Announcement PDF Annual Report 2023 TABLE OF CONTENTS Corporate Directory 2 Chairman’s Letter 3 Directors’ Report 4 Auditor’s Independence Declaration 37 Consolidated Statement of Profit or Loss and Other Comprehensive Income 38 Consolidated Statement of Financial Position 39 Consolidated Statement of Changes in Equity 40 Consolidated Statement of Cash Flows 41 Notes to the Financial Statements 42 Directors’ Declaration 69 Independent Auditor’s Report 70 Additional Shareholder Information 73 Minerals Exploration Concessions 76 2|P a g e CORPORATE DIRECTORY Culpeo Minerals Limited is an Australian listed company focused on the acquisition, exploration, and development of commercially significant copper projects in Chile. For more details visit www.culpeominerals.com.au. DIRECTORS Mr Geoffrey McNamara (Non-Executive Chairman) Mr Maxwell Tuesley (Managing Director) Mr Zeffron Reeves (Non-Executive Director) Mr Paul Schmiede (Non-Executive Director) COMPANY SECRETARY Ms Sarah Wilson REGISTERED OFFICE c/- Source Services Level 48 Central Park 152 – 158 St Georges Terrace PERTH WA 6000 AUDITORS RSM Australia Partners Level 32 Exchange Tower 2 The Esplanade PERTH WA 6000 SHARE REGISTRAR Computershare Investor Services Pty Ltd Level 17, 221 St Georges Terrace PERTH WA 6000 Telephone: (08) 9323 2000 Website: www.computershare.com.au SECURITIES EXCHANGE LISTING Australian Securities Exchange Limited and OTC Markets Group (Home Exchange: PERTH, Western Australia) ASX: CPO OTCQB: CPORF 2|P a g e Culpeo Minerals Limited Chairman’s Letter I am pleased to present the 2023 Annual Report for Culpeo Minerals Limited (“Culpeo” or the “Company”) (ASX:CPO and OTCQB:CPORF). Throughout the reporting period, the Culpeo team has achieved some notable successes in advancing our exploration strategy across a portfolio of highgrade Chilean copper assets. Exploration activities continued to target district scale, under-explored and high-grade copper systems in the coastal Cordillera belt of Chile. Our primary focus was on drilling and sampling numerous highly prospective areas across the Lana Corina Project. Assays from these programs returned extremely encouraging results indicating the discovery of a large copper mineralised system. To date, mineralisation has been intersected by drilling over a footprint of 500m x 400m, extending from surface to a depth of over 700m and remaining open in all directions. Target generation work undertaken by the Company has complemented these main discovery, identifying a structural trend extending for over 3km in length and delineating an additional 13 targets across the project area. These targets are analogous to the setting of mineralisation that has been drilled at the project and are considered high priority targets. In addition to Lana Corina, the Company has achieved early exploration success at the Quelon Project, located 40km to the south of Lana Corina. Our geology team in Chile has identified a large 800m x 1,000m surface copper anomaly at the Anico Prospect that is coincident with a strong Induced Polarisation (“IP”) geophysical anomaly. Encouragingly, initial scout drilling has intersected significant sulphide mineralisation over wide intervals at Anico. We are now focused on follow-up exploration drilling, along with advancing the La Despreciada and La Tabita Prospects. We have progressively increased our ownership stakes across our prospective copper portfolio. Diamond drilling and geophysical programs at Lana Corina allowed us to rapidly complete the first earn-in schedule, moving to a 20% interest. At our Las Petacas Project, Culpeo has earned an interest of 66% and similarly, we have moved to a 10% interest in the Quelon Project. In addition, and subsequent to the financial year end, the Company acquired an 80% interest in the Fortuna Project, located approximately 10km north of Lana Corina. Adding Fortuna to our copper asset portfolio increased our copper exploration landholding adjacent to the Lana Corina Project by 300%. The acquisition of Fortuna is exciting for several reasons. The project, which sits along one of the most prospective coastal metallogenic belts in Chile, hosts multiple broad zones of copper mineralisation