Atico Mining Corporation (TSX-V: ATY) (OTC: ATCMF) announced its financial results for the year ended December 31, 2024, posting income from mining operations of $14 million and a net loss of $18.7 million. Production for the year at Atico’s El Roble mine totaled 13.7 million pounds of copper and 9,106 ounces of gold in concentrate at a cash cost⁽¹⁾ of $2.07 per payable pound of copper⁽²⁾.

Fernando E. Ganoza, CEO and Director, commented, “the El Roble mine performed as expected in 2024 with significant improvement over the previous year. We achieved higher margins and sales, leading to a substantial increase in operating income over 2023. However, accounting for the arbitration ruling in Colombia, significantly impacted our bottom line.” Mr. Ganoza continued, “For the rest of the year, we will prioritize achieving production goals and improving cost efficiencies at El Roble. Looking to take advantage of the favorable metal price environment.”

2024 Financial Highlights

• Net loss for the year amounted to $18.7 million, compared to $5.8 million net loss for 2023. Net loss for 2024 was mainly attributed to a $24.5 million pre-tax loss recognized in the year due to the outcome of the arbitration concerning the El Roble’s royalty dispute with the National Mining Agency in Colombia.
• Sales for the year increased 19% to $68.5 million when compared with $57.5 million in 2023. Copper and gold accounted for 83% and 17% of the 35,774 (2023 – 31,763) dry metric tonnes sold during 2024.
• The average realized price per metal was $4.19 (2023 – $3.94) per pound of copper and $2,452 (2023 – $2,009) per ounce of gold.
• Ending working capital deficit (current liabilities – current assets) was $11.3 million (December 31, 2023 – $2.1 million deficit). At December 31, 2024, the Company had $7.0 million (December 31, 2023 – $6.0 million) in long-term loans payable and an $8.5 million non-current portion of the arbitration award payable (December 31, 2023 – $Nil).
• Cash costs⁽¹⁾ were $142.68 per tonne of processed ore and $2.07 per pound of payable copper produced, which were increases of 10% and 1% over 2023, respectively.   The increase in cash costs per tonne was primarily driven by inflationary pressures on operating costs in 2024, as well as higher expenses related to tailings’ handling and disposal, and to higher infill drilling, stope preparation and backfilling activities at the mine. While cash costs per pound of payable copper increased only marginally, due to an offset by higher copper head grades.
• Cash margin was $2.12 per pound of payable copper produced⁽¹⁾, which was a increase of 12% over 2023, due to the increase in realized copper price as well as increased copper head grades for the year.
• All-in sustaining cash cost per payable pound of copper produced⁽¹⁾ was $3.00 (2023 – $2.87) impacted by an increase in sustaining capital expenditures, compared to the prior year, mainly related to mine development costs at El Roble.

Subsequent Events to the Reporting Date:

• On March 7, 2025, the arbitration tribunal at the Center for Arbitration and Conciliation of the Bogota Chamber of Commerce ruled in favor of the National Mining Agency, requiring the Company’s Colombian subsidiary, Minera El Roble, to back pay copper royalties since 1994.
• On April 8, 2025, the Company entered into an agreement with its lender Trafigura PTE. LTD. to amend the $10,000,000 credit agreement originally executed in February 2022 and previously amended in August 2024. Pursuant to the terms of this agreement, the principal repayment schedule has been revised as follows:

1. $650,000 due on January 31, 2025 (PAID);
   2. $650,000 due on April 30, 2025; and
   3. $8,700,000 due on June 30, 2025

2024 Summary of Consolidated Financial Results

2024 Consolidated Operational Details

In 2024, the Company produced 13.7 million lbs of copper, 9,106 oz of gold, and 35,451 oz of silver. When compared to 2023, production increased by 4% for copper and decreased by 10% for gold, which was due to average copper head-grades increasing by 5% and average gold head-grades decreasing by 15%, and tonnes of processed ore also decreasing by 2% compared to 2023.

The financial statements and MD&A are available on SEDAR+ and have also been posted on the company’s website at http://www.aticomining.com/s/FinancialStatements.asp

El Roble Fourth Quarter Updates

The Company continues to work towards obtaining a new contract to renew title on its claims hosting the El Roble property, as its 30-year contract expired on January 23, 2022. The Company has been operating the El Roble mine while the process for the contract and title renewal continues.

On March 7, 2025, the arbitration tribunal at the Center for Arbitration and Conciliation of the Bogota Chamber of Commerce ruled in favor of the National Mining Agency in Colombia, requiring the Company’s subsidiary Minera El Roble to back pay copper royalties since 1994.

On April 9, 2025, the arbitration tribunal ordered that the payment of the Award be made within the timeframe outlined in the Payment Plan, and that both Minera El Roble and the National Mining Agency are responsible for adjusting the Payment Plan to account for the Award and for previous payments made by Minera El Roble under the Payment Plan.

The Award resulted in a total pre-tax loss of $24.5 million, recognized in the Company’s consolidated statement of income (loss) for 2024. The Company has been making payments since 2021 under a Payment Plan with the National Mining Agency. As a result, the outstanding amount of the Award due to the National Mining Agency is $13.2 million (COP$58 billion). Of this amount, $4.7 million was classified as a current liability and $8.5 million as a non-current liability as of December 31, 2024. The liability amount may be subject to change pending the revisions to the Payment Plan by the National Mining Agency and Minera El Roble as required by the arbitration tribunal. As payments are made under the Payment Plan, the Company intends to use the proceeds from the sale of the pledged concentrate to substantially reduce its liabilities.

La Plata Fourth Quarter Updates

The Company continues to work on obtaining the necessary permits and the environmental license to begin construction of the La Plata project.

Qualified Person

Mr. Thomas Kelly (SME Registered Member 1696580), advisor to the Company and a qualified person under National Instrument 43-101 standards, is responsible for ensuring that the technical information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico.

About Atico Mining Corporation

Atico is a growth-oriented Company, focused on exploring, developing and mining copper and gold projects in Latin America. The Company generates significant cash flow through the operation of the El Roble mine and is developing it’s high-grade La Plata VMS project in Ecuador. The Company is also pursuing additional acquisition of advanced stage opportunities.