TNR Gold NSR Royalty Update - Los Azules Feasibility Study Confirms Economically Robust Copper Project With Leading ESG Performance
NEWS RELEASE
TNR Gold NSR Royalty Update - Los Azules Feasibility Study
Confirms Economically Robust Copper Project With Leading ESG
Performance
Vancouver, British Columbia – October 10, 2025: TNR Gold Corp. (TSX-V: TNR) (“TNR”, “T NR Gold ”
or the “Company”) is pleased to announce that McEwen Inc. (“McEwen”) has provided an update on the
Los Azules copper, gold and silver project in San Juan, Argentina. TNR holds a 0.4% net smelter returns
royalty (“NSR Royalty”) (of which 0.04% of the 0.4% NSR Royalty is held on behalf of a shareholder) on
the Los Azules Copper Project. The Los Azules project is held by McEwen Copper Inc. (“ McEwen
Copper”), which is 46.4% owned by McEwen.
A news release issued by McEwen on October 7, 2025, stated:
“McEwen Copper Inc., 46.4% owned by McEwen Inc. is pleased to announce positive results from
the independent Feasibility Study (FS) for its 100%-owned Los Azules copper project in San Juan,
Argentina.
The FS confirms Los Azules as a long-life, low-cost producer of high-purity copper cathodes with
strong economic returns and sustainability. The project design advances Los Azules toward
construction readiness within a framework that reduces its environmental footprint. Project risk has
been further reduced through a strategic collaboration agreement with IFC to potentially lead debt
financing and additional funding proposals for infrastructure and construction.
With these results, Los Azules is positioned to become a supplier of responsibly produced copper,
critical to the global energy transition towards a low-carbon sustainable future.
‘The Los Azules Feasibility Study is more than a technical milestone - it’s a blueprint for the future
of copper mining. We have delivered a plan for a long-life asset that will play a role in the world’s
clean-energy transition. Copper is the foundation of electrification and the modern world, and Los
Azules is ready to contribute to that global supply chain - responsibly, efficiently, and profitably,’
said Rob McEwen, Chairman and Chief Owner of McEwen Inc.
‘With this Feasibility Study, our team has transformed the geological potential of Los Azules into a
clear, actionable development plan. This work gives us confidence in the project’s design, costs,
and schedule, providing the foundation for the next stage of growth.
‘Having significant experience with large-scale construction and mining operations in Argentina, I
am c onfident that we have the right plan, the right team, and the right partnerships to develop Los
Azules. Together with our local communities and government partners, we aim to create
#1120, 789 West Pender Street,
Vancouver, B.C.
V6C 1H2, Canada
T: +1 (604) 229-8129
E-mail: [email protected]
Website: http://www.tnrgoldcorp.com
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Argentina’s first regenerative copper mine - a model for responsible and innovative mining,” said
Michael Meding, Vice President of McEwen Copper and General Manager of Los Azules.
This press release starts with the FS Highlights below, followed by Footnotes, a Glossary of Terms,
Units and Abbreviations and continues with a detailed account of the study in a Technical
Appendix.
FS Highlights
Simple Takeaways
• Economics After-tax(1):
NPV(8%) $2.9B
IRR 19.8%
Payback Period 3.9 yrs
Initial Capital $3.17B
• Copper Cathode Production(2):
Average Years 1–5 204,800 tonnes per year (451M lbs/yr)
Life of Mine 21 years
Average Production 148,200 t/yr (327M lbs/yr)
• Costs:
C1 cash cost $1.71/lb
AISC $2.11/lb
• Scale – Reserves and Resources(3):
Mineral Reserves
- Proven & Probable 10.2B lbs Cu (1.02 B tonnes at 0.45% Cu)
Mineral Resources (exclusive of Reserves)
- Measured & Indicated 5.4B lbs Cu (0.97 B tonnes at 0.26% Cu)
- Inferred 20.0B lbs Cu (4.24 B tonnes at 0.21% Cu)
• Capital Intensity Using:
LOM Capital &
Production $1,600/t Cu
Initial Capital &
Avg. Annual Production $20,200/t Cu per yr
Designed for Low Impact
• Leach + SX/EW process produces 99.99% copper cathodes (LME Grade A) on site (no
smelter required).
• Project design provides:
- 72% lower mine-to-metal carbon intensity than industry average for mine-to-metal
- 100% renewable power(4) (wind, hydro, solar)
- 74% less water use than conventional milling
- No tailings dam
• Carbon-neutral (Scopes 1 & 2) goal by 2038.
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De-risked Regulatory Status
• Environmental Impact Statement EIA (Environmental Permit) for construction and operation
was approved by the San Juan Provincial Government's Ministry of Mines in December, 2024.