outcropping at surface and measuring 1,000m in length and 500m in width. Importantly, the Fortuna concessions are fully granted, allowing for rapid exploration potential which we intend to advance immediately. On behalf of the Board, I would like to thank our Managing Director, Max Tuesley and our entire team at Culpeo Minerals for their tireless dedication during the year. It is thanks to their efforts, that we have made significant progress in advancing our core exploration strategy, while emphasising safe and sustainable practices in line with our core values. In closing, I wish to express the Company’s sincerest gratitude to our shareholders for your ongoing confidence in our team. These are early days for the Company, our growing copper portfolio and I am sure you all share my enthusiasm for the strong underlying potential our projects possess in a world-class copper producing region. We intend to further unlock these opportunities through our exploration activities in the year ahead. Yours sincerely, Geoffrey McNamara Non-Executive Chairman Culpeo Minerals Limited 3|P a g e Culpeo Minerals Limited Directors' report The Directors present their report, together with the financial statements, of the Consolidated Entity (referred to hereafter as the “Consolidated Entity” or the “Group”) consisting of Culpeo Minerals Limited (referred to hereafter as the “Company”, “Culpeo” or “Parent Entity”) and the entities it controlled at the end of, or during, the financial year ended 30 June 2023. Directors The following persons were Directors of Culpeo Minerals Limited during the whole of the financial year and up to the date of this report: Mr Geoffrey McNamara Mr Maxwell Tuesley Mr Zeffron Reeves Mr Paul Schmiede Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Information on Directors Geoffrey McNamara Non-Executive Chairman (Appointed 25 July 2018) BSc (Applied Geology), AusIMM, FINSIA, AICD Mr McNamara is a geologist with over 30 years’ of international resource sector experience as a geologist, project manager and fund manager. Previously he worked in Private Equity (FUM USD800 million) and as a Director of Societe General’s Mining Finance Team in New York. Operational roles include Project Manager, Senior Mine Geologist and Mine Geologist for Ivanhoe Mines, Lion Ore International and Western Mining Corporation. Currently Co-Founder and Non-Executive Director of Tesoro Gold Limited which discovered the El Zorro gold project in Chile. Mr McNamara holds a Bachelor’s degree in Geology, a Graduate Diploma in Applied Finance and Investment from the Financial Services Institute of Australasia (FINSIA). He is a fellow of the AusIMM and a member of the Australian Institute of Company Directors (“AICD”) Maxwell Tuesley Managing Director (Appointed 28 October 2020) BSc (Hons) (Econ Geol), AusIMM Mr Tuesley is a highly experienced project manager and has spent over 25 years in grassroots, advanced mineral exploration and mine production, predominantly in gold, copper and base metals. He has worked in Australia, the Philippines, PNG, Laos, Mongolia and Sudan, including senior management positions at Glencore, B2Gold Corp and Metals Exploration Plc. Mr Tuesley holds an Honour’s degree in Economic Geology from James Cook University in Australia and is a member of the AusIMM. Zeffron Reeves Non-Executive Director (Appointed 25 July 2018) BSc (Hons) (Applied Geology), MBA, MAIG Mr Reeves is a Geologist with over 20 years’ experience in the resources sector working on resource projects from greenfield exploration, discovery, definition & feasibility, construction, production to closure. Currently Co-Founder and Managing Director of Tesoro Gold Limited which discovered the El Zorro gold project in Chile, he has also previously been Managing Director of ASX listed Metallum Ltd (now ERNG Elements Limited) and held senior management positions with Cleveland Mining Ltd and Ashburton Minerals Ltd, developing projects in Australia, Chile and Brazil. Mr Reeves has a Bachelor of Applied Geology (Honours), a Masters of Business Administration from Curtin University & is a member of the Australia Institute of Geoscientists. 