At a Glance: 4 rigs currently drilling | +18,000m of 35,000m 2026 drill program complete | MTP-01 target now being tested

MESSAGE FROM THE CEO:

Vincent Metcalfe

The third quarter of 2026 has been one of the most active and consequential periods in Pecoy Copper's history.

For the first time, four drill rigs are operating at the Pecoy Project. The ongoing drill program is generating results across several target areas and, importantly, continues to support our view that Pecoy hosts a large, expanding copper-gold system with multiple opportunities for discovery and resource growth.

September’s drilling results delivered two particularly important developments.

At the South Breccia, hole PEC26-072 returned another broad copper-gold intercept: 804.0 metres grading 0.34% Cu and 0.08 g/t Au from 24.0 metres depth, including 485.2 metres at 0.40% Cu and 0.09 g/t Au, and a higher-grade core of 100.8 metres at 0.56% Cu and 0.13 g/t Au. Together with PEC25-065 and PEC25-066, this result strengthens our interpretation that broad mineralization extends across the South Breccia that warrants further drilling to the west.

To the Northwest, PEC26-067 demonstrated a compelling combination of near-surface copper mineralization, including higher-grade internal intervals, and a separate, deeper interval below the historical pit shell. This result has elevated Northwest into a priority area alongside the South Breccia, with follow-up drilling now under way.

Our technical team has also integrated recent drilling with the recently completed Spartan magnetotelluric survey, induced polarization, magnetics and geological information to define four multi-parameter target areas. The most compelling new target, MTP-01, lies beyond the expanded Northwest mineralization and remains largely untested. We have allocated a dedicated drill rig to systematically evaluate this opportunity.

One year since Pecoy Copper began trading on the TSX Venture Exchange, the contrast is significant: we had no active drilling at the Project at listing, today, four rigs are turning within our fully funded 2026 exploration program. More than 20,000 metres have now been drilled, with a meaningful pipeline of completed and in-progress holes still to be assayed and reported.

Our focus remains straightforward: execute disciplined exploration, convert geological potential into a better-defined project, and advance Pecoy in a manner that maximizes the upside of this large copper-gold system for shareholders.

On behalf of the Board and management team, thank you for your continued support. We look forward to updating shareholders as drilling advances through the balance of 2026.

Exploration Update

Exploration activity accelerated during the third quarter, with four drill rigs operating concurrently across the Pecoy property for the first time, compared with no active drilling at the time of the Company's September 2025 TSX Venture Exchange listing. The program continues to ramp up within the Company's fully funded, approximately 35,000-metre 2026 drill program.

Based on the Company's latest drill tracker, more than 20,000 metres have been drilled since the campaign began, with 16 holes completed and 4 additional holes in progress. Six holes, PEC26-067 through PEC26-072, totalling 5,678.3 metres, were reported in September and tested the South Breccia, Northwest, Centre-of-Pit and North-Central target areas.

South Breccia: third broad intercept supporting additional drilling to the west. PEC26-072 intersected 804.0 metres at 0.34% Cu and 0.08 g/t Au from 24.0 metres, including 485.2 metres at 0.40% Cu and 0.09 g/t Au and a higher-grade interval of 100.8 metres at 0.56% Cu and 0.13 g/t Au. Logging recorded extensive alteration, veining, sulphide mineralization and multiple phases of brecciation, consistent with a large hydrothermal system. Together with PEC25-065 and PEC25-066, three widely spaced holes have returned broad copper-gold intervals across South Breccia, supporting further westward expansion as a priority. Additional drilling and 3D modelling are required to determine continuity and true thickness between the holes.

Northwest: near-surface grade and mineralization at depth. PEC26-067 returned 209.0 metres at 0.40% Cu from 15.0 metres, including 137.0 metres at 0.50% Cu, 42.3 metres at 1.01% Cu and 11.1 metres at 1.90% Cu. A separate, deeper interval below the historical pit shell returned 296.0 metres at 0.24% Cu and 0.009% Mo from 744.0 metres to the 1,040.0-metre end of hole. Together, the shallow and deep intervals expand the known mineralized footprint at Northwest and support systematic follow-up drilling toward MTP-01.

