Solaris Resources Inc T.SLS

TD

[retiredcf]

Maintain their $20.00 target. GLTA

Solaris Resources Inc.

(SLS-T) C$5.31

West Follow up Holes Outline Broad Porphyry Deposit Event

This morning, Solaris reported assay results from nine holes on the Warintza West discovery within its Warintza Project in southeastern Ecuador.

Impact: SLIGHTLY POSITIVE

• As a reminder, Warintza West (discovered February 2021) is one of four discoveries made within the Warintza porphyry cluster and is located 1km west of the Warintza Central Resource Estimate (~1.5 Bt at 0.52% CuEq).

• Today's follow-up holes fan out in all directions, outlining a broad porphyry deposit (potentially greater than 900m x 600m) which is still open and lies adjacent to and not included within the current Resource (or our NAV estimate).

• Follow-up drilling to test the further extent of the deposit is planned after priority drilling at Warintza Central aimed at expanding the starter pit (287 Mt at 0.79% CuEq) and higher-grade resource expansion potential at Warintza East (results anticipated in the coming weeks).

• Overall, drilling at Warintza West demonstrates the interpretation of a broad porphyry deposit that remains open in all directions. Assays are pending from three additional holes testing the zone further to the west, east, and south. Management reported that step-out drilling is planned targeting high-grade surface sampling.

• Highlights: SLSW-07 (drilled north) returned 686m of 0.46% CuEq within a broader interval of 912m of 0.41% CuEq (near-surface).

• SLSW-05 (drilled northeast) returned 272m of 0.38% CuEq within a broader interval of 570m of 0.30% CuEq (near-surface).

• SLSW-09 (drilled west) returned 202m of 0.45% CuEq within a broader interval of 444m of 0.36% CuEq (near-surface).

• Solaris last reported cash of $24mm (June 30) and no debt. Additional funds could come from warrants expiring in Q4/22 (C$7mm at C$1.20/sh and C$17mm at C$6.75/sh) and H1/23 (C$30mm at C$1.20/sh). Of the expiring warrants, the company's Executive Chairman could contribute proceeds of C$16mm by year- end and an additional C$19mm by May 2023.

• We continue to believe that the company is very well-positioned. There has been a dearth of discoveries over the past two decades, leaving the pipeline slim to fill the looming copper supply gap (~5.2 Mt by 2030). We see Warintza as a natural acquisition target as the company continues to advance the project.