NORTHISLE 2025 PEA INDICATES 29% AFTER-TAX IRR AND $2 BILLION NPV FOR STAGED DEVELOPMENT OF THE NORTH ISLAND PROJECT NPV of $3.8 Billion with an After-tax IRR of 45% at spot prices
Northisle Copper and Gold Inc. | 14th Floor – 1040 West Georgia St. | Vancouver, BC | V6E 4H1
www.northisle.ca | [email protected]
February 19, 2025 – All figures in C$ unless otherwise noted
TSX Venture Exchange Symbol: NCX
NORTHISLE 2025 PEA INDICATES 29% AFTER-TAX IRR AND $2 BILLION NPV FOR
STAGED DEVELOPMENT OF THE NORTH ISLAND PROJECT
NPV of $3.8 Billion with an After-tax IRR of 45% at spot prices
Highlights:
• The 2025 PEA outlines robust economics, unlocking copper value through gold
o Base Case: After-tax net present value (“NPV”) of $2 billion (US$1.5 billion) at a 7% discount rate, after-tax internal
rate of return (“IRR”) of 29%, 1.9-year payback period and 29-year life of mine (“LOM”)
o After-tax NPV of $3.8 billion (US$2.6 billion) at 7%, after-tax IRR of 45% and a 1.4-year payback at spot prices
o Phase 1 average annual production of 200,000 ozs Au and 48mm lbs Cu over 5 years, with 157 million lbs Cu Eq.
or approx. 307,000 ozs Au Eq. LOM
o LOM revenue of 48% copper, 45% Au, and 7% Mo at Base Case prices, and 50% Au, 44% Cu and 6% Mo at spot
o Phase 1 operating cash flow of $2 billion at Base Case prices supports rapid payback of 1.9 years and fully funds
Phase 2 expansion capex
• Among the lowest cost and capital intensity projects relative to peer group
o Two-phase approach at single plant site with Phase 1 at 40,000 tonnes per day (“tpd”), doubling to 80,000tpd
o NPV of $2.0 billion (US$1.5 billion) is 1.7 times initial capital investment of $1.1 billion (US$847 million) at Base
Case pricing and 3.3 times initial capex at spot prices
o Phase 1 cash cost of US$763/oz Au Eq. or US$1.49/lb Cu Eq. sits in first quartile globallyi
• Long-term opportunity spanning 35-kilometer porphyry district
o 29-year mine plan includes only 753Mt of material of the 905Mt Indicated and 214Mt Inferred Resource
o New discovery at West Goodspeed, located within 1km of Red Dog, not included in current resource
o $7 million fully funded exploration program focused on expanding higher margin and grade northwest corridor
• Furthers the Company’s sustainable development goals
o Reduced emissions from Phase 1 operations, increased electrification opportunities
o Estimated LOM carbon intensity among the lowest in Canada for open pit copper minesii
Vancouver, B.C. – Northisle Copper and Gold Inc. (TSX -V: NCX) (“Northisle” or the “Company”) is pleased to announce
the positive results from a Preliminary Economic Assessment (the “202 5 PEA”) for its 100% owned North Island Project
(the “Project”) that demonstrate excellent economics from the staged development of the Project.
The 2025 PEA is based on a two-phase development of the Company’s 100% owned Northwest Expo and Red Dog deposits,
followed by the Hushamu deposit concurrent with a plant expansion. The 2025 PEA considers the processing of 753 million
tonnes of mineable material within three open pit deposits over a 29-year mine life. During the first phase, throughput is
approximately 40,000 tpd resulting in an initial capital expenditure of approximately $1.1 billion (US$849 million).
Production includes a combination of gold dor é and gold -rich copper concentrate . T he second phase contemplates
twinning the mill for a total of 80,000tpd in year 6 to produce copper concentrate (containing significant payable gold) ,
additional gold doré, and a molybdenum concentrate (containing payable rhenium). Phase 1 delivers a short payback
period of 1.9 years and strong operating cash flows (net of sustaining capital) of approximately $400 million per year that
provide a strong return and fully fund Phase 2 construction starting in year 5 (see Figure 4).
