SURG.V · 2022-06-21 12:00:00

Surge Copper Announces 96% Increase in Ootsa Measured & Indicated Resources to 439 Mt Grading 0.32% CuEq

Resource Estimates

* See Note 4 in Table 1.

PO Box 10351 888-700 West Georgia Street, Vancouver, BC, Canada, V7Y 1G5

www.surgecopper.com

TSX-V Trading Symbol: SURG

OTCQX: SRGXF

Frankfurt Trading Symbol: G6D2

Telephone: +1 (604) 781-5454

Email: [email protected]

June 21, 2022

NEWS RELEASE

Surge Copper Announces 96% Increase in Ootsa Measured & Indicated Resources to 439

Mt Grading 0.32% CuEq

Grows total Ootsa-Berg district inventory to over 1 billion tonnes of M+I resources

June 21, 2022, Vancouver, British Columbia – Surge Copper Corp. (TSXV: SURG) (OTCQX:

SRGXF) (Frankfurt: G6D2) (“Surge” or the “Company”) is pleased to announce an updated

mineral resource estimate (“MRE”) for its Ootsa Property, comprising pit constrained resources

at both the Seel and Ox deposits. This updated MRE is based on a drill hole database comprising

approximately 152,000 metres of diamond drilling, including approximately 50,000 metres drilled

since 2018. The MRE combines multiple mineralized zones at the Seel deposit area into a single

pit constrained volume and demonstrates both the overall size of the mineral endowment at Ootsa,

as well as the presence of near-surface, higher-grade subsets of the resource which could be

evaluated in future studies as potential starter pits.

Highlights

 Combined Total: pit-constrained resources of 439 Mt grading 0.32% copper equivalent*

(“CuEq”) in the combined Measured and Indicated categories (“M+I”), representing a 96%

increase in M+I resources compared to the previous 2016 estimate, plus an additional

138 Mt grading 0.28% CuEq in the Inferred category (“Inf.”), comprised of:

o Seel Deposit: 380 Mt grading 0.32% CuEq M+I plus an additional 135 Mt grading

0.28% CuEq Inf.

o Ox Deposit: 59 Mt grading 0.32% CuEq M+I

 Total contained metal in the M+I categories of 1.7 Blbs Cu, 167 Mlbs Mo, 1.6 Moz Au,

and 30 Moz Ag

 With the nearby Berg deposit, which hosts 610 Mt of M+I resources, this new resource at

Ootsa brings Surge’s total M+I inventory to over 1 billion tonnes , with total contained

metal across the two projects of 5.3 Blbs Cu, 586 Mlbs Mo, 1.6 Moz Au, and 89 Moz Ag

 Actively derisking advanced resources through metallurgical testwork programs, long

lead-time environmental monitoring, and internal engineering trade-off studies, while

pursuing further discovery via drill testing and reconnaissance screening of over 20

regional exploration targets

Surge Copper Corp. 2

Interactive VRIFY 3D Model

To view an interactive 3D model that includes the results announced today use the following link

or visit Surge’s website:

https://vrify.com/decks/11738?auth=1d44f428-b9e3-468a-844b-b00cc4cbbe70

Leif Nilsson, Chief Executive Officer, commented: “Our objective with the drill campaigns in 2020-

2021, and this resource estimate, were to determine the characteristics of a “super-pit” resource

at Ootsa that would encompass various zones at Seel including the large mineralized zone at

West Seel, the near-surface gold-rich zone at East Seel, and the high-grade Breccia Zone. This

result demonstrates the significant overall size of the Seel system and the flexibility represented

by the near-surface higher-grade zones, including the Breccia Zone which has seen an

approximate quadrupling in size and remains open for further expansion. In a world that is starved

of developable large-scale copper resources in safe jurisdictions, the Ootsa-Berg district is special

due to its significant size potential and proximity to world-class mining infrastructure. With recent

resource updates at both Ootsa and Berg now in place, and a 22,000 metre regional exploration

program underway, we believe there is strong potential to drive value through discovery and

continue to advance this premier Canadian copper district.”

The Company is pleased with the significant gains achieved on the Ootsa Property over the past

two years of focused exploration. This resource update has resulted in a 96% increase, compared

to the previous 2016 estimate, in the M+I categories on the Ootsa Property and provides a solid

foundation for advancing the project. Figure 5 below shows the resource tonnage within the M+I

categories on the Ootsa Property by depth and highlights the presence of near-surface, higher-

grade subsets of the resource which could be evaluated in future studies as potential starter pits.

