ERO.TO · 2026-02-23 12:00:00

Ero Announces Inaugural PEA for Furnas, Outlines Low Capital Intensity Project with a 24-Year Initial Mine Life

Economic Studies

February 23, 2026

Ero Announces Inaugural PEA for Furnas, Outlines Low Capital Intensity Project

with a 24-Year Initial Mine Life

(all amounts in US dollars and shown on a 100% Project basis, unless otherwise noted)

Vancouver, British Columbia – Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the

“Company”) is pleased to announce results of the Preliminary Economic Assessment ("PEA")

on the Furnas Copper-Gold Project ("Furnas" or the "Project"), located in the Carajás Mineral

Province in Pará State, Brazil.

The PEA outlines the potential for a large-scale, long-life copper-gold operation with a

robust production profile and exceptional economics, reinforcing Furnas as a cornerstone

asset within the Company's organic growth pipeline. Furnas is being advanced in partnership

with Vale Base Metals ("VBM") pursuant to an earn-in agreement wherein the Company will

earn a 60% interest upon completion of the prescribed work programs.(1)

HIGHLIGHTS

• 24-year initial mine life based on an updated mineral resource estimate that remains

open to depth and laterally along strike.

• Average annual copper equivalent (2) production of approximately 108,000 tonnes over

the first 15 years of operation, including a pproximately 70,000 tonnes of copper,

111,000 ounces of gold, and 532,000 ounces of silver per year.

• After-tax net present value ("NPV") (8%) of $2.0 billion and a 27.0% after-tax internal

rate of return ("IRR") based on long-term copper, gold and silver prices of $4.60 per

pound, $3,300 per ounce, and $40.00 per ounce, respectively.

◦ At $6.10 per pound copper and $5,550 per ounce gold, the Project's after-tax

NPV (8%) more than doubles to $4.7 billion, with the after-tax IRR increasing to

approximately 44.0%.

• Life-of-mine ("LOM") C1 cash costs (3) of approximately $0.30 per pound of copper

produced, supported by significant gold and silver by-product credits.

• Initial capital expenditures of approximately $1.3 billion at low capital intensity of

approximately $16,000 per copper equivalent(2) tonne.

• LOM production totaling over 1.2 million tonnes of copper and approximately 2.0

million and 9.0 million ounces of gold and silver, respectively.

• The Company is evaluating several opportunities with the potential to increase value,

including ongoing exploration drilling, the addition of a magnetite recovery circuit to

produce a high-grade magnetite concentrate as by-product, and a gravity pre-

concentration stage to enhance gold recovery.

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“The results of the PEA on Furnas, the first ever published on the Project, reinforce what an

exceptional asset it is," said Makko DeFilippo, President & Chief Executive Officer . "The PEA

outlines a large-scale, long-life copper-gold operation with strong underlying economics,

supported by low capital intensity, first quartile operating costs and an attractive internal rate

of return across a wide spectrum of commodity prices.

"The announcement today is the culmination of multiple exploration drilling campaigns and a

strong foundation of engineering and technical studies that have been developed on Furnas

over more than a decade. While already a unique asset in a class of its own, the deposit

remains open, and we are excited by the potential we see to further increase the known

extent of mineralization, adding incremental value and mine life. Ero's strategy has been

centered upon responsible mine development, with a significant portion of the Furnas LOM

production expected to be sourced from underground. This approach has resulted in a

reduced footprint when compared to alternative, less-selective, scenarios and a design that

aligns well with our operational strengths. We are thrilled to be working alongside such a

strong partner in VBM to advance exploration, engineering and permitting workstreams to

deliver value for all stakeholders of the Project."

The PEA is preliminary in nature and includes inferred mineral resources, which are

considered too speculative geologically to have the economic considerations applied to them

that would enable them to be categorized as mineral reserves, and there is no certainty that

the PEA will be realized. Mineral resources that are not mineral reserves do not have

demonstrated economic viability.

Sensitivity of Economic Results to Copper and Gold Prices

$268 $1,154

$2,040

$2,927

$3,813

$4,699

11.3%

19.9%

27.0%

33.2%

38.8%

44.0%

After-Tax Net Present Value (8%, US$M) After-Tax IRR

$3.60/lb Cu

$1,800/oz Au

$4.10/lb Cu

$2,550/oz Au

$4.60/lb Cu

$3,300/oz Au

(PEA Prices)

$5.10/lb Cu

$4,050/oz Au

$5.60/lb Cu

$4,800/oz Au

$6.10/lb Cu

$5,550/oz Au

(1) For more information on the Company's plans to earn a 60% interest in the Furnas Copper-Gold Project,

please see its press releases dated October 30, 2023 and July 22, 2024.

