First Quantum and Tertiary’s Subsidiary Ink Copper Exploration Agreement in Zambia

Tertiary Mineral’s newly incorporated Zambian subsidiary, Copernicus Minerals Limited (“Copernicus”), has finalized a binding letter of agreement (“BLA”) with First Quantum Minerals Limited (“First Quantum”) regarding the Mukai Copper Project in Zambia. This agreement marks a significant milestone for Copernicus, which is 90% owned by Tertiary Minerals (Zambia) Limited, a subsidiary that is itself 96% owned by Tertiary Minerals plc.

The binding letter of agreement (BLA) provides First Quantum with an initial 24-month exploration due diligence period, during which they are committed to investing a minimum of US$1.5 million in exploration, including US$0.5 million in the first year (Phase 1). Following this, First Quantum can enter into earn-in and joint venture agreements to acquire: an initial 51% interest in the Mukai Exploration Licence by proving a Mineral Resource of at least 80,000 tonnes of contained copper metal within an additional 24 months (Phase 2); and an additional 29% interest (totaling 80%) by completing a Mining Study and submitting a Notice of Intent to Mine within a third 24-month period (Phase 3).

First Quantum is required to continue funding the Mukai Copper Project solely until regulatory and governmental permits are obtained for the construction of a mining project. At that stage, Copernicus has the option to either participate with a 20% equity contribution or dilute its interest to a minimum of 10%, at which point the equity stake automatically converts to a 1.5% Net Smelter Return Royalty (NSR). Additionally, if First Quantum progresses through all phases of the project, they will make progressive payments to Copernicus totaling up to US$2 million over the three 24-month phases outlined in the BLA and subsequent agreements.

The Licence is situated adjacent to First Quantum’s Trident Project, which includes several mining licences covering the operational Sentinel Copper Mine and the newly developed Enterprise Nickel Mine. The Sentinel processing plant boasts a significant processing capacity of 55 million tonnes of copper ore annually. The joint venture's primary goal is to discover copper and/or nickel deposits that can be quickly developed to serve as additional feed for the Trident plants, thereby enhancing the efficiency and output of First Quantum’s existing mining operations.

Patrick Cheetham, Executive Chairman of Tertiary Minerals plc, emphasized that First Quantum's strong drive to secure additional ore feed for its Sentinel project is a significant opportunity. At Mukai, a key soil anomaly has been identified near existing copper mineralization from First Quantum's Tirosa Prospect. Successful exploration at Mukai could leverage First Quantum's substantial $2.1 billion investment in the Trident operations. The joint venture's earn-in terms are based on achieving specific mineral resource and mining decision milestones rather than mere exploration costs. To earn interest in the project, First Quantum must delineate a copper resource valued over $700 million, reflecting the high expectations set by the size of the Sentinel mining operation and agreed-upon terms.