Dale Corman, Chairman, Cornerstone Shareholder, and Mining Hall of Fame recipient, commented: “I have always believed
that the North Island Project is among the most promising copper and gold projects in BC, and now, I believe it’s among
the most promising in the world. The results of the PEA highlight the Project’s economic potential and the opportunity
Northisle Copper and Gold Inc. | 14th Floor – 1040 West Georgia St. | Vancouver, BC | V6E 4H1
www.northisle.ca | [email protected]
across our 35km district. Our team continues to make disciplined discoveries which we expect will continue to add value
for shareholders.”
Sam Lee, President and CEO of Northisle added, “The 2025 PEA confirms our view that the North Island Project has the
potential to be among the best copper and gold projects in Canada. Our approach to optimizing the PEA was built upon
two strategic pillars: lowering the project capital intensity through a phased approach while maximizing overall project
value and returns. Upon achieving these goals, we now have a project that sharply distinguishes itself from other more
capital-intensive copper projects by unlocking our copper value through gold.
Of equal importance, we have just scratched the surface across our 35 -kilometer porphyry district. Through our fully
funded 2025 exploration program focused on the Northwest Corridor, we will test for the causative intrusion at Northwest
Expo, seek to expand the footprint of West Goodspeed both along strike and via fault offsets, and in-fill West Goodspeed
to enhance continuity. In our view, the combination of exploration potential and a robust development project at its core
make the North Island Project one of Canada’s most compelling copper AND gold projects.
With continued support of our First Nations partners, the BC and Federal Government, our shareholders and other
stakeholders, we look forward to our project providing meaningful benefits in the years and decades to come.”
Jagrup Brar, Minister of Mining and Critical Minerals stated “Responsible resource development of critical minerals in
partnership with First Nations is proven to expedite mining projects in B.C. That’s why we are pleased to see Northisle
continue to progress its North Island Project to unlock copper, one of Canada’s critical minerals. We look forward to
working with Northisle on obtaining efficient permitting decisions.”
The Company will host a conference call and webcast on February 19, 2025 at 11:00 AM Eastern time (8:00 AM Pacific
time). Details to access the call can be found below.
Key performance indicators are summarized in Table 1 below.
Table 1: 2025 Base Case Summary Project Metrics
Project
Stage
Production AISC
After-
tax
Avg.
Free
Cash
Flow
After-
tax
NPV
(7%)
After-
tax
IRR
GHG
Emissions
(kg CO2
/lb.)
Cu
(mm
lbs)
Au
(Koz)
Cu Eq.
(mm
lbs)
Au Eq.
(Koz)
Cu by-
product
(US$/lb)
Au by-
product
(US$/oz)
Cu Eq.
(US$/lb)
Au Eq.
(US$/oz) $ mm $ mm % Cu Cu
Eq.
Phase 1
(first 5
years)
average
48 200 151 294 $(3.23) $370 $1.83 $938 357
1,996 28.6 1.17 0.56 Life of
mine
(“LOM”)
average
75 137 157 307 $0.47 $93 $2.41 $1,232 199
Note: Cu Eq. based on Base Case metal prices and includes molybdenum and gold. See Table 2 for details.
2025 PEA Summary
The 2025 PEA was prepared in accordance with Nation al Instrument 43-101 Standards of Disclosure for Mineral Projects
(“NI43-101”) by Ausenco Engineering Canada ULC (“Ausenco”) in conjunction with an updated mine plan prepared by
Moose Mountain Technical Services (“Moose Mountain”) and incorporates the previously announced integrated resource
estimate for the North Island Project prepared by Moose Mountain (the “2024 Resource Estimate”). The 2025 PEA also
includes an updated Mine Waste Storage Facility (“MWSF”) design prepared by Ausenco and updated metallurgical test
work, also overseen by Ausenco. The Company plans to file the complete 2025 PEA report on SEDAR+ at www.sedarplus.ca
within 45 days of this press release.