(2) Copper equivalent based on long-term metal prices of $4.60/lb Cu, $3,300/oz Au, and $40.00/oz Ag.

(3) C1 Cash Cost is a non-IFRS Measure. Please refer to the Notes section of this press release for a discussion

of non-IFRS Measures.

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Preliminary Economic Assessment Summary

Financial Highlights

Copper Price $/lb $4.60

Gold Price $/oz $3,300

Silver Price $/oz $40.00

Foreign Exchange Rate USD:BRL 5.50

Initial Capital $M $1,280

Phased Expansion Capital(1) $M $287

Sustaining Capital $M $1,230

After-Tax NPV (8%) $M $2,040

After-Tax IRR % 27.0%

After-Tax Payback Period years 3.1

Unit First 15 Years Life of Mine

Processing Operations

Mill Throughput Capacity Mtpa 13.5 13.5

Total Tonnes Processed Mt 198 240

Average Processed Grades

Copper % 0.59% 0.58%

Gold g/t 0.35 0.35

Silver g/t 1.77 1.64

Copper Equivalent(2) % 0.91% 0.90%

Metallurgical Recoveries

Copper % 90.3% 90.3%

Gold % 74.6% 74.6%

Silver % 71.0% 71.0%

Average Annual Production

Copper kt 70 52

Gold koz 111 84

Silver koz 532 374

Copper Equivalent(2) kt 108 81

Copper C1 Cash Cost(3) $/lb produced $0.24 $0.30

Unit Long-Term Prices

(1) Expansion capital related to the Company's phased development strategy occurring after first production.

(2) Copper equivalent calculated using long-term metal prices of $4.60/lb Cu, $3,300/oz Au, and $40.00/oz Ag.

Copper equivalent processed grade reflects relative recovery rate for each metal as outlined above.

(3) C1 Cash Cost is a non-IFRS Measure. Please refer to the Notes section of this press release for a discussion

of non-IFRS Measures.

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Recovered Copper Equivalent Production(1) (tonnes in thousands)

119

125

120

114

107 108 107

102

109 108

104 105 106

35 31 28 28 29 29

Copper Gold Silver

Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10Year 11Year 12Year 13Year 14Year 15Year 16Year 17Year 18Year 19Year 20Year 21Year 22Year 23Year 24

(1) Copper equivalent calculated using long-term metal prices of $4.60/lb Cu, $3,300/oz Au, and $40.00/oz Ag.

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Exploration Strategy

The PEA and updated mineral resource estimate incorporate approximately 90,000 meters of

historical drilling completed by Vale S.A. and Anglo American plc, together with 28,000

meters of Phase 1 drilling completed by the Company through July 2025. Subsequent

drilling, including the 17,000-meter Phase 2 program, completed ahead of schedule in Q4

2025, and initial Phase 3 drilling, brings total drilling conducted by the Company to

approximately 50,000 meters, with an additional 50,000 meters of drilling planned through

the remainder of 2026 . Results from the Phase 2 and Phase 3 programs are not included in

the updated mineral resource estimate underpinning the PEA and will be reflected in

subsequent resource updates and future engineering studies.

The Company's 2026 drilling strategy is focused on two primary objectives: (i) upgrading

inferred mineral resources to higher confidence categories and (ii) extending mineralization

along strike within the high-grade zones. The objective of targeted step-out drilling is to

potentially expand the scale of the underground mining areas in both the Southeast and

Northwest Zones adjacent to planned infrastructure to support higher sustained production

volumes beyond year 16 of the current PEA mine plan.

Advancing Engineering, Permitting & Value-Enhancing Opportunities

With the completion of the Phase 2 drilling requirements in Q4 2025, the Company is

advancing key workstreams to support future engineering studies in accordance with the

Furnas earn-in agreement.

Over the next 12 to 24 months, activities on site will focus on continuing exploration drilling

while advancing engineering, environmental and permitting work. Detailed geotechnical,

hydrogeological and metallurgical studies are underway to optimize mine design, processing

configuration and infrastructure layout. These studies are intended to further de-risk

execution and refine capital and operating cost projections. Environmental Impact

Assessment studies initiated in 2025 will continue through 2026, including baseline

environmental work and engagement with regulatory authorities. Planning for public

consultation and advancement of licensing processes at the local, state and federal levels are

expected to progress during this period.

