Pecoy Copper Corp.

Much, Brian. Thank you everyone for being here this morning. We're pretty excited to be at the Mining Forum for the first time. Pecoy is a relatively new company. It's an asset that we were able to get our hands on last year in 2025. But what's interesting here is that if there's two things you wanna maybe leave here with, it's that Pecoy, the deposit, is getting much bigger. We're being very, very aggressive in engineering at this time, and it's an asset that we believe in the current copper cycle will get developed.

So on that note, I'll start. In terms of the capital structure, we're sitting with around $32 million in the bank as we speak, 209 million shares outstanding. We are trading on the TSX Venture, and we just upgraded to the QX in the United States. We're now covered by four brokers on the research front, so pretty happy with that. We probably have a couple more before the end of the year that will likely launch on the company. And in terms of the shareholder registry, as you can see here, we couldn't be happier, but very, very strong supporter from the get-go, and we've seen some very good shareholders that were added this year as we started trading.

With regards to Pecoy, so we've got two main assets, but the main one really being the Pecoy deposit. We were able to consolidate that deposit last year. It's an asset that was advanced in the private sector for a few years, from 2009 to 2016, but unfortunately for them, there was different partners that were involved, and they weren't able to really consolidate. It's something we were able to do back in 2025, and that's what really gives us the opportunity today to advance the project aggressively. At the moment, we're looking at 35,000 meters of drilling in 2025. We're up to 18 as we speak.

But really, we're in Peru, and I think we've seen a lot of news come out of Peru recently, all very positive with the new government in place. Even this weekend, they were talking about, right now to go from exploration to production in Peru, you need around 20, 96 permits or so. Well, they're gonna be slashing 27 of those in the new legislations. They're also gonna be moving 14 permits to more of a certification type requirement. So we could see the red tape really essentially diminish here in the future, and the government really wants to push these projects forward quickly.

So Pecoy and Torume, our two main assets, are located in a world-class copper province. As you can see here, it's probably one of the best areas in the world to be developing copper assets. We're right next to Arequipa, the main city here. We've got access to ports, Matarani and Ilo, which are the two main ports in the area. Las Bambas, Constanza, all the major mines. You can see Quellaveco. Tia Maria is getting built at the moment by Southern Copper. We have a great labor pool. It's one of the best areas at the moment to be looking at developing an asset.

With regards to Pecoy and Torume, you'll see they're located basically on the same coastal batholith formation that hosts most of these big copper mines. But most importantly also for us is that we're located at a very low elevation. We're at 1,600 meters above sea level, and located around 80 kilometers from the coast.

With regards to our specific project, so Pecoy, Torume. Pecoy is the more mature asset which we're advancing at the moment. That's the one we're drilling at the moment with four rigs. 35,000 meters, 18,000 meters of those have been completed so far this year. Torume for us, located 8 kilometers away as the crow flies from Pecoy, is the blue sky asset. It's a very large target. It's only been worked on a couple of years. They've drilled nine holes historically on the asset, but we see a tremendous amount of potential here.

So going back to Pecoy specifically, as you can see, it's a big porphyry ore body. You've got some hydrothermal breccias cross-cutting the ore body. And the reason why we show this slide here is you can see the old claim boundary, and that's why this project was pretty much stalled for ten years, is you had one group to the north and one group to the south that didn't see eye to eye. And fortunately for us, we were able to consolidate everything. But most importantly also is that the South Breccia, which is this area here that the claim cross-cut, is the highest, richest area of the deposit. So that's obviously an area that we're gonna be looking at proving more and upgrading as we work here.

But looking at the historical drilling that was done by the two previous operators, you can see that there was just under 50,000 meters of drilling done historically here, and on two different visions. To the north, you had more of a porphyry vision. To the south, you had shallow holes looking more for the oxide type material. So we're now able to work on both sides. At the moment, we're drilling to the north, where we have the current permit. We've applied for an FTA on the southern area. We expect to get that permit within the next few weeks, so we'll be putting the fifth rig on that area as soon as we get that permit.

So looking at the historical drill holes, what we have today is what we see as a starter position in terms of the current resource. It's an 865 million ton resource at 0.34 or 0.43 copper equivalent. But again, we see this deposit grow substantially. This resource was done back in 2016 with much lower copper prices, gold prices. Obviously it was constrained because of the previous operators not seeing eye to eye. But from a stripping ratio, we also see this being a very low strip. It's a hill that really sticks out of the ground. So from that point of view, it will be a pretty attractive project to advance from an operator point of view.

As I mentioned, at the moment, we're drilling the northern part of the operation, so everything north of that border. We've completed 18,000 meters as of today. You can see all the colored dots are pretty much the ones that we've either drilled or in progress at the moment. The white ones are the ones that we've planned for the next few weeks. So as I mentioned, this was the historical resource with the historic pit, with the historical holes. You now see the ones that we've drilled this year. So we've been testing at depth. We've been testing to the east, to the west, and to the north. And every single hole has gone through the historical pit shell. So we see Pekoa growing substantially here as we advance the project and as we get to our new resource, which we're planning for the first quarter of 2026.

