Ivan Bebek, Co-Founder, President & CEO,

SOMBRERO RESOURCES

"Sombrero Resources is in the process of applying for a listing on the TSX exchange and is working toward meeting final conditions prior to an anticipated listing in the second half of 2021."

Can you elaborate on the circumstances surrounding the creation of Sombrero Resources?

Sombrero Resources was spun out of Auryn Resources in October 2020 and holds the Sombrero copper-gold project in southern Peru. We had raised and spent over C$100 million in Auryn looking for world-class precious and base metal discoveries and we identified several significant projects in both Canada and Peru, including Sombrero, which at the time was considered the flagship of Auryn. To allow each project to get the attention and valuation it deserves, we then split Auryn into three, by commodity focus; Fury Gold Mines, Tier One Silver and Sombrero Resources. We believe Sombrero Resources is a world-class copper/gold opportunity and anticipate listing in the second half of 2021.

What is the history of the Sombrero project, and what attracted you to it?

Many major mining companies have reviewed the Sombrero project as it sits on the western half of the Andahuaylas-Yauri belt, where world famous mines such as Las Bambas, Tintaya, Antacapay and many others are present; however, it was missed. Sombrero was primarily overlooked because of a thin blanket of volcanic rocks that sits on the surface. This layer of rock was identified in a government survey as Miocene age, which is not the prospective Eocene aged mineralization that hosts all the world-class mines about 200 km to the west of Sombrero. However, a geologist, Miguel Cardozo saw the potential through small erosional windows of outcrop that had limited rock sampling and returned high-grade copper and gold. He introduced us to the project and we were able to confirm that the age of the mineralization below the volcanic cover is in fact Eocene and we strongly believe the Andahuaylas-Yauri belt extends over 200 km west to where the Sombrero project is located. We have now taken over 5,000 samples, completed geophysics and some channel sampling, which returned up to 184 m of 0.57% CuEq. We also acquired some historical drilling data completed by an international steel company that was pursuing the claims for iron at the time, and their holes returned 0.58% copper equivalent over 116 m near surface.

What exploration plans do you have at the Ccascabamba and Nioc targets in 2021?

We have received a DIA permit on our Ccascabamba target, which allows us to drill from an environmental perspective, and we are now working toward our social permits. Once fully permitted, our first drill program will include up to 38 drill pads to start testing the 12 km strike length of targets that we’ve identified through surface work and geophysics. We are looking to obtain access and permits so that we can do the same at the Nioc target this year.

Which communities are in the vicinity of the north-western extension of the Andahuaylas-Yauri belt, and to what extent are mining and exploration accepted in the region?

The two communities of significance are Huancasancos and Lucanamarca, with whom we have spent considerable time getting to know and supporting through extensive community efforts, including federally recognized Agroideas programs that we have introduced and sponsored. Although it has taken time, we are very pleased with the rapport we have been able to establish prior to and during COVID. We have taken the longer route to establish deep ties with the community so we can be more aligned with stakeholders on a long-term, sustainable basis.

What is the financial position of the company, and when do you intend to list publicly?

As of today, the company has over US$6 million in its treasury and does not require funds. However, we will look to finance prior to listing to fund future drill programs. The company is in the process of applying for a listing on the TSX exchange and is working toward meeting final conditions prior to an anticipated listing in the second half of 2021.

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