MESSAGE FROM THE CEO:
Vincent Metcalfe
The first half of 2026 has been transformative for Pecoy Copper as we continue to demonstrate the scale, continuity, and growth potential of the Pecoy Project.
To date in 2026, our exploration team advanced drilling across several target areas while also delivering some of the strongest drill results in the project's history. Two consecutive drill holes completed in the South Breccia Zone returned kilometre-scale mineralized intervals, extending mineralization well below the limits of the current resource model and reinforcing our belief that Pecoy represents a significantly larger copper-gold system than currently defined.
Hole PEC-25-065 intersected 1,013.75 metres grading 0.37% copper and 0.13 g/t gold, extending mineralization approximately 407 metres below the current resource pit shell, including 297 m at 0.52% Cu, 0.07 g/t Au, 1.94 g/t Ag, 0.033% Mo. This was followed by hole PEC-25-066, which returned 1,020.50 metres grading 0.43% copper and 0.09 g/t gold, extending mineralization approximately 306 metres below the pit shell, including 167.85 m at 0.33% Cu, 0.06 g/t Au, 1.05 g/t Ag, 0.006% Mo, and ending in mineralization. Together, these results demonstrate strong lateral and vertical continuity within the South Breccia system.
Beyond exploration success, we completed an independent metallurgical review that identified opportunities to materially improve gold recovery while maintaining a marketable copper concentrate. These findings suggest potential future value enhancement opportunities for the project.
We also strengthened our Board of Directors through the appointment of Javier del Rio, a highly experienced mining executive with extensive operational and project development experience throughout the Americas.
With a fully funded exploration program, growing technical dataset, and multiple catalysts ahead, we believe Pecoy is well-positioned to continue creating value for shareholders.
Copper remains a critical metal for electrification, energy infrastructure, and industrial development worldwide. While commodity markets continue to experience short-term volatility, we remain focused on executing our exploration strategy and building long-term shareholder value through disciplined technical work and responsible project advancement.
On behalf of the Board and management team, thank you for your continued support.
Exploration Update
Exploration activities remained active throughout the start of 2026 with drilling focused on testing multiple target areas across the Pecoy property.
As of June 28th, the current campaign had surpassed 10,846 metres of drilling. Holes completed during the period targeted the Center of the Pit area, Central Breccia, EDM Vein Zone, West Pampa and Northwest Target Area (see January 22, news release for additional information). Additional holes remain in progress and are designed to further refine the geological model and evaluate the continuity of mineralized systems at depth.
As noted above, holes PEC-25-065 and PEC-25-066 delivered two consecutive kilometre-scale mineralized intervals in the South Breccia Zone, extending mineralization well below the current pit-constrained resource model. These results reinforce the continuity and depth potential of the system and provide important support for ongoing geological modeling, resource expansion targeting, and future drill planning.
The technical team continued to utilize oriented drill core, LOGRx structural measurements and Imdex drilling tools, to enhance our geological interpretation and improve drill targeting. Thousands of structural measurements were collected and incorporated into the evolving geological model, helping define key structural trends and alteration corridors throughout the project area.
Additionally, Pecoy also completed a Deep SPARTAN Magnetotelluric (MT) survey. The survey consisted of 85 stations covering approximately 650 hectares and was designed to identify deep resistivity features that may be associated with mineralized systems extending well below current drilling depths. Our team is currently defining geophysical signatures of the Pecoy mineral system through integration with lithology, alteration and resources models, incorporating mapping and core logging datasets.
The geological team is continuing with detailed geotechnical logging in key areas and preparing for the Phase 2 metallurgical program. They are also currently relogging historical drillholes in the south of the property for a fully integrated geological interpretation of the project and to define new targets.
In addition to exploration activities, permitting and community engagement programs advanced during the quarter. Public participation workshops were organized in local communities to support proposed permit amendments, future drill pad additions, and extensions of existing exploration authorizations.
Field Activity Photos
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| Drilling Operations – Center of the Pit Deep drilling continued through the quarter utilizing multiple drill rigs to test priority porphyry targets. |
South Breccia Program New drill platforms were established to evaluate extensions of the South Breccia system and improve geological understanding of the area. |
Deep MT Geophysical Survey Quantec completed a large-scale magnetotelluric survey designed to image potential mineralized bodies at depths exceeding 2,000 metres. |
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| Core Logging and Structural Analysis Geologists collected thousands of structural measurements from drill core using advanced downhole technologies to refine targeting models. |
2026 Conferences
Attended
- BMO Capital Markets Global Metals, Mining & Critical Minerals Conference - February 23 to 26, Hollywood, Florida
- Prospectors & Developers Association of Canada (PDAC) - February 27 to March 4, Toronto, Ontario
- Scotiabank hosts the Brazil - Canada Mining Day - April 11, Sao Paulo, Brazil
- CESCO and CRU World Copper Conference - April 13 to 17, Santiago, Chile
- Canaccord Annual Global Metals & Mining Conference - May 19 to 21, Henderson Nevada
- Raymond James Copper Conference – June 10, Toronto, Ontario
Upcoming
- RBC: 2026 Sparks Flying: Copper Developers Summit – October 14
- LME Week – October 19-21
- Swiss Mining Institute – November 18-19, Zurich
- Scotiabank Mining Conference – December 1-2, Toronto, Ontario
- Swiss Mining Institute – March 18-19, Zurich
Media and Marketing
Resource Talks: Can a 6+ Billion-Pound Copper Resource Really Get Any Bigger?
January 29, 2026
Resource Talks: Can 40,000m of Drilling Turn a Big Copper Deposit Into a Mine?
April 18, 2026
Mining Stocks Daily: Pecoy Copper Builds Scale in Peru with 6 Billion Pounds and Aggressive Drill Program
April 28, 2026
KE Report: Pecoy Copper – A New Copper District in Southern Peru
May 6, 2026
Bloor Street Capital: Virtual Copper Conference replay
June 6, 2026
Looking ahead
Key priorities for the coming quarter include:
- Continuing the current drill campaign across priority target areas.
- Completing and interpreting the Deep SPARTAN MT geophysical survey.
- Advancing geological modeling through integration of drilling, structural, and geophysical datasets.
- Progressing environmental and permitting initiatives to support future exploration phases.
- Continuing stakeholder engagement and community consultation activities.
- We look forward to updating shareholders as exploration activities continue throughout 2026.
Qualified Persons and Technical NotesThe scientific and technical information in this newsletter has been reviewed and approved by Vincent Cardin-Tremblay, P.Geo., current Chief Geological Officer of Pecoy Copper, a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)
An NI 43-101 technical report in respect of the Pecoy Project with an effective date of April 30, 2025 and dated July 23, 2025 was prepared by Mining Plus and is available on SEDAR+ under the Company’s profile. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Forward-Looking Information
Neither the 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 newsletter. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Cautionary Note Regarding Forward-Looking Information
This newsletter contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this newsletter only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this newsletter includes, but is not limited to, statements relating to ongoing work, and the Company’s future exploration plans at Pecoy. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Pecoy Copper to control or predict, that may cause Pecoy Copper's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the risk factors set out under the heading "Risk Factors" in the Company's listing application available for review on the Company's profile at www.sedarplus.ca. Such forward-looking information represents management's best judgment based on information currently available. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.