Nevada Copper Provides Update on Operations and Financing

YERINGTON, Nev., Aug. 05, 2022 (GLOBE NEWSWIRE) — Nevada Copper (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) provides an update on its operations and financing initiatives and activities at its Pumpkin Hollow copper mine (the “Underground Mine”) located in Yerington, Nevada.

Operational Restart Planning

During the month of July, management advanced its underground mine restart plans, which focus on accelerating major capital items, followed by the development of a large stope ore inventory prior to the restart of the factory and the completion of the production ramp-up. The development of restart plans has enabled the Company to advance financing discussions with its key stakeholders. Commencement of restart activities is conditional on the Company obtaining long-term financing, as indicated below.

The Company continues to work with its creditors and suppliers to defer payments and maintain operations in a temporary state of suspension, with only limited operational activities being undertaken to protect the Company’s assets, to minimize cash consumption until at the close of a restart funding plan.

Restart funding

The Company is engaged in active and ongoing discussions with its key financial partners regarding substantial funding for the restart and ramp-up of the underground mine (as an alternative to the smaller financial package referred to in the Company’s report). July 4, 2022 press release which is no longer continued in this form).

The Company has spent the full amount of the previously disclosed US$20 million promissory note from Pala Investments Limited (“Pala”), the Company’s major shareholder. Pala has indicated that it is ready to provide additional funding of up to US$20 million through new promissory notes (of which US$4 million has already been advanced) while the company continues discussions with its partners. financial. The Company will continue to require bridge financing until restart financing is secured and completed. As previously disclosed, pending completion of a financing package, the Company has failed to make payments due to certain creditors and vendors and is in default of its obligations under certain financing agreements and other contractual arrangements. .

There can be no assurance that the Company will obtain additional bridge financing or that longer term restart financing will be agreed to or completed on terms satisfactory to the Company and on a timely basis, or at all. In the absence of arrangements or alternative financing arrangements, the Company will not be able to continue its operations in the normal course of business and may have to bring an action for protection against its creditors. The Company’s creditors may also seek to initiate enforcement actions, including the enforcement of their security interest in the Company’s assets.

About Nevada Copper

Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has significant reserves and resources including copper, gold and silver. Its two fully licensed projects include the high-grade underground mine and processing facility, which are now in production, and a full-scale open-pit project, which is progressing towards feasibility status.

Randy Buffington
President and CEO

For more information, please visit the company’s website at www.nevadacopper.comor contact:

Tracey Thomas | Vice President, IR and Community Relations
tthom@nevadacopper.com
+1 775 391 9029

Caution Regarding Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws. All statements in this press release, other than statements of historical fact, are forward-looking statements. Such forward-looking information and forward-looking statements specifically include, but are not limited to, statements relating to mine planning, financing requirements, discussions with financial partners and creditor protection proceedings.

Forward-looking statements and information include statements regarding management’s expectations and beliefs. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “anticipates”, “expects”, “potential”, “is expected”, “planned”, “is targeted”, “budget”, “planned”, “estimates”, “anticipates”, “intends”, “anticipates” or “believes” or their negative aspects or variations of such words and expressions or statements that certain actions , events or results “may”, “could”, “might”, “could” or “will” be taken, occur or be realized. Forward-looking statements or information should not be construed as guarantees of performance and results. are subject to known and unknown risks, uncertainties and other factors that may cause actual results and events to differ materially from any future results, performance or achievements expressed or implied by such statements. or computer ons prospective.

These risks and uncertainties include, but are not limited to, those relating to: additional capital requirements and no assurance can be given as to the availability thereof; the outcome of discussions with creditors and sellers; a possible creditor protection proceeding; the Company’s ability to complete the ramp-up of the underground mine within anticipated timeframes and cost estimates; the impact of COVID-19 on the Company’s business and operations; the state of financial markets; history of losses; dilution; adverse events related to milling operations, construction, development and ramp-up, including the Company’s ability to resolve underground development and processing plant issues; ground conditions; cost overruns related to the development, construction and ramp-up of the underground mine; loss of material properties; interest rates rise; Mondial economy; limited production history; future fluctuations in metal prices; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental risks and liability; industrial accidents; failure of processing and mining equipment to perform as intended; labor disputes; supply issues; the uncertainty of production and cost estimates; interpretation of drilling results and estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, mineralization grade or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; accidents; the title matters; regulatory approvals and restrictions; increased costs and physical risks associated with climate change, including extreme weather events, and new or revised climate change regulations; permits and licenses; dependence on management information systems and cybersecurity risks; the volatility of the market price of the Company’s securities; Insurance; competition; hedging activities; currency fluctuations; the loss of key employees; other risks of the mining industry as well as the risks discussed in the Company’s MD&A for the fiscal year ended December 31, 2021 and the quarter ended March 31, 2022 and in the section entitled “Risk Factors” of the annual report of the Company. Information Statement dated March 31, 2022. The forward-looking statements and information contained in this press release are based on assumptions that management believes are reasonable, including, without limitation: no adverse developments regarding the ownership or operations of the project ; no material changes to applicable laws; ramping up operations at the underground mine in accordance with management’s plans and expectations; no worsening of current work restrictions related to COVID-19; reduced impacts of COVID-19 in the future; the Company will be able to obtain sufficient additional financing to complete the ramp-up, no material adverse change in the price of copper from current levels; and the absence of any other factor that could cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking information and statements are made as of the date hereof. The Company disclaims any intention or obligation to update any forward-looking statements or information, except as required by law. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information and statements, there may be other factors that could cause that the actions, events or results are not as anticipated, estimated or anticipated. Specific reference is made to “Risk Factors” in the Company’s MD&A for the year ended December 31, 2021 and the quarter ended March 31, 2022 and to “Risk Factors” in the Company’s Annual Information Form dated March 31, 2022. , for a discussion of factors that may affect forward-looking statements and information. Should one or more of these risks or uncertainties materialize, should other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results and events could differ materially from those described in the forward-looking statements and information. . For more information about the Company and the risks and challenges of its business, investors should consult the Company’s filings which are available at www.sedar.com.

The Company does not guarantee that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information.

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