Northisle Copper and Gold Inc. | 14th Floor – 1040 West Georgia St. | Vancouver, BC | V6E 4H1
www.northisle.ca | [email protected]
Table 2 summarizes the key findings of the 2025 PEA.
Table 2: 2025 PEA Economic Highlights
Base Case Economics Units Base Case
Net Present Value (after tax NPV 7%) $ millions 1,996
Net Present Value (after tax NPV 7%) US$ millions 1,477
Internal Rate of Return % 28.6
Payback Years 1.9
Phase 1 Initial Capital Cost $ millions 1,144 (US$847)
Phase 2 Expansion Capital $ millions 693 (US$513)
Sustaining Capital Cost $ millions 1,278 (US$946)
Economic Assumptions Units Base Case
Copper US$/lb 4.20
Gold US$/oz 2,150
Molybdenum US$/lb 21
Rhenium US$/kg 1,950
CAD:USD Exchange Rate US$/C$ 0.74
Base Case Annual Financial Metrics Units First 5 years LOM
Average Annual Revenue $ millions 855 902
Average Annual On-site Operating Costs $ millions 279 411
Avg. Ann. Operating Cash Flow (after tax) $ millions 418 290
Avg. Ann. Free Cash Flow (after tax) $ millions 357 199
The 202 5 PEA is preliminary in nature and 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. There is no certainty that the projections described in the 2025 PEA will be realized. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
Table 3 provides a summary of the key operating metrics from the 2025 PEA.
Northisle Copper and Gold Inc. | 14th Floor – 1040 West Georgia St. | Vancouver, BC | V6E 4H1
www.northisle.ca | [email protected]
Table 3: 2025 PEA Operating Highlights
Operating Statistics Units Phase 1 (First 5
Years) Phase 2 Avg. LOM
Mine Life Years 5 23.7 28.7
Annual Throughput M tonnes 14.8 28.6 26.2
Waste to Processed Material Waste:Processed Material 1.43 0.74 0.81
Total Copper Recoveries % 86.7 79.3 80.1
Total Gold Recoveries % 83.1 57.4 62.3
Total Molybdenum Recoveries % NA 51.4 51.4
Average Annual Payable Production
Copper mm lbs 48 81 75
Gold Koz 200 123 137
Molybdenum Klbs NA 2,763 2,282
Cu Eq. mm lbs NA 158 157
Au Eq. Koz 294 309 307
C1 Cost – Cu Eq payable $/lb 1.49 2.15 2.04
C1 Cost – Au Eq payable $/oz 762 1,100 1,044
AISC – Cu Eq payable $/lb 1.83 2.52 2.41
AISC – Au Eq payable $/oz 938 1,291 1,232
CuEq = copper payable lbs + ((gold payable oz * gold price)/copper price) + ((molybdenum payable lbs *molybdenum price)/copper price)
AuEq = gold payable oz + ((copper payable lbs * copper price)/gold price) + ((molybdenum payable lbs *molybdenum price)/gold price)
Cash cost = operating costs + offsite costs – Rhenium credit
AISC = cash cost + royalties + sustaining capital + closure capital
Cu Eq. and Au Eq. calculated at Base Case metal prices
Economic Sensitivity
An economic analysis was conducted based on spot metal prices (the “Spot Price”) as of February 11, 2025 and assumed
no changes to any other modifying factors.
Table 4: 2025 PEA Economic Highlights
Spot Price Economics Units Spot Price1
Net Present Value (after tax NPV 7%) $ millions 3,754
Net Present Value (after tax NPV 7%) US$ millions 2,625
Internal Rate of Return % 45.1
Payback Years 1.4
Phase 1 Initial Capital Cost $ millions 1,144 (US$847)
Phase 2 Expansion Capital $ millions 693 (US$513)
Sustaining Capital Cost $ millions 1,278 (US$946)
Economic Assumptions Units Spot Price1
Copper US$/lb 4.67
Gold US$/oz 2,908
Molybdenum US$/lb 21
Rhenium US$/kg 2,417
CAD:USD Exchange Rate US$/C$ 0.70
1 – Spot price as of February 11th, 2025
Table 5 summarizes the after-tax sensitivities of NPV and IRR to metal prices.