4|P a g e Culpeo Minerals Limited Directors' report Paul Schmiede Non-Executive Director (Appointed 1 April 2021) BEng (Mining), AusIMM Mr Schmiede is a mining engineer with 25 years’ experience in mining, exploration and corporate development. He has had direct exposure to gold and base metal in a range of jurisdictions including Australia, Burkina Faso and DRC. His current role is Vice President Corporate Development for TSX-V and ASX listed Sarama Resources Ltd, which has development stage gold assets in West Africa. Prior to that, Mr Schmiede was Vice President Operations Project Development at Moto Goldmines where he managed the pre-feasibility and definitive feasibility study for the 22 million ounce Democratic Republic of Congo based, Moto Gold Project (now Kibali Gold). Prior to joining Moto Goldmines, Mr Schmiede held senior operational and management positions with Gold Fields and WMC where he was responsible for underground and open pit operations as well as project development and planning. Mr Schmiede holds a First Class Mine Managers Certificate (WA), a Bachelor of Engineering (Mining) degree and is a Fellow of the AusIMM. Company Secretary Sarah Wilson Ms Wilson is a Company Secretary with national corporate advisory firm Source Governance and has over 10 years’ experience in company secretarial, corporate advisory and corporate governance roles, which have included the provision of company secretarial services to a number of ASX listed resource companies. Ms Wilson holds a Certificate in Governance Practice and is a Certified Member of the Governance Institute of Australia. She is currently company secretary to a number of ASX listed companies with a strong focus on resources. Shannon Coates (resigned as joint company secretary 31 January 2023) Directorships of Other Listed Companies Directorships of other ASX listed companies held by Directors currently and in the 3 years immediately before the end of the financial year are as follows: Director Company Period of Directorship Geoffrey McNamara Tesoro Gold Ltd 27 November 2017 - current Rincon Resources Ltd 07 August 2018 – 6 December 2021 Tesoro Gold Ltd 27 November 2017 - current Rincon Resources Ltd 07 August 2018 – 15 November 2021 Zeffron Reeves Maxwell Tuesley - - Paul Schmiede - - Principal Activities The principal activities of the Company and its subsidiaries are the acquisition, exploration and development of commercially significant copper resource projects in Chile. Operating Results The loss, after tax, attributable to the Group for the financial year ended 30 June 2023, amounted to $3,495,031 (2022: $2,065,803). Dividends No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made. 5|P a g e Culpeo Minerals Limited Directors' report Directors’ Interests in Shares and Performance Rights At the date of this report, the following represents the shares, options and performance rights holdings of the Directors of the Company: Ordinary shares Performance Rights Options Direct Indirect Direct Indirect Direct Indirect Geoff McNamara1 - 5,686,665 - 700,000 - - Maxwell Tuesley 1,533,333 - 2,000,000 - 16,667 - Zeffron Reeves2 - 1,321,212 - 700,000 - - Paul Schmiede3 - 494,286 - 700,000 - 30,893 1,533,333 7,502,163 2,000,000 2,100,000 16,667 30,893 Total 1. 2. 3. 3,832,119 Fully Paid Ordinary shares and 700,000 performance rights are held by Tanamera Resources Pte Ltd (a company registered in Singapore). Mr Geoffrey McNamara is the sole director and shareholder of Tanamera Resources Pte Ltd. 1,854,546 Fully Paid Ordinary shares are held by Linkwood Holdings Pte Ltd (a company registered in Singapore). Mr Geoffrey McNamara is a director and substantial shareholder of Linkwood Holdings Pte Ltd. 1,321,212 Fully Paid Ordinary shares and 700,000 performance rights are held by Mr Zeffron Charles Reeves as trustee for the Palin Trust. 