ERO.TO · 2024-12-03 12:00:00

Ero Copper Announces Updated Mineral Reserve and Resource Estimates for the Xavantina Operations

Resource Estimates

December 3, 2024

Ero Copper Announces Updated Mineral Reserve and Resource Estimates

for the Xavantina Operations

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

“Company”) is pleased to announce an update of its National Instrument 43-101 (“NI

43-101”) compliant mineral reserve and resource estimates for its Xavantina Operations,

located in Mato Grosso State, Brazil. The updated mineral reserve and mineral resource

estimates incorporate drilling activities and mining depletion on the properties through June

30, 2024.

HIGHLIGHTS

• 19% increase in proven and probable mineral reserves as compared to the 2023

estimate, including a 24% increase at the Santo Antônio Vein.

• Proven and probable mineral reserve compound annual growth rate ("CAGR") of

approximately 62% from 2018 to 2024.

• 26% increase in measured and indicated mineral resources, inclusive of mineral

reserves, as compared to the 2023 estimate, including a 31% increase at the Santo

Antônio Vein.

• Excess mill capacity of approximately 25% continues to offer further expansion

potential in the near- and medium-term.

"Our ongoing exploration program at the Xavantina Operations continues to deliver

exceptional results," stated David Strang, Chief Executive Officer. "When we acquired this

asset in 2016, it had no mineral reserves, no mine life, and annual production of just 25,000

ounces. We have since transformed it into a robust operation with nearly 600,000 ounces of

measured and indicated resources, including 459,000 ounces of proven and probable

reserves. The successful completion of our NX 60 Initiative in 2023, highlighted by first

production from the Matinha Vein, was a major milestone, positioning Xavantina to sustain

annual production of approximately 55,000 to 60,000 ounces in the years ahead.

"We are equally excited about Xavantina's untapped potential, both near the mine and

regionally. Our dual strategy remains focused on extending mine life and discovering new

vein structures to expand mine and mill feed, enabling us to fully utilize the mill’s installed

capacity of up to 300,000 tonnes per annum."

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Xavantina Operations Proven & Probable Mineral Reserve Evolution Since IPO

Note: Mineral reserve 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 for the deposit.

Please refer to the Notes on Mineral Reserves and Mineral Resources section of this press release for a

discussion on the assumptions, parameters and methods used to estimate the mineral reserves for 2024. 2024

mineral reserve estimate effective date of June 30, 2024. Please see the 2018 Xavantina Technical Report, the

2019 Xavantina Technical Report, the 2020 Xavantina Technical Report, the January 2022 Press Release, the

2022 Xavantina Technical Report and the 2023 AIF, as applicable and as defined below, for a discussion on the

assumptions, parameters and methods used to estimate the mineral reserves for 2018, 2019, 2020, 2021, 2022

and 2023, respectively. All figures have been rounded to the relative accuracy of the estimates.

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2024 MINERAL RESERVE AND RESOURCE ESTIMATE

2023 Mineral Reserves &

Resources

2024 Mineral Reserves &

Resources Change

Tonnes

(kt)

Grade

(Au gpt)

Contained

Au (koz)

Tonnes

(kt)

Grade

(Au gpt)

Contained

Au (koz)

Contained

Au (koz) %

Santo Antônio Vein

Proven Reserves 290 8.57 80.0 223 9.68 69.4 (10.5) (13)

Probable Reserves 1,072 7.80 268.7 1,155 9.76 362.3 93.6 35

Proven & Probable Reserves 1,362 7.96 348.7 1,378 9.75 431.8 83.1 24

Measured Resources 277 10.54 93.7 333 9.57 102.3 8.7 9

Indicated Resources 1,042 9.92 332.2 1,222 11.57 454.6 122.3 37

Measured & Indicated 1,318 10.05 425.9 1,554 11.15 556.9 131.0 31

Inferred Resources 154 9.05 45.0 259 13.49 112.2 67.2 150

Matinha Vein

Proven Reserves — — — — — — — NA

Probable Reserves 144 7.81 36.1 93 9.20 27.5 (8.6) (24)

Proven & Probable Reserves 144 7.81 36.1 93 9.20 27.5 (8.6) (24)

Measured Resources — — — — — — — NA

Indicated Resources 150 9.90 47.6 130 9.59 40.1 (7.5) (16)

Measured & Indicated 150 9.90 47.6 130 9.59 40.1 (7.5) (16)

Inferred Resources 202 11.94 77.5 216 11.54 80.3 2.7 4

Brás & Buracão Veins

Measured Resources — — — — — — — NA

Indicated Resources 7 3.36 0.7 7 3.36 0.7 — —

Measured & Indicated 7 3.36 0.7 7 3.36 0.7 — —

Inferred Resources 157 4.71 23.8 157 4.71 23.8 — —

Total Xavantina Operations

Proven Reserves 290 8.57 80.0 223 9.68 69.4 (10.5) (13)

