magnetism, associated with what is likely structurally-controlled mineralization along the N-S Guacate Fault.

Technical Disclosure/Qualified Person

The scientific and technical information in this press release has been reviewed and approved by Dr. Scott Jobin-Bevans (P.Geo., PhD, PMP), Principal Geoscientist and Managing Director at Caracle Creek Chile SpA, and an independent consultant and Qualified Person as defined in National Instrument 43-101.

Forward-Looking Information

Forward-Looking Statements: This news release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to exploration on the Company's Tres Marias Copper Project, and the potential results of exploration work on the project. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made, and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the Canadian Securities Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise sufficient funds to carry out its business plans, and the risk of regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available on SEDAR at www.sedar.com and the Company's website. We seek safe harbor.

In addition, during the month of April 2023, management scheduled the 2023 meeting of shareholders of the Issuer for June 27, 2023, and, in connection therewith, filed a Notice of Meeting and Record Date (“NOMARD”). The Issuer’s audited annual consolidated financial statements for the year ended December 31, 2022, and the related management’s discussion and analysis (together, the “Annual Filings”) were also filed during April 2023. The news release, NOMARD and the Annual Filings can be viewed under the Issuer’s profile on SEDAR (www.sedar.com) and on the Issuer’s disclosure page on the Canadian Securities Exchange’s website

3. Describe and provide details of any new products or services developed or offered. For resource companies, provide details of new drilling, exploration or production programs and acquisitions of any new properties and attach any mineral or oil and gas or other reports required under Ontario securities law.

As announced in the Issuer’s press releases dated May 4, 2023 and May 24, 2023, exploration activities have commenced at the Tres Marias Copper project in Chile. These news releases can be viewed under the Issuer’s profile on SEDAR (www.sedar.com) and on the Issuer’s disclosure page on the Canadian Securities Exchange’s website.

4. Describe and provide details of any products or services that were discontinued. For resource companies, provide details of any drilling, exploration or production programs that have been amended or abandoned.