• Accepted into Argentina’s Large Investment Incentive Regime (RIGI) in September, 2025,
providing tax, foreign exchange and customs stability for 30 years, legal certainty, foreign
exchange regulations allowing to leave export proceeds abroad in increasing steps that will
reach 100% by the time the project starts exports and access to international arbitration in case
of disputes.
Ownership & Partners
• Ownership: McEwen Inc. 46.4%, Stellantis 18.3%, Nuton (Rio Tinto) 17.2%,
Rob McEwen 12.7%, Victor Smorgon Grp 3%, Others 2.4%.
• Preliminary finance proposals from Tier-1 OEMs (Komatsu, Sandvik & others), YPF
Luz, European ECAs, and a collaboration agreement with IFC(5) to align with IFC’s ESG
standards and for potential financing. Indicative proposals could support $1.1B+(6) in
equipment and infrastructure financing.
Future Growth Opportunities Beyond the FS
1. Nuton® leaching technology (Rio Tinto venture) could allow processing of primary ores with
the existing infrastructure (indicative recoveries >76%), or a Conventional Concentrator could
also provide higher copper recoveries, plus recover gold and silver as well. Either process
could extend mine life by 30+ years by economically treating primary sulfides. Neither of these
opportunities are included in the FS base case.
2. Exploration has shown that there are four porphyry targets near the Los Azules deposit that
could provide further extension to the mine life. Exploration of the newly identified targets will
start in Q4 2025. High- priority targets near Los Azules include Tango, Porfid o Norte, Franca,
and Mercedes.
Timeline & Next Steps
• FS NI 43-101 Technical Report to be filed: within 45 days(7).
• Water concession: application under review.
• Construction target: 2026 → SX/EW startup: 2029 → First copper: 2030.
Footnotes to Highlights
(1) NI 43- 101 feasibility study using a copper price of $4.35/lb or $9,592/ tonne for cash flow
modeling.
(2) Average copper recovery is 70.8% over the life of mine.
(3) For additional details on the calculation of Mineral Resources and Mineral Reserves see Section
3 of the Technical Appendix, Mineral Resource & Reserve Estimates.
(4) Power supply 100% renewable, with 48% lower electricity demand than a conventional
concentrator.
(5) Collaboration agreement signed with IFC to align with IFC’s ESG standards for potential future
financing, an important milestone in McEwen Copper’s broader financing strategy.
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(6) Preliminary financing proposals from Tier-1 OEMs, YPF Luz, and European ECAs could provide
$1.1B+ in equipment and infrastructure support.
(7) The FS NI 43- 101 Technical Report will be filed within 45 days on SEDAR and McEwen Inc.’s
website.
ABOUT MCEWEN INC.
McEwen Inc. shares trade on both the NYSE and TSX under the ticker MUX.
It provides shareholders with exposure to a growing base of gold and silver production in addition
to a very large copper development project, all in the Americas. The gold and silver mines are in
prolific mineral-rich regions of the world, the Cortez Trend in Nevada, USA, the Timmins district of
Ontario, Canada and the Deseado Massif in Santa Cruz province, Argentina. McEwen Inc. is
considering reactivating a gold and silver mine in Mexico.
It has a 46.4% interest in the large, long- life, advanced- stage Los Azules copper development
project in San Juan province, Argentina – a region that hosts some of the country’s largest copper
deposits. The Los Azules copper project is designed to be one of the world’s first regenerative
copper mines and carbon neutral by 2038.
Rob McEwen, Chairman and Chief Owner, has a personal cost basis for his investment in the
companies of over $200 million and takes a salary of $1 per year, aligning his interests closely with
shareholders. He is a recipient of the Order of Canada, a member of the Canadian Mining Hall of
Fame and a winner of the Ernest & Young Entrepreneur of the Year (Energy) award. His objective
is to build MUX’s profitability, share value and eventually implement a dividend policy, as he did
while building Goldcorp Inc.
ABOUT MCEWEN COPPER
McEwen Copper Inc. is a Canadian-based private company with a 100% interest in the Los Azules
copper project in San Juan, Argentina and the Elder Creek copper/gold project in Nevada, USA.
Based on S&P Global data for 2024, Los Azules projected annual production would rank it as the
26th worldwide, once in production, placing it in the top 6% of all 423 copper producers. The project
also ranks 10th globally in terms of total Mineral Resources among all undeveloped copper porphyry
deposits (company disclosure).
Los Azules is being designed to provide a model to the industry for a more sustainable, low-carbon
future and to help improve public perception of mining by fundamentally differing from conventional
copper mines –substantially reducing water consumption and carbon emissions and operating on
100% renewable electricity once in production.