A technical report for this MRE prepared in accordance with NI43-101 will be filed within 45 days

of this news release on SEDAR at www.sedar.com and the Company’s website.

Next steps at Ootsa involve ongoing advanced metallurgical testwork, long lead-time

environmental baseline monitoring programs, internal engineering trade-off studies focused on

district-wide infrastructure options, and ongoing exploration. One drill is actively turning at the

West Ox target on the Ootsa Property, and one additional drill is expected to arrive in late June,

before remobilizing to test targets in the northern portion of the district (see Press Release dated

June 1, 2022).

Surge Copper Corp. 3

Table 1. Ootsa Mineral Resource Estimate by Classification at Base Case NSR Cut-off

of C$8.27/t

Notes:

1) Economic viability can only be assessed through the completion of engineering studies defining reserves including PFS and

FS. Resource classification adheres to CIM Definition Standards; it cannot be assumed that all or any part of Inferred Mineral

Resources will be upgraded to Indicated or Measured as a result of continued exploration.

2) A C$8.27 per tonne NSR cut-off value was used as the base case for reporting mineral resources that have reasonable

prospects for eventual economic extraction. The NSR cut-off was derived from US$ metal prices of US$3.85/lb Cu,

US$12.40/lb Mo, US$1,750/oz Au, and US$22.00/oz Ag, and a USDCAD exchange rate of 0.77. Process recoveries used

were 90% Cu, 70% Au, 70% Mo, and 65% Ag with respective smelter payables of 96%, 90%, 98.5%, and 96%. Refining

charges in US$ were US$0.05/lb Cu, US$5/oz Au, and US$0.50/oz Ag. A generated pit shell using Whittle (3DS Geovia) was

used to report resources. The generation of the pit shell considered 45-degree slope angles, C$ operating costs of C$2.34/t

for mining and C$8.11/t for processing, G&A, and ore mining premium with a 2% ore dilution rate.

3) Grades were estimated using ordinary kriging using capped assays composited to two-metre intervals, with estimation block

sizes of 12x12x12 for both Seel and Ox.

4) Copper equivalent assumes metal prices of US$3.85/lb Cu, US$12.40/lb Mo, US$1,750/oz Au, and US$22.00/oz Ag and uses

the formula CuEq (%) = Cu (%) + 3.2208 x Mo (%) + 0.6630 x Au (g/t) + 0.0083 x Ag (g/t).

5) The total waste tonnes within the Seel constraining pit are 1,443.4 Mt implying a strip ratio of 2.8 : 1, and the total waste tonnes

within the Ox constraining pit are 65.6 Mt implying a strip ratio of 1.1 : 1.

6) Mineral resources that are not mineral reserves do not have demonstrated economic viability.

7) The Qualified Person for the Mineral Resource Estimate is James N. Gray, P.Geo, of Advantage Geoservices Ltd.

8) All figures are rounded to reflect the relative accuracy of the estimate.

9) The effective date of the mineral resource estimate is February 18, 2022.

Grade Gross Contained Metal

C$8.27/t NSR Cut-off Tonnage Cu Mo Au Ag CuEq Cu Mo Au Ag CuEq

(Mt) (%) (%) (g/t) (g/t) (%) (Mlbs) (Mlbs) (Moz) (Moz) (Mlbs)

Seel

Measured 103.7 0.19 0.014 0.15 2.6 0.36 440 32 0.5 8.7 823

Indicated 276.1 0.16 0.017 0.12 2.0 0.31 974 105 1.1 18.2 1,898

Total M+I 379.8 0.17 0.016 0.13 2.2 0.32 1,414 137 1.6 26.9 2,721

Inferred 135.4 0.15 0.015 0.10 2.0 0.28 455 45 0.4 8.8 847

Measured 30.1 0.24 0.026 0.04 1.4 0.36 157 17 0.0 1.4 237

Indicated 28.7 0.19 0.020 0.03 1.3 0.29 122 12 0.0 1.2 181

Total M+I 58.8 0.22 0.023 0.03 1.4 0.32 280 29 0.1 2.6 419

Inferred 2.4 0.13 0.011 0.03 1.1 0.20 7 1 0.0 0.1 10

Total

Measured 133.8 0.20 0.017 0.13 2.4 0.36 597 49 0.5 10.1 1,060

Indicated 304.8 0.16 0.018 0.11 2.0 0.31 1,097 118 1.1 19.4 2,079

Total M+I 438.6 0.18 0.017 0.12 2.1 0.32 1,694 167 1.6 29.5 3,139

Inferred 137.7 0.15 0.015 0.10 2.0 0.28 462 46 0.4 8.9 857

Surge Copper Corp. 4

Figure 1. Plan diagram of Seel constraining pit outline showing drill traces and section

locations.

