ERO.TO · 2020-01-15 12:00:00

Ero Copper produces 42,318 tonnes of copper in 2019 and provides 2020 production outlook

Production Results

TSX: ERO

Ero Copper Corp

JANUARY 15, 2020

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

pleased to announce the production results for the three and twelve month period ended December

31, 2019 for its 99.6% owned Vale do Curaçá (“Curaçá Valley”) Property located in Bahia State,

Brazil and its 97.6% owned NX Gold Mine, located in Mato Grosso State, Brazil. The Company’s

financial results for the full year and fourth quarter of 2019 will be published on Thursday, March

12, 2020 after the close of the Toronto Stock Exchange.

2019 Production Highlights:

• Total annual copper production at the Curaçá Valley operations of 42,318 tonnes compared

to 30,426 tonnes produced in 2018, a 39% year-on-year increase in production,

significantly exceeding original 2019 production guidance of 36,000 to 38,000 tonnes of

copper.

• Total annual gold and silver production at the NX Gold Mine of 30,434 ounces of gold and

19,641 ounces of silver.

2020 Outlook Highlights:

• Annual production guidance for the Curaçá Valley operations of 41,000 to 43,000 tonnes

of copper in concentrate;

• C1 cash cost[1] guidance of US$0.85 to US$0.95 per pound of copper produced and capital

expenditure guidance of US$74.0 million[2];

• An additional US$28 million[2] to fund the 2020 exploration program in the Curaçá Valley.

The program is highlighted by 172,000 meters of planned exploration drilling through

September 2020, an annualized rate of approximately 230,000 meters, of which

approximately 60% is planned for regional exploration including drill testing of new

greenfield targets identified during the Company’s airborne geophysical survey and

ongoing data analysis. This compares to approximately 235,000 meters drilled during 2019

of which only 23% was allocated to regional exploration.

• Annual production guidance for the NX Gold Mine of 38,000 to 40,000 ounces of gold at

C1 cash costs[1] of US$475 to US$575 per ounce of gold produced. Annual c apital

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Ero Copper Corp

expenditure guidance for the NX G old Mine of US$6 million plus US$3.5 million [2] in

ongoing exploration expenditures.

Commenting on the 2019 production results and 2020 outlook, David Strang, President & CEO of

Ero stated, “Our business strategy has and continues to be focused on achieving near-term organic

production growth, at first quartile production costs, while increasing the foundational long-term

copper production base of the Curaçá Valley through aggressive exploration and discovery . As

we look back at the tremendous growth of Ero over the past two years, I’d like to recognize the

work throughout our organization that has contributed to another year of record copper

production. Highlights of 2019 include significant year -on-year increases in tonnes mined and

processed, copper grades and metallurgical recoveries, all of which contributed to a 39% increase

in copper produced when compared to 2018.

As we look forward to 2020 in the Curaçá Valley, we expect another strong operational year with

mill head-grades of greater than 2.00% copper resulting in C1 cash costs well below US$1.00 per

pound of copper produced. Additionally, we are executing on our mill improvement plans

including the completion of the HIG Mill installation and commissioning of the recently installed

ore sorting plant.

Our NX Gold operations faced headwinds during the second half of 2019 as the team successfully

navigated the transition from mining the Brás and Buracão veins to mining of the new Santo

Antonio vein. While the mine realized lower fourth quarter production than previously planned,

normalized production levels of greater than 3,000 ounces per month were achieved by December.

Underscoring this achievement, we expect 2020 production to total nearly 40,000 ounces of gold

at C1 cash costs between US$475 and US$575 per ounce of gold produced.”

[1] C1 cash costs per pound of copper and C1 cash costs per ounce of gold produced are non-IFRS measures – see

the Notes section of this press release for additional information.

[2] Capital and operating cost guidance presented in USD assuming a USD:BRL foreign exchange rate of 4.00.

