Los Andes Copper Announces Investment By Queen’s Road Capital and Appointment of Non-Executive Director

Los Andes Copper Ltd. (TSXV: LA) (“Los Andes” or the “Company”) is pleased to announce that it has entered into an agreement with Queen’s Road Capital Investment Ltd. (TSXV: QRC) (“Queen’s Road Capital”) whereby Queen’s Road Capital will invest US$5,000,000 in Los Andes by the way of convertible debenture (the “Convertible Debenture”). The proceeds from the Convertible Debentures will be used for general corporate purposes.

The Convertible Debenture will have a five-year term, carry an eight percent coupon and will be convertible into common shares in the capital of the Company (“Common Shares“) at a share price of C$10.82. The interest is payable quarterly, five percent in cash and three percent in shares, at the 20-day volume weighted average price prior to the interest payment date.

The proceeds received from this investment will be allocated towards the completion of the Vizcachitas project (“Vizcachitas” or the “Vizcachitas Project”) pre-feasibility study (“Pre-Feasibility Study”).

The financing is subject to the satisfaction of customary closing conditions, including but not limited to TSX Venture Exchange (“TSX-V”) and other regulatory approvals and the completion of due diligence and definitive documentation. The investment is expected to occur in May 2021.

In conjunction with the investment, Chairman and CEO of Queen’s Road Capital, Warren Gilman, has agreed to be nominated for appointment to the board of directors of the Company at its upcoming shareholder meeting.

Fernando Porcile, Executive Chairman of Los Andes, commented:

“We are pleased to have entered into this investment agreement with Queen’s Road Capital, and Los Andes is the company’s first investment in the copper sector, highlighting the high quality nature of the Vizcachitas Project.

“This investment follows the receipt of unanimous approval for drilling to be carried out at the Vizcachitas Project, which is required to complete the ongoing Pre-Feasibility Study, and I look forward to keeping the market updated with our progress.”

Warren Gilman, Chairman and CEO of Queen’s Road Capital, commented:

“Queen’s Road Capital is happy that its first investment in the copper sector is in Los Andes Copper. The Vizcachitas Project is potentially the most advanced, ready to build copper porphyry project in South America. We look forward to working together with Fernando and his team as they advance the Vizcachitas Project towards production.”

About Queen’s Road Capital Investment Ltd.

Queen’s Road Capital Investment Ltd. is a leading financier to the global resource sector. The company is a resource focused investment company, making investments in privately held and publicly traded resource companies.

It is intended that the company will acquire and hold securities for both long-term capital appreciation and short-term gains, with a focus on convertible debt securities and resource projects in advanced development or production located in safe jurisdictions.

Queen’s Road Capital Investment Ltd. is listed on the TSX-V under the ticker: QRC.

About Los Andes Copper Ltd.

Los Andes Copper Ltd. is a development company with a 100% interest in the Vizcachitas Project in Chile. The Company is focused on progressing the Vizcachitas Project, which is located along Chile’s most prolific copper belt, into production.

Vizcachitas is a copper-molybdenum porphyry deposit, located 120 km north of Santiago, Chile, in an area of good infrastructure. The National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant report titled “Preliminary Economic Assessment of the Vizcachitas Project” (the “PEA”), dated June 13, 2019, prepared by Tetra Tech, highlights that the Vizcachitas Project has a post-tax NPV (8% discount rate) of approximately USD$1.8 billion and an IRR of 20.77%, based on a USD$3 per pound copper price. The Vizcachitas Project has a Measured Resource of 254.4 million tonnes at a grade of 0.439% copper and an Indicated Resource of approximately 1.03 billion tonnes at a grade of 0.385% copper. The PEA can be found on the Company’s SEDAR profile at www.sedar.com.

The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

The Company is currently undertaking the Pre-Feasibility Study of the Vizcachitas Project. With the incorporation of a highly experienced management team, Vizcachitas is incorporating changes to position itself on the forefront of global environmental trends for mining. The conversion to dry-stacked filtered tailings will result in a substantial reduction in water consumption and will discard the use of tailings dams, thus reducing Vizcachitas’ footprint, environmental impact and seismic risks.

Additionally, there is significant exploration upside at Vizcachitas with the potential to increase the mineral resource base beyond the initial 45-year mine life modelled in the PEA. Part of this upside has been further delineated in the geological mapping and geophysics work program completed during the 2020 Chilean winter season.

Los Andes Copper Ltd. is listed on the TSX-V under the ticker: LA.

Qualified Persons

Antony Amberg CGeol FGS, the Company’s President and CEO, is the qualified person under NI 43-101 who have reviewed and approved the scientific and technical information contained in this news release.

For more information please contact:

Fernando Porcile, Executive Chairman
Tel: +56 2 2954-0450

Antony J. Amberg, President & CEO
Tel: +56 2 2954-0450

Blytheweigh, Financial PR
Megan Ray
Rachael Brooks
Tel: +44 207 138 3203

E-Mail: info@losandescopper.com or visit our website at: www.losandescopper.com

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Certain of the information and statements contained herein that are not historical facts, constitute “forward-looking information” within the meaning of the Securities Act (British Columbia), Securities Act (Ontario) and the Securities Act (Alberta) (“Forward-Looking Information”). Forward-Looking Information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend”; statements that an event or result is “due” on or “may”, “will”, “should”, “could”, or might” occur or be achieved; and, other similar expressions. More specifically, Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-Looking Information. Such Forward Looking Information includes, without limitation, the final terms of the Convertible Debentures, the timing and closing of the offering, Warren Gilman being elected to the board of directors of the Company, the timing of and ability to obtain TSX-V and other regulatory approvals and the prospects, details related to and timing of the Vizcachitas Project. Such Forward-Looking Information is based upon the Company’s assumptions regarding global and Chilean economic, political and market conditions and the price of metals and energy and the Company’s production. Among the factors that have a direct bearing on the Company’s future results of operations and financial conditions are changes in project parameters as plans continue to be refined, a change in government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one or more of any of the aforementioned risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly, readers are advised not to place undue reliance on Forward-Looking Information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Information, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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