ERO.TO · 2024-02-21 12:00:00

Ero Copper Announces 2023 Production Results and Provides 2024 Guidance

Production Results

February 21, 2024

(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 2023 production results, 2024 guidance and three-

year production outlook.

HIGHLIGHTS

Record Gold Production Driven by Successful Completion of the NX 60 Initiative

• The Xavantina Operations produced 59,222 ounces of gold in 2023, exceeding the

increased guidance range of 55,000 to 59,000 ounces, issued on November 2, 2023,

and the original 2023 guidance range of 50,000 to 53,000 ounces

• Average processed gold grades of 15.13 grams per tonne ("gpt") represented a 98.8%

increase in gold grades as compared to 2022

Caraíba Mill Expansion Design Capacity Reached by Year-End

• The Caraíba Operations produced 43,857 tonnes of copper in concentrate for the full

year, slightly below guidance of 44,000 to 47,000 tonnes

• Although the Caraíba mill expansion design capacity was achieved by year-end,

throughput volumes and copper production for the fourth quarter and full year were

impacted by approximately one week of additional unplanned downtime related to the

integration of the expansion circuit

2024 Guidance

• Consolidated copper production is expected to be 59,000 to 72,000 tonnes in

concentrate at C1 cash costs between $1.50 to $1.75 per pound of copper produced

• The Xavantina Operations are expected to produce 55,000 to 60,000 ounces of gold at

average C1 cash costs between $550 to $650 per ounce of gold produced and all-in

sustaining costs ("AISC") between $1,050 and $1,150 per ounce of gold produced

• Total capital expenditures are expected to decrease year-on-year to a range of $299 to

$349 million in 2024 , primarily due to the completion of the Tucumã Project, which

remains on track to commence production during the second half of the year. As a

result, capital spend is expected to be weighted towards the first half of 2024

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Three-Year Production Outlook

• Consolidated copper pr oduction is projected to more than double to 95,000 to

105,000 tonnes in 2025, as the Tucumã Mine is expected to achieve its first full year of

production

• Following the successful completion of the NX 60 initiative in 2023, the Xavantina

Operations are expected to sustain annual gold production levels of 55,000 to 60,000

ounces through 2026

Commenting on the production results and 2024 guidance, David Strang, Chief Executive

Officer, said: “Our 2023 production performance reflects the strong execution of our organic

growth strategy, highlighted by the successful completion of the NX 60 initiative, which

resulted in a 39% year-on-year increase in gold production. Although the completion of the

mill expansion project at our Caraíba Operations necessitated additional plant downtime,

culminating in full-year copper production that slightly missed our expectations, this

milestone is pivotal for supporting higher sustained ore production volumes from the Pilar

Mine over the long term.

“We have carried this strategic momentum into 2024 as we transition from construction to

commissioning at the Tucumã Project, where we anticipate initial copper concentrate

production in the second half of this year. With consolidated copper production on track to

increase at least 35% this year and more than double in 2025, we are actively advancing our

longer-term growth initiatives. These include construction of the new external shaft at the

Caraíba Operations, continued nickel exploration throughout the Curaçá Valley, and preparing

for the first phase of work at the Furnas Project.

"I am proud of the progress our team has made in executing major growth initiatives

announced just over two years ago. We are committed to building upon this track record as

we position Ero to deliver peer-leading growth in the years ahead."

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FOURTH QUARTER AND FULL-YEAR 2023 PRODUCTION RESULTS

Caraíba Operations

• Throughput volumes increased 12.8% year-on-year to over 3.2 million tonnes, despite

lower-than-expected processed tonnage in Q4 2023 due to mill downtime related to

the integration of the expansion circuit

• Processed copper grades and metallurgical recoveries were in-line with expectations,

averaging 1.49% and 91.4%, respectively, for the year

Xavantina Operations

• Processed gold grades increased 98.8% to average 15.13 gpt for the year, more than

offsetting lower year-on-year mill throughput volumes

2023 Guidance

Q4 2023 Full Year 2023 Original Updated

Caraíba Operations

Tonnes Processed 812,202 3,231,667 3,300,000 —

Grade (% Cu) 1.59 1.49 1.50 —

Recovery Rate (%) 91.0 91.4 91.5 —

Cu Production (tonnes) 11,760 43,857 44,000 - 47,000 44,000 - 47,000

Xavantina Operations

Tonnes Processed 34,416 136,002 175,000 —

Grade (gpt Au) 17.18 15.13 10.00 —

Recovery Rate (%) 88.7 89.5 92.0 —

Au Production (oz) 16,867 59,222 50,000 - 53,000 55,000 - 59,000

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2024 PRODUCTION GUIDANCE AND THREE-YEAR PRODUCTION OUTLOOK

The Company's 2024 production guidance and three-year production outlook reflect the

ongoing execution of its organic growth strategy, including the successful completion of the

Xavantina Operations' NX 60 initiative as well as the anticipated completion of the Tucumã

Project, which remains on track to commence production in the second half of this year. As a

result, the Company expects to deliver sustained annual gold production of 55,000 to 60,000

ounces through 2026 and more than double copper production to 95,000 to 105,000 tonnes

in concentrate in 2025.