Probable Reserves 1,215 7.80 304.8 1,248 9.72 389.8 85.1 28

Proven & Probable Reserves 1,505 7.95 384.7 1,471 9.71 459.2 74.5 19

Measured Resources 277 10.54 93.7 333 9.57 102.3 8.7 9

Indicated Resources 1,198 9.88 380.6 1,359 11.34 495.4 114.9 30

Measured & Indicated Resources 1,474 10.00 474.2 1,691 10.99 597.8 123.5 26

Inferred Resources 513 8.86 146.2 632 10.64 216.2 70.0 48

Note: 2024 mineral reserve and resource estimates are effective as at June 30, 2024. 2023 mineral reserve and

resource estimates are effective as at December 31, 2023. Presented mineral resources are inclusive of mineral

reserves. All figures have been rounded to reflect the relative accuracy of the estimates. Summed amounts may

not add due to rounding. Mineral resources that are not mineral reserves do not have a demonstrated economic

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viability. See below notes on mineral reserve and resource estimates for additional technical and scientific

information.

NOTES ON MINERAL RESERVES AND RESOURCES

The 2024 mineral reserve and mineral resource estimates are effective as at June 30, 2024.

Mineral resources are presented, including mineral reserves. All figures have been rounded to

the relative accuracy of the estimates. Summed amounts may not add due to rounding.

Mineral resources that are not mineral reserves do not have a demonstrated economic

viability.

The 2024 mineral reserve and resource estimates for the Xavantina Operations are prepared

under the supervision of and verified by Mr. Cid Gonçalves Monteiro Filho, SME RM

(04317974), MAIG (No. 8444), FAusIMM (No. 329148) and Resource Manager of the

Company who is a “qualified person” within the meanings of NI 43-101.

Reference herein of $ or USD is to United States dollars and BRL is to Brazilian reais. Mineral

Reserves for the Xavantina Operations have been estimated using a gold price of $1,900/oz,

and the exchange rate used for mineral reserve and resource estimates was USD/BRL 5.10.

Grade shells using a value of 1.20 gpt gold were used to generate a 3D mineralization model

of the Xavantina Operations. Within the grade shells, mineral resources were estimated using

ordinary kriging within 10 meter by 10 meter by 2 meter block size, with a minimum sub-

block size of 1.0 meter by 1.0 meter by 0.5 meter, and the mineral resource estimate was

constrained using a minimum stope dimension of 2.0 meters by 2.0 meters by 1.5 meters, a

cut-off of 1.20 gpt based on underground mining and processing costs of US$72 per tonne

and a gold price of US$1,900 per ounce.

The 2024 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 the economic portion of

the measured and indicated mineral resources. Mineral reserve estimates include operational

dilution of 17.4% plus planned dilution of approximately 8.5% within each stope for room-

and-pillar mining areas and operational dilution of 3.2% plus planned dilution of 21.2% for

cut-and-fill mining areas. Mining recovery of 92.5% and 94.7% assumed for room-and-pillar

and cut-and-fill areas, respectively. Practical mining shapes (wireframes) were designed

using geological wireframes / mineral resource block models as a guide.

Where applicable, for scientific and technical information on historic mineral resource and

reserve estimates on the Xavantina Operations, please refer to the following reports:

• The “Xavantina Operations – Update Information with respect to the Xavantina

Operations” section within the Company's 2023 Annual Information Form dated March

7, 2024, prepared under the supervision of and verified by Mr. Cid Gonçalves Monteiro

Filho, SME RM (04317974), MAIG (No. 8444), FAusIMM (No. 329148) and Resource

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Manager of the Company (the “2023 AIF”) for technical information and assumptions

related to the 2023 mineral reserve and mineral resource estimate, with an effective

date of December 31, 2023.

• The NI 43-101 technical report entitled "Technical Report on the Xavantina

Operations, Mato Grosso, Brazil" dated May 12, 2023 with an effective date of October

31, 2022, prepared by Porfirio Cabaleiro Rodrigues, FAIG, Leonardo de Moraes Soares,

MAIG and Guilherme Gomides Ferreira, MAIG, all of GE21 Consultoria Mineral Ltda.

(“GE21”) for technical information and assumptions related to the 2022 mineral

reserve and mineral resource estimate (the “2022 Xavantina Technical Report”).

• The Company's Press Release dated January 6, 2022, for technical information and

assumptions related to the 2021 mineral reserve and mineral resource estimate, with

an effective date of September 30, 2021 prepared by or under the supervision of and

verified by Mr. Emerson Ricardo Re, MSc, MBA, MAusIMM (CP) (No. 305892),

Registered Member (No. 0138) (Chilean Mining Commission) and Resource Manager of

the Company as at the date of the press release, who was a Qualified Person as such

term is defined under NI 43-101 (the “January 2022 Press Release”).

