ERO.TO · 2022-01-11 12:00:00

Ero Copper Announces 2021 Production Guidance Beat and Provides 5-Year Outlook

Production Results

January 11, 2022

(all amounts in US dollars, unless otherwise noted)

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

“Company”) is pleased to announce its 2021 production results, 2022 guidance and a five-year operating

outlook through 2026.

HIGHLIGHTS

Record Copper Production Result for 2021

• At the MCSA Mining Complex, total production for 2021 was 45,511 tonnes of copper in

concentrate, surpassing the high-end of full-year guidance of 42,000 to 45,000 tonnes; and,

• At the NX Gold Mine, total production for 2021 was 37,798 ounces of gold, surpassing high-end

of full-year guidance of 34,500 to 37,500 ounces of gold.

Updated mineral reserve estimate for Deepening Extension Zone enables the creation of a two-

mine system at the Pilar Mine with redesigned larger external shaft

• The creation of a two-mine system at the Pilar Mine, known as "Pilar 3.0", whereby the upper

levels of the mine will be serviced by the existing shaft, while the Deepening Extension Zone

will utilize the new, larger external shaft, expected to result in significant growth in total

production from the mine;

• Annual ore production from the Pilar Mine is now forecast to achieve approximately 3.0 million

tonnes by 2026 versus the current production rate of approximately 1.3 million tonnes. From

2027 onwards, annual ore production is expected to range from 2.6 million to 3.0 million tonnes;

and,

• Pilar 3.0 results in the deferral of capital related to the construction of higher operating cost ore-

sorting projects at N8/N9 and Siriema.

2022 Production, Cost and Capital Expenditure Guidance

• 2022 MCSA Mining Complex production guidance of 43,000 to 46,000 tonnes of copper in

concentrate at a C1 cash cost guidance range of $1.05 to $1.15 per pound of copper produced;

• 2022 NX Gold Mine production guidance of 39,000 to 42,000 ounces of gold at C1 cash cost and

all-in sustaining ("AISC") guidance ranges of $500 to $600 and $925 to $1,025 per ounce of gold

produced, respectively; and,

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• Capital expenditures expected to total $330 to $375 million in 2022, including $39 to $46 million

in consolidated exploration spend and $70 to $80 million towards the construction of the Boa

Esperança Project expected to commence in Q2 2022, subject to approval by the Board of

Directors of the Company. Also reflected in the 2022 capital expenditure guidance:

◦ Ongoing construction of the larger external shaft and completion of the Phase 2 cooling

project as part of Pilar Mine 3.0; and,

◦ Commencement of the Caraíba Mill expansion to 4.2 million tonnes per annum in

preparation for expanded operations at the MCSA Mining Complex.

5-Year Operating Outlook

• Copper production is forecast to more than double 1 compared to the Company's 2021 results to a

range of 92,000 to 102,000 tonnes of copper in concentrate in 2025, assuming contributions from

the Boa Esperança Mine2;

• Copper C1 cash costs are expected to average approximately $1.051 per pound of copper

produced on forecasted production totaling approximately 350,0001 tonnes from 2022 to 2026;

• Annual gold production is forecast to increase to a range of 55,000 to 60,000 ounces by 2024, an

increase of over 50%1 compared to 2021 results;

• Gold C1 cash costs and AISC are expected to average approximately $5151 and $6751,

respectively, per ounce of gold produced with production totaling approximately 265,0001

ounces from 2022 through 2026; and,

• Key capital projects aimed at doubling copper production, positioning the MCSA Mining

Complex for expanded operations, and achieving higher sustained gold production at the NX

Gold Mine include:

◦ Approximately $300 million for the construction of the Boa Esperança Project2;

◦ Approximately $250 million for the construction of Pilar 3.0 including the larger external

shaft, associated infrastructure, ventilation, cooling and equipment plus an estimated $35

million for ancillary capital costs including contingency and third-party construction

management costs;

◦ Approximately $30 million to support expanded operations at the MCSA Mining Complex,

including the expansion of mill capacity for the Caraíba Mill to 4.2 million tonnes per

annum and long-term tailings storage capacity improvements to support the increased

throughput and longer mine life; and,

◦ Approximately $10 million to support higher sustained gold production of approximately

60,000 ounces at the NX Gold Mine as part of the Company's "NX 60" initiative.

