Ero Announces Inaugural PEA for Furnas, Outlines Low Capital Intensity Project with a 24-Year Initial Mine Life

2026-02-23

TSX - Toronto Stock Exchange · Copper · Molybdenum · Gold · Silver · Sulfur · Zinc · Canada

(all amounts in US dollars and shown on a 100% Project basis, unless otherwise noted)

VANCOUVER, British Columbia, Feb. 23, 2026 (GLOBE NEWSWIRE) -- Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the “Company”) is pleased to announce results of the Preliminary Economic Assessment ("PEA") on the Furnas Copper-Gold Project ("Furnas" or the "Project"), located in the Carajás Mineral Province in Pará State, Brazil.

The PEA outlines the potential for a large-scale, long-life copper-gold operation with a robust production profile and exceptional economics, reinforcing Furnas as a cornerstone asset within the Company's organic growth pipeline. Furnas is being advanced in partnership with Vale Base Metals ("VBM") pursuant to an earn-in agreement wherein the Company will earn a 60% interest upon completion of the prescribed work programs.(1)

HIGHLIGHTS

24-year initial mine life based on an updated mineral resource estimate that remains open to depth and laterally along strike. Average annual copper equivalent(2)production of approximately 108,000 tonnes over the first 15 years of operation, including approximately 70,000 tonnes of copper, 111,000 ounces of gold, and 532,000 ounces of silver per year. After-tax net present value ("NPV") (8%) of $2.0 billion and a 27.0% after-tax internal rate of return ("IRR") based on long-term copper, gold and silver prices of $4.60 per pound, $3,300 per ounce, and $40.00 per ounce, respectively. At $6.10 per pound copper and $5,550 per ounce gold, the Project's after-tax NPV (8%) more than doubles to $4.7 billion, with the after-tax IRR increasing to approximately 44.0%.

Life-of-mine ("LOM") C1 cash costs(3)of approximately $0.30 per pound of copper produced, supported by significant gold and silver by-product credits. Initial capital expenditures of approximately $1.3 billion at low capital intensity of approximately $16,000 per copper equivalent(2)tonne. LOM production totaling over 1.2 million tonnes of copper and approximately 2.0 million and 9.0 million ounces of gold and silver, respectively. The Company is evaluating several opportunities with the potential to increase value, including ongoing exploration drilling, the addition of a magnetite recovery circuit to produce a high-grade magnetite concentrate as by-product, and a gravity pre-concentration stage to enhance gold recovery.

_“The results of the PEA on Furnas, the first ever published on the Project, reinforce what an exceptional asset it is," said Makko DeFilippo, President & Chief Executive Officer. "The PEA outlines a large-scale, long-life copper-gold operation with strong underlying economics, supported by low capital intensity, first quartile operating costs and an attractive internal rate of return across a wide spectrum of commodity prices. _

"The announcement today is the culmination of multiple exploration drilling campaigns and a strong foundation of engineering and technical studies that have been developed on Furnas over more than a decade. While already a unique asset in a class of its own, the deposit remains open, and we are excited by the potential we see to further increase the known extent of mineralization, adding incremental value and mine life. Ero's strategy has been centered upon responsible mine development, with a significant portion of the Furnas LOM production expected to be sourced from underground. This approach has resulted in a reduced footprint when compared to alternative, less-selective, scenarios and a design that aligns well with our operational strengths. We are thrilled to be working alongside such a strong partner in VBM to advance exploration, engineering and permitting workstreams to deliver value for all stakeholders of the Project."

The PEA is preliminary in nature and includes inferred mineral resources, which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Sensitivity of Economic Results to Copper and Gold Prices

(1)For more information on the Company's plans to earn a 60% interest in the Furnas Copper-Gold Project, please see its press releases dated October 30, 2023 and July 22, 2024. (2)Copper equivalent based on long-term metal prices of $4.60/lb Cu, $3,300/oz Au, and $40.00/oz Ag. (3)C1 Cash Cost is a non-IFRS Measure. Please refer to the Notes section of this press release for a discussion of non-IFRS Measures.