494,286 Fully Paid Ordinary shares and 30,893 options exercisable at $0.18 on or before 28 November 2024 are held by Vermiculite 987 Pty Ltd <Mzungu Superannuation Fund A/C>. Mr Paul Schmiede is a director of Vermiculite 987 Pty Ltd and a beneficiary of the Mzungu Superannuation fund. 700,000 performance rights are held by Turquoise 987 Pty Ltd <Obsidian 987 Trust A/C>. Mr Paul Schmiede is a director of Turquoise 987 Pty Ltd and a beneficiary of the Obsidian 987 Trust. REVIEW OF OPERATIONS Overview Culpeo Minerals Limited is an ASX-listed copper exploration and development company with project interests in Chile, the world’s largest copper producing country (Figure 1). The Company is focused on creating value for its shareholders through the exploration, discovery and development of high-grade copper systems in the coastal Cordillera region. Culpeo’s key activities during the full-year period ended 30 June 2023 were the continued exploration programs at the Lana Corina Copper-Molybdenum Project (“Lana Corina”), and at the Quelon Copper-Gold Project (“Quelon”). 6|P a g e Culpeo Minerals Limited Directors' report Figure 1 - Location of Culpeo Minerals’ Projects in Chile. 7|P a g e Culpeo Minerals Limited Directors' report Lana Corina Copper-Molybdenum Project Lana Corina is located in the coastal belt, Coquimbo region of Chile, approximately 350km north of Santiago and close to existing infrastructure with sealed road access and a high voltage power line approximately 7km to the east. Lana Corina is a high-grade copper-molybdenum project, hosting multiple outcropping copper bearing breccia pipes associated with a well mineralised porphyry intrusive. The Project is located 40km north of the Company’s Quelon Project in the coastal Coquimbo region of Chile (Figure 2). Figure 2 - Location of Lana Corina and Quelon Projects Showing Proximity to Infrastructure. 8|P a g e Culpeo Minerals Limited Directors' report Phase 1 Drilling Program Phase 1 drilling was completed at Lana-Corina during the period, with nine holes drilled for a total of 4,875m. The successful drilling program defined a large copper-bearing mineralised system with 7 holes intercepting significant copper and molybdenum mineralisation (Table 1 and Figure 3). Assay results have been reported for all drillholes, with high-grade outcropping breccia hosted mineralisation at surface and high-grade porphyry related mineralisation at depth. Results of drilling undertaken to date indicate significant potential to expand the mineralised zone in all directions. Table 1: Significant Downhole Intersections Phase 1 and 2 drilling Program (>0.2% Cu) Hole No. From To Length CuEq% Cu% Mo ppm CMLCD001 155 259 104 0.81 0.74 73 CMLCD001 297 384 87 0.61 0.57 51 CMLCD001A 96 103.9 7.9 1.26 1.20 30 CMLCD002 170 427 257 1.01 0.95 81 CMLCD003 313 486 173 1.09 1.05 50 CMLCD003 486 571 85 0.58 0.07 1367 CMLCD004 82 102.1 20.1 1.20 1.13 56 CMLCD005 216 265 49 0.89 0.83 41 CMLCD005 302 383 81 1.16 1.06 145 CMLCD005A 118 134.4 16.4 1.38 1.32 30 CMLCD007 458.4 549.7 91.3 0.68 0.63 79 CMLCD009 331 444 113 0.69 0.60 122 CMLCD010 239 408 169 1.21 1.08 225 CMLCD011 334 434 100 0.38 0.35 36 CMLCD013 352 424 72 0.91 0.85 24 CMLCD013 570 605 35 0.84 0.14 1,704 Refer ASX announcement 6 September 2022 and Refer ASX announcement 16 January 2023 Phase 2 Drilling Program The Phase 2 drilling of four holes for 2,181m was also completed during the period with CMLCD010 returning a significant high-grade intersection of 169m @ 1.08% Cu and 225ppm Mo (1.21% CuEq) from 239m downhole (Table 1 and Figure 3). Mineralisation encountered in the drill programs is chalcopyrite-dominant and is associated with shallow breccia units that outcrop at surface. Directly below the breccia zone high-grade copper and molybdenum mineralisation is hosted within porphyry lithologies. A high-grade molybdenum dominated zone is present in the lower parts of the system hosted within what is interpreted to be a silica cupola, suggesting a higher temperature source of mineralisation is present at depth (Figure 4). Copper Equivalent (Cu Eq) values: Assumed commodity prices for the calculation of Copper Equivalent (Cu Eq) is Cu US$3.00/lb, Au US$1,700/oz, Mo US$14/lb and Ag US$20/oz. Recoveries are assumed from similar deposits: Cu = 85%, Au = 65%, Ag = 65%, Mo = 80%, Cu Eq (%) was calculated using the following formula: ((Cu% x Cu price 1% per tonne x Cu recovery) + (Au(g/t) x Au price per g/t x Au recovery) + (Mo ppm x Mo price per g/t x Mo recovery) + Ag ppm x Ag price per g/t x Ag recovery)) / (Cu price 1% per tonne x Cu recovery). Cu Eq (%) = Cu (%) + (0.54 x Au (g/t)) + (0.00037 x Mo (ppm)) + (0.0063 x Ag (ppm)) 9|P a g e Culpeo Minerals Limited Directors' report Figure 3: Plan view showing position of drillholes and targeted breccia units Datum PSAD56 / UTM 19S, (refer ASX announcement 23 November 2022). Figure 4: Lana Corina schematic section looking north showing position of drillholes, geophysical targets and the high-grade Mo and Re mineralisation hosted within deeper silica rich cupola. (Refer ASX announcement 31 August 2022). 