2019 PRODUCTION RESULTS

 Mining & Milling Operations – another record year of copper production

• Total of approximately 2.4 million tonnes of ore grading 1.93% copper mined and

processed during the year producing 42,318 tonnes of copper in concentrate after

average metallurgical recoveries of 90.5%;

• Fourth quarter mill throughput of 589,065 tonnes grading 2.16% copper producing

11,526 tonnes of copper in concentrate after metallurgical recoveries that averaged

90.7% during the period;

TSX: ERO

Ero Copper Corp

• The NX Gold Mine processed 158,275 tonnes of ore grading 6.98 grams per tonne

gold, resulting in the production of 30,434 ounces of gold and 19,641 ounces of silver

as by-product after metallurgical recoveries that averaged 85.7% during the twelve

month period ended December 31, 2019.

2020 PRODUCTION OUTLOOK

Copper production from the Curaçá Valley operations for 2020 is expected to come from ore mined

from the Pilar and Vermelhos underground mines. Production from the Pilar Mine is expected to

contribute a total of approximately 1.4 million tonnes grading 1.40% copper while production from

the Vermelhos Mine i s expected to contribute a total of approximately 750,000 tonnes grading

3.50% copper resulting in a blended mill head grade of approximately 2.15% copper.

Curaçá Valley Operations

2019 Original

Guidance

2019 Revised

Guidance

2019 Result 2020

Guidance[1]

Tonnes Processed 2,050,000 2,350,000 2,424,592 2,150,000

Copper Grade (% Cu) 2.00% 1.95% 1.93% 2.15%

Copper Recovery (%) 88.0% 90.0% 90.5% 91.0%

Cu Production (000 tonnes) 36.0 – 38.0 40.0 – 42.0 42.3 41.0 – 43.0

NX Gold Operations

2019 Original

Guidance

2019 Revised

Guidance

2019 Result 2020

Guidance[1]

Tonnes Processed - - 158,275 150,000

Gold Grade (gpt) - - 6.98 9.00

Gold Recovery (%) - - 85.7% 90.0%

Au Production (000 ounces) - - 30.4 38.0 – 40.0

Ag Production (000 ounces) - - 19.6 n/a

[1] 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 filings for complete risk factors.

TSX: ERO

Ero Copper Corp

2020 CASH COST GUIDANCE

The Company’s guidance for 2020 assumes a USD:BRL foreign exchange rate of 4.00, gold price

of $1,450 per ounce and silver price of $17.00 per ounce.

2019 Revised Guidance 2020 Guidance

Curaçá Valley C1 Cash

Cost Guidance (US$/lb)[1]

$1.00 - $1.10 $0.85 – $0.95

NX Gold Mine C1 Cash

Cost Guidance (US$/oz)[1]

n/a $475 - $575

[1] C1 Cash Costs are a non-IFRS measures – see the Notes section of this press release for additional information.

2020 CAPITAL EXPENDITURE GUIDANCE

The Company’s capital expenditure guidance for 2020 assumes a USD:BRL foreign exchange rate

of 4.00 and has been presented below in USD millions. Capital expenditure guidance, including

discretionary capital for 2020, is based on a budgeted copper price of US$2.65 per pound of

copper.

Curaçá Valley / Copper Operations 2019 Revised Guidance 2020 Guidance

Pilar Mine and Caraíba Mill Complex[1] $45.0 $58.0

Vermelhos Mine $20.0 $16.0

Boa Esperanҫa Project $1.0 $0.2

Capital Expenditure Guidance $66.0 $74.2

Curaçá Valley Exploration[2] $30.0 $28.0

NX Gold Operations 2019 Guidance 2020 Guidance

Capital Expenditure Guidance n/a $5.7

Exploration[2] n/a $3.5

Total, NX Gold n/a $9.2

[1] Pilar Mine and Caraíba Mill Complex capital expenditure guidance for 2020 includes completion of the high-

intensity grinding mill and operation of the ore-sorting pilot plant.

