ERO.TO · 2021-09-28 12:00:00

Ero Copper Announces Results of Optimized Feasibility Study for Boa Esperança Project – Doubles Life-of-Mine Copper Production

Economic Studies

September 28, 2021

Ero Copper Announces Results of Optimized Feasibility Study for Boa Esperança Project –

Doubles Life-of-Mine Copper Production

(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 the results of its optimized Feasibility Study (the "2021 Feasibility

Study") on the Boa Esperança Copper Project ("Boa" or the "Project"), located in Pará State, Brazil.

HIGHLIGHTS

• 41.8% after-tax internal rate of return ("IRR") and $380 million after-tax net present value (8%)

based on Consensus Copper Price (as defined below) and 5.00 BRL:USD exchange rate;

• Doubled life-of-mine ("LOM") copper production to approximately 326,000 tonnes from

163,000 tonnes in the 2017 Study (as defined below) with increased mine life of twelve years;

• Mine life of twelve years supported by updated proven mineral reserves of 30.7 million tonnes at

0.89% copper and probable mineral reserves of 12.4 million tonnes at 0.67% copper, containing

a total of 356.6 thousand tonnes of copper, a 93% increase in contained copper as compared to

the 2017 Study (as defined below);

• Low capital-intensity of approximately $8,400 per tonne of copper produced annually over the

first 5 years of the Project resulting in rapid payback of 1.4 years at Consensus Copper Price;

• Significant exploration upside identified within an under-explored area within the final pit limits,

known as the "Gap Zone", expected to enhance the Project by (i) confirming continuity of

mineralization between near-surface high-grade zones and high-grade zones near the pit limits at

depth; and, (ii) converting material currently classified as waste into mineral resources.

Subsequent to August 31, 2021, or the effective date of the mineral resource and mineral reserve

estimates in the 2021 Feasibility Study (the “Effective Date”), ten exploration holes were drilled

in the Gap Zone, all of which showed mineralization. To date, assay results have been received

for three of these holes. Results are highlighted by hole BSPD-166 that intercepted 21.2 meters

grading 0.98% copper and 15.3 meters grading 1.25% copper and BSPD-169 that intercepted

64.9 meters grade 0.86% copper including 15.0 meters grading 1.40% copper; and

• Detailed engineering design efforts are currently underway with early con struction works

expected to commence during H1 2022, subject to the approval of Ero's Board of Directors.

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1 Ero Copper Corp

2021 FEASIBILITY STUDY SUMMARY

General

Type of Operation Open Pit

Mine Life years 12

Mill Throughput Mtpa 4.0

Total Tonnes Processed kt 43,052

Life-of-Mine Strip Ratio waste:ore 3.7

Copper Head Grade % Cu 0.83 %

Metallurgical Recovery % 91.3 %

First Five Years of Production

Average Annual Recovered Copper kt 35

C1 Cash Cost(1) $/lb Cu produced $1.12

Total Recovered Copper Production kt 174

Life-of-Mine Production

Average Annual Recovered Copper kt 27

C1 Cash Cost(1) $/lb Cu produced $1.36

Total Recovered Copper Production kt 326

Financial Highlights

Copper Price $/lb Consensus Copper Price(2)

Foreign Exchange Rate USD:BRL 5.00

Initial Capital $M $294

Sustaining Capital $M $196

After-Tax Net Present Value (8%) $M $380

After-Tax Internal Rate of Return % 41.8 %

After-Tax Payback Period years 1.4

(1) 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.

(2) Consensus Copper Price forecast is based on the average analyst copper price estimates from 26 financial institutions as of

the Effective Date, resulting in $3.80 per pound in 2024, $3.95 per pound in 2025 and $3.40 per pound in 2026 and

thereafter.

SENSITIVITY OF ECONOMIC RESULTS TO COPPER PRICE (USD/LB)

$188

$361

$534

$707

$880

25.5%

38.0%

48.8%

58.7%

67.9%

$380

41.8%

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

Consensus

Copper Price

$3.00 $3.50 $4.00 $4.50 $5.00

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2 Ero Copper Corp

Commenting on the results, David Strang, CEO, stated, “The Boa Esperança Project is the most recent

example of our team's commitment and outstanding track record of creating shareholder value from our

existing portfolio, and we could not be more excited about the outcome of these efforts. We started the

re-evaluation of Boa from the ground up, beginning with a complete review of the mineral resource

calculations that identified significant upside opportunities on which to build a new vision for Boa.

“By re-logging core, focusing our efforts on geologic modelling and optimizing the mine sequence, we

were able to identify a superior mine plan capable of supporting a much larger operation by pulling

forward high-grade mineralization in the production plan. The result of this work is significantly higher

annual copper production averaging approximately 35,000 over the first five years of the mine's life, a

very attractive payback of 1.4 years and a 41.8% internal rate of return. Further, we see potential for

additional value generation through ongoing exploration within the newly designed final pit shell.

