McEwen Inc.

Los Azules, San Juan, Argentina

The Los Azules project is one of the world's largest undeveloped copper deposits and is located in the western Argentina.

Since 2021, McEwen Copper has been advancing Los Azules through significant additional drilling, numerous studies, social consultation, and permitting; it is now focused on completing a definitive feasibility study, expected to be published in Q3/25. The Los Azules drilling database now contains 685,600 feet (209,000 meters) of drilling. The Los Azules team finalized the mineral resource model supporting our feasibility study following the 2024-25 drilling campaign.

Drilling Program

The 2024-25 campaign comprised 36,000 feet (11,000 meters) of drilling, covering geotechnical, exploration, hydrological, and condemnation work. The objectives were to assess and model the site's water resources, carry out condemnation drilling to evaluate areas designated for the permanent mine infrastructure, and complete geotechnical and geophysical studies.

Los Azules Exploration

Field exploration activities at Los Azules were concluded at the beginning of May, due to the onset of the winter season in western Argentina.

During the most recent campaign, exploration efforts were focused on three key target areas:

•Mercedes – identified as having high potential for hypogene mineralization,

•Tango – with high potential for both hypogene and supergene mineralization, and

•Franca – considered to have moderate potential for hypogene and supergene mineralization.

Preliminary drilling was completed in the Mercedes and Tango zones. These programs are providing valuable geological information and are contributing to the refinement of the broader exploration model.

Following the conclusion of field operations, the team has initiated a comprehensive review and reinterpretation of drill data across the project area. The objective of this work is to enhance the geological understanding of the deposit and to support the definition of new infill and brownfield drilling targets.

In parallel, refinement of geological mapping and surface sampling across all target areas is ongoing and will continue into the next field season. This work is expected to significantly improve drill targeting accuracy.

Additionally, a deep penetration induced polarization survey and ground magnetics campaign covering all defined exploration targets is scheduled for Q4/25, further supporting target delineation efforts.

Regime of Incentive for Investments (“RIGI”)

The RIGI aims to attract both domestic and foreign investment across various sectors in Argentina, including the mining industry, by promoting resource exploration and production, job creation, and energy security. On February 11, 2025, McEwen Copper, through its wholly owned subsidiary Andes Corporación Minera S.A., submitted its application for admission to the RIGI. Following a technical and administrative review process involving five supplementary submissions, on July 11, 2025, the company submitted an optimized and unified version of its application, consolidating the exploration, construction, and operational phases of the Los Azules Project into a single proposal totaling USD 2.7 billion in investment. If approved, the project would be eligible for a series of tax and regulatory benefits, including a reduction in the corporate income tax rate from 35% to 25%, exemption from sales tax during the construction phase, elimination of export duties, and exemption from the obligation to repatriate export revenues. Additionally, the project would benefit from a 30-year fiscal stability guarantee and access to international arbitration for dispute resolution.