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History

San Manuel is a large, past-producing copper project in Pinal County, Arizona. It comprises two spatially separated but genetically related deposits, the San Manuel deposit and the Kalamazoo deposit, which together constitute one of the largest porphyry copper systems developed in North America. The exploration history of the project spans more than a century, progressing from initial prospecting in the late nineteenth century through systematic geological investigation and drilling programs that led to the definition of an economic copper resource in the 1940s and the discovery of the Kalamazoo deposit in the 1960s. The San Manuel project helped shape the region’s mining history and has contributed to the geological understanding of porphyry copper deposits worldwide, forming the basis for the Lowell-Guilbert porphyry copper model in the 1960s.

Commercial mining commenced in 1955 and continued until 1999. During its operating life, the San Manuel project was one of the largest underground copper mining operations in North America and was mined using a combination of underground block cave mining, open pit mining, heap leaching and in-situ leaching methods. Historical processing facilities included a concentrator, smelter, refinery, solvent extraction-electrowinning facilities and associated infrastructure. Historical production from the integrated San Manuel-Kalamazoo operation totaled over 4.2 million tonnes (4.65 million short tons) of copper together with significant molybdenum production and additional gold and silver by-products.

As a result of declining copper prices, mining operations at San Manuel concluded in 1999. A significant historical resource1 remained at closure, which is a historical estimate only and is not considered a current mineral resource or mineral reserve under NI 43-101. As part of the closure process, historical drill core was not preserved.

The project subsequently entered care and maintenance, and closure and reclamation activities were completed between 2003 and 2008 in accordance with approved regulatory closure plans. Major processing and smelting facilities were deconstructed and reclaimed, and the San Manuel project is currently subject to ongoing environmental monitoring and compliance activities. The project is not presently in production.

Today, the consolidation of the San Manuel project with the adjacent Copper Creek project into the Redhawk Copper Complex represents a rare opportunity to create a district-scale Arizona copper platform in one of the world’s premier copper jurisdictions.

San Manuel Project Highlights:

  • Historically significant U.S. copper operation with approximately 44 years of production from the San Manuel and Kalamazoo deposits.
  • Operating history includes major integrated mining complex with underground block cave, open pit, heap leach and in situ leach solvent extraction of copper and recovery by electrowinning (SX-EW).
  • The discovery of Kalamazoo established the missing offset portion of the San Manuel porphyry system and helped shape the Lowell-Guilbert porphyry copper model.
  • Extensive historical drilling, production, metallurgical, and operating data provide a strong foundation for modern technical evaluation and subsequent production.
  • The combination of the San Manuel project with the Copper Creek project, now known as the Redhawk Copper Complex, creates a district-scale Arizona copper platform.

Development Timeline

1879

Copper-stained outcrop at Red Hill, Pinal County, Arizona attracted early prospecting during the discovery period of the nearby Mammoth mine

1925 - 1942

San Manuel Claims No. 1 to No. 5 were staked at Red Hill by Anselmo Laguna. The claim group expanded to 21 claims, and Henry Nichols was engaged as technical advisor

1943 - 1944

The U.S. Bureau of Mines commenced drilling and intersected the sulphide ore body, supporting an initial estimate of approximately 30 million short tons at a grade of 0.80% copper

1944 - 1945

Magma Copper Company optioned, drilled, and acquired San Manuel, forming San Manuel Copper Corporation to advance development

1948 - 1953

Shaft sinking and mine development advanced, including the No. 1 shaft, to serve as ventilation and supply shaft, and No. 2 shaft, to facilitate underground exploration and development, as well as the first two production shafts

1955 - 1956

Block caving commenced, followed by commercial mining and milling operations and start-up of the San Manuel smelter

1963 - 1974

The concentrator was expanded to 62,500 short tons per day, and refinery, rod plant, and additional facilities were commissioned

1965 - 1968

Quintana Minerals discovered the Kalamazoo deposit under the guidance of J. David Lowell. Magma Copper acquired Kalamazoo in 1968

1970

San Manuel and Kalamazoo geological work formed the basis of the Lowell-Guilbert porphyry copper model

1977 - 1981

Underground development of Kalamazoo began through the No. 5 shaft and was suspended due to weak copper market conditions

1983 - 1985

Magma Copper evaluated and commenced open pit mining of shallow oxide copper mineralization above the San Manuel underground workings

1986 - 1988

Heap leach, SX-EW, and in situ leach operations were commissioned. Magma Copper modernized the smelter with an Outokumpu flash smelter

1990 - 1993

Limited production from the upper area of the Kalamazoo deposit commenced, and development of the lower Kalamazoo levels was approved

1995 - 1996

San Manuel oxide open pit mining was suspended after depletion of economically mineable oxide reserves at the time. BHP Group acquired Magma Copper in 1996

1999

BHP placed San Manuel operations on care and maintenance, including underground mining, concentrating, smelting, and refining. Limited in situ-leaching continued

2002 - 2003

Underground operations were permanently suspended, heap leach cathode production ceased, and the concentrator, smelter, refinery, and rod plant were closed

2007 - 2008

Major reclamation activities were completed, including demolition of the smelter stacks and reclamation of the plant area, tailings area, and Black Hills Quarry

2013 - 2015

BHP completed a brownfield drilling campaign using contemporary exploration and QA/QC protocols

2026

Faraday Copper acquired the San Manuel project, consolidating San Manuel with the adjacent Copper Creek project and forming the Redhawk Copper Complex

Note

1 For historical resource (based on US$0.80/lb copper constraint), reference the Company’s technical report titled “Technical Report - San Manuel Property Pinal County, Arizona”, filed by the Company on SEDAR+ on July 30, 2026 and available on the Company’s website.

Cautionary Statement Regarding Historical Estimates

Historical estimates relating to the San Manuel project are historical in nature and are not current mineral resources or mineral reserves under NI 43-101. While Faraday Copper considers the historical estimate to be relevant to investors as they indicate the presence of copper mineralization, the mineral resource estimates referenced herein were calculated prior to the adoption of NI 43-101 and are provided as historical data only. The estimates were calculated using a copper price assumption of US$0.80/lb, which differs significantly from current market conditions and these estimates should not be relied upon for economic evaluation. A qualified person has not completed the work necessary to classify the historical estimate as current mineral resources and Faraday is not treating the historical estimate as current.

Sources

Briggs, D.F., 2014, History of the San Manuel-Kalamazoo Mine, Pinal County, Arizona: Arizona Geological Survey Contributed Report CR-14-A.

San Manuel technical report titled “Technical Report - San Manuel Property Pinal County, Arizona”, filed by Faraday Copper on SEDAR+ on July 30, 2026 and available on the Company’s website.

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