[2] Exploration capital expenditure guidance for 2020 has been forecast through September of 2020 and, as with

prior guidance, is dependent, in part, on future exploration success and subject to further review and revision.

CONFERENCE CALL DETAILS

The financial results for the full year and fourth quarter of 2019 will be published on Thursday,

March 1 2, 2020 after the close of the Toronto Stock Exchange . The Company will host a

conference call to discuss the results on Friday, March 13, 2020.

TSX: ERO

Ero Copper Corp

Date: Friday, March 13, 2020

Time: 11:30 am Eastern time (8:30 am Pacific time)

Dial in: North America: 1-800-319-4610, International: +1-604-638-5340

please dial in 5-10 minutes prior and ask to join the call

Replay North America: 1-800-319-6413, International: +1-604-638-9010

Replay Passcode: 3983

NOTES

Non-IFRS measures

Financial results of the Company are prepared in accordance with IFRS. The Company

utilizes certain non -IFRS measures, including C1 cash cost of copper produced (per lb),

C1 cash costs of gold produced (per ounce) which are not measures recognized under IFRS.

The Company believes that these measures, together with measures determined in

accordance with IFRS, provide investors with an improved ability to evaluate the

underlying performance of the Company. Non- IFRS measures do not have any

standardized meaning prescribed under IFRS, and therefore they may not be comparable

to similar measures employed by other companies. The data is intended to provide

additional 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 the sum of production costs, net of capital

expenditure development costs and by -product credits, divided by the copper pounds

produced. C1 cash costs reported by the Company include treatment, refining charges ,

offsite costs, and certain tax credits relating to sales invoiced to the Company’s Brazilian

customer on sales. By-product credits are calculated based on actual precious metal sales

(net of treatment costs) during the period divided by the total pounds of copper produced

during the period. C1 cash cost of copper produced per pound is a non-IFRS measure used

by the Company to manage and evaluate operating performance of the C ompany’s

operating mining unit, and is widely reported in the mining industry as benchmarks for

performance, but does not have a standardized meaning and is disclosed in addition to IFRS

measures.

C1 cash cost of gold produced (per ounce)

TSX: ERO

Ero Copper Corp

C1 cash cost of gold produced (per ounce) is the sum of production costs, net of capital

expenditure development costs and silver by- product credits, divided by the gold ounces

produced. By-product credits are calculated based on actual precious metal sales during

the period divided by the total ounces of gold produced during the period. C1 cash cost of

gold produced per pound is a non- IFRS measure used by the Company to manage and

evaluate operating performance of the Company’s operating mining unit and is widely

reported in the mining industry as benchmarks for performance but does not have a

standardized meaning and is disclosed in addition to IFRS measures.

ABOUT ERO COPPER CORP

Ero Copper Corp, headquartered in Vancouver, B.C., is focused on copper production growth from

the Vale do Curaçá Property, located in Bahia, Brazil. The Company’s primary asset is a 99.6%

interest in the Brazilian copper mining company, Mineraҫão Caraíba S.A. (“MCSA”), 100% owner

of the Vale do Curaçá Property with over 40 years of operating history in the region. The Company

currently mines copper ore from the Pilar and Vermelhos underground mines. In addition to the

Vale do Curaçá Property, MCSA owns 100% of the Boa Esperanҫa development project, an

IOCG-type copper project located in Pará, Brazil and the Company, directly and indirectly, owns

97.6% of the NX Gold Mine, an operating gold and silver mine located in Mato Grosso,

Brazil. Additional information on the Company and its operations, including technical reports on

the Vale do Curaçá , Boa Esperanҫa and NX Gold properties, can be found on the Company’s

website (www.erocopper.com) and on SEDAR (www.sedar.com).