North-Central and Centre-of-Pit: PEC26-070 returned 345.0 metres at 0.25% Cu from 424.0 metres, confirming a broad mineralized interval at depth in the less-explored North-Central area. PEC26-069 and PEC26-071 added further near-surface copper intervals within Centre-of-Pit, while PEC26-068 returned 170.1 metres at 0.25% Cu and encountered hydrothermal brecciation near the bottom of the hole. These results provide important additional pierce points for the Company's evolving three-dimensional geological model.

Geophysics and target generation: MTP-01. The Company completed a Deep Spartan magnetotelluric (MT) survey with Quantec Geoscience Perú S.A.C., covering 85 stations across approximately 3.2 km by 3.4 km. Integrating the resulting 3D resistivity model with drilling, geology, induced polarization and magnetics data, the technical team defined four principal multi-parameter targets: MTP-01 through MTP-04. MTP-02 and MTP-03 are calibration domains associated with the known EDM and South Breccia mineralized systems, respectively. MTP-01, however, is a large, low-resistivity target beyond the expanded Northwest mineralization — approximately 1.2 km wide and 1.0 km in vertical extent — that remains largely untested. Historical holes PEC-063 and the recently reported PEC26-067 provide a mineralized vector toward MTP-01, though neither tested its interpreted core. The Company's fourth drill rig has been allocated specifically to the Northwest/MTP-01 program, with drilling continuing northward and additional pads being prepared for systematic testing of the target across multiple sections and elevations.

Alongside drilling and geophysics, the technical team continued detailed geotechnical logging, relogging of historical drillholes in the south of the property, and preparation for the Phase 2 metallurgical program, while permitting and community engagement activities continued to advance in support of future drill-pad additions and exploration authorization extensions.

Field Activity Photos

South Breccia Long-Section — Drill holes PEC25-065, PEC25-066 and PEC26-072 and interpreted alteration and mineralization domains.	Northwest Cross-Section — Drill hole PEC26-067 (1,040 m total depth); mineralization remains open at depth.	Drilling Operations — Two of the Company's four active drill rigs operating at Pecoy.
New Drill Pad — Northwest Area — Established to support systematic testing toward MTP-01.	3D MT Resistivity Model — Section view of MTP-01 through MTP-04 relative to the South Breccia body and known EDM mineralized intervals; MTP-01 remains largely untested.

Milestones This Quarter

• Four rigs now turning at Pecoy — one year after the Company's September 8, 2025 TSX Venture Exchange listing, when no active drilling was underway at the project.
• Third broad South Breccia intercept confirmed via PEC26-072.
• Northwest established as a second priority target, with PEC26-067 combining strong near-surface grade with a separate deep mineralized interval.
• MTP-01 defined as a large, largely untested multi-parameter geophysical target beyond Northwest, now the focus of the Company's fourth drill rig.
• Surpassed 20,000 metres drilled in the current campaign, with 16 holes completed and 4 in progress, toward the Company's approximately 35,000-metre 2026 program.
• Completed upgrade to OTCQX Best Market

Investor Engagement

Conferences

• CIBC September Developer Call Series – September 9, 2026, Virtual
• Mining Forum Americas 2026 – September 27-30, 2026, Colorado Springs, Colorado
• RBC: 2026 Sparks Flying: Copper Developers Summit – October 14, 2026, Toronto, Ontario
• 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

Drilling Down: Recent Presentations

Pecoy Copper Expands South Breccia and Targets Major Resource Growth
September 14, 2026

Watch

What Are We Learning at Pecoy? Exploration, Geophysics & Development
September 10, 2026

Watch

OTCQB Virtual Investor Conference
August 5th and 6th, 2026

Watch

Looking ahead

Key priorities for the coming quarter include:

• Continuing to run four (and adding a fifth) drill rigs across priority target areas, with a growing share of metres directed at systematic testing of MTP-01.
• Advancing lateral expansion drilling at South Breccia to the west.
• Following up Northwest mineralization and integrating results toward defining the geometry of MTP-01.
• Integrating Centre-of-Pit and North-Central results into the Company's three-dimensional geological model.
• Progressing environmental permitting and community consultation activities in support of continued exploration.
• Reporting further assay results as they are received — with approximately 80% of the planned 2026 drill program's results still ahead.

We look forward to updating shareholders as exploration activities continue throughout the balance of 2026.

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.