DLP Resources Provides Update on Esperanza Drill Program

DLP pauses Esperanza drilling for permit issues; Aurora PEA shows US$2.7B NPV, 18.5% IRR.

What the company is saying

DLP Resources Inc. reports a temporary halt to drilling at its 100%-owned Esperanza copper-gold-molybdenum project in southern Peru due to unresolved project authorization matters. The company states it is working closely with Peruvian legal and technical advisors and relevant authorities to secure the necessary confirmations, expressing confidence that these issues can be resolved. DLP emphasizes its intent to recommence drilling at Esperanza as soon as practicable but does not provide a specific timeline. The announcement also highlights the Aurora project, presenting detailed resource figures and economic metrics from a September 2026 Preliminary Economic Assessment: an after-tax NPV8% of US$2,703 million, an IRR of 18.5%, and a 17.5-year mine life. Aurora's production profile is outlined as 90.5 million pounds of copper, 37.4 million pounds of molybdenum, and 1.21 million ounces of silver per year. The tone is neutral and factual, with explicit acknowledgement of the preliminary nature of the PEA and its associated risks and uncertainties. CEO Ian Gendall is named as the qualified person under NI 43-101 who has reviewed and approved the technical content.

What the data suggests

Drilling at Esperanza, which began on September 20, 2026, is currently paused pending resolution of authorization issues, with no restart date disclosed. The Esperanza project is described as an emerging district-scale copper-gold target, supported by a 5.0km × 2.5km magnetic anomaly and high-grade surface and trench sampling, located 35km from Cerro Verde. At Aurora, the indicated mineral resource is 614.84 million tonnes at 0.19% copper, 0.06% molybdenum, and 2.09 g/t silver, while the inferred resource is 1,118.80 million tonnes at 0.18% copper, 0.07% molybdenum, and 1.95 g/t silver. The September 2026 PEA for Aurora projects an after-tax NPV8% of US$2,703 million and an IRR of 18.5% over a 17.5-year mine life using both open pit and underground methods. Aurora's planned annual payable production is 90.5 million pounds of copper, 37.4 million pounds of molybdenum, and 1.21 million ounces of silver. The PEA is preliminary, relies on inferred resources, and is subject to significant risk factors including commodity prices, permitting, and financing. No current cash flow, revenue, or cost figures are disclosed, and the company provides no update on financial position or recent expenditures.

Analysis

The announcement provides a factual update on the temporary pause of drilling at the Esperanza project and summarizes technical and economic data for the Aurora project. The tone is measured, with clear disclosure of both the preliminary nature of the Aurora PEA and the risks and uncertainties involved. While the Aurora project is described in positive terms, the company explicitly cautions that the PEA is preliminary, includes inferred resources, and may not be realized. No exaggerated or promotional language is used regarding imminent value creation, and the forward-looking statements are balanced by risk disclosures. The capital intensity flag is set due to the large-scale, long-term nature of the Aurora project, but the company does not overstate the immediacy or certainty of returns. Overall, the narrative is proportionate to the evidence, with no material gap between claims and disclosed facts.

Risk flags

• ●Regulatory and permitting risk at Esperanza is acute, as drilling is paused pending resolution of authorization matters; delays or adverse outcomes could stall or halt project advancement.
• ●Aurora's PEA is based on inferred resources, which are geologically speculative and may not convert to reserves or support the projected economics, increasing the risk that the US$2,703 million NPV and 18.5% IRR will not be realized.
• ●Project economics for Aurora are highly sensitive to commodity prices, capital and operating costs, and metallurgical recoveries, all of which are subject to significant uncertainty at this stage.
• ●Financing risk is material, as the scale and capital intensity implied by a 17.5-year mine life and large resource base will require substantial funding, with no financing plan disclosed.
• ●Community relations and social license in Peru present ongoing risks, as acknowledged in the cautionary statements, and could impact permitting and project timelines.

Bottom line

DLP Resources has paused drilling at Esperanza due to unresolved authorization issues, with no timeline for resumption, leaving near-term progress uncertain. The Aurora project is more advanced on paper, with a September 2026 PEA outlining a US$2.7 billion after-tax NPV8% and 18.5% IRR, but these figures are preliminary and rest on inferred resources, making them speculative. Both projects face substantial permitting, technical, and financing risks before any value can be realized, and the company provides no update on cash position or funding strategy. The most immediate catalyst is the resolution of Esperanza's permitting issues; until then, operational momentum is stalled. Investors should focus on regulatory progress at Esperanza and evidence of de-risking or financing at Aurora as the next material developments.

Announcement summary

(TSXV:DLP, OTCQB:DLPRF, FSE:J8C) DLP Resources Inc. has provided an update on its maiden drill program at the 100%-owned Esperanza copper-gold-molybdenum project in southern Peru. Drilling activities at Esperanza have been temporarily paused while the company addresses certain matters relating to the project's authorization. DLP Resources is working closely with its Peruvian legal and technical advisors and the relevant authorities to resolve these matters and obtain the necessary confirmations to recommence drilling. The company states it has no reason to believe these matters cannot be resolved. DLP Resources remains committed to advancing the maiden drill program at Esperanza and intends to recommence drilling as soon as practicable. The Esperanza project is described as an emerging district-scale copper-gold discovery located 35km from Cerro Verde, one of the world's largest copper mines, and features a 5.0km × 2.5km magnetic anomaly supported by high-grade surface and trench sampling results. The maiden drill program at Esperanza commenced on September 20, 2026. DLP Resources is also advancing the 100%-owned Aurora project in southern Peru, a large-scale porphyry copper-molybdenum-silver deposit. Aurora contains a combined open pit and underground indicated mineral resource of 614.84 million tonnes at 0.19% Cu, 0.06% Mo, and 2.09 g/t Ag, and an inferred mineral resource of 1,118.80 million tonnes at 0.18% Cu, 0.07% Mo, and 1.95 g/t Ag. An independent Preliminary Economic Assessment (PEA) completed in September 2026 established an after-tax NPV8% of US$2,703 million and an IRR of 18.5%, based on a 17.5-year mine life utilizing open pit and underground mining methods. Aurora's production profile contemplates payable production of 90.5 million pounds per year of copper, 37.4 million pounds per year of molybdenum, and 1.21 million ounces per year of silver. Mr. Ian Gendall, President and Chief Executive Officer, is the qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this news release. The PEA results are preliminary in nature and based on a Mineral Resource Estimate that has not been upgraded to a Mineral Reserve, and the economic analysis does not have as high a level of certainty as a Pre-Feasibility Study or Feasibility Study. The PEA includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be classified as Mineral Reserves. There is no certainty that the PEA will be realized. Actual capital costs, operating costs, production rates, metallurgical recoveries, and project economics may differ materially from those set out in the PEA. The PEA is subject to various risks and uncertainties, including those related to commodity prices, exchange rates, capital and operating costs, permitting timelines, and the availability of financing. Readers are directed to the company's news release dated September 1, 2026 for disclosure of QA/QC procedures, methodology, and data verification undertaken in respect of the Aurora mineral resource estimate and PEA.

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