Some of the broad intervals we've already released. The first three in the South Breccia, as I mentioned, that's gonna be the richest portion of our deposit. Basically, kilometer plus intervals. The entire thing is mineralized from 0.37, 0.43 copper, with good gold kickers. But interesting also, as you'll see on the following slides, is we've been finding some new moly zones below the historical zones that we knew about.

Also, another big focus of ours, as we're now growing up to four rigs, we're gonna keep two rigs really testing the extensions, but two other rigs are gonna be testing the first 200, 300 meters of the entire deposit. We wanna be building those near surface tons to really enhance the economics as we move towards the PEA on the project. And there's nice enriched and supergene zones that we're able to target to really prove out probably 150 to 200 million tons of near surface material that we'll be able to access in the early years of the project.

So the first hole that we're highlighting here, 65, that was the first hole drilled by Pekoa. As I mentioned, we crossed the historical pit shell and we knew we had a good copper gold zone at the top, but what we didn't know is we had a very good moly zone below, at 0.027. So higher grade than the inferred resource grade at the moment, which is 0.34, but we hit another 400 meters of 0.44 and 0.027 moly below the pit. The second hole we hit a very good near surface interval with 50 meters at almost 1% copper and 0.2 gold. But we also finished in 20 meters of 0.5. And within that, you have a very, very broad interval of 450 meters of 0.6 plus type material. So again, that South Breccia will be the richest portion of the deposit. But as you'll see, we're also testing the northern end of the deposit. But just with those first two, three holes within the South Breccia, we see some tremendous growth below the existing pit here as we keep testing the South Breccia.

So as I mentioned, those were the first two holes. We've now released also 72 within the South Breccia. We have 78 and 82, which are also gonna be testing the South Breccia. What we found as we were logging the first two holes, 65 and 66, is there's a different structure between the gold mineralization and the copper mineralization. So that's why we're gonna be cross-cutting that South Breccia with a few more holes to really understand how that gold mineralization works, and then we'll go and vectorize into these higher grade areas.

So that was the South Breccia. Now we're moving totally to the north, about a kilometer and a half from those other holes, with 67. That entire hole's over 0.2 copper, but also has a very, very good high grade component. And the reason why we've been highlighting those big broad intervals that are over 0.2 within our latest releases is that as we upgrade our new resource, we'll likely drop the cutoff around 0.2. And so this entire hole, which cross-cut the historical pit shell by 600 meters, we're in 0.2 material or more. So this entire hole's fully economic at current prices. And importantly, it also holds a very nice 200 meters of 0.4 type material on surface.

And again, as I mentioned before, we're gonna be using two drills that are gonna be fan drilling the top portion of the deposit. Because when we look at the historical data, what we're seeing here, that's the sheet of mineralization that's above 0.4, just on the copper end of things, and within the first 200 meters of the deposit. So we wanna build out that tonnage, 150 to 200 million ton near surface tonnage, to really, again, enhance those economics on a future PEA.

So as I mentioned, the South Breccia, the best portion of the deposit. So as a team, we said, “Okay, where could...” What we wanted to answer for Pekoa this year was how big is Pekoa and where could we find other type of mineralization? So we did an MT survey earlier this year, and then we layered in the mag and the IP, the geochem, and the historical drilling. And what we found is MTP 03 lines up directly with our current South Breccia. And what's even more interesting now is that 01 and 03 are identical type anomalies. But the only difference with 01, which is directly to the northwest, that one's never been drilled. So as we speak here, we have a drill that's testing this anomaly. It's a pretty exciting time 'cause if this hits, it definitely changes the nature and the concept of Pekoa and what is Pekoa at the moment.

Importantly also is when you look at it from a stripping ratio point of view, that 03 anomaly has nothing on top of it. So from a stripping ratio, it'd be a very, very big positive. And when you look at some of the historical holes that were close, you have 63, which was prior to Pekoa Copper, that stopped just on the edge of that. And Pekoa's PEX 63 was basically 300 meters of 0.4 type material, stopped just on the edge of that. So it'll be very interesting to see what happens with 01, and that could materially change the shape and what is Pekoa.

So this is what we've currently drilled with the historical drilling. That's within this area here of Pecoy. There's other targets that we'll be looking at in 2027 with regards to the Rho target, the East target, the Waka Waka targets. Those are all things that we'll be looking at working next year as we advance the drilling program.

However, the main regional target that excites us the most is Torurumi. Torurumi is 8 kilometers to the north from Pecoy. It's a very, very large package, but it's been severely underworked. So we're going back in there. We have a DIA on the main zone, so we'll be going in there and drilling that project very shortly. But from a potassium thorium ratio, from a geophysics point of view, a geochem point of view, you can see it really lights up as being a very, very good target. There's only been nine holes that were drilled historically on the project. And when those nine holes were re-logged last December, our porphyry specialist, their thesis was that these holes were likely drilled on the side of a porphyry center. So they're mostly copper and molybdenum-type mineralization, even though there's a lot of gold system around the area.