1. Based on midpoint of guidance range(s).

2. Outlook assumes contributions from the Boa Esperança Mine. Construction of the Boa Esperança Project is expected to

commence in Q2 2022 but remains subject to the approval of the Board of Directors of the Company.

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Commenting on the results, David Strang, CEO, stated, “2021 was a pivotal year for Ero Copper. Our

team delivered another year of record production results and laid the foundation for significant organic

growth of copper and gold production in the years ahead. In addition to announcing the results of our

optimized Feasibility Study on the Boa Esperança Project and demonstrating meaningful growth in our

reserves and resources across our operating portfolio, we completed a redesign of the Pilar Mine,

known as Pilar 3.0. Both projects fit with our focus on maximizing returns on invested capital ("ROIC").

In the case of Pilar 3.0, we have replaced a lower ROIC initiative, the ore sorting project, with a higher

one. Likewise, at our NX Gold operations, we have initiated a project, known as NX 60, that is focused

on sustaining longer term gold production of approximately 60,000 ounces per year by incorporating

the new Matinha Vein into our mine plan from 2024 onwards.

"We are now well-placed to achieve the next stage of our growth — becoming a 100,000 tonne a year

copper and 60,000 ounce a year gold producer by 2025 — while maintaining first quartile operating

costs and industry-leading ROIC."

2021 PRODUCTION RESULTS

• At the MCSA Mining Complex, approximately 2.4 million tonnes of ore grading 2.08% copper

was processed during the year, resulting in 45,511 tonnes of copper in concentrate produced after

average metallurgical recoveries of 92.4%;

◦ Fourth quarter mill throughput of 646,319 tonnes of ore grading 1.99% copper resulted in

11,918 tonnes of copper in concentrate produced after average metallurgical recoveries of

92.7% during the period;

• At the NX Gold Mine, 171,581 tonnes of ore grading 7.27 grams per tonne ("gpt") gold was

processed during the year, producing 37,798 ounces of gold and 25,031 ounces of silver as by-

product after average metallurgical recoveries of 94.2%;

◦ Fourth quarter mill throughput of 47,159 tonnes of ore grading 6.24 gpt gold resulted in

8,544 ounces of gold produced and 5,859 ounces of silver produced as by-product after

average metallurgical recoveries of 90.3% during the period;

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2022 PRODUCTION GUIDANCE

Copper production guidance from the MCSA Mining Complex in 2022 of 43,000 to 46,000 tonnes of

copper in concentrate is expected to come from the Pilar and Vermelhos underground mines as well the

Surubim open pit mine. Total ore processed of approximately 3.0 million tonnes at a blended grade of

1.60% copper is expected to be comprised of 1.8 million tonnes at 1.50% copper from the Pilar Mine,

900,000 tonnes at 2.05% copper from the Vermelhos Mine, and 300,000 tonnes at 0.75% copper from

the Surubim Mine.

Gold production guidance from the NX Gold Mine for 2022 of 39,000 to 42,000 ounces is expected to

come from the Santo Antônio Vein based on total ore processed of approximately 168,000 tonnes at a

gold grade of 8.00 grams per tonne.

2021 Guidance 2021 Actual Production 2022 Guidance

MCSA Mining Complex

Tonnes Processed 2,700,000 2,370,571 3,000,000

Copper Grade (%) 1.75 % 2.08 % 1.60 %

Copper Recovery (%) 93.0 % 92.4 % 92.5 %

Copper Production (kt) 42,000 - 45,000 45,511 43,000 - 46,000

NX Gold Mine

Tonnes Processed 167,000 171,581 168,000

Gold Grade (gpt) 7.20 7.27 8.00

Gold Recovery (%) 92.0 % 94.2 % 93.0 %

Au Production (koz) 34,500 - 37,500 37,798 39,000 - 42,000

Ag Production (koz) n/a 25,031 n/a

Note: Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade

and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company's SEDAR

and EDGAR filings, including the Company's Annual Information Form for the year ended December 31, 2020 and dated

March 16, 2021 (the "AIF") for complete risk factors.