• The NI 43-101 technical report entitled “Mineral Resource and Mineral Reserve

Estimate of the NX Gold Mine, Nova Xavantina" dated January 8, 2021, with an

effective date of September 30, 2020, prepared by Porfirio Cabaleiro Rodriguez, MAIG,

Leonardo de Moraes Soares, MAIG, Bernardo Horta Cerqueira Viana, MAIG, Paulo

Roberto Bergmann, FAusIMM, all of GE21 for technical information and assumptions

related to the 2020 mineral reserve and mineral resource estimate (the “2020

Xavantina Technical Report”).

• The NI 43-101 technical report entitled “Mineral Resource and Mineral Reserve

Estimate of the NX Gold Mine, Nova Xavantina" dated February 3, 2020 with an

effective date of September 30, 2019, prepared by Porfirio Cabaleiro Rodrigues, FAIG,

Leonardo de Moraes Soares, MAIG and Paulo Roberto Bergmann, all of GE21 for

technical information and assumptions related to the 2019 mineral reserve and mineral

resource estimate (the “2019 Xavantina Technical Report”).

• The NI 43-101 technical report entitled “Mineral Resource and Mineral Reserve

Estimate of the NX Gold Mine, Nova Xavantina" dated January 21, 2019 with an

effective date of August 31, 2018, prepared by Porfirio Cabaleiro Rodrigues, FAIG,

Leonardo Apparicio da Silva, MAIG and Leonardo de Moraes Soares, MAIG, all of GE21

for technical information and assumptions related to the 2018 mineral reserve and

mineral resource estimate (the “2018 Xavantina Technical Report”).

QUALIFIED PERSONS

Mr. Cid Gonçalves Monteiro Filho, SME RM (04317974), MAIG (No. 8444), FAusIMM (No.

329148) has reviewed, verified and approved the scientific and technical information

contained in this press release, including the sampling, analytical and test data underlying the

information contained in this press release. Mr. Monteiro is Resource Manager of the

Company and is a “qualified person” within the meanings of NI 43-101.

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QUALITY ASSURANCE & QUALITY CONTROL

Current QA/QC Program

At the Xavantina Operations, the Company is currently drilling underground with third-party

contracted core drill rigs. During the period from October 2022 to June 2024, third party drill

rigs were operated by Trust Drilling Solutions and Servitec Foraco Sondagem S.A. who are

independent of the Company. Drill core is logged, photographed and split in half using a

diamond core saw at our secure core logging and storage facilities. Half of the drill core is

retained on site and the other half-core is used for analysis, with samples collected on a

minimum of 0.2 meters and a maximum of 2.0 meters with an average length of 0.5 meters.

Sampling commences at least 1.0 meter before the start of the mineralized zone and

continues at least 1.0 meter beyond the limit of the mineralized zone. Sample collection is

performed at our core logging facilities with all sample preparation performed at ALS Brasil

Ltda.'s laboratory or SGS Geosol - Laboratórios Ltda's laboratory, both of which are located in

Goiânia, Brazil. Samples are analyzed by the certified laboratories of ALS Peru S.A. or SGS

Geosol - Laboratórios Ltda, both of whom are independent of the Company. Gold content is

preferentially determined using screen fire assay. If the sample isn't sufficiently weighted, fire

assay is used. All sample results used in the preparation of the 2024 updated mineral

resource and reserve estimate have been monitored through a quality assurance and quality

control ("QA/QC") program that includes the insertion of certified standards, blanks and field

duplicates at a rate of one standard, one blank, an d one field duplicate sample per every 20

samples for a blended rate of approximately 5%.

QA/QC Validation

The QA/QC validation process undertaken for the 2024 updated mineral resource and reserve

estimates for the Xavantina Operations is consistent with the process set out in the 2022

Xavantina Technical Report.

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ABOUT ERO COPPER CORP

Ero Copper is a high-margin, high-growth 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, which are located in the Curaçá Valley, Bahia State,

Brazil, and the Tucumã Operation, an open pit copper mine located in Pará State, Brazil. The

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

Operations, an operating gold and silver mine located in Mato Grosso State, Brazil. In July

2024, the Company signed a definitive earn-in agreement with Vale Base Metals for a 60%

interest in the Furnas Copper-Gold Project, located in the Carajás Mineral Province in Pará

State, Brazil. For more information on the earn-in agreement, please see the Company's press

releases dated October 30, 2023 and July 22, 2024. Additional information on the Company

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

Operations, Tucumã Operation and the Furnas Copper-Gold Project, can be found on the

Company’s website (www.erocopper.com), on SEDAR+ (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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CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS

This press release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of

applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements include statements that use forward-looking terminology such as “may”, “could”,

“would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”, “anticipate”, “believe”, “continue”, “potential”, “view” or the negative or grammatical variation thereof

or other variations thereof or comparable terminology. Forward-looking statements may include, but are not limited to, statements with respect to the Company's expected production at the Xavantina

Operations; the estimation of mineral reserves and mineral resources; the discovery of additional mineralized veins and the associated positive impact on throughput rates; the significance of any particular

exploration program or result and the Company’s expectations for current and future exploration plans including, but not limited to, planned areas of additional exploration and the potential to convert any

portion of the inferred mineral resource base to economically viable mineral reserves; and any other statement that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results,

performance or achievements.