10 | P a g e Culpeo Minerals Limited Directors' report Geological Model and Significance of Molybdenum/Rhenium The top of the Lana Corina mineralised system presents on surface as a series of outcropping copper bearing magmatic/hydrothermal breccias. At depth, the system transitions into a quartz-feldspar diorite which hosts consistent copper mineralisation, present mainly as chalcopyrite. Detailed core logging and associated lithological and paragenetic reviews were undertaken during the reporting period to better classify the different styles of mineralisation recognised at the project. A significant zone of molybdenite and rhenium mineralisation (Figure 5) is located below the Lana Corina intrusive/breccia complex representing a magmatic cupola zone with the development of unidirectional solidification textures (“UST”) which are considered to be products of rhythmic precipitation of quartz and feldspar during periods of volatile over-pressuring within degassing cupolas above a deeper magma chamber1. USTs are an invaluable aid in detailed mapping of multiple-intrusion systems and to indicate proximity to intrusive contacts2. The deeper molybdenum-rhenium mineralisation is interpreted as a vertically continuous mineralised system varying in style as a result of temperature and pressure gradients. The footprint of the Lana Corina system is 500m by 400m, with drilling extending mineralisation to >700m deep, where it remains open. Figure 5: Images of core from CMLCD003 showing examples of the high-grade Mo and Re mineralisation hosted within the silica cupola and associated UST zone (refer ASX announcement 31 August 2022). Detailed Surface Mapping Program Detailed geological mapping (Figure 6) and sampling was completed during the period over approximately 2km² of the Lana Corina project area. This work focused on lithology, structure and alteration/mineralisation. A review of recently drilled core was also part of the program. A large component of the study aimed to evaluate and prioritise the ground magnetic targets, identified from the high-resolution ground magnetic survey over the project area (refer ASX announcement 18 May 2022). 11 | P a g e Culpeo Minerals Limited Directors' report Figure 6: Plan view showing recently completed detailed surface geology map and the high priority targets identified from geophysical data (refer ASX announcement 18 May 2022), (Datum PSAD56 / UTM 19S), refer ASX announcement 23 August 2022. Thirteen magnetic low targets have been identified peripheral to Lana Corina that are analogous to the area of known copper mineralisation discovered in the drilling programs. Copper mineralised zones at the project are characterised by magnetite destructive alteration, principally muscovite-sericitechlorite and pyrite, which accompanies the high-grade copper-molybdenum mineralisation as identified in the drill core. Mapping has confirmed a strong correlation between areas of low magnetic response and mapped structural zones and surface copper mineralisation at the targets identified in magnetics (T1-T13). Mineralisation appears to be more continuous along district scale lineaments highlighted by the ground-magnetic data, reflecting controlling fault structures, which extend for more than 1km. 12 | P a g e Culpeo Minerals Limited Directors' report T2 Priority Target This target is represented on the surface as a non-magnetic, potassium feldspar bearing porphyritic intrusive showing abundant iron-oxides, representing weathered sulphides. Breccias were noted with quartz-muscovite-sericite present in the altered matrix. T4 and T6 Priority Targets These two targets have significant size, being greater than 100m wide and located in a prominent north-northeast striking