Latin Metals and Minsur S.A. Agree Option Terms for Lacsha Copper Project, Lima Department, Peru

VANCOUVER, British Columbia, Aug. 18, 2026 (GLOBE NEWSWIRE) -- Latin Metals Inc. ("Latin Metals" or the "Company") - (TSXV: LMS) (OTCQB: LMSQF) is pleased to announce that it has entered into a Letter of Intent (the "LOI") with Minsur S.A. ("Minsur") regarding the acquisition by Minsur of the Company's wholly-owned Lacsha Copper Project ("Lacsha" or the "Project"), located in Lima Department, Peru. The Company and Minsur will now work towards completion of definitive agreements within 90 days.

Highlights:

• Initial Earn-in for 75% interest in the Project includes US$2.62 million cash payments to Latin Metals and up to 60,000m of drilling, fully funded by Minsur.
• If Minsur elects to acquire 100% of the Project, Latin Metals would receive a total of US$22.6 million cash
• Minsur has a limited-time option to buy back half of the 2% NSR royalty by paying Latin Metals an additional US $20 million cash, in which case Latin Metals retains a 1% NSR royalty, providing continued exposure to discovery without future mine-development capital requirements.
  

Keith Henderson, Latin Metals’ CEO, stated:

"Through this transaction, Latin Metals may ultimately transform an internally generated exploration project into US$42.6 million in cash while retaining a 1% NSR royalty on future production. The transaction demonstrates the capital efficiency of Latin Metals' prospect generator model. Following modest early-stage exploration expenditures, the Company has attracted a significant mining partner to fund the capital-intensive stages of exploration and development while preserving meaningful long-term exposure to project success.

Mr. Henderson continued:

"Minsur’s decision to partner on Lacsha highlights both the quality of the project and the technical work completed by our team. Lacsha has evolved into one of the most compelling copper opportunities within our portfolio, combining strong copper-molybdenum geochemistry, compelling geophysical targets, established community agreements and drill permits. We believe the Project is well positioned for systematic drill testing and are pleased to advance it with a partner of Minsur's calibre."

"Minsur is a multi-billion-dollar mining company, one of Peru's most respected miners, and an excellent partner for Lacsha. Minsur has operated in Peru for decades, giving them deep technical, permitting and community experience that makes them a highly credible partner for advancing a Peruvian copper project."

Option Terms

Latin Metals' Peruvian subsidiary, Zafiro Mining S.A.C. ("Zafiro") will grant Minsur and a Peruvian subsidiary of Minsur the option (the "Option") to earn a 75% interest in the Project over a 6-year Option period (Table 1). Minsur will earn no interest in the Project until the Option terms have been met. To exercise the Option, Minsur must (i) complete a minimum of 60,000 metres of drilling; and (ii) make aggregate cash payments of US$2.62 million to Latin Metals, over a six-year period as follows:

Table 1: Option Terms for 75% Interest in Lacsha

Notes:
(1) The Effective Date is defined as the date upon which the definitive agreements are executed.
(2) Lacsha has an existing and valid FTA permit. Before drilling can commence, certain notices need to be filed with governmental authorities. The Commencement Date is defined as the first business day following receipt of all administrative and regulatory approvals that are still required to commence drilling.
(3) The payments of US$220,000 on the Effective Date and US$250,000 on the Commencement Date are firm commitments.

Buy-Out Option and Royalty

Upon exercising the Option (the "Exercise") and for a window of 180 days following the Exercise, Minsur may elect to acquire the remaining 25% of the Project (for an aggregate 100% interest) for a cash payment of US$20 million (the "Buy-Out"), at which time Latin Metals' interest in Lacsha would convert to a 2% net smelter returns royalty ("NSR Royalty"). Minsur may elect to accelerate the US$20 million Buy-Out payment at any time.

If Minsur elects to exercise the Buy-Out for the acquisition of a 100% interest in the Project, for a period of 3 years following the Buy-Out, Minsur will have a right to buy-back half (1%) of the 2% NSR Royalty (the "Royalty Buy-Back") for an additional cash payment of US$20 million, in which case Latin Metals will retain a 1% NSR Royalty, which is not subject to any additional buy-back rights.

Joint Venture

If Minsur does not exercise the Buy-Out right, Minsur and Zafiro would form an incorporated joint venture ("JV") with initial shareholding interests of Minsur as to 75% and Latin Metals (Zafiro) as to 25%, and pro rata funding going forward. At the time the JV is formed, Latin Metals may elect to convert its JV interest to a 2% NSR Royalty.   Following the formation of the JV, if Latin Metals' ownership interest in the JV is subsequently diluted below 10%, its interest converts automatically to a 1 % NSR royalty, which is not subject to any additional buy-back rights.

Latin Metals' Strategy

The significant capital required to develop copper porphyry discoveries means that Latin Metals as a prospect generator is ultimately heading towards ownership of an NSR royalty. Providing Minsur with a path to 100% ownership, Latin Metals has the potential to receive cash payments of up to US$22.62 million, and if Minsur further elects to exercise the Royalty Buy-Back of 1% of Latin Metals' NSR Royalty, an additional cash payment US$20 million would be made to Latin Metals (aggregate of up to US$42.62 million if both the Buy-Out and Royalty Buy-Back are completed). If a mineral deposit is discovered at Lacsha and assuming Minsur elects to exercise their Buy-Out and Buy Back options, the 1% NSR Royalty to be retained by Latin Metals will be a valuable asset to be monetized or retained through to production.  