2022 COST GUIDANCE

C1 Cash Cost guidance at the MCSA Mining Complex in 2022 of $1.05 to $1.15 per pound of copper

produced reflects increased mill feed from the Surubim open pit mine compared to its partial year of

production in 2021. AISC per ounce of gold produced at the NX Gold Mine in 2022 reflect higher

sustaining capital expenditures related to projects rescheduled from 2021 to 2022 . The Company's 2022

cost guidance assumes a USD:BRL foreign exchange rate of 5.30, a gold price of $1,725 per ounce, and

a silver price of $20.00 per ounce.

2021 Guidance

Original Revised 2022 Guidance

Copper C1 Cash Cost ($/lb) $0.75 - $0.85 no change $1.05 - $1.15

Gold C1 Cash Cost ($/oz) $500 - $600 no change $500 - $600

Gold All-in Sustaining Cost ($/oz) $875 - $975 $650 - $725 $925 - $1,025

Note: C1 Cash Costs and AISC are non-IFRS measures. Please see the Notes section of this press release for additional

information. 2021 guidance assumed a USD:BRL exchange rate of 5.00, with no change to gold and silver price

assumptions.

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2022 CAPITAL EXPENDITURE GUIDANCE

Forecasted capital expenditures for 2022 reflect growth investments related to expanding production at

the MCSA Mining Complex (Pilar 3.0), development of the Matinha Vein (part of project NX 60), and

the planned construction of the Boa Esperança Project 1. Higher expected sustaining capital expenditures

at the NX Gold Mine are related to the timing of certain sustaining capital projects that were deferred

from 2021 into 2022. The Company's capital expenditure guidance for 2022 assumes a USD:BRL

foreign exchange rate of 5.30 versus a 5.00 USD:BRL foreign exchange rate assumed in 2021. Capital

expenditure guidance has been presented below in USD millions.

2021 Guidance

Original Revised 2022 Guidance

MCSA Mining Complex

Growth $12.5 - $15.0 $26.0 - $28.5 $125 - $140

Sustaining $69.0 - $78.0 $69.0 - $78.0 $80 - $90

Exploration $30.0 - $35.0 no change $25 - $30

Total $111.5 - $128.0 $125.0 - $141.5 $230 - $260

Boa Esperança1

Growth $1.0 - $1.5 $7.0 - $9.0 $70 - $80

Sustaining — — —

Exploration — — $5 - $6

Total $1.0 - $1.5 $7.0 - $9.0 $75 - $86

NX Gold Mine

Growth — $8.5 - $9.5 $0 - $1

Sustaining $13.0 - $15.0 $4.5 - $5.5 $16 - $18

Exploration $8.0 - $10.0 no change $9 - $10

Total $21.0 - $25.0 no change $25 - $29

Total

Growth $13.5 - $16.5 $41.5 - $47.0 $195 - $221

Sustaining $82.0 - $93.0 $73.5 - $83.5 $96 - $108

Exploration $38.0 - $45.0 no change $39 - $46

Total $133.5 - $154.5 $153.0 - $175.5 $330 - $375

1. Capital expenditures for the construction of the Boa Esperança Project expected to commence in Q2 2022, subject to

receipt of approval by the Board of Directors of the Company. For more information on the Boa Esperança Project,

including capital expenditure assumptions, please refer to the NI 43-101 compliant technical report entitled "Boa Esperança

Project NI 43-101 Technical Report on Feasibility Study Update" dated November 12, 2021 with an effective date of

August 31, 2021, prepared by Kevin Murray, P. Eng., Erin L. Patterson, P. Eng., and Scott C. Elfen, P.E., all of Ausenco

Engineering Canada Inc., Carlos Guzmán, FAusIMM RM CMC of NCL Ingeniería y Construcción SpA, who are

independent qualified persons under NI 43-101, and Emerson Ricardo Re, MSc, MBA, MAusIMM (CP) (No. 305892),

Registered Member (No. 0138) (Chilean Mining Commission) and Resource Manager of the Company (the “2021 Boa

Esperança Technical Report”).

