KC.V · 2020-06-25 12:00:00

Kutcho Copper Increases Life of Mine Copper Recovery to 96%, Silver to 83% and Gold to 70%.

Drill Results

Kutcho Copper Corp. | 717 – 1030 West Georgia Street | Vancouver, British Columbia | Canada | V6E 2Y3

Telephone: (604) 628-5623 | www.kutcho.ca

Kutcho Copper Increases Life of Mine Copper Recovery to 96%, Silver to

83% and Gold to 70%.

Vancouver, B. C., June 25, 20 20. Kutcho Copper Corp. (TSXV: KC) (OTC: KCCFF ) (“Kutcho

Copper” or the “Company”) is pleased to announce results of additional metallurgical testing on its 100%

owned Kutcho Project in British Columbia, Canada. These latest results came from a program focused on

optimizing performance from the Main Lens composite and have shown improved copper and silver

recoveries versus the 2017 Prefeasibility Study. In addition, the Company has conducted leach tests on the

tailings, which has shown the potential to significantly increase copper, silver and gold recovery from both

the Esso and Main Lenses . Completion of this recent test program represents a significant portion of the

metallurgical work required to complete the Feasibility Study for the Kutcho Project.

Highlights

 Main Lens flotation recoveries improved to 87.4% copper, 63.8% zinc, 36.9% gold and 59.0%

silver

 Esso Lens flotation recoveries improved to 94.5% copper, 89.3% zinc, 40.8% gold and 71.2%

silver

 Main Lens tailings stream leaching achieves additional incremental recoveries of an estimated

8.0% copper, 32.9% gold and 20.7% silver

 Esso Lens tailings stream leaching achieves additional incremental recoveries of an estimated

2.7% copper, 27.6% gold and 11.2% silver

 Approximate Life of Mine (LOM) blend comprising 75% LOM feed from the Main Lens

and 25% LOM feed from the Esso Lens and combining flotation and tailings leach

recoveries yields 96.4% copper, 75.1% zinc, 70.4% gold and 82.9% silver

“We are extremely pleased with the metallurgical performance from the Kutcho project and the upside

opportunities available from leaching the tailings materials for additional co pper and precious metals

recovery. We look forward to including these improved results in our upcoming Feasibility Study, where

we believe they will have a positive impact on the economics of the Kutcho project .” said Vince Sorace,

President & CEO of Kutcho Copper.

The results were produced from a recent Locked Cycle Test completed on Main lens material which is

contemplated to be processed at a 50:50 blended ratio with Esso lens material during the mid -years of

production at the Kutcho Project. These results, in combination with those provided in the November, 2019

news release, demonstrate the robust nature of the developed Kutcho flowsheet.

The recoveries of copper and silver to the copper concentrate has improved significantly over historic test

work. Given that t he largest and most important contributor to the Net Smelter Return (NSR) value of

Kutcho material is recoverable copper , the Company has focused efforts on maximizing this NSR value.

Silver recovery was also significantly improved in th is most recent testing . The copper and zinc

concentrates produced from both the Main and Esso lenses are of good quality and are below threshold

limits for common deleterious elements.

Kutcho Copper Corp.

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2019 - 2020 Locked Cycle Test Results

Main Lens Composite

Product Wt. Grade Recovery

(%)

(g/t)

(%)

Cu concentrate 6.0 25.0 11.8 2.09 280 87.4 30.9 36.9 59.0

Zn concentrate 2.7 1.80 54.6 3.03 98 2.8 63.8 23.0 9.2

Feed (Main Lens Comp

MC4) 100 1.72 2.30 0.34 29

Esso Lens Composite

Product Wt. Grade Recovery

(%)

(g/t)

(%)

Cu concentrate 8.8 27.9 4.45 4.57 565 94.5 7.1 40.8 71.2

Zn concentrate 8.4 0.62 58.2 2.95 96 2.0 89.3 25.2 11.6

Feed (Esso Lens Comp) 100 2.60 5.50 1.00 70

2020 Projected LOM Metallurgical Parameters (75% Main; 25% Esso)

Product Weight Grade Recovery

(%)

(g/t)

(%)

Cu concentrate 6.7 26.0 9.41 2.91 375 89.8 20.3 38.8 64.5

Zn concentrate 4.1 1.20 56.6 2.99 97 2.5 75.1 24.5 10.3

Feed 1.94 3.10 0.50 39

The flowsheet utilized for the Main material bench scale test work is the same simplified flowsheet utilized

for the Esso deposit as reported in the November 19, 2019 news release. A single stage of flotation cleaning

has been used in the copper circuit and three stages of zinc cleaning were required. The current

contemplated process plant design incorporates a primary grind size target of 58 microns K80 followed by

sequential Cu-Zn flotation; the rougher concentrates are r eground to approximately 17 microns K80 and

approximately 20 microns K80 for the copper and zinc respectively. The total mass of material that will be

subject to finer grinding is less than 20% of the anticipated mill feed.

Leading up to recent Locked Cycle Tests extensive mineralogical evaluations carried out on drill core

composites by QEMSCAN that have been incorporated into block models to fully quantify and characterize

the mineralization in terms of mineral abundance , which is important for controlling metallurgical

performance. The mineralogical study allowed the Company to accurately define copper deportment and

speciation (chalcopyrite and bornite) and pyrite content as well as head grades reflective of the Measured

and Indicated resource grade. This gives the Company an added measure of confidence in the metallurgical

results and their representation of the Main lens.