“Our near-term focus will be targeting exploration in an area referred to as the Gap Zone, where we

currently have four drill rigs operating. The Gap Zone is a sizeable target area within the current pit

shell where there has been limited historic drilling. As a result, material mined from this zone, which is

currently included in the later phases of the mine plan, is largely treated as waste. While early in the

program, the ten holes we have drilled within the Gap Zone subsequent to the cut-off date of the 2021

Feasibility Study show mineralized zones in the areas where we would expect to see extensions and

continuity of mineralization. With continued exploration success, we see potential to meaningfully

increase the mine's production profile beyond year five of the current life-of-mine plan.

"Our excitement around our organic growth initiatives, including the delivery of the Boa Esperança

Project and production growth at the MCSA Mining Complex, continues to build as we establish a clear

path to doubling our copper production profile over the coming years while continuing to generate peer-

leading returns on invested capital. With a robust balance sheet and strong cash flow generation, we are

well-positioned to execute on our growth strategy and continue delivering shareholder value."

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3 Ero Copper Corp

GAP ZONE EXPLORATION SUCCESS

Subsequent to the Effective Date, ten exploration drill holes were drilled within the Gap Zone, all of

which show mineralization. To date, assay results have been received for three of these holes. Results

are highlighted by hole BSPD-166 that intercepted 21.2 meters grading 0.98% copper and 15.3 meters

grading 1.25% copper, including 6.5 meters grading 2.46% copper, hole BSPD-169 that intercepted 64.9

meters grade 0.86% copper, including 15.0 meters grading 1.40% copper and hole BSPD-175 that

intercepted 14.1 meters grading 0.73% copper including 5.7 meters grading 1.59% copper. Additional

mineralized intercepts from within these holes are pending assay results.

Continued positive exploration results within the Gap Zone are expected to further enhance the Project

by (i) confirming continuity of mineralization between near-surface high-grade zones and high-grade

zones near the pit limits at depth; and, (ii) converting material currently classified and mined as waste

into mineral resources. The Company expects the Gap Zone to contribute to increased copper production

beyond year five of the mine plan.

Gap Zone drill results outlined in this press release, including drill collar locations, are shown below in

Figure 1 and can be viewed on the Company’s Boa Esperança project tour and interactive three-

dimensional ("3D") model, which can be accessed via the Company’s VRIFY Technology Inc.

(“VRIFY”) project page (www.vrify.com/companies/ero-copper-corp) or via VRIFY directly

(www.vrify.com).

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Hole ID From (m) To (m) Length (m) Cu (%)

GAP Zone - Assay Results

BSPD-166 31.0 44.0 13.0 0.25

and 125.4 141.3 15.9 0.44

and 174.0 179.2 5.2 1.27

and 189.7 200.6 10.9 0.67

and 339.5 360.7 21.2 0.98

including 339.5 343.3 3.9 2.78

and 383.5 398.8 15.3 1.25

including 386.3 392.8 6.5 2.46

and 435.4 445.6 10.3 1.27

including 435.4 439.8 4.4 2.21

and 467.8 476.6 8.8 0.39

BSPD-169 317.2 382.0 64.9 0.86

including 346.5 354.9 8.4 1.46

and including 367.0 382.0 15.0 1.40

BSPD-175 336.8 350.8 14.1 0.73

including 345.1 350.8 5.7 1.59

and 401.0 438.0 37.0 0.20

GAP Zone - Additional Mineralized Intervals for Above Drill Holes (Assay Results Pending)

BSPD-169 112.0 119.0 7.0 assays pending

and 158.5 183.0 24.5 assays pending

and 201.0 263.0 62.0 assays pending

and 484.0 499.0 15.0 assays pending

and 509.0 536.0 27.0 assays pending

BSPD-175 101.0 117.9 16.9 assays pending

and 127.0 138.0 11.0 assays pending

and 185.0 192.5 7.5 assays pending

and 203.8 220.7 16.9 assays pending

and 302.0 320.3 18.3 assays pending

(1) Mineralized intercepts below cut-off grade of 0.20% copper not reported. Drill holes were drilled from surface using

diamond core drill rigs. The length of intercept may not represent the true width of mineralization. Values may not add up

due to rounding. From, to and mineralized intercepts are rounded to the nearest tenth of a meter. The seven remaining drill

holes from the Gap Zone drilling campaign are pending assay results in their entirety.

Gap Zone drill results from BSPD-166, BSPD-169 and BSPD-175, as referenced herein, reflects

mineralization not captured in the Company's NI 43-101 (as defined below) compliant mineral resource

and mineral reserve models developed for the 2021 Feasibility Study. There has been insufficient work

and analysis surrounding Gap Zone drilling to define a mineral resource and it is uncertain if further

exploration and analysis will result in such targets being delineated as a mineral resource.

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5 Ero Copper Corp

Figure 1 shows high-grade and low-grade mineralization, as well as the Gap Zone exploration target

area within the final pit design of the Project. Figure 2 highlights recent Gap Zone drilling results.