Scientific and technical information contained in this press release has been reviewed and

approved by Emerson Ricardo Re, Resource Manager. Mr. Re is an employee of Ero and a

“Qualified Person” as defined by Canadian Securities Administrators' National Instrument 43-101

- Standards of Disclosure for Mineral Projects (“NI 43-101”). Data verification related to certain

scientific and technical information disclosed herein in connection with the Vale do Curaçá mine

can be found in the Company’s technical report entitled, “ 2019 Updated Mineral Resources and

Mineral Reserves Statements of Mineração Caraíba’s Vale do Curaçá Mineral Assets, Curaçá

Valley”, dated November 25, 2019 with an effective date of September 18, 2019. Data verification

related to certain scientific and technical information disclosed her ein in connection with the NX

Gold mine can be found in the Company’s 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. Both technical reports are available under the Company’s

profile on SEDAR (www.sedar.com) and on the Company’s website (www.erocopper.com).

TSX: ERO

Ero Copper Corp

ERO COPPER CORP .

Signed: “David Strang” For further information contact:

David Strang, President & CEO Makko DeFilippo, Vice President, Corporate Development

(604) 429-9244

[email protected]

CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS This press release contains “forward-looking information” within the

meaning of applicable Canadian securities laws. Forward-looking information includes statements that use forward-looking terminology such as “may”,

“could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”, “anti cipate”, “believe”, “continue”,

“potential”, “view” or the negative or grammatical variation thereof or other variations thereof or com parable terminology. Such forward -looking

information includes, without limitation, statements with respect to production guidance including the expected tonnes, grade and metallurgical

recoveries of the Company’s operations, plan ned capital and operating costs, the amount and effectiveness of any proposed exploration program

including allocation of regional drilling, and any plans with respect to mill improvements including, but not limited to, the installation of a high-intensity

grinding mill and ore-sorting pilot plant.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of manag ement in

light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management

believes to be relevant and reasonable in the circumstances, as of the date of this press release including, without limitation, assumptions about:

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, silver 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 Vale do Curaçá Property

being as described in the technical report for the property; production costs; the accuracy of budgeted exploration and development costs and

expenditures; the price of other commodities such as fuel; future currency exchange rates and interest rates; operating condi tions being favourable

such that the Company is able to operate in a saf e, efficient and effective manner; 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 ma rkets; 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. While the Company considers these assumptions to be reas onable, the

assumptions are inherently subject to significant business, social, economi c, 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 information. Many assumptions are based on factors and events that are not within the control of the Company

and there is no assurance they will prove to be correct.

Furthermore, such forward-looking information involves a variety of known and u nknown risks, uncertainties and other factors which may cause the

actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions,

activities, results, performance or achievements expressed or implied by such forward -looking information. Such risks include, without limitation the

risk factors listed under the heading “Risk Factors” in the Annual Information Form of the Company for the year ended December 31, 2018, dated March

14, 2019.

Although the Company has attempted to identify important factors that could cause actual actions, events, conditions, results , performance or

achievements to differ materially from those described in forward-looking information, there may be other factors that cause actions, events, conditions,

results, performance or achievements to differ from those anticipated, estimated or intended.

The Company cautions that the foregoing lists of important assumptions and factors are not exhaustive. Ot her events or circumstances could cause

actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking information contained herein.

There can be no assurance that forward -looking information will prove to be accurate, as actual results and future events could differ materially from

those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

Forward-looking information contained herein is made as of the date of this press release and the Company disclaims any obligation to update or revise

any forward-looking information, 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 RESERVE ESTIMATES In accordance with applicable Canadian securities regulatory

requirements, all mineral reserve and mineral resource estimates of the Company disclosed or incorporated by reference in this press release have been

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

Mineral resources which are not mineral reserves do not have demonstrated economic viability. Pursuant to the CIM Standards, mineral resources have

a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. I nferred mineral resources,

when compared with Measured or Indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any

part of an Inferred mineral resource will be upgraded to an Indicated or Measured mineral resource as a result of continued exploration. Pursuant to NI

43-101, Inferred mineral resources may not form the basis of any economic analysis. Accordingly, readers are cautioned not to assu me that all or any

part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered.

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