structural corridor. Mapping has identified the presence of a texturally diverse suite of intrusive rocks again displaying a strong component of iron oxide weathering and showing relic textures after sulphides with visual copper mineralisation present in some samples. Intense clay alteration with local zones of silica-sericite alteration overprinting the porphyritic rocks was noted, as was the presence of silicified hydrothermal breccias (Figure 7) and associated copper mineralisation. Figure 7: Silicified breccias identified at the T4 target area (refer ASX announcement 23 August 2022). T10 Priority Target This target is located 100m south of the Lana-Corina mineralised zone, with mapping identifying the presence of breccias (Figure 8) and historical artisanal mine workings. Outcropping is partially obscured by course boulder lag, but quartz vein float suggests further subcropping veining and mineralisation that may be associated with the magnetic low in this target area. 13 | P a g e Culpeo Minerals Limited Directors' report Figure 8: Breccias identified at the T10 target area (refer ASX announcement 23 August 2022). New Regional Potential for Copper Discoveries Identified at Vista Montana During the reporting period, the Company completed a soil geochemical survey at the Vista Montana Prospect within the Lana Corina Project, resulting in the identification of five new high-priority targets within a >3km-long copper alteration zone defined by the geochemistry survey. This increases the overall strike length of the mineralised copper trend at Lana Corina to over 3km. The soil geochemistry program was undertaken on a 50m x 100m grid and consisted of 321 samples. The results highlight an overall pattern of the Cu, Cu + Mo, Cu/Mn and suggest a copper bearing alteration zone is present at Vista Montana that is over three times the size of the Lana Corina mineralised zone defined from drilling to date (Figure 9). This large copper bearing zone identified at Vista Montana is prospective for breccia and intrusive hosted copper mineralisation. The metal assemblage at Vista Montana indicates a shallow erosional level relative to porphyry style vertical and lateral zonation (Figure 10), highlighting the near-surface potential of Vista Montana. The lithologies sampled as part of the program show a strong Cu, Mo, Bi and W association with the interpreted phyllic alteration zone, and these elemental distributions are analogous to Lana Corina. 14 | P a g e Culpeo Minerals Limited Directors' report Figure 9: Lana Corina Project map showing prospectivity defined over >3km of strike (background image is the high-pass filtered ground magnetics TMIRTP model) (refer ASX announcement 18 May 2022). Figure 10: Prospectivity mapping has generated additional targets over >3km of strike (background image is the VOXI 3D magnetic inversion model) (Refer ASX announcement 31 August 2022). 15 | P a g e Culpeo Minerals Limited Directors' report Following up on the success of the geochemical sampling program the Company completed detailed geological mapping over the Vista Montana Prospect, to aid in future drilling program design. This mapping program (ASX Announcement 7 June 2023) identified outcropping copper mineralisation associated with an extensive sheeted vein system and a stockwork/breccia zone over an area of 800m x 700m (Figure 11). Mineralisation which is visible on the surface appears to be related to the possible porphyry intrusive centers identified in the area from the interpretation of geophysical and geochemical data over the zone. The discovery of this copper-bearing sheeted vein system and associated stockwork breccia zone, broadens the range of targets at Vista Montana. This supports the Company’s exploration model that Lana Corina style mineralisation could be present at shallow levels below what is outcropping in the area. The large surface footprint and 800m of strike of the mapped surface mineralisation, highlights the area as a high-priority exploration target and supports the Company’s exploration model for the project. Figure 11: Plan view - Vista Montana - Total Magnetic Intensity Overlay (Refer ASX Announcement 18 May 2022) showing Cu bearing sheeted vein system (green lines), stockwork and breccia zones identified from mapping (Refer ASX Announcement 7 June 2023). Geological mapping efforts prior to final drillhole planning have now been initiated at Vista Montana and will focus on the position of the outcropping surface mineralisation and relationships to lithological and structural contacts. The excellent results of Culpeo’s drilling programs and the recent results of the geochemical survey at Vista Montana continue to strongly support the Company’s exploration model that the project has the potential to host a substantial mineralised system. 