Glossary of Terms, Units and Abbreviations
AISC - All-In Sustaining Cost (C1 + sustaining capital + royalties + taxes)
Approx. - Approximately
B - billion
Blb - billion pounds
Copper cathode - High-purity (typically 99.99%) of refined copper sheets (LME Grade A) produced
through an electrolytic refining process. This finished product serves as a primary raw material for
high-quality copper products, such as wires, tubes, and various alloys.
CO₂-e/t Cu - Kilograms of CO₂ equivalent per tonne of copper
Cu - copper
C1 Costs - Direct cash costs of production
EIA - Environmental Impact Assessment
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FS – Feasibility Study
GHG Emissions - Greenhouse gas emissions (CO₂-equivalent)
Heap Leach - Process of extracting metals by percolating acid through ore piles
Hypogene or Primary - Refers to mineralization formed by ascending hydrothermal fluids deep
below the surface, usually at high temperature and pressure
IFC - International Finance Corporation
IRR (Internal Rate of Return) - Rate at which NPV = 0
ktpa - 1,000 tonnes per annum
km - kilometer
lb - pound (0.4536 kg)
leach project - project using heap leach process
LOI - Letter of Intent
LOM - Life of Mine
L/s - 1 liter per second
m - meter
M - million
MW – megawatt (1,000,000 watts)
Mlb - million pounds
NPV (Net Present Value) - Present value of future cash flows discounted at 8%
NSR – (Net Smelter Return) - a royalty based on a percentage of metal produced based on the
metal sale proceeds less the cost of refining at an off -site refinery (Metal Price ×
Payable Metal Content) − (Treatment Charges + Refining Charges + Penalties + Trans port/
Insurance/ Marketing Costs)
NTP – Notice to Proceed
Nuton® - Rio Tinto’s proprietary Nuton technology
OEM - Original Equipment Manufacturer
oz - troy ounce (31.1 grams)
Primary or Hypogene – Refers to the original ore minerals formed during the initial geological
processes (e.g., magmatic or hydrothermal activity). Primary mineralization is typically found at
depth and is unaltered by surface weathering.
RIGI - Argentina’s Large Investment Incentive Regime
SX/EW - Solvent Extraction / Electrowinning
Secondary - Refers to ore minerals or enrichment formed after the primary (hypogene) stage,
usually by supergene processes (weathering, oxidation, and downward percolation of fluids near
the surface).
Soluble Copper (CuSOL) – the amount of copper assayed using sequential methodology that
includes acid soluble and cyanide soluble assayed components. Acid soluble copper generally
represents readily acid dissolvable oxide, carbonate and similar copper minerals. Cyanide soluble
copper generally represents secondary copper minerals that are readily leached with commercial
bioleach technology (chalcocite, digenite, covellite)
Supergene - Secondary ore minerals formed near the Earth’s surface through weathering,
oxidation, and groundwater movement. Metals are leached from upper zones and reprecipitated at
depth, often creating an enriched zone of higher-grade mineralization.
Total Copper (CuT) – the amount of copper contained in all mineral forms in the deposit by
conventional assaying methodology. Total copper includes the soluble copper component.
t - tonne (1,000 kg)
yr - year
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Technical Appendix
The information in this appendix is provided for technical readers and analysts.
1. Project Overview
Property Description
Exploration Targets
A Sustainable Approach
2. Copper Price Assumption
3. Mineral Resource & Reserve Estimates
Updated Mineral Resource Estimate
Maiden Proven and Probable Mineral Reserve Estimate
4. Metallurgy & Recovery
5. Economic Analysis
Economic Metrics
Sensitivity Analysis
6. Capital & Operating Costs
Capital Costs Estimates
YPF Funding Power Supply
Operating Costs Estimates
7. ESG & Sustainability
8. Permitting & Regulatory Status
9. Development Timeline
10. Nuton® Opportunity
11. Strategic Partnerships
12. Study Contributors and Qualified Persons
13. End Notes
1. Project Overview
Property Description
Located in Calingasta District, San Juan Province, Argentina, on the border with Chile. The Los
Azules copper project is a classic Andean- style porphyry copper deposit. The large hydrothermal
alteration system spans at least 5 kilometers (km) by 4 km, elongated along a north- northwest
major structural corridor. The Los Azules deposit area itself is approximately 4 km long by 2.2 km
wide and lies within the alteration zone.
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The limits of the Los Azules mineralization along strike to the North and at depth have not yet been
defined. Near-mine primary or hypogene copper mineralization extends to at least 1,000 m below
the surface. Near surface, leached primary sulfides (mainly pyrite and chalcopyrite) were
redeposited below the water table in a sub-horizontal zone of supergene enrichment as secondary
chalcocite and covellite. Hypogene bornite appears at deeper levels together with chalcopyrite.
