Copperstone Resources : CS 23 ANNUAL REPORT_ENG

Annual Report 2023

Contents

Introduction

Copperstone in brief

The year in brief 2023

A word from the CEO

Focus areas for 2024

Goals and strategy

Activities

The market

Copperstone's position in the market

Viscaria

Timetable

Environmental permit

Preparations for mine opening

Other projects

Sustainability

Sustainability at Copperstone

A decent employer for everyone

Future-proof mining

Promoting biodiversity

Climate and energy

Sustainable business

Contributing to local community development

Ethical business practices

Assets

Mineral resources

Exploitation concessions and exploration permits

	Risk factors	54
4	The share	58
6
8	Corporate governance
12	Corporate governance report	61
13	Auditor's statement on	67
	the corporate governance report
	The Board of Directors and auditor	68
14	Group Management	71
18
20	Financial information
	73
22	Board of Directors' report
	79
24	Five-year summary
	80
26	Financial reports f the group
	85
34	Financial reports of the parent company
	90
	Proposed appropriation of earnings
	Auditor's report	108

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38 Other

40	Glossary	114
	114
41	Information for shareholders
42
43
44	The audited annual report for Copperstone Resources AB (publ),
46
corporate identity number 556704-4168, comprises pages 73-107.
	Copperstone has taken great care to translate this annual report
	into English. In the unlikely event that there are differences in
	content between the two language versions, the Swedish original
48	takes precedence.
52	Copperstone's remuneration report is available
on the company's website www.copperstone.se.

If you want to know more about the company,	Production: Cord Communication
visit Copperstone's film archive via the QR code.	Photos: Lars Burell, Fredric Alm and Linnea Lundkvist

Copperstone in brief

Copperstone in brief

Copperstone aims to become a modern and responsible mining company through the reopening of the Viscaria mine in Kiruna. The deposit's high copper content, estimated mineral resources, geographical location and a growing team of experienced employees provide good conditions for Copperstone to become an important supplier of responsibly produced copper - a metal that has a central role in Sweden's and Europe's climate transition towards an electrified society.

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Copperstone • Annual Report 2023

In addition to the Viscaria mine, Copperstone holds a number of exploitation concessions and exploration permits in Arvidsjaur (Eva, Svartliden, Granliden) and Smedjebacken (Tvistbo mine).

Preparations for the reopening of the Viscaria mine are currently underway. It is estimated that approximately 30,000 tonnes of copper per year will be extracted when the mine is in operation, making the Viscaria mine one of the largest copper producers in northern Europe. Demand for locally and responsibly produced copper is expected to increase in line with the ongoing climate transition and continued electrification. In the industry, major investments are underway in battery production as well as fossil-free production of electricity and metals - factors that strengthen Viscaria's role in the market.

The company's ambition is for production at the Viscaria mine to start in 2026. The timing of the start of mining is dependent on when the company receives an environmental permit and that the permit gains legalforce.

Copperstone in brief

Mission statement

To identify and develop mineral resources in the Nordic region and produce base and precious metals in a long-term and sustainable way in consultation with the local community.

Vision

Responsible mining for a sustainable future.

Copperstone • Annual Report 2023

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The year in brief

The year in brief

FIRST QUARTER

• Frida Keskitalo is appointed new CFO of Copperstone
• Norrlandsfonden invests an additional SEK 5.6 million in a convertible debenture in Copperstone.

SECOND QUARTER

• The Land and Environment Court (MMD) announces the company's application for an environmental permit for copper mining in the Viscaria mine on 24 May.
• A directed share issue provides the company with SEK 258 million after deduction of issue costs. Skandia, Handelsbanken Fonder and the Fourth Swedish National Pension Fund become new shareholders.
• The MMD announces a timetable for the environ- mental permit application, including that the main hearing will start on 30 January 2024 and last for three weeks, with the hearing being held in Kiruna
• Land allocation is granted for the Viscaria mine on 29 June in accordance with the application.

THIRD QUARTER

• Jörgen Olsson is appointed as the new CEO following Henrik Ager's announcement of his resignation. In recent years, Jörgen Olsson has been Executive Chairmanman of the Board.
• Board member Per Colleen is appointed as the new Chairmanman of the Board.
• The MMD holds an inspection at at Viscaria on 29 September 2023. The inspection is part of the environmental permit application process.