Forward-looking statements are not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ

materially from those anticipated in such statements. Forward-looking statements involve statements about the future and are inherently uncertain, and the Company’s actual results, achievements or other

future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred

to herein and in the Company's most recent Annual Information Form under the heading “Risk Factors”.

The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may be difficult to

predict and beyond the Company’s control. In connection with the forward-looking statements contained in this press release and in the AIF, the Company has made certain assumptions about, among other

things: favourable equity and debt capital markets; the ability to raise any necessary additional capital on reasonable terms to advance the production, development and exploration of the Company’s

properties and assets; future prices of copper, gold and other metal prices; the timing and results of exploration and drilling programs; the accuracy of any mineral reserve and mineral resource estimates;

the geology of the Caraíba Operations, the Xavantina Operations, the Tucumã Operation and the Furnas Copper-Gold Project being as described in the respective technical report for each property;

production costs; the accuracy of budgeted exploration, development and construction costs and expenditures; the price of other commodities such as fuel; future currency exchange rates and interest rates;

operating conditions being favourable such that the Company is able to operate in a safe, efficient and effective manner; work force continuing to remain healthy in the face of prevailing epidemics,

pandemics or other health risks, political and regulatory stability; the receipt of governmental, regulatory and third party approvals, licenses and permits on favourable terms; obtaining required renewals for

existing approvals, licenses and permits on favourable terms; requirements under applicable laws; sustained labour stability; stability in financial and capital goods markets; availability of equipment;

positive relations with local groups and the Company’s ability to meet its obligations under its agreements with such groups; and satisfying the terms and conditions of the Company’s current loan

arrangements. Although the Company believes that the assumptions inherent in forward-looking statements are reasonable as of the date of this press release, these assumptions are subject to significant

business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or

achievements to be materially different from those projected in the forward-looking statements. The Company cautions that the foregoing list of assumptions is not exhaustive. Other events or

circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking statements contained in this press release. There can be

no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not

place undue reliance on forward-looking statements.

Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result

of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.

CAUTIONARY NOTES REGARDING MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES

Unless otherwise indicated, all reserve and resource estimates included in this press release and the documents incorporated by reference herein have been prepared in accordance with National Instrument

43-101, Standards of Disclosure for Mineral Projects (“NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) — CIM Definition Standards on Mineral Resources and

Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public

disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States

Securities and Exchange Commission (the “SEC”), and reserve and resource information included herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without

limiting the generality of the foregoing, this press release and the documents incorporated by reference herein use the terms “measured resources,” “indicated resources” and “inferred resources” as defined

in accordance with NI 43-101 and the CIM Standards.

Further to recent amendments, mineral property disclosure requirements in the United States (the “U.S. Rules”) are governed by subpart 1300 of Regulation S-K of the U.S. Securities Act of 1933, as

amended (the “U.S. Securities Act”) which differ from the CIM Standards. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system (the

“MJDS”), Ero is not required to provide disclosure on its mineral properties under the U.S. Rules and will continue to provide disclosure under NI 43-101 and the CIM Standards. If Ero ceases to be a foreign

private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the MJDS, then Ero will be subject to the U.S. Rules, which differ from the requirements of NI 43-101 and the CIM

Standards.

Pursuant to the new U.S. Rules, the SEC recognizes estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources.” In addition, the definitions of “proven mineral

reserves” and “probable mineral reserves” under the U.S. Rules are now “substantially similar” to the corresponding standards under NI 43-101. Mineralization described using these terms has a greater

amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, U.S. investors are cautioned not to assume that any measured mineral

resources, indicated mineral resources, or inferred mineral resources that Ero reports are or will be economically or legally mineable. Further, “inferred mineral resources” have a greater amount of

uncertainty as to their existence and as to whether they can be mined legally or economically. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility

or pre-feasibility studies, except in rare cases. While the above terms under the U.S. Rules are “substantially similar” to the standards under NI 43-101 and CIM Standards, there are differences in the

definitions under the U.S. Rules and CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that Ero may report as “proven mineral reserves”, “probable mineral

reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had Ero prepared the reserve or resource estimates under the

standards adopted under the U.S. Rules.

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