About Lacsha

Latin Metals originally acquired the Lacsha Project through staking and advanced it through early-stage exploration and completion of drill permitting at a cost of less than C$1 million prior to reaching agreement with Minsur.

Lacsha is one of the most advanced copper exploration projects within Latin Metals' portfolio and has been systematically advanced through multiple phases of exploration. The Project is located approximately 130 kilometres north of Lima and benefits from excellent infrastructure, including road access, nearby power and proximity to port facilities. Latin Metals maintains a multi-year community agreement and holds permits for drilling.

Strategic Partnership with Minsur S.A.

Minsur is one of Latin America's leading mining companies. Headquartered in Lima, Peru, the company has more than 45 years of operating experience and is part of the privately held Breca Group, one of Peru's largest diversified business groups. In addition to its world-class San Rafael tin operation, Minsur owns the Pucamarca gold mine, the Pisco tin smelter and refinery, and a controlling interest in the Mina Justa copper mine, one of Peru's newest large-scale copper operations. Minsur is recognized for its strong technical capabilities, disciplined project development, and long-term commitment to responsible mining.

Strategic Position Within Peru's Emerging Copper Belt

Lacsha is located within Peru's emerging Cretaceous Copper Belt. The Project occupies a favourable geological setting where exploration has identified the classic characteristics associated with porphyry copper systems, including widespread alteration, copper-molybdenum geochemistry and coincident geophysical anomalies. The combination of these attributes, together with existing community agreements and drill permits, makes Lacsha one of the most advanced copper exploration opportunities available within Latin Metals' portfolio.

The decision by Minsur to enter into the LOI reflects the growing strategic importance of the district and reinforces Latin Metals' belief in the Project's discovery potential.

Ratification and Approval of Omnibus Share Incentive Plan 

The Company is pleased to announce that, at its Annual General Meeting of shareholders held on July 2, 2026, shareholders approved the Company's Omnibus Share Incentive Plan (the "Omnibus Plan"). The resolution approving the Omnibus Plan received the support of 99.97% of the votes cast by shareholders present in person or represented by proxy at the meeting. The Omnibus Plan remains subject to the final acceptance of the TSX Venture Exchange.

About Latin Metals

Latin Metals Inc. is a copper, gold and silver exploration company operating in Peru and Argentina under a prospect generator model, minimizing risk and dilution while maximizing discovery potential. With 16 projects, the company secures option agreements with major mining companies to fund exploration. This approach provides early-stage exposure to high-value mineral assets. Latin Metals is actively seeking new strategic partners to advance its portfolio.

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Qualified Person

Eduardo Leon, QP, is the Company's qualified person as defined by NI 43-101 and has reviewed the scientific and technical information that forms the basis for portions of this news release. He has approved the disclosure herein. Mr. Leon is not independent of the Company, as he is an officer of the Company and holds securities of the Company.

On Behalf of the Board of Directors of

LATIN METALS INC.

“Keith Henderson”

President & CEO

For further details on the Company, readers are referred to the Company's website (www.latin-metals.com) and its Canadian regulatory filings on SEDAR+ at www.sedarplus.com.

For further information, please contact:

Keith Henderson
Suite 1920 – 1188 West Georgia Street,
Vancouver, BC, V6E 4A2

E-mail: [email protected]

Elyssia Patterson, VP Investor Relations
Email: [email protected]
Phone: 778-683-4324

Neither 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 news release.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the entering into of definitive agreements in respect of the grant of the Option, the exercise of the Option, the Buy-Out right and Royalty Buy-Back right by Minsur, the entering into of the JV, the fulfilment of the irrevocable work and payment commitments by Minsur, future exploration on the Project, the potential value of the NSR Royalty, the anticipated content, commencement, timing and cost of exploration programs in respect of the Project and otherwise, anticipated exploration program results from exploration activities, the discovery and delineation of mineral deposits/resources/reserves on the Project, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as "pro forma", "plans", "expects", "may", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that Latin Metals and Minsur will enter into a definitive agreement for the grant of the Option, market fundamentals will result in sustained precious and base metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of the Project in a timely manner (including drill permits), the availability of financing on suitable terms for the development, construction and continued operation of the Project, Minsur's ability to advance the Project, and the Company's (and Minsur's) ability to comply with environmental, health and safety laws.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, the expectations and beliefs of the Company that definitive agreements in respect of the grant of the Option will be entered into, the Option and Buy-Out right will be exercised or the JV formed in accordance with the terms of the LOI, and that all irrevocable work and payment commitments by Minsur will be met, operating and technical difficulties in connection with mineral exploration and development and mine development activities at the Project, including the geological mapping, prospecting and sampling programs being proposed for the Project (the "Programs"), actual results of exploration activities, including the Programs, estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, costs of production, capital expenditures, the costs and timing of the development of new deposits, the availability of a sufficient supply of water and other materials, requirements for additional capital, future prices of precious metals and copper, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays or the inability of the Company (or Minsur) to obtain any governmental approvals (including TSX Venture Exchange approval), permits, consents or authorizations required, risks related to epidemics or pandemics, including impact on the Company's business, financial condition and results of operations, any current or future property acquisitions, financing or other planned activities, changes in laws, regulations and policies affecting mining operations, hedging practices, currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities, risks related to joint venture operations, and risks related to the integration of acquisitions, as well as those factors discussed under the heading as well as those factors discussed under the heading "Risk Factors" in the Company’s annual management’s discussion and analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company’s profile on the SEDAR+ website at www.sedarplus.ca.

Readers are cautioned not to place undue reliance on forward looking statements. Except as otherwise required by law, the Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by reference herein.