Copperstone Resources AB interim report January - June 2021

Kiruna, August 19, 2021

APRIL – JUNE 2021

• Result of the period amounted to -3,603 (-391) KSEK.
• Earnings per share was 0.00 (0.00) SEK.
• Capitalized exploration assets at the end of the period amounted to 379,441 (316,500) KSEK.
• Shareholders’ equity at the end of the period increased by 90% to 547,711 (287,609) KSEK.
• The cash flow during the period was 69,523 (8,566) KSEK.
• The liquidity at the end of the period was 185,384 (19,283) KSEK.

JANUARY – JUNE 2021

• Result of the period amounted to -8,705 (-2,065) KSEK.
• Earnings per share was -0.01 (-0.02) SEK.
• Total assets at the end of the period were 571,470 (340,308) KSEK.
• The cash flow during the period was 184,432 (185) KSEK.

SIGNIFICANT EVENTS DURING THE PERIOD

• Copperstone completes a directed issue of shares and received proceeds of 96 MSEK.
• Copperstone appoints Marcello Imaña as Chief Geologist.
• Copperstone Resources open invitation to consultation meetings on the reopening of the Viscaria mine.
• Copperstone appoints Anna Tyni as new CEO.
• Change of ownership among Copperstone's largest owners, with Sunstone Metals Ltd reducing its holding and JOHECO and RoosGruppen AB increasing their holding in the company.
• Copperstone opens the gates to the Viscaria mine in Kiruna after 25 years, for further environmental studies.
• Norrlandsfonden supports Copperstone Resources with a further 8.46 MSEK.
  
  

SIGNIFICANT EVENTS AFTER THE PERIOD

• Copperstone’s exploitation concession Viscaria k no. 7 confirmed by the Swedish Government.
  
  

CEO COMMENTS

The past quarter has been filled with positive and exciting news for Copperstone. It was a historic day, both for the company as well as for the residents of Kiruna, who have grown up with the mines here, when we in June were able to open the gates to the Viscaria mine for the first time in 25 years. The test drillings and environmental investigations that we have done above ground have met our expectations, and we are now ready to take the next step and investigate further inside the old mine. Thorough studies of the groundwater quality and level are an important part of the application for an environmental permit for mining that the company expects to submit to the Land and Environment Court around the turn of the year.

The work with the application for an environmental permit is our main focus throughout 2021. An important component in this is the open consultation which started in May, with targeted consultation with authorities such as the County Administrative Board, Swedish Environmental Protection Agency, the Sami communities, and the municipality of Kiruna, LKAB and others. This was concluded by a well-attended open digital consultation meeting for the public on June 17th. It has so far been an educational and constructive consultation process where we have received valuable knowledge and opinions from relevant Sami villages about reindeer husbandry and Sami culture, as well as information and views from other stakeholders, organizations, the public, and authorities - which is the purpose of the whole process. It creates the best possible basis for the design of the project and for the decision that will eventually be made by the Land and Environment Court. Of course, we also work tirelessly with planning for infrastructure, mining, and processing plant to get as optimized and sustainable future production as possible.

Another positive event during the quarter was the government's final decision to grant the exploitation concession Viscaria k no.7. This gives us the opportunity to, together with exploitation concessions no. 3 and no. 4, resume Viscaria with a longer life of mine. It also gives us synergies in terms of a better production economy and a potential for higher annual copper production. In addition, we now evaluate other possibilities linked to the total project economy, as our ongoing drilling activities continue to discover additional copper mineralization. We have two drill riggs back on site and during autumn our focus will on the underexplored B zone. We are therefore now assessing an increased mining operation and production volume, including a magnetite separation after the flotation, in order to make the maximum out of the by-products. This would of course potentially increase the total project investments and capex, but at the same time offer an opportunity get more leverage on long-term revenues and expected cash flows.

We continue to expand our competent team in Kiruna and the last two recruitments are key to the opening of a sustainable, efficient, and high-tech mine. Tove Thelin Täckdal will start in September as Concentrating Plant Manager and Emma Mäkitaavola will start in October as Research & Development Manager. They are both highly qualified driven individuals, and we are proud to be able to attract such strong expertise to the group. I look forward to the next few months and our exciting work to continue to build a modern mining company together. It will be an eventful and intense autumn.

Moreover, we continue to receive a very positive local and national response for our project. One example is that Norrlandsfonden has decided to invest further in Copperstone. We are very pleased to be able to continue to receive their support. We have a very long-term commitment in Norrbotten, an area where so many exciting projects are being started right now and huge investments are being made with sustainability as a common driver. The reopening of Viscaria will have the opportunity to make a significant contribution to this development.

Copper has a very central role in Sweden's and Europe's climate change. It is a key component for all forms of electricity transmission and is found in large quantities in electric motors as well as in wind turbines and solar heating systems. At present, Europe imports most of its copper from other continents, we see the opportunity to fill parts of that need with the copper that exists in Sweden, where we are at the forefront of technological innovations to promote efficient and environmentally friendly mining. Copperstone has an ambition to deliver copper that is produced with the highest environmental considerations and sustainability in focus.

Anna Tyni, CEO Copperstone Resources

This information is information that Copperstone Resources AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the above contact person’s agency, at 10:00 CEST on Aug 19, 2021.

ABOUT COPPERSTONE RESOURCES
Copperstone Resources AB is a company now scaling up to become a modern and responsibly producing mining company through the reopening of the Viscaria mine in Kiruna, Sweden. The deposit’s high copper grade assessed mineral resources, geographical location and growing team of experts provides good opportunities to become a key supplier of quality and responsibly produced copper - a metal that plays a critical role in Sweden's and Europe's climate change towards an electrified society. In addition to the Viscaria mine, Copperstone holds a number of other exploitation concessions and exploration permits in Arvidsjaur (Eva, Svartliden, Granliden) and Smedjebacken (Tvistbogruvan), all in Sweden. The company's shares are traded on the Nasdaq First North Growth Market (ticker COPP B). Augment Partners is the company's Certified Adviser, info@augment.se, +46 8 604 22 55.

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• Q2 Eng 190821 clean