From a geochem point of view, there's a lot of copper, gold that are around these holes. But interestingly, there's about six or seven breccias that were mapped on surface. They were never tested by these holes. So we're gonna be coming in and testing between the two fences. The first fence was done in 2019. The third one was done in 2023. So we're gonna be coming in and testing between the fences to the south and to the west.

So one of the good things is, last year we had just created Pecoy. We had no drills. We had one geologist. Now we've got 70 people on site at the moment. We keep on working with the local communities, and they're seeing the direct benefit of our work here. We're in a great place in Peru in the sense that it's also a mining area. The mining culture around us is very strong. Most of the activity around Pecoy is either related to formal or informal mining. So for us, a big plus, and that allowed us to go from zero drills to four drills today. And in 12 months from now, our plan is to have a new resource, a PEA, and advance the permitting very, very quickly.

So on that engineering front, obviously you've heard me talk about drilling. We're looking at 35,000 meters of drilling at Pecoy this year. Hopefully, we start Torurumi shortly here. So that'll be a 5,000-meter program. And then next year we'll look at a very similar type size program in terms of the drilling at Pecoy, so around 40,000 meters or so. With regards to engineering, that's where we've now put our foot on the pedal. We've hired a lot in Peru, but the plan is to move this thing very, very quickly to the PEA level. The only restriction that we'll have to bring this to the PFS will be how fast can we drill this resource.

So right now we're doing phase two metallurgy on the deposit. We started the hydrology, the geotech, the power studies. So everything's moving very, very quickly. We're also moving on the infrastructure side of things. So again, by end of summer next year, we're hoping to release the first PEA on the project. Why we're doing that is, as I said in the intro, we think Pecoy will become a project that is able to get developed in this current copper environment and this copper cycle. So we think we have a tremendous amount of growth on the resource front, but also from an engineering point of view. As I mentioned, we're located very, very close to coast at 85 kilometers or so. Very low elevation at 1,600 meters above sea level. So from an operator point of view, there's not a lot of these assets out there that offer what Pecoy offers.

And from where we are currently at from a valuation point of view, we think by the time we release that PEA and that new resource, we should start creeping more to the right side of this slide. And one of the things that we don't have yet on the registry is a strategic investor or someone that could help us finance this for the future. That's something that we're actively working on to really show that we have the support to bring this to the finish line.

As I mentioned earlier on, Pecoy is really shaping up as probably being one of the top places to build new copper mines. And with the current government that just came in, they're being very, very aggressive on removing a lot of the red tape that was kind of stalling some of the development on some of these assets. So we'll be looking to move this and take advantage of the current situation and of the current, I would say, political environment. So again, we're gonna be very aggressive on advancing this.

So just to conclude, as I said, why Pecoy? Very, very big, large copper project with some good gold, silver, and moly credits, but located in a great environment, great labor force. And we strongly believe that we'll be able to push this project forward very quickly, and this will become one of the go-tos as we move forward.

And that does leave us with about two minutes for questions. If anybody has a question, please raise their hand so a microphone can be brought forward.

Vincent, thank you. Can you talk about power and logistics for Pecoy?

Yes. So that's the good thing about being close to the coast. In terms of power, right now the grid is around 85 kilometers away. If you look at the main grid, it's the Pan-American Highway, which is on the coast, that's around 85 kilometers away. There's actually a few new projects closer to Pecoy Copper that are getting built that were just permitted a few months ago with regards to wind farms. Not wind farms, sorry, solar farms. And there's new substations that are coming with that. So there's a new substation that will likely get built around 55 kilometers away from us. And the first phase is for 240 and another 240 as phase two. That's one of the studies that we've started a few months ago, is to basically prove the point of connection to that new substation. So that's something that will be coming out in the first quarter next year.

And maybe just a quick one from me. One of the things that you mentioned was the optionality that you have around moly and the fact that you have phase two metallurgical testing.

Correct.

What would your anticipated moly recoveries be?

So right now, when you look at what was done historically by some of the groups, they did nine different tests on... And they didn't look at moly specifically. Right now we're using around 60%, 65% or so.

Where we think there’s a tremendous amount of upside is on the precious metals, because back in the day, they were really focused on just showing a very high grade copper concentrate. So they really focused on optimizing copper recovery. They didn’t focus on optimizing for precious metals. So that’s what we’re doing right now for metallurgy, is really optimizing the gold recovery and the silver recoveries. Because the historical ones were around 45%. We think we could move those precious metal recoveries around 70%. So on the moly front, we’ll likely be around 65, 70%, but we’ll know by the end of the year.

And that does take us completely to the end of time. Please join me in thanking Vince. [audience applauding]