Surge Copper Corp. 5

Figure 2. Long section looking NW through the Seel deposit showing constraining pit

outline, drill traces, and block model.

Figure 3. Cross section looking NE through the West Seel portion of the Seel deposit

showing constraining pit outline, drill traces, and block model.

Surge Copper Corp. 6

Figure 4. Cross section looking NE through the East Seel and Breccia Zone portion of the

Seel deposit showing constraining pit outline, drill traces, and block model.

Figure 5. Measured and Indicated resource tonnes at both Seel and Ox, by grade and

depth.

Surge Copper Corp. 7

Resource Estimation Methodology & Parameters

Resource estimation was performed by James Gray of Advantage Geoservices Ltd., an

independent Qualified Person as defined by National Instrument 43-101. Data from 300 core

holes at Seel and 133 at Ox was used for estimation using Geovia GEMS software. Control for

grade estimation in both deposits is based on three directional domains and a 0.1% CuEq

mineralized domain. Mineralized versus background material was separated using an indicator

(0.1% CuEq) estimation method. Grades were subsequently estimated by ordinary kriging inside

and outside that mineralized zone. Copper, molybdenum, gold, and silver grades were estimated

using capped assays composited to two-metre intervals. The estimation block size was 12x12x12

metres for both deposits. Average rock densities of 2.74 t/m 3 and 2.70 t/m3 were applied to Seel

and Ox, respectively, based on 4,081 measurements from Seel and 1,054 measurements from

Ox. Overburden was assigned a density of 2.0 t/m3.

Blocks were classified based on spatial parameters related to available drill data as well as on

the generation of an optimized pit. At both deposits, Measured resource blocks have a maximum

nominal drill spacing of 40m and the third closest hole is within 60m of the block. Indicated blocks

have a maximum drill spacing of 80m. Inferred blocks are the remainder estimated within the pit

volume. The resource was constrained by a Whittle generated (3DS Geovia) pit for which the

optimization parameters used are included in Note 2 of Table 1. Including 2% dilution the resource

NSR cut-off is C$8.27/t.

Upcoming Catalysts

The Company anticipates updating the market on results from the following activities:

 Results from the West Seel metallurgical testwork program

 Exploration updates throughout the 2022 field program

Quality Control

All drill core is logged, photographed, and cut in half with a diamond saw. Half of the core is

bagged and sent to ISO/IEC 17025 accredited assay labs in British Columbia, while the other half

is archived and stored on site for verification and reference purposes. Gold is assayed using a

30g fire assay method and 33 additional elements are analyzed by Induced Coupled Plasma (ICP)

utilizing a 4-acid digestion. Drill hole assay samples are monitored through a quality control quality

assurance (QAQC) program that includes the regular insertion of blanks, duplicates, and

standards that are subsequently checked by a qualified person to ensure proper quality assurance

and quality control. Jacques R. Stacey, P.Geo, has worked on the Ootsa Property over the past

two years and has verified drilling procedures, drill hole locations, the drill hole database, assay

certificates, and QAQC results.

Qualified Persons

The Qualified Persons for the MRE are James N. Gray, P.Geo, of Advantage Geoservices Ltd.

and Jacques R. Stacey, MSc., P.Geo, of Northern Mountain Geosciences, both independent of

the Company and Qualified Persons as defined under National Instrument 43-101. James Gray

is responsible for the mineral resource estimate and Jacques Stacey has worked extensively on

Surge Copper Corp. 8

the project, has visited the site, and has reviewed the drill hole database, assay certificates, and

quality control procedures. Both Qualified Persons have reviewed and approved the technical

disclosure contained in this news release. The Qualified Persons are not aware of any known

environmental, permitting, legal, title-related, taxation, socio-political, marketing, or other relevant

issues that could materially affect the mineral resource estimate.

Additional Disclosure Related to Berg NI43-101 Resource (previously released on March

17, 2021)

Table 1. Mineral Resource Estimate for the Berg Deposit at 0.2% CuEq Cut-off with Effective Date of

March 9, 2021.

Grade

Contained Metal

Material Type Resource