Kutcho Copper Corp.

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Tailings Streams Leach Test Work

Preliminary leach test work of the cleaner tailings streams from both Main and Esso Lens material using

cyanide indicates that copper, gold and silver recovery could be significantly increased and is a candidate

for sulphidization-acidification-recycling-thickening (SART) treatment.

Flotation of a pyrite concentrate from the combined zinc tailings streams of the Main Lens MC4 composite

was reground to approximately 25 microns K80. Cyanide leaching of the Main lens material yielded an

additional 8.0% of copper recovery, 32.9% of gold recovery and 20.7% silver recovery. Similar treatment

of the zinc tailings streams of the Esso Lens composite yielded an additional 2.7% of copper recovery,

27.6% of gold recovery and 11.2% silver recovery. Combined with the locked cycle test results above

on approximate Life of Mine (LOM) blend comprising 75% LOM feed from the Main Lens and 25%

LOM feed from the Esso Lens yields 96.4% copper, 82.9% silver and 70.4% gold recovery.

Incremental Leach Recovery (from LCT)

Product Recovery

Cu (%) Au (%) Ag (%)

Pyrite Concentrate 6.6 28.7 18.7

Main Zn 1st Cleaner Tails 1.4 4.2 2.1

Total 8 32.9 20.7

Pyrite Concentrate 2.0 24.8 8.8

Esso Zn 1st Cleaner Tails 0.6 2.8 2.3

Total 2.7 27.6 11.2

Pyrite Concentrate 5.4 27.7 16.2

LOM Zn 1CT Cleaner Tails 1.2 3.9 2.1

Total Combined 6.7 31.6 18.3

As a result of the high levels of soluble copper in the cleaner tailings streams, cyanide consumptions were

very high, but copper was notably extracted to the leach liquor. This extraction result suggests that the leach

liquor is a good candidate for the SART process, which can recover copper as a precipitate and regenerate

cyanide for recycling.

As a result of producing a pyrite concentrate for leach, the Kutcho project benefits from generating a

desulfidized tailing stream, from both Main and Esso lense s, that initial environmental analytical results

suggest is potentially non-acid generating (NPAG) as determined by acid base accounting methodologies

(ABA). Furthermore, preferential use of the residual pyrite concentrate for paste backfill underground may

reduce, or eliminate the volume of potentially acid generating (PAG) tailings for surface storage and

management that could yield benefits for the project in terms of minimizing environmental impacts . The

full potential of these results will be investigated during the Feasibility Study.

Qualified Person

Tom Shouldice, Chief Executive Officer of Base Metallurgical Laboratories is a professional metallurgical

engineer with over 20 years of experience in mineral processing. His relevant experience includes plant

operations, project management, engineering and all aspects of metallurgical testing. Tom specializes in

flotation and mineralogical interpretation in relation to metallurgica l response. Mr. Shouldice is a

Kutcho Copper Corp.

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“Qualified Person” as defined in National Instrument 43-101 “Standards of Disclosure for Mineral Projects”

of the Canadian Securities Administrators and has reviewed and approved this press release.

Rory Kutluoglu, B.Sc. P.Geo., a “Qualified Person” as defined by National Instrument 43-101, has read

and approved all technical and scientific information contained in this news release. Mr. Kutluoglu is the

Company’s Vice President, Exploration & Development.

About Kutcho Copper Corp.

Kutcho Copper Corp. is a Canadian resource development company focused on expanding and developing

the Kutcho high grade copper-zinc project in northern British Columbia. Committed to social responsibility

and the highest environmental standards, the Company intends to progress the Kutcho Project through

feasibility and permitting to a positive construction decision.

Vince Sorace

President & CEO, Kutcho Copper Corp.

For further information regarding Kutcho Copper Corp., please email [email protected] or visit our website

at www.kutcho.ca.

Cautionary Note Regarding Forward-Looking Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains certain statements that may be deemed “forward -looking statements” with respect to the

Company within the meaning of applicable securities laws. For ward-looking statements are statements that are not

historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”,

“believes”, “intends”, “estimates”, “projects”, “potential” , “indicates”, “opportunity”, “pos sible” and similar

expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Kutcho

Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions,

such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results

or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties

include, but are not limited to, the Company’s ability to raise sufficient capital to fund its obligations under its property

agreements going forward, to maintain its mineral tenures and concessions in good standing, to explore and develop

the Kutcho project or its other projects, to rep ay its debt and for general working capital purposes; changes in

economic conditions or financial markets; the inherent hazards associates with mineral exploration and mining

operations, future prices of copper and other metals, changes in general economic conditions, accuracy of mineral

resource and reserve estimates, the potential for new discoveries, the potential to convert inferred resources to

indicated or measured resources, the potential to optimize the mine plan, the ability of the Company to obtai n the

necessary permits and consents required to explore, drill and develop the Kutcho project and if obtained, to obtain

such permits and consents in a timely fashion relative to the Company’s plans and business objectives for the projects;

the general ability of the Company to monetize its mineral resources; and changes in environmental and other laws

or regulations that could have an impact on the Company’s operations, compliance with environmental laws and

regulations, aboriginal title claims and rights to consultation and accommodation, dependence on key management

personnel and general competition in the mining industry. Forward -looking statements are based on the reasonable

beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required

by law, the Company undertakes no obligation to update these forward -looking statements in the event that

management’s beliefs, estimates or opinions, or other factors, should change.

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