Northisle Copper and Gold Inc. | 14th Floor – 1040 West Georgia St. | Vancouver, BC | V6E 4H1
www.northisle.ca | [email protected]
Table 5: 2025 PEA Post Tax Sensitivity Summary
Post-Tax Sensitivity to Metal Price (C$M)
Post-Tax NPV Sensitivity To Discount Rate ($M) Post-Tax IRR Sensitivity To Discount Rate
Commodity Price Spot
Price Commodity Price Spot
Price
Discount Rate $1,974 (20%) (10%) – 10% 20% –
Discount Rate $0 (20%) (10%) – 10% 20% –
3% 1,649 2,598 3,546 4,500 5,450 6,299 3.00% 16.6% 22.9% 28.6% 33.7% 38.6% 45.1%
5% 1,160 1,903 2,642 3,384 4,121 4,814 5.00% 16.6% 22.9% 28.6% 33.7% 38.6% 45.1%
7% 806 1,404 1,996 2,588 3,176 3,754 7.00% 16.6% 22.9% 28.6% 33.7% 38.6% 45.1%
8% 665 1,207 1,742 2,276 2,805 3,337 8.00% 16.6% 22.9% 28.6% 33.7% 38.6% 45.1%
10% 439 890 1,334 1,774 2,210 2,667 10.00% 16.6% 22.9% 28.6% 33.7% 38.6% 45.1%
Post-Tax NPV Sensitivity To OPEX ($M) Post-Tax IRR Sensitivity To OPEX
Commodity Price Spot
Price Commodity Price Spot
Price
OPEX
$1,974 (20%) (10%) – 10% 20% –
OPEX
$0 (20%) (10%) – 10% 20% –
(20%) 1,310 1,902 2,492 3,082 3,668 4,247 (20%) 21.2% 26.9% 32.2% 37.1% 41.8% 48.0%
(10%) 1,059 1,654 2,244 2,835 3,423 4,001 (10%) 19.0% 24.9% 30.4% 35.4% 40.2% 46.5%
– 806 1,404 1,996 2,588 3,176 3,754 – 16.6% 22.9% 28.6% 33.7% 38.6% 45.1%
10% 552 1,154 1,748 2,341 2,933 3,508 10% 14.0% 20.6% 26.6% 32.0% 37.0% 43.6%
20% 294 904 1,501 2,094 2,686 3,262 20% 11.0% 18.3% 24.6% 30.2% 35.3% 42.0%
Post-Tax NPV Sensitivity To Initial Capex ($M) Post-Tax IRR Sensitivity To Initial Capex
Commodity Price Spot
Price Commodity Price Spot
Price
Initial Capex
$1,974 (20%) (10%) – 10% 20% –
Initial Capex
$0 (20%) (10%) – 10% 20% –
(20%) 988 1,581 2,173 2,760 3,350 3,929 (20%) 21.9% 29.5% 36.3% 42.5% 48.2% 56.0%
(10%) 898 1,492 2,085 2,673 3,263 3,841 (10%) 18.9% 25.8% 32.0% 37.6% 42.9% 50.0%
– 806 1,404 1,996 2,588 3,176 3,754 – 16.6% 22.9% 28.6% 33.7% 38.6% 45.1%
10% 715 1,314 1,910 2,500 3,092 3,667 10% 14.7% 20.4% 25.7% 30.5% 35.1% 41.0%
20% 622 1,224 1,820 2,412 3,004 3,580 20% 13.2% 18.4% 23.4% 27.9% 32.1% 37.6%
Post-Tax NPV Sensitivity To Recovery Mill ($M) Post-Tax IRR Sensitivity To Recovery Mill
Commodity Price Spot
Price Commodity Price Spot
Price
Recovery Mill $1,974 (20%) (10%) – 10% 20% –
Recovery Mill $0 (20%) (10%) – 10% 20% –
(20%) 85 623 1,141 1,651 2,159 2,704 (20%) 8.1% 14.4% 19.9% 24.9% 29.6% 35.5%
(10%) 446 1,011 1,564 2,114 2,664 3,223 (10%) 12.5% 18.7% 24.3% 29.5% 34.2% 40.4%
– 806 1,404 1,996 2,588 3,176 3,754 – 16.6% 22.9% 28.6% 33.7% 38.6% 45.1%
10% 1,204 1,839 2,473 3,103 3,733 4,332 10% 20.6% 26.9% 32.6% 37.9% 43.0% 49.6%
20% 1,732 2,407 3,082 3,751 4,425 5,043 20% 24.8% 31.0% 36.7% 42.1% 47.2% 54.1%
Post-Tax NPV Sensitivity To Head Grade ($M) Post-Tax IRR Sensitivity To Head Grade