Preliminary Economic Assessment Summary

| | Unit | | Long-Term Prices | | | | Financial Highlights | | | | | | | Copper Price | $/lb | | $4.60 | | | | Gold Price | $/oz | | $3,300 | | | | Silver Price | $/oz | | $40.00 | | | | Foreign Exchange Rate | USD:BRL | | 5.50 | | | | Initial Capital | $M | | $1,280 | | | | Phased Expansion Capital(1) | $M | | $287 | | | | Sustaining Capital | $M | | $1,230 | | | | After-Tax NPV (8%) | $M | | $2,040 | | | | After-Tax IRR | % | | 27.0% | | | | After-Tax Payback Period | years | | 3.1 | | | | | | | | | | | | Unit | | First 15 Years | | Life of Mine | | Processing Operations | | | | | | | Mill Throughput Capacity | Mtpa | | 13.5 | | 13.5 | | Total Tonnes Processed | Mt | | 198 | | 240 | | Average Processed Grades | | | | | | | Copper | % | | 0.59% | | 0.58% | | Gold | g/t | | 0.35 | | 0.35 | | Silver | g/t | | 1.77 | | 1.64 | | Copper Equivalent(2) | % | | 0.91% | | 0.90% | | Metallurgical Recoveries | | | | | | | Copper | % | | 90.3% | | 90.3% | | Gold | % | | 74.6% | | 74.6% | | Silver | % | | 71.0% | | 71.0% | | Average Annual Production | | | | | | | Copper | kt | | 70 | | 52 | | Gold | koz | | 111 | | 84 | | Silver | koz | | 532 | | 374 | | Copper Equivalent(2) | kt | | 108 | | 81 | | Copper C1 Cash Cost(3) | $/lb produced | | $0.24 | | $0.30 |

(1)Expansion capital related to the Company's phased development strategy occurring after first production. (2)Copper equivalent calculated using long-term metal prices of $4.60/lb Cu, $3,300/oz Au, and $40.00/oz Ag. Copper equivalent processed grade reflects relative recovery rate for each metal as outlined above. (3)C1 Cash Cost is a non-IFRS Measure. Please refer to the Notes section of this press release for a discussion of non-IFRS Measures.

Recovered Copper Equivalent Production(1)(tonnes in thousands)

(1)Copper equivalent calculated using long-term metal prices of $4.60/lb Cu, $3,300/oz Au, and $40.00/oz Ag.

Exploration Strategy

The PEA and updated mineral resource estimate incorporate approximately 90,000 meters of historical drilling completed by Vale S.A. and Anglo American plc, together with 28,000 meters of Phase 1 drilling completed by the Company through July 2025. Subsequent drilling, including the 17,000-meter Phase 2 program, completed ahead of schedule in Q4 2025, and initial Phase 3 drilling, brings total drilling conducted by the Company to approximately 50,000 meters, with an additional 50,000 meters of drilling planned through the remainder of 2026. Results from the Phase 2 and Phase 3 programs are not included in the updated mineral resource estimate underpinning the PEA and will be reflected in subsequent resource updates and future engineering studies.

The Company's 2026 drilling strategy is focused on two primary objectives: (i) upgrading inferred mineral resources to higher confidence categories and (ii) extending mineralization along strike within the high-grade zones. The objective of targeted step-out drilling is to potentially expand the scale of the underground mining areas in both the Southeast and Northwest Zones adjacent to planned infrastructure to support higher sustained production volumes beyond year 16 of the current PEA mine plan.

Advancing Engineering, Permitting & Value-Enhancing Opportunities

With the completion of the Phase 2 drilling requirements in Q4 2025, the Company is advancing key workstreams to support future engineering studies in accordance with the Furnas earn-in agreement.

Over the next 12 to 24 months, activities on site will focus on continuing exploration drilling while advancing engineering, environmental and permitting work. Detailed geotechnical, hydrogeological and metallurgical studies are underway to optimize mine design, processing configuration and infrastructure layout. These studies are intended to further de-risk execution and refine capital and operating cost projections. Environmental Impact Assessment studies initiated in 2025 will continue through 2026, including baseline environmental work and engagement with regulatory authorities. Planning for public consultation and advancement of licensing processes at the local, state and federal levels are expected to progress during this period.

The Company is also evaluating several opportunities with the potential to enhance the value of the Project, including: (i) extending mineralization through ongoing exploration drilling, (ii) incorporating a magnetite recovery circuit to reduce tailings volumes and potentially generate additional by-product revenue through the production of a high-grade magnetite concentrate, and (iii) evaluating a gravity pre-concentration circuit to improve gold recoveries. These opportunities are in early stages of development and are not reflected in the economics presented in the PEA.

A Value-Driven Development and Operating Plan

The PEA contemplates the development of Furnas as a large-scale, long-life mining operation comprising four distinct operating areas, incorporating a series of selective open pits and two underground mines within the two primary high-grade zones of the deposit - the Southeast and Northwest Zones. Mine production from open pit and underground mines will feed a centralized processing facility with a design capacity of 13.5 million tonnes per annum. Conventional flotation will produce a copper concentrate with significant gold and silver by-product credits over an initial 24-year mine life.