The center of the final pit design is located at UTM Easting 450722.00 and UTM Northing 9241657.00. Boa Esperança

mineralization based on data compilation work which includes review of geological controls, structural analysis and copper

mineralization identified during the Company’s technical programs. The interpretation and boundary limits do not imply

continuity of mineralization or actual thickness of mineralization. Mineral resources which are not mineral reserves do not

have demonstrated economic viability.

Figure 1: Boa Esperança VRIFY 3D Model, Plan View looking North (Ero Copper, 2021)

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6 Ero Copper Corp

The center of the final pit design is located at UTM Easting 450722.00 and UTM Northing 9241657.00. The GAP Zone

volume is shown to demonstrate a future area of exploration within the Boa Esperança final pit design. The shape is based

on data compilation work which includes review of geological controls and structural analysis during the Company’s

technical programs. The interpretation and boundary limits do not imply continuity of mineralization or actual thickness of

mineralization.

Figure 2: Boa Esperança VRIFY 3D Model, Gap Zone Results, view looking North (Ero Copper, 2021)

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7 Ero Copper Corp

MINERAL RESERVES & RESOURCES, 2021

Tonnes

(000s)

Grade

(Cu %)

Contained Cu

(kt)

Mineral Reserves

Proven Reserves 30,674 0.89 273.2

Probable Reserves 12,378 0.67 83.3

Proven & Probable Reserves 43,052 0.83 356.6

Mineral Resources (Pit Constrained, inclusive of Reserves)

Measured Resources (High-Grade) 7,117 2.16 153.6

Indicated Resources (High-Grade) 1,661 2.27 37.6

Measured & Indicated Resources (High-Grade) 8,778 2.18 191.3

Measured Resources (Low-Grade) 25,476 0.60 152.0

Indicated Resources (Low-Grade) 13,434 0.51 68.4

Measured & Indicated Resources (Low-Grade) 38,909 0.57 220.4

Total Measured & Indicated Resources 47,687 0.86 411.7

Inferred Resources

Inferred Resources (Pit Constrained High-Grade) 40 2.69 1.1

Inferred Resources (Pit Constrained Low-Grade) 514 0.49 2.5

Inferred Resources (Pit Constrained) 555 0.65 3.6

Inferred Resources (Unconstrained High-Grade Outside Pit Limits) 1,354 2.24 30.4

Inferred Resources (Unconstrained Low-Grade Outside Pit Limits) 9,681 0.60 58.2

Inferred Resources (Unconstrained Mineralization Outside Pit) 11,035 0.80 88.6

Total Inferred Resources 11,590 0.80 92.2

(1) Mineral reserves and mineral resources have an effective date of August 31, 2021.

(2) Stated mineral resources are inclusive of mineral reserves. All figures have been rounded to the relative accuracy of the

estimates. Summed amounts may not add due to rounding. High-grade and low-grade mineral resources defined as greater

than or equal to 1.00% copper and less than 1.00% copper, respectively.

(3) A 3D geologic model was developed for the Boa Esperança Project. Geologically constrained copper grade shells were

developed using a copper cut-off grade of 0.20% and 0.51% for pit constrained and unconstrained mineral resources,

respectively, to generate a 3D mineralization model of the Boa Esperança Project. Within grade shells, mineral resources

were estimated using ordinary kriging within a 2.0 meter by 2.0 meter by 4.0 meter block size. Open pit constrained,

unconstrained and marginal cut-off grades are based upon a copper price of US$6,400 per tonne with cost parameters

appropriate to the deposit. The mineral resource estimates were prepared in accordance with the Canadian Institute of

Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves, adopted by

the CIM Council on May 10, 2014 (the “CIM Standards”), and the CIM Estimation of Mineral Resources and Mineral

Reserves Best Practice Guidelines, adopted by CIM Council on November 29, 2019 (the ‘CIM Guidelines”), using

geostatistical and/or classical methods, plus economic and mining parameters appropriate to the deposit.

(4) Mineral reserve estimates were prepared in accordance with the CIM Standards and the CIM Guidelines, using

geostatistical and/or classical methods, plus economic and mining parameters appropriate for the deposit. Mineral reserves

are based on a long-term copper price of US$6,613 per tonne; concentrate grade of 27% copper; average metallurgical

recoveries of 91.3%; copper concentrate logistics costs of US$108.20 per wet metric tonne ("wmt"); transport losses of

0.2%; copper concentrate treatment charges of US$59.50 per dry metric tonne ("dmt"), refining charges of U$0.0595 per

pound of copper; copper payability of 96.3%; average mining cost of US$2.47 per tonne mined; processing cost of

US$7.74 per tonne processed and G&A costs of US$3.83 per tonne processed; average pit slope angles that range from 30º

for saprolite to 50º for fresh rock and a 2% CFEM government royalty.

Mineral resources which are not mine ral reserves do not have demonstrated economic viability. Please

refer to the Technical and Scientific section of this press release for additional information.

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8 Ero Copper Corp

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