Commodity Price Spot
Price Commodity Price Spot
Price
Head Grade
$1,974 (20%) (10%) – 10% 20% –
Head Grade
$0 (20%) (10%) – 10% 20% –
(20%) (249) 298 778 1,248 1,712 2,152 (20%) 3.4% 10.8% 16.3% 21.3% 25.9% 31.5%
(10%) 312 858 1,390 1,918 2,445 2,952 (10%) 10.9% 17.2% 22.7% 27.8% 32.5% 38.5%
– 806 1,404 1,996 2,588 3,176 3,754 – 16.6% 22.9% 28.6% 33.7% 38.6% 45.1%
10% 1,288 1,946 2,603 3,255 3,908 4,559 10% 21.7% 28.1% 33.8% 39.3% 44.4% 51.3%
20% 1,766 2,488 3,205 3,923 4,642 5,365 20% 26.4% 32.9% 38.8% 44.4% 49.8% 57.2%
Note: FX sensitivity has only been applied to revenue in this study. Future studies will further model FX sensitivity. Spot
Price is US$4.67/lb Cu, US$2,908/oz Au, US$21/lb Mo, US$2,417/kg Re and an FX rate of 0.70.
Northisle Copper and Gold Inc. | 14th Floor – 1040 West Georgia St. | Vancouver, BC | V6E 4H1
www.northisle.ca | [email protected]
Figure 1: Sensitivity Summary Post-Tax NPV (7%)
Figure 2: Sensitivity Summary Post-Tax IRR
–
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
(25%) (20%) (15%) (10%) (5%) – 5% 10% 15% 20% 25%
NPV (C$M)
Commodity Price (+/-%) Total Opex (+/-%) Initial Capex (+/-%)
Recovery (+/-%) Head Grade (+/-%)
–
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
(25%) (20%) (15%) (10%) (5%) – 5% 10% 15% 20% 25%
IRR (%)
Commodity Price (+/-%) Operating Cost (+/-%) Initial Capex (+/-%)
Recovery(+/-%) Head Grade (+/-%)
Northisle Copper and Gold Inc. | 14th Floor – 1040 West Georgia St. | Vancouver, BC | V6E 4H1
www.northisle.ca | [email protected]
Figure 3: Annual Production Chart
Figure 4: Annual Cumulative FCF Chart
–
5,000
10,000
15,000
20,000
25,000
30,000
35,000
–
50
100
150
200
250
300
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Tonnes Milled (kt)
Metal Produced (Mlbs)
Year
Copper Equivalent Production Mill Feed
Phase 1 Phase 2
(4,000)
(3,000)
(2,000)
(1,000)
–
1,000
2,000
3,000
4,000
5,000
6,000
(800)
(600)
(400)
(200)
–
200
400
600
800
1,000
1,200
-2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Cumulative FCF ($ Millions)
$ Millions
Year
Post-Tax CF - Phase 1 Post-Tax CF - Phase 2
Initial Capex Expansion Capex
Post-Tax Cumulative FCF
Northisle Copper and Gold Inc. | 14th Floor – 1040 West Georgia St. | Vancouver, BC | V6E 4H1
www.northisle.ca | [email protected]
Comparison to 2021 PEA
Table 6: Comparison of 2021 PEA to 2025 PEA
Information/Data Type 2021 PEA 2025 PEA
Economics $1.1 billion After-tax NPV (8%) and 19% After-tax IRR $2.0 billion After-tax NPV (7%) and 29% After-tax IRR
Initial Capital Expenditure $1.4 billion $1.1 billion (US$847 million)
Payback of initial capital
expenditure 3.9 years 1.9 years, expansion capital expenditure paid out of after-
tax free cash flow
After-Tax Free Cash Flow Average annual after-tax free cash flow of $321 million