Development and pre-stripping activities during the initial three-year construction period are planned to focus on the Southeast Zone, with production commencing from the open pit, followed shortly thereafter by the underground mine. Once steady-state production has been achieved in the Southeast Zone, development of the Northwest open pit is expected to begin, with first production from this area anticipated late in year four of operations. Underground mining in the Northwest Zone is planned to commence towards the middle of the 24-year mine life, supporting production levels in the later years of the mine life.

This phased development approach and design criteria is centered upon a responsible mine development framework to minimize surface footprint, de-risk the Project's development plan, and enable an efficient capital expenditure profile. The strategy will allow for capital deployment to align with the progression of mining activities and projected cash flow generation.

Integrated Mine Design with a Conventional Processing Flowsheet

Mining from the open pits will be conducted using conventional truck-and-shovel operations, with the Southeast and Northwest open pits projected to produce 36.6 million tonnes and 37.5 million tonnes of mill feed, respectively, over the life of mine. Development is planned to commence in the Southeast Zone open pit, supporting the early years of production, with a projected life-of-mine strip ratio of approximately 2.8. Open pit mining in the Northwest Zone will comprise two adjacent pits with a blended life-of-mine strip ratio of approximately 3.6.

Trade-off studies were performed for the PEA to optimize design criteria including desired selectivity within high-grade zones, total production volumes, vertical development requirements, operability and economic outcomes. The unique geometry and continuity of mineralized zones over considerable strike lengths and favorable thickness, paired with rock mass quality enable underground mining rates of approximately 20,000 tonnes per day ("tpd") in the Southeast Zone and 10,000 tpd in the Northwest Zone. Underground mining in both the Southeast and Northwest Zones will use sublevel stoping mining methods incorporating both waste rock and cemented paste backfill. Over the proposed life of mine, the Southeast and Northwest underground operations are projected to produce 114.0 million tonnes and 51.6 million tonnes of mill feed, respectively.

Mined tonnage will be processed through a centralized sulphide flotation plant with a design capacity of approximately 13.5 million tonnes per annum, or approximately 37,000 tpd. The processing plant is based on a conventional crushing, grinding and flotation flowsheet using proven technologies currently in place across the Company's operations, minimizing operational risk at the contemplated production scale. Approximately 30% of tailings generated over the mine life is expected to be used for underground backfill requirements. Thickened tailings not used for backfill requirements will be deposited in a surface tailings storage facility.

The proposed flowsheet incorporates conventional three-stage crushing and milling paired with a multi-stage copper flotation and re-grind circuit designed to maximize copper recovery while maintaining concentrate quality. Metallurgical testwork demonstrates strong and consistent performance across a large variability dataset, achieving average copper recoveries of approximately 90%, producing a copper concentrate grading over 30% copper. Gold and silver are expected to be recovered as payable by-products within the copper concentrate, with average recoveries of approximately 75% for gold and 71% for silver.

Figure 1:Cross-section view of the PEA mine plan, including four distinct and integrated operating zones (view looking Northeast).

Mill Feed Contribution by Mining Area (tonnes in millions)

Updated Mineral Resource Estimate

| | | | | Grade | | Contained Metal | | | | | | | | | | | | | | | | Tonnes | | Cu | | Au | | Ag | | CuEq(2) | | Cu | | Au | | Ag | | CuEq(2) | | Category | | (Mt) | | (%) | | (g/t) | | (g/t) | | (%) | | (kt) | | (koz) | | (koz) | | (kt) | | | | | | | | | | | | | | | | | | | | | | Open Pit | | | | | | | | | | | | | | | | | | | | Indicated | | 272.2 | | 0.59 | | 0.31 | | 1.66 | | 0.83 | | 1,594 | | 2,748 | | 14,546 | | 2,252 | | Inferred | | 117.1 | | 0.51 | | 0.31 | | 1.24 | | 0.75 | | 601 | | 1,160 | | 4,662 | | 876 | | | | | | | | | | | | | | | | | | | | | | Underground | | | | | | | | | | | | | | | | | | | | Indicated | | 3.4 | | 0.57 | | 0.23 | | 1.44 | | 0.75 | | 19 | | 25 | | 156 | | 25 | | Inferred | | 78.8 | | 0.53 | | 0.31 | | 1.50 | | 0.77 | | 418 | | 791 | | 3,809 | | 607 | | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | | | | | | | | | Indicated | | 275.6 | | 0.59 | | 0.31 | | 1.66 | | 0.83 | | 1,613 | | 2,773 | | 14,702 | | 2,277 | | Inferred | | 195.9 | | 0.52 | | 0.31 | | 1.34 | | 0.76 | | 1,020 | | 1,952 | | 8,470 | | 1,483 |

Note: The Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards (2014) were used for reporting Mineral Resources, which are effective as at November 30, 2025 and presented on a 100% ownership basis. The Mineral Resource estimate is reported on an in situ basis, with no operational, planned, or internal mining dilution, and no mining recovery factors applied. Minimum mining widths and/or geological constraints incorporated in the estimation methodology were applied to reflect reasonable mining selectivity and geological continuity and do not represent the application of operational dilution.