16 | P a g e Culpeo Minerals Limited Directors' report Quelon Project The Quelon Project (Figure 12) is located approximately 20km north of the City of Illapel, 240km north of Santiago and 40km south of the Lana Corina Project. Figure 12: Quelon Concessions showing the location of high-priority exploration targets. targets (Refer ASX Announcement 3 May 2023). Quelon is approximately 8km west of the El Espino Copper-Gold Project (123Mt @ 0.66% Cu and 0.24g/t Au, López et al., 20143)1 which is owned by the Chilean mining company, Pucobre. Quelon consists of multiple outcropping copper targets with surface rock chip sampling having reported up to 3.0% Cu. Previous explorers conducted ground magnetic and IP surveys, with several drill ready targets identified, over a prospective strike length of 10km. Three significant targets: Anico, La Despreciada, and La Tabita have been identified at the Quelon Project (Refer ASX announcement 19 April 2022), related to Iron-Oxide-Copper-Gold (“IOCG”)/Manto style mineralisation. Anico Prospect Mapping and Geophysical Program Culpeo’s geological team has established a correlation between high-grade copper values and coincident geophysical anomalies at the Anico Prospect. The recently completed mapping program (Refer ASX announcement 13 July 2022) has discovered a large surface outcrop of oxide mineralisation. (9) López, G.; Hitzman, M.; Nelson, E. 2014. Alteration patterns and structural controls of the El Espino IOCG mining district, Chile. Mineralium Deposita 49 (2): 235. 17 | P a g e Culpeo Minerals Limited Directors' report The Anico Prospect is considered to have significant prospectivity for IOCG or manto style mineralisation due to the elevated chargeability anomalies, its proximity to magnetic highs and mapped alteration in outcrop. Newly discovered copper and gold mineralisation at surface is coincident with the Anico geophysical anomaly, providing further evidence of a deeper mineralised body at the prospect. Assay results received from rock chip sampling programs have identified an 800m x 1,000m surficial zone displaying elevated copper and gold geochemistry with up to 1.88% Cu and 4.10 g/t Au reported (ASX announcement 10 October 2022) (Figure 13 and Table 2). Figure 13: Geological map of the Anico Prospect showing the mapped zones of mineralisation and IP anomaly (Refer ASX announcement 10 October 2022). The elevated copper and gold results are coincident with the aforementioned geophysical anomalies (ASX announcement 19 April 2022). An infill sampling program, consisting of 67 samples, was undertaken as part of the recent surface mapping exercise in the area (ASX announcement 13 July 2022). 18 | P a g e Culpeo Minerals Limited Directors' report Table 2: Significant (>0.2% Cu) Surface Sampling Results – Quelon Project (Refer ASX announcement 10 October 2022) Sample No. Cu (%) Au (ppm) Ag (ppm) Q22-008 0.21 1.12 0.17 Q22-030 1.20 0.13 9.56 Q22-037 0.33 0.01 6.38 Q22-038 0.74 0.01 24.20 Q22-044 0.42 0.13 1.48 Q22-045 1.25 0.54 3.44 Q22-048 0.66 0.13 4.77 Q22-051 1.30 4.10 97.50 Q22-053 0.57 0.57 2.99 CPO0008095 1.88 0.45 1.43 CPO0008105 0.67 0.05 2.87 Geophysical Target The surface geochemical anomaly and primary chargeability anomaly (Figure 14 and 15) within the Anico Prospect appears to be associated with a resistive basement. The top of the feature is approximately 140m below surface, with the center of the feature located approximately 260m below surface. Figure 14: 2D Inversion model resistivity (top) and chargeability (bottom) sections for PDIP data acquired over the Anico Prospect (Refer ASX announceme