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5-YEAR OPERATING OUTLOOK

The Company's five-year operating outlook reflects execution of the following strategic growth projects:

• Construction of and production ramp-up at the Boa Esperança mine with construction to

commence in Q2 2022, subject to receipt of approval by the Board of Directors of the Company;

• Pilar 3.0 beginning with construction of the new external shaft and associated development at the

Deepening Extension Zone followed by ramp-up of production volumes to 3.0 million tonnes in

2026, with longer-term (2027 onwards) volumes forecast to be between 2.6 and 3.0 million

tonnes;

• Investments to support expanded operations at the MCSA Mining Complex, including increasing

both processing capacity of the Caraíba Mill to 4.2 million tonnes per annum and long-term

tailings storage capacity to support the extended mine life; and,

• The development of the Matinha Vein at the NX Gold Mine in support of project NX 60, with

production from this new vein expected to commence in 2024.

The Company's 2022 cost and capital expenditure guidance assumes a USD:BRL foreign exchange rate

of 5.30, while all subsequent years assume a USD:BRL foreign exchange rate of 5.00. Cost guidance

assumes a gold price of $1,725 per ounce and a silver price of $20.00 per ounce for the five-year

projection period. Capital expenditure guidance has been presented in the following table in USD

millions.

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2022 2023 2024 2025 2026

Production Guidance

Copper (tonnes)

MCSA Mining Complex 43,000 - 46,000 43,000 - 47,000 45,000 - 50,000 45,000 - 50,000 47,000 - 52,000

Boa Esperança1 — — 25,000 - 30,000 47,000 - 52,000 38,000 - 43,000

Total Copper 43,000 - 46,000 43,000 - 47,000 70,000 - 80,000 92,000 - 102,000 85,000 - 95,000

Gold (ounces)

NX Gold Mine 39,000 - 42,000 50,000 - 55,000 55,000 - 60,000 55,000 - 60,000 55,000 - 60,000

Cost Guidance

Copper C1 Cash Cost ($/lb)

MCSA Mining Complex $1.05 - $1.15 $1.05 - $1.15 $1.15 - $1.25 $1.10 - $1.20 $1.00 - $1.10

Boa Esperança1 — — $0.90 - $1.00 $0.80 - $0.90 $1.00 - $1.10

Blended C1 Cash Cost ($/lb) — — $1.05 - $1.15 $0.95 - $1.05 $1.00 - $1.10

Gold C1 Cash Cost ($/oz) $500 - $600 $475 - $575 $450 - $550 $450 - $550 $450 - $550

Gold All-in Sustaining Cost ($/oz) $925 - $1,025 $650 - $750 $550 - $650 $550 - $650 $550 - $650

Capital Expenditure Guidance ($ in millions)

MCSA Mining Complex

Growth $125 - $140 $60 - $70 $60 - $70 $50 - $60 $30 - $40

Sustaining $80 - $90 $80 - $90 $65 - $75 $50 - $60 $50 - $60

Exploration $25 - $30 future exploration expenditures dependent on exploration success

Total $230 - $260 $140 - $160 $125 - $145 $100 - $120 $80 - $100

Boa Esperança1

Growth $70 - $80 $160 - $180 $45 - $55 $0 - $0 $0 - $0

Sustaining $0 - $0 $0 - $0 $5 - $10 $15 - $25 $20 - $30

Exploration $5 - $6 future exploration expenditures dependent on exploration success