(1)All figures have been rounded to reflect the relative accuracy of the estimates. Summed amounts may not add due to rounding. Mineral resources that are not mineral reserves do not have demonstrated economic viability. See "Notes on Mineral Resources" below for additional technical and scientific information. (2)CuEq grade for the updated mineral resource estimate calculated as Cu grade + ((Au grade x 0.03215 x $2,500 gold price x 74.6% gold metallurgical recovery) + (Ag grade x 0.03215 x $24.00 silver price x 71.0% silver metallurgical recovery)) / (0.01 x $9,039/tonne copper price x 90.3% copper metallurgical recovery).

Furnas is classified as an iron oxide copper-gold ("IOCG") deposit, characterized by copper and gold mineralization associated with iron oxide alternation. IOCG systems can be large and laterally continuous and therefore amenable to bulk mining methods, attributes that are consistent with the scale and development scenario contemplated in the PEA.

The updated mineral resource estimate incorporates approximately 90,000 meters of historical drilling completed by Vale S.A. and Anglo American plc, together with 28,000 meters of Phase 1 drilling completed by the Company through July 2025. The updated mineral resource estimate is based on integrated open pit and underground mining methods.

Results from the Phase 2 program (approximately 17,000 meters completed ahead of schedule in Q4 2025) and the ongoing Phase 3 program (approximately 50,000 meters planned in 2026) are not included in the mineral resource estimate and will be reflected in subsequent resource updates and future engineering studies.

Infrastructure Advantage in a World-Class Mining District

Furnas is located within the Carajás Mineral Province, approximately 50 kilometers southeast of VBM’s Salobo operations and approximately 190 kilometers northeast of the Company's Tucumã Operation. The Project covers roughly 2,400 hectares and benefits from close proximity to extensive regional infrastructure, including paved roads, an industrial-scale cement plant, a power substation, and Vale S.A.’s railroad loadout facility.

The region is a well-established mining hub with a deep network of suppliers, contractors, and technical service providers supporting both operating mines and development projects. The Project is situated less than 50 kilometers from Parauapebas, a mid-sized city with a population exceeding 250,000. Access to infrastructure, an experienced labor pool, suppliers and contracts is expected to support project execution and reduce the need for significant greenfield infrastructure investments associated with remote development projects.

Figure 2:Map of the Carajás Mineral Province, highlighting the location of Furnas in close proximity to extensive regional infrastructure.

Overview of Furnas Earn-In Agreement

In October 2023, the Company entered into a binding term sheet with Salobo Metais S.A., a subsidiary of VBM, providing Ero the right to earn a 60% interest in the Project upon completion of several exploration, engineering and development milestones over a period of five years from the execution of a definitive earn-in agreement, which occurred in July 2024.

Under the terms of the agreement, Ero may earn its 60% interest by completing three staged work programs, including prescribed drilling campaigns and the delivery of a preliminary economic analysis, pre-feasibility study, and definitive feasibility study over a five-year period. During the earn-in period, Ero will solely fund the required exploration and engineering work programs.

Upon completion of the earn-in requirements and a positive investment decision, the parties will form a joint venture, at which point VBM will retain a 40% interest and will receive a free carry of up to 11.0% on future Project construction capital expenditures, subject to defined thresholds.

For additional information regarding the earn-in structure and detailed terms, please refer to the Company’s press releases dated October 30, 2023 and July 22, 2024.

Capital Expenditure Breakdown

| | Unit | | Initial Capital | | Phased Expansion Capital(1) | | Underground Mines | $M | | $179 | | $34 | | Open Pit Mines | $M | | $132 | | $138 | | Processing Plant | $M | | $410 | | — | | Tailings Management | $M | | $48 | | — | | Infrastructure | $M | | $139 | | $22 | | Owners' Team | $M | | $8 | | — | | Processing Plant indirect Expenditures | $M | | $150 | | $46 | | Direct & Indirect Capital Expenditures | $M | | $1,066 | | $239 | | Contingency | $M | | $215 | | $48 | | Total Capital Expenditures | $M | | $1,280 | | $287 |