The Company is also evaluating several opportunities with the potential to enhance the value

of the Project, including: (i) extending mineralization through ongoing exploration drilling, (ii)

incorporating a magnetite recovery circuit to reduce tailings volumes and potentially generate

additional by-product revenue through the production of a high-grade magnetite concentrate,

and (iii) evaluating a gravity pre-concentration circuit to improve gold recoveries. These

opportunities are in early stages of development and are not reflected in the economics

presented in the PEA.

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A Value-Driven Development and Operating Plan

The PEA contemplates the development of Furnas as a large-scale, long-life mining

operation comprising four distinct operating areas, incorporating a series of selective open

pits and two underground mines within the two primary high-grade zones of the deposit - the

Southeast and Northwest Zones. Mine production from open pit and underground mines will

feed a centralized processing facility with a design capacity of 13.5 million tonnes per annum.

Conventional flotation will produce a copper concentrate with significant gold and silver by-

product credits over an initial 24-year mine life.

Development and pre-stripping activities during the initial three-year construction period are

planned to focus on the Southeast Zone, with production commencing from the open pit,

followed shortly thereafter by the underground mine. Once steady-state production has been

achieved in the Southeast Zone, development of the Northwest open pit is expected to begin,

with first production from this area anticipated late in year four of operations. Underground

mining in the Northwest Zone is planned to commence towards the middle of the 24-year

mine life, supporting production levels in the later years of the mine life.

This phased development approach and design criteria is centered upon a responsible mine

development framework to minimize surface footprint, de-risk the Project's development

plan, and enable an efficient capital expenditure profile. The strategy will allow for capital

deployment to align with the progression of mining activities and projected cash flow

generation.

Integrated Mine Design with a Conventional Processing Flowsheet

Mining from the open pits will be conducted using conventional truck-and-shovel operations,

with the Southeast and Northwest open pits projected to produce 36.6 million tonnes and

37.5 million tonnes of mill feed, respectively, over the life of mine. Development is planned to

commence in the Southeast Zone open pit, supporting the early years of production, with a

projected life-of-mine strip ratio of approximately 2.8. Open pit mining in the Northwest Zone

will comprise two adjacent pits with a blended life-of-mine strip ratio of approximately 3.6.

Trade-off studies were performed for the PEA to optimize design criteria including desired

selectivity within high-grade zones, total production volumes, vertical development

requirements, operability and economic outcomes. The unique geometry and continuity of

mineralized zones over considerable strike lengths and favorable thickness, paired with rock

mass quality enable underground mining rates of approximately 20,000 tonnes per day

("tpd") in the Southeast Zone and 10,000 tpd in the Northwest Zone. Underground mining in

both the Southeast and Northwest Zones will use sublevel stoping mining methods

incorporating both waste rock and cemented paste backfill. Over the proposed life of mine,

the Southeast and Northwest underground operations are projected to produce 114.0 million

tonnes and 51.6 million tonnes of mill feed, respectively.

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Mined tonnage will be processed through a centralized sulphide flotation plant with a design

capacity of approximately 13.5 million tonnes per annum, or approximately 37,000 tpd. The

processing plant is based on a conventional crushing, grinding and flotation flowsheet using

proven technologies currently in place across the Company's operations, minimizing

operational risk at the contemplated production scale. Approximately 30% of tailings

generated over the mine life is expected to be used for underground backfill requirements.

Thickened tailings not used for backfill requirements will be deposited in a surface tailings

storage facility.

The proposed flowsheet incorporates conventional three-stage crushing and milling paired

with a multi-stage copper flotation and re-grind circuit designed to maximize copper recovery

while maintaining concentrate quality. Metallurgical testwork demonstrates strong and

consistent performance across a large variability dataset, achieving average copper recoveries

of approximately 90%, producing a copper concentrate grading over 30% copper. Gold and

silver are expected to be recovered as payable by-products within the copper concentrate,

with average recoveries of approximately 75% for gold and 71% for silver.

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Figure 1: Cross-section view of the PEA mine plan, including four distinct and integrated operating zones (view looking Northeast).

Mill Feed Contribution by Mining Area (tonnes in millions)

2.6

8.5

13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.6 13.6 13.5 13.2

11.5 11.5

7.1

3.9 3.6 3.6 3.6 3.6 3.6

1.1

Southeast Open Pit Southeast Underground Northwest Open Pits Northwest Underground

Year -1Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10Year 11Year 12Year 13Year 14Year 15Year 16Year 17Year 18Year 19Year 20Year 21Year 22Year 23Year 24

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