during the first 6 years, $224 million LOM
Average annual after-tax free cash flow (includes all capex)
of $357m first 5 years, $199m LOM
AISC US$2.01/lb Cu Eq over first 6 years, US$2.14/lb Cu Eq
LOM US$1.83/lb Cu Eq over first 5 years, US$2.41/lb Cu Eq LOM
Annual Production
First 6-year average payable production of 112mm lbs
Cu and 112 koz Au; LOM average payable production
of 96mm lbs Cu and 100koz Au, including 1.0kt Mo
First 5-year average payable production of 200koz Au and
48mm lbs Cu; LOM average annual payable production of
75mm lbs Cu and 137 koz Au, plus 1.0kt Mo and Re credits
Mine Life 22 years 29 years
Mine Capacity 75 ktpd for Red Dog and Hushamu mine and mill
2 Stage production plan, 40 ktpd expanding to 80 ktpd to
provide early processing of Au rich NW Expo material to
significantly improve project economics
Processing and Metallurgy Flotation of Red Dog and Hushamu material to
produce Cu concentrate and Molybdenum concentrate
Flotation plus cyanide leach of rougher and cleaner (Ph 1)
and cleaner (Ph 2) flotation tails to add 15-25%
improvement in Au recovery by producing Au doré
Project Capital Expenditure Single Phase initial capital - more difficult to finance
2 Phase production provides significantly reduced initial
capital to facilitate project financing. Second phase
expansion paid entirely out of free cash flow.
Information/Data Type 2021 PEA 2025 PEA
Pricing Base Case Spot Price Base Discount
to Spot Base Case Spot Price Base Discount
to Spot
Cu Price US$/lb 3.25 3.51 7% 4.20 4.67 10%
Au Price US$/oz 1,650 1,835 10% 2,150 2,908 26%
Mo Price US$/lb 10 10 0% 21 21 0%
Re Price US$/kg 1,256 1,256 0% 1,950 2,417 19%
Exchange Rate USD/CAD 0.75 0.75 0% 0.74 0.70 (6%)
Production LOM First 5 years LOM
Mine Life Years 22 5 28.7
Total Mill Feed kt 600,359 74,133 752,164
Strip Ratio Waste : Processed 0.71 1.43 0.81
Mill Design Capacity tpd 75,000 40,000 80,000
Processing and Metallurgy Cu and Au flotation to produce Cu con
and separate Moly con
Cu and Au flotation to produce Cu con and
separate Moly con, cyanide leach of NW Expo and
Red Dog ore rougher and cleaner tails, and
Hushamu cleaner tails
Total Copper Recovery % 86% 86.7 80.1
Total Gold Recovery % 47% 83.1 62.3
Total Molybdenum Recovery % 60% 51.4 51.4
Average Annual Cu Production mm lbs 96 48 75
Average Annual Au Production koz 100 200 137
Average Annual Mo Production kt 1.1 N/A 1.0
Annual CuEq Production mm lbs 156 151 157
Total Cu Recovered mm lbs 2,035 240 2,168
Total Au Recovered koz 2,143 1,002 3,932
Total Mo Recovered kt 25 N/A 30
Total CuEq Recovered mm lbs 3,430 753 4,509
Operating Cost
Mining Cost $/t mined 2.32 3.16 3.12
Processing Cost $/t milled 5.58 10.39 9.36
G&A Cost $/t milled 0.38 1.25 0.68