INTERIM REPORT JANUARY – JUNE 2022

Kiruna, August 18, 2022

APRIL – JUNE 2022

• Capitalized exploration assets at the end of the period amounted to KSEK 547,305 (379,441).
• Cash and cash equivalents at the end of the period totaled KSEK 233,555 (185,384).
• Equity at the end of the period increased with 39% to KSEK 763,034 (547,711).
• Result for the period amounted to -5,504 KSEK (-3,603).
• Earnings per share amounted to SEK 0.00 (0.00)
• Cash flow for the period was KSEK –72,119 (69,523), mainly based on investments in core drilling at Viscaria and Arvidsjaur, the water purification project as well as the infrastructure project "The bridge construction" at the entrance to Viscaria.
• Total assets at the end of the period amounted to KSEK 832,478 (571,470).
  
  
  
  

JANUARY – JUNE 2022

• Result for the period amounted to KSEK -9,345 (-8,705).
• Earnings per share amounted to SEK -0.01 (-0.01).
• Cash flow for the period was KSEK 109,264 (184,432).
  
  
  
  

SIGNIFICANT EVENTS DURING THE PERIOD

• Norrlandsfonden continues to support Copperstone with a convertible loan of MSEK 5.5 at STIBOR +5% annual interest rate and a conversion rate of 1,54 SEK/share until April 2027.
  
  
• Copperstone received feedback from the Land and Environmental Court and a number of consultation bodies regarding additions to the environmental application.
  
  

CEO COMMENTS

At the end of the first quarter, we reached an important milestone towards the goal of reopening the Viscaria mine in Kiruna. On March 30, we submitted our environmental application to the Land and Environment Court. It has been a great effort as we set the bar high both in terms of scope and transparency. The objective is that the stakeholders affected, and the relevant authorities should be able to easily understand and assess the application in a short time. So far, it looks like we have succeeded with our ambition.

Already at the end of June, we received feedback from the Land and Environment Court and several referral bodies regarding additions to the application. The request for additions is a completely normal step in a process like this and enables us to receive as complete an application as possible. SGU (Sweden's Geological Survey), the County Administrative Board in Norrbotten County and MSB (Swedish Civil Contingencies Agency) have been clear in their feedback. Swedish Agency for Marine and Water Management and the Swedish Environmental Protection Agency have communicated that they do not intend to come up with any requirements for additions at this stage. In addition, we have received gratifying news that we received a land grant regarding the Viscaria area from Rennäringsdelegationen and Länsstyrelsen Norrbotten on June 20, 2022.

We have worked through these requests during the summer and intend to submit additions to the court in September 2022. When that is done, the Land and Environment Court will assess whether the application can be considered complete. When the application meets the requirements, it will be announced, and we hope to be able to do so in the fall of 2022. We have a timetable that is bold but also realistic and feasible. If everything goes according to plan, we can start mining in the summer of 2023, even before the processing plant is ready. In that case, we build a raw material stock piles or alternatively deliver the raw material to an external processing plant. Two years later, our processing plant is ready to produce high-quality copper and magnetite concentrate.

Increased local involvement

But we also had time for a lot of other things during the second quarter. All parts of the business are moving forward. Not least in the area of ​​transport and logistics. We have started the contract construction of our own bridge over the railway (Malmbanan) to facilitate accessibility to the Viscaria area. The bridge foundations are in place and the bridge is planned to be completed already this autumn. It will greatly facilitate the daily work and for our exploration activities. In addition, we have also increased the pace of our local engagement in Kiruna. Not least through our participation in the initiative Kiruna Växer (Kiruna Is Growing), where we, together with other partners, work hard so that Kiruna can grow with good housing and an expanded cultural and outdoor life. We were also a big sponsor of this year's Kiruna Festival, and it was wonderful to meet so many enthusiastic Kiruna residents on site during those days.

Investments in expansion of mineral resources

We have continued with core drilling, even at an accelerated rate, in order to secure and expand the mineral resources, both in Viscaria and in Arvidsjaur. Viscaria remains our primary focus and core drilling is expected to continue throughout 2022 and 2023. We expect to provide a new mineral update towards the end of the year with verified and expanded asset assessments. Read more about our assessments of both Viscaria and Arvidsjaur subsequently in this report.

Limited impact from increased turbulence in the outside world

The increased turbulence that we have seen in the world recently has so far had a limited impact on Copperstone and our business. While the copper price has declined quite a bit from the record highs seen in 2021 and early 2022, the dollar has also strengthened significantly against the krona, which should ultimately limit the impact of a copper price decline in our calculation of future earnings. Short-term fluctuations in copper price and currencies do not affect us in the preparation phase, where we are now. From a long-term perspective, we continue to see a large demand gap for copper that we want to help cover. In addition, we benefit from the trend for more locally produced minerals and a long-term increase in demand from future European customers. The world also needs metals and above all copper in large quantities to enable the transition that is necessary to reduce global carbon di oxide emissions and dependence on fossil fuels. We are now heading towards an eventful autumn. We have a dedicated team that continues the preparation work at top speed.

Anna Tyni, CEO Copperstone Resources

VISION

Responsible mining for a sustainable future.

THE COMPANY IN SHORT

Copperstone Resources AB is a company now scaling up to become a modern mining company with responsible production 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 prerequisites for Copperstone to become a key supplier of high quality and responsibly produced copper – a metal that plays a critical role in Sweden’s and Europe’s climate transition toward 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 (Tvistbo mine), all in Sweden. The Parent Company’s shares are traded on the Nasdaq First North Growth Market (ticker COPP B). Augment Partners is the company’s certified adviser, , .

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