Gold, silver, and molybdenum are present in small amounts, however copper is the economic driver
at Los Azules.
Exploration Targets
Porphyry exploration targets near to Los Azules include Tango, Porfido Norte, Franca, and
Mercedes. They are a priority for next season’s exploration (see Figure 1). These targets offer the
potential to enlarge the size of resources and extend the life-of-mine beyond that presented in this
study.
The Franca target, with high- grade intercepts, shows the potential to extend the Los Azules
resource to the northeast. The Mercedes target west of Los Azules has hydrothermal alteration and
similar surface geology to Los Azules and has the indication to be another hidden porphyry, like
Los Azules. Porfido Norte is a target that is located along the main Los Azules structural corridor
with indications of a suitable intrusive suite of rocks with hydrothermal alteration. Finally, the Tango
target will be mapped in detail to better understand the potential drill targets.
Figure 1: Los Azules deposit (outlined in blue), and exploration targets Mercedes, Porfido Norte,
Franca and Tango (black squares). Satellite image with Total Magnetic Intensity map.
Heap Leach SX/EW — The Preferred Path Forward
The FS is based on a heap leach process using solvent extraction- electrowinning (SX/EW) to
produce 99.99% copper cathodes (LME Grade A equivalent) for sale in Argentina or international
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markets. There are three principal reasons why the implementation strategy remains a leach
project, as in the 2023 PEA(11):
Environmental Footprint: Process water consumption is 74% lower than a milling operation (158
L/s LOM average vs. 600 L/s). Net electricity demand is 48% lowerthan a concentrator (119 MW
vs. 230 MW). GHG emissions are 72% lower than the average mining operation (1,082 vs. 3,930
kg CO 2-e/t Cu for Mine- to-Metal(12), with a roadmap to achieve further reductions through new
technologies, with the ultimate goal of reaching net -zero carbon by 2038 with some offsets. Los
Azules copper cathodes will thus be attractive to end- users seeking to measurably reduce their
upstream environmental impacts.
Reduced Permitting Risk: With the approval of our Environmental Impact Assessment on
December 3, 2024, and the approval of our application for the Large Investment Incentive Regime
(RIGI) on September 26, 2025, and the expected approval of our Water Concession permit for
operations, Los Azules is well positioned to begin construction. The project uses heap leach
technology that is well accepted in the San Juan Province today. It also eliminates tailings and
tailings dams, conserves scarce water resources, and reduces the overall complexity of the mine,
optimizing the permitting process.
Producing Cathodes: The leach process will produce LME Grade A copper cathodes, which can
be used directly in the fabrication of copper products, both within Argentina and internationally. The
production of copper cathodes eliminates reliance on third party foreign smelters for the processing
of concentrates into refined copper products. It also eliminates significant GHG emissions
associated with transportation, and pollution associated with smelting. Counterparty and pricing
risks are also reduced.
A Sustainable Approach
The FS marks another significant step toward our goal of reducing our environmental footprint.
Greater environmental and social stewardship sets our project apart from other potential mine
developments, which appropriately justifies certain economic trade- offs. Trade-offs to achieve the
environmental benefits of heap leaching are lower overall copper recovery, slightly higher unit
costs, and less immediate cashflow due to extended leach cycles. Nevertheless, the leach project
remains economically attractive. Furthermore, McEwen Copper believes that some of these
drawbacks can be mitigated by implementing developing technologies such as the
Nuton® Technology, discussed below. Additionally, trolley-assist haulage, conveyor waste haulage,
and In-Pit Crush and Convey (IPCC) will be further evaluated during the detailed engineering stage
to continue to reduce the mine’s carbon footprint. Additionally ov erall CAPEX is lower than
comparable concentrators.
The team has also worked safely with 1,848,632 man- hours worked since our last Lost Time
Incident and since January of 2022 we have worked a total of 2,367,891 man-hours to achieve this
study result.
We developed regenerative guiding principles to frame our approach to sustainable innovation and
set high-reaching goals addressing all facets of the mining and processing options considered for
Los Azules. The project development seeks to significantly reduce the environmental footprint of
mining operations and their associated GHG emissions by integrating the latest renewable and
environmentally responsible technologies and processes. The project has letters of intent (LOIs) to
obtain 100% of its energy from renewable sources (wind, hydro, and solar), primarily from YPF
Luz, using a combination of off -site and onsite installations. The project is also seeking to have
long-term net positive impacts on the greater Andean ecosystem, local flora and fauna, the lives of
miners, and citizens of nearby communities, while contributing positively to the local and national