At the Caraíba Operations, copper production is projected to range from 42,000 to 47,000

tonnes through 2026, with higher mill throughput volumes expected to offset lower forecast

mined and processed copper grades. Following the anticipated completion of the Pilar Mine's

new external shaft in late 2026, the Company expects mined and processed copper grades to

increase as mining from the high-grade Deepening Extension Zone ramps up.

Copper production from the Tucumã Operations is expected to increase from 17,000 to

25,000 tonnes in the second half of 2024 to 53,000 to 58,000 tonnes in 2025, when the mine

achieves its first full year of production. The Tucumã mill is expected to sustain nameplate

throughput levels of approximately 4.0 million tonnes per annum beginning in 2025 with

strong mined and processed copper grades projected through 2026.

At the Xavantina Operations, higher mill throughput levels are expected to offset lower

mined and processed gold grades over the next three years . In 2024, gold production is

expected to be slightly weighted towards the first half of the year due to higher anticipated

gold grades compared to the second half of the year.

2024 2025 2026

Copper (tonnes)

Caraíba Operations 42,000 - 47,000 42,000 - 47,000 42,000 - 47,000

Tucumã Operations 17,000 - 25,000 53,000 - 58,000 48,000 - 53,000

Total Copper 59,000 - 72,000 95,000 - 105,000 90,000 - 100,000

Gold (ounces)

Xavantina Operations 55,000 - 60,000 55,000 - 60,000 55,000 - 60,000

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

grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer

to the Company’s SEDAR+ and EDGAR filings, including the most recent Annual Information Form ("AIF"), for

a detailed summary of risk factors.

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2024 COST GUIDANCE

2024 copper C1 cash cost guidance on a consolidated basis is $1.50 to $1.75 per pound of

copper produced. This range incorporates several key updates relative to previous 2024 C1

cash cost projections:

• The foreign exchange rate has been adjusted from 5.30 to 5.00 Brazilian Real (BRL)

per U.S. Dollar (USD), reflecting the BRL's continued strength

• Guidance includes higher concentrate treatment and refining charges based on Q4

2023 levels, which have shown a favorable downward trend year-to-date

• Consumable cost assumptions have been refreshed higher to align with consumable

pricing observed in Q4 2023

• The Company has assumed the Caraíba Operations will export 100% of its copper

concentrate in 2024, up from the 50% previously assumed

Furthermore, in light of changes to the Caraíba Operations' copper concentrate sales

channels, the Company has updated its copper C1 cash cost calculation methodology 1. This

change will be offset by an equal increase in reported realized copper prices.

At the Xavantina Operations, the C1 cash cost guidance range of $550 to $650 per ounce of

gold produced reflects improved fixed cost efficiencies driven by higher expected gold

production, partially offsetting the impact of planned decreases to mined and processed gold

grades. The AISC guidance range for 2024 is $1,050 to $1,150 per ounce of gold produced.

2024 cost guidance assumes a foreign exchange rate of 5.00 USD:BRL, a gold price of

$1,900 per ounce, and a silver price of $23.00 per ounce.

Copper C1 Cash Cost ($/lb)

Caraíba Operations $1.80 - $2.00

Tucumã Operations $0.90 - $1.10

Consolidated Copper Operations $1.50 - $1.75

Gold C1 Cash Cost ($/oz) $550 - $650

Gold All-In Sustaining Cost ($/oz) $1,050 - $1,150

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

additional information.

1. For further details, please refer to the definition of "C1 Cash Cost of Copper Produced (per lb)" the Notes

section below.

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2024 CAPITAL EXPENDITURE GUIDANCE

2024 capital expenditures are expected to decrease to a range of $299 to $349 million due to

the anticipated completion of the Tucumã Project, which is on track to commence production

in the second half of the year. As a result, capital spend is expected to be weighted towards

the first half of 2024.

The table below includes an estimated $30 to $40 million of consolidated exploration

expenditures. This estimate includes approximately $20 million designated for drilling

activities at the Caraíba Operations, including expenditures related to the Curaçá Valley nickel

exploration program. Additionally, the Company has budgeted approximately $6 million for

the first phase of work at the Furnas Project.

The 2024 capital expenditure guidance assumes an exchange rate of 5.10 USD:BRL for the

Tucumã Project based on designated foreign exchange hedges with a weighted average

ceiling and floor of 5.10 and 5.23 USD:BRL, respectively. All other capital expenditures

assume an exchange rate of 5.00 USD:BRL. Figures presented below are in USD millions.