FOURTH QUARTER

• Copperstone is listed on Nasdaq Stockholm on
  8 December 2023, after previously being listed on First North Growth Market.
• Consolidation of shares, so-called reverse split, where 20 existing shares became one new share. The first day of trading after the reverse split was 13 December 2023.

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Copperstone • Annual Report 2023

The year in brief

Copper resources Viscaria

Copper-bearing rock, Mtonnes		Copper, Cu, ktonnes, 1, 2, 3

Mtonnes			ktonnes
90			900
			818
80		734	800
	699		93
70			700
609			600
60
50		72	500
40	59		400
52			300
30
20			200
10			100
0			0
2018	2020	2021	2022

1 See www.copperstone.se for detailed information on tonnage and grades in each class and zone of the reported mineral resources.

2 Resource update includes cut-off of 0.25% in A and B zones and 0.4% in D zones due to higher proportion of expected underground mining. 3 Excluding existing tailings pond of 12.7 Mtonnes @ 0.27% Cu, 0.24% Zn, 0.06 g/t Au, 0.87 g/t Ag and 145 g/t Co.

Copperstone • Annual Report 2023

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A word from the CEO

The increased electrification of our society and the need to modernise the current electricity grid are expected to lead to

a growing demand for copper

The wells we have drilled confirm that Viscaria is a rich deposit that has the potential to grow further. In other words, there are good conditions for profitable and sustainable mining operations for many years to come.

Jörgen Olsson CEO Copperstone Resources AB

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Copperstone • Annual Report 2023

A word from the CEO

Copperstone • Annual Report 2023

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A word from the CEO

In 2023, we have achieved several significant milestones in

Copperstones journey towards solidifying itself as an established company through the reopening of the Viscaria copper mine in Kiruna. We have made progress in the permit processes and are now approaching the final stages of securing the environmental permit, which is very gratifying.

At the same time, preparations for the reopening are continuing in an unabated pace, with processes and methods for future mining operations are being established. In December, we moved to Nasdaq Stockholm's main list and got to ring the stock exchange bell here in Kiruna, which in many ways was a historic day for us.

Favourable conditions for the start of mining

The timing for the reopening of the Viscaria mine continues to look very favourable. Despite the fact that the global economy slowed in 2023 and we saw the highest interest rates we have seen in decades during the year, there is no doubt that the outlook for the copper market remains very bright. The increased electrification of society and the need to modernise the current electricity grid are expected to lead to a growing demand for copper for several decades to come. For us, as a future modern mine operating company with low emissions, the outlook looks particularly favourable. Our location in northern Sweden, with access to fossil-free electricity and excellent transport options via the Malmbanan, means that we are well positioned to become an important player in this market.

Progress in permit processes

Our environmental permit application for the Viscaria mine was proclaimed by the Land and Environment Court in May 2023 and at the beginning of 2024, the main hearing was held here in Kiruna. Prior to the juridical review, interested parties had the opportunity to submit comments and questions, to which we responded on an ongoing basis. It is reassuring that we have clearly focussed on environ-

mental issues right from the start and developed innovative and forward-looking solutions regarding, among other things, water purification and biodi- versity. Our innovative water treatment solution has already attracted great interest from both authorities and industry colleagues, which we are very proud of. I am convinced that our solid environmental work will not only facilitate the process leading up to the mine opening, but will also make an important contribution to positioning Viscaria as one of the most sustainable copper mines in Europe.

In mid-2023, we were informed by the Swedish Mining Inspectorate that land allocation has been granted for the Viscaria project. Land allocation is an important announcement and means that mining is the activity that is given priority on the land in question. This means that the end-of-life wind turbines that currently stand in the area will be dismantled and that some compensation will be paid to the affected land and rights owners.

Obtaining environmental permits and land allocations, both of which are critical for starting mining operations, are time-consuming processes. After almost four years of work, we are now approaching the final phase, which feels very encouraging and means that we can increase our focus on detailed planning and preparation for the upcoming operations.

Preparatory studies

In 2023, intensive preparations have been underway for the upcoming reopening of the mine. Our ambition is to be as thorough as possible early in the process and consider all aspects of future mining

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Copperstone • Annual Report 2023