Total $75 - $86 $160 - $180 $50 - $65 $15 - $25 $20 - $30

NX Gold Mine

Growth $0 - $1 $5 - $6 $5 - $6 $0 - $1 $0 - $1

Sustaining $16 - $18 $8 - $10 $4 - $6 $4 - $6 $4 - $6

Exploration $9 - $10 future exploration expenditures dependent on exploration success

Total $25 - $29 $13 - $16 $9 - $12 $4 - $7 $4 - $7

Total

Growth $195 - $221 $225 - $256 $110 - $131 $50 - $61 $30 - $41

Sustaining $96 - $108 $88 - $100 $74 - $91 $69 - $91 $74 - $96

Exploration $39 - $46 future exploration expenditures dependent on exploration success

Total $330 - $375 $313 - $356 $184 - $222 $119 - $152 $104 - $137

Note: Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade

and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company's SEDAR

and EDGAR filings, including the AIF, for complete risk factors. C1 Cash Costs and AISC are non-IFRS measures. Please

see the Notes section of this press release for additional information. For more information on the Boa Esperança Project,

including production, cost and capital expenditure assumptions, please refer to the 2021 Boa Esperança Technical Report.

1. Outlook assumes contributions from the Boa Esperança Mine. Construction of the Boa Esperança Project is expected to

commence in Q2 2022 but remains subject to the approval of the Board of Directors of the Company.

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5-YEAR PRODUCTION PLAN

The Company's five-year operating outlook reflects the five-year production plan estimates provided

below. Tonnes and grades are based on current mine plan assumptions and represent the midpoint of

performance expectations with a range of +/- 10%.

2022 2023 2024 2025 2026

Production Plan

MCSA Mining Complex

Pilar Mine

Tonnes (kt) 1,800 2,200 2,700 2,600 3,000

Grade (% Cu) 1.50% 1.30% 1.25% 1.25% 1.30%

Vermelhos Mine

Tonnes (kt) 900 850 850 950 800

Grade (% Cu) 2.05% 1.75% 1.25% 1.15% 1.30%

Surubim

Tonnes (kt) 300 550 550 600 500

Grade (% Cu) 0.75% 0.65% 0.75% 0.75% 1.10%

Processing Operations

Tonnes (kt) 3,000 3,700 4,200 4,200 4,200

Grade (% Cu) 1.60% 1.35% 1.20% 1.20% 1.25%

Recovery Rate 92.5% 92.5% 92.5% 92.5% 92.5%

Recovered Copper (tonnes) 43,000 - 46,000 43,000 - 47,000 45,000 - 50,000 45,000 - 50,000 47,000 - 52,000

Boa Esperança1

Mining Operations

Tonnes (kt) — — 2,300 4,200 4,100

Grade (% Cu) — — 1.30% 1.25% 1.05%

Processing Operations

Tonnes (kt) — — 2,200 4,000 4,000

Grade (% Cu) — — 1.35% 1.35% 1.10%

Recovery Rate (%) — — 93.0% 93.0% 92.0%

Recovered Copper (tonnes) — — 25,000 - 30,000 47,000 - 52,000 38,000 - 43,000

Total Recovered Copper (tonnes) 43,000 - 46,000 43,000 - 47,000 70,000 - 80,000 92,000 - 102,000 85,000 - 95,000

NX Gold Mine

Tonnes (kt) 167 190 220 230 230

Grade (gpt Au) 8.00 9.50 8.75 8.25 8.25

Recover Rate 93.0% 93.0% 93.0% 93.0% 93.0%

Recovered Gold (ounces) 39,000 - 42,000 50,000 - 55,000 55,000 - 60,000 55,000 - 60,000 55,000 - 60,000

Note: Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade

and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company's SEDAR

and EDGAR filings, including the AIF, for complete risk factors. For more information on the Boa Esperança Project,

including production assumptions, please refer to the 2021 Boa Esperança Technical Report.

1. Outlook assumes contributions from the Boa Esperança Mine. Construction of the Boa Esperança Project is expected to

commence in Q2 2022 but remains subject to the approval of the Board of Directors of the Company.

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