Caraíba Operations

Growth $80 - $90

Sustaining $100 - $110

Total $180 - $200

Tucumã Project

Growth $65 - $75

Capitalized Ramp-Up Costs $4 - $6

Sustaining $2 - $5

Total $71 - $86

Xavantina Operations

Growth $3 - $5

Sustaining $15 - $18

Total $18 - $23

Consolidated Exploration Programs $30 - $40

Consolidated Capital Expenditures

Growth $148 - $170

Capitalized Ramp-Up Costs $4 - $6

Sustaining $117 - $133

Exploration $30 - $40

Total $299 - $349

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NOTES

Alternative Performance (Non-IFRS) Measures

The Company utilizes certain alternative performance (non-IFRS) measures to monitor its

performance, including C1 cash cost of copper produced (per lb), C1 cash cost of gold

produced (per ounce), and AISC of gold produced (per ounce). These performance measures

have no standardized meaning prescribed within generally accepted accounting principles

under IFRS and, therefore, amounts presented may not be comparable to similar measures

presented by other mining companies. These non-IFRS measures are intended to provide

supplemental information and should not be considered in isolation or as a substitute for

measures of performance prepared in accordance with IFRS.

C1 Cash Cost of Copper Produced (per lb)

C1 cash cost of copper produced (per lb) is a non-IFRS performance measure used by the

Company to manage and evaluate the operating performance of its copper mining segment

and is calculated as C1 cash costs divided by total pounds of copper produced during the

period. C1 cash costs comprise the total cost of production, including expenses related to

transportation, and treatment and refining charges. These costs are net of by-product credits,

incentive payments and certain tax credits associated with sales invoiced to the Company's

Brazilian customers.

Effective Q4 2023, the Company is including freight parity charged by its customers as part of

treatment, refining and other costs within the calculation of C1 cash costs. This charge was

previously presented as a reduction in realized copper price.

While the C1 cash cost of copper produced per pound is widely reported in the mining

industry as a performance benchmark, it does not have a standardized meaning and is

disclosed as a supplement to IFRS measures.

C1 Cash Cost of Gold produced (per ounce) and AISC of Gold produced (per ounce)

C1 cash cost of gold produced (per ounce) is a non-IFRS performance measure used by the

Company to manage and evaluate the operating performance of its gold mining segment and

is calculated as C1 cash costs divided by total ounces of gold produced during the period. C1

cash cost includes total cost of production, net of by-product credits and incentive payments.

C1 cash cost of gold produced per ounce is widely reported in the mining industry as

benchmarks for performance but does not have a standardized meaning and is disclosed in

supplemental to IFRS measures.

AISC of gold produced (per ounce) is an extension of C1 cash cost of gold produced (per

ounce) discussed above and is also a key performance measure used by management to

evaluate operating performance of its gold mining segment. AISC of gold produced (per

ounce) is calculated as AISC divided by total ounces of gold produced during the period. AISC

includes C1 cash costs, site general and administrative costs, accretion of mine closure and

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rehabilitation provision, sustaining capital expenditures, sustaining leases, and royalties and

production taxes. AISC of gold produced (per ounce) is widely reported in the mining industry

as benchmarks for performance but does not have a standardized meaning and is disclosed in

supplement to IFRS measures.

ABOUT ERO COPPER CORP

Ero is a high-margin, high-growth, low carbon-intensity copper producer with operations in

Brazil and corporate headquarters in Vancouver, B.C. The Company's primary asset is a

99.6% interest in the Brazilian copper mining company, Mineração Caraíba S.A. ("MCSA"),

100% owner of the Company's Caraíba Operations (formerly known as the MCSA Mining

Complex), which are located in the Curaçá Valley, Bahia State, Brazil and include the Pilar

and Vermelhos underground mines and the Surubim open pit mine, and the Tucumã Project

(formerly known as Boa Esperança), an IOCG-type copper project located in Pará, Brazil. The

Company also owns 97.6% of NX Gold S.A. ("NX Gold") which owns the Xavantina

Operations (formerly known as the NX Gold Mine), comprised of an operating gold and silver

mine located in Mato Grosso, Brazil. Additional information on the Company and its

operations, including technical reports on the Caraíba Operations, Xavantina Operations and

Tucumã Project, can be found on SEDAR+ at www.sedarplus.ca/landingpage/ and on EDGAR

(www.sec.gov). The Company’s shares are publicly traded on the Toronto Stock Exchange

and the New York Stock Exchange under the symbol “ERO”.

FOR MORE INFORMATION, PLEASE CONTACT

Courtney Lynn, SVP, Corporate Development, Investor Relations & Sustainability

(604) 335-7504

[email protected]

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