LA.V · 2020-06-25 12:00:00

Los Andes Copper Ltd. Announces Sale of Royalty ON Vizcachitas Project

Mergers & Acquisitions Royalties & Streams

News Release

June 25, 2020

N.R. 2020-05

LOS ANDES COPPER LTD. ANNOUNCES SALE OF ROYALTY ON

VIZCACHITAS PROJECT

Vancouver, British Columbia --(Newsfile Corp. – June 25, 2020) - Los Andes

Copper Ltd. (TSXV: LA) ("Los Andes", or the "Company") is pleased to announce

that it has sold a net smelter return ("NSR") royalty to Resource Capital Fund VI

L.P ("RCF VI") for a total price of US$14 million (the "Royalty"). The Royalty is

calculated over the sale of all locatable minerals produced from the Santa Teresa

1/60, Santa Maria 1/60 and San Cayetano 1/20 exploitation concessions (the

"Concessions") that form part of the Company's Vizcachitas Project in Chile (the

Vizcachitas Project"). Under the Royalty, RCF VI will receive a 2.00% NSR for

open pit operations and a 1.00% NSR for underground operations.

Highlights

• RCF VI to pay US$9 million for the Royalty in instalments and an additional

contingent payment of up to US$5 million by RCF (the "Contingent Royalty

Payment") if RCF VI were to sell the Royalty prior to commencement of

commercial production. Upon commence ment of commercial production,

any unpaid balance of the US$5 million Contingent Royalty Payment will be

deducted from the initial royalties payable.

• The financing will primarily be used to fund the purchase of an existing

royalty (the "Existing Royalty") previously granted on the Vizcachitas Project

by the Company's indirect, wholly owned subsidiary, as described further

below.

Fernando Porcile, Executive Chairman of Los Andes, commented:

“I am delighted to announce the completion of this NSR ro yalty agreement which

highlights the continued support from RCF VI for the Vizcachitas Project. It places

the Company in a strong position to continue successfully developing the

Vizcachitas Project.

"With a number of work streams currently underway, or due to commence shortly,

I look forward to keeping the market updated with further progress."

Existing Royalty Purchase

The Company, through its indirect wholly -owned subsidiary, Gemma Properties

Group Ltd. (“Gemma”), has entered into a 30-month option to purchase an existing

royalty applied to the sale of all locatable minerals produced from the Santa Teresa

1/60, Santa Maria 1/60, San Cayetano 1/20, Tigre 1/30 and Huemul 1/40

exploitation concessions that form part of the Company's Vizcachitas Project

whereby a 2.00% NSR for open pit operations and 1.00% NSR for underground

operations is payable (the “Existing Royalty Purchase Agreement”). The total

purchase price under the Existing Purchase Price Agreement varies between

US$6.8 million and $7.6 million, de pending on the date of exercise of the option.

Gemma has made an initial option payment of US$1 million upon execution of the

Existing Royalty Purchase Agreement, with the following subsequent option

amounts payable as follows:

• an additional US$5.8 million on the date which falls 12 months of the date

of the Existing Royalty Purchase Agreement (in which case the total option

price would be US$6.8 million); or

• at the option of Gemma, an additional US$2.5 million on the date which falls

12 months from the date of the Existing Royalty Purchase Agreement along

with an additional (a) US$3.6 million on the date which falls 24 months from

the date of the Existing Royalty Purchase Agreement (in which case the

total option price would be US$7.1 million); or (b) US$2.3 million on the date

which falls 24 months from the date of the Existing Royalty Purchase

Agreement along with an additional US$1.8 million on the date which falls

30 months from the date of the Existing Royalty Purchase Agreement (in

which case the total option price would be US$7.6 million).

For more information please contact:

Fernando Porcile, Executive Chairman Tel: +56 2 2954-0450

Antony J. Amberg, President & CEO Tel: +56 2 2954-0450

Blytheweigh, Financial PR Tel: +44 207 138 3203

Megan Ray

Rachael Brooks

E-Mail: [email protected] or visit our website at:

www.losandescopper.com

About Los Andes Copper Ltd.

Los Andes Copper Ltd. is an exploration and development company with an 100%

interest in the Vizcachitas Project in Chile. The Company is focused on

progressing the Project, which is located along Chile’s most prolific copper belt,

into production.

The Project is a copper -molybdenum porphyry deposit, located 120 km north of

Santiago, in an area of very good infrastructure. The Company’s P reliminary

Economic Assessment (the “PEA”) , delivered in June 2019, highlights that the

Project has a post tax NPV of $1.8 billion and an IRR of 20.7 7%, based on a $3

per pound copper price. It also has a Measured Resources of 254.4 million tonnes

having a grade of 0.439% copper and Indicated Resource of approximately 1.03

billion tonnes having a grade of 0.385% copper . Mineral resources that are not

mineral reserves do not have demonstrated economic viability. Please refer to the

technical report dated June 13, 2019, with an effective date of May 10, 2019 and

titled "Preliminary Economic Assessment of the Vizcachitas Project", prepared by

Tetra Tech.

The PEA is preliminary in nature, it includes inferred mineral resources that are

considered too speculative geologically to have the economic considerations

applied to them that would enable them to be categorized as mineral reserves, and

there is no certainty that the PEA will be realized.

Additionally, there is significant exploration upside at Vizcachitas with potential to

increase the resource base beyond the i nitial 45 -year mine life modeled in the

PEA.

Los Andes Copper Ltd. is listed on the TSX-V under the ticker: LA.

Qualified Person

Antony Amberg, the Company’s President and CEO is the qualified person who

has reviewed and approved the scientific and technical information contained in

this news release.

Certain of the information and statements contained herein that are not historical facts, constitute “forward-looking information” within

the meaning of the Securities Act (British Colu mbia), Securities Act (Ontario) and the Securities Act (Alberta) (“Forward-Looking

Information”). Forward -Looking Information is often, but not always, identified by the use of words such as “seek”, “anticipate”,

“believe”, “plan”, “estimate”, “expect” and “intend”; statements that an event or result is “due” on or “may”, “will”, “should”, “could”, or

might” occur or be achieved; and, other similar expressions. More specifically, Forward -Looking Information involves known and

unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or

industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-

Looking Information; including, without limitation, the achievement and maintenance of planned production rates, the evolving legal

and political policies of Chile, the volatility in the Chilean economy, military unrest or terrorist actions, metal and energ y price

fluctuations, favourable governmental relations, the availability of financing for activities when required and on acceptable terms, the

estimation of mineral resources and reserves, current and future environmental and regulatory requirements, the availability and timely

receipt of permits, approvals and licenses, industrial or environmental accidents, equipment breakdowns, availability of and

competition for future acquisition opportunities, availability and cost of insurance, labour disputes, land claims, the inherent uncertainty

of production and cost estimates, currency fluctuations, expectations and beliefs of management and other risks and uncertain ties,

including those described in Management’s Discussion and Analysis in the Company’s financial statements. Such Forward-Looking

Information is based upon the Company’s assumptions regarding global and Chilean economic, political and market conditions an d

the price of metals and energy, and the Company's production. Among the factors that have a direct bearing on the Company’s future

results of operations and financial conditions are changes in project para meters as plans continue to be refined, a change in

government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one

or more of any of the aforementioned risks and uncertainties materialize, or s hould underlying assumptions prove incorrect, actual

results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly,

readers are advised not to place undue reliance on Forward -Looking Information. Except as required under applicable securities

legislation, the Company undertakes no obligation to publicly update or revise Forward -Looking Information, whether as a result of

new information, future events or otherwise.

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

accepts responsibility for the adequacy or accuracy of this release.

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