(all amounts in US dollars, unless otherwise noted)

Vancouver, British Columbia – Ero Copper Corp. (TSX: ERO, NYSE: ERO) (“Ero” or the “Company”) is pleased to announce its financial results for the three and twelve months ended December 31, 2021. Management will host a conference call tomorrow, Wednesday, March 9, 2022, at 11:30 a.m. Eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release.

HIGHLIGHTS

Record full-year copper production of 45,511 tonnes and gold production of 37,798 ounces included 11,918 tonnes of copper and 8,544 ounces of gold produced during the fourth quarter, surpassing the high-end of the Company's 2021 production guidance ranges;
Copper C1 cash costs(*) for the fourth quarter and full year were $0.96 and $0.77, respectively, per pound of copper produced;
Gold C1 cash costs(*) for the fourth quarter and full year were $582 and $525, respectively, per ounce of gold produced. All-in Sustaining Costs ("AISC")(*) for the same periods were $910 and $732, respectively, per ounce of gold produced;
Record 2021 adjusted EBITDA(*) of $331.9 million included $86.8 million of adjusted EBITDA(*) generated during the fourth quarter;
Fourth quarter and full-year adjusted net income attributable to owners of the Company(*) were $59.7 million ($0.65 per share on a diluted basis) and $215.4 million ($2.37 per share on a diluted basis), respectively, with the latter representing another record metric for the Company;
Quarterly cash flows from operations of $66.7 million brought full-year cash flows from operations to $364.6 million, which included a $100.0 million upfront payment related to the August 2021 closing of the $110 million streaming agreement with RGLD Gold AG, a wholly- owned subsidiary of Royal Gold Inc., in relation to gold production from the NX Gold Mine (the "NX Gold Stream");
Available liquidity of $230.1 million at December 31, 2021 included $130.1 million of cash and cash equivalents and $100.0 million of undrawn availability under the Company's senior secured revolving credit facility; and,
Reiterate previously announced full-year 2022 production, operating cost and capital guidance.
SUBSEQUENT EVENTS

In February 2022, the Company bolstered its balance sheet and liquidity position with an offering of $400 million of senior unsecured notes due 2030. The Company subsequently used approximately $50 million of net proceeds from the offering to repay the outstanding balance under its senior secured revolving credit facility and intends to use the remaining proceeds, together with cash on hand, to fund capital expenditures related to the construction of the Boa Esperança Project and for general corporate purposes.
Concurrent to the closing of the $400 million senior unsecured notes offering, the Company reduced the size of its senior secured revolving credit facility from $150 million to $75 million, with an accordion option to increase to $100 million at the election of the Company.
Pro forma liquidity position, subsequent to closing, was approximately $550 million, including approximately $475 million in cash and cash equivalents and $75 million of undrawn availability under the Company's senior secured revolving credit facility.
In February 2022, the Company announced that its Board of Directors approved the construction of the Boa Esperança Project, which is expected to commence construction in Q2 2022.
Commenting on the results, David Strang, CEO, stated, “2021 marked another exceptional year for Ero. In addition to delivering record copper production and financial results, our team made significant progress in solidifying transformational organic growth plans, placing the Company in a strong position to execute on initiatives targeting approximately 100,000 tonnes of annual copper production and 60,000 ounces of annual gold production by 2025.

“Building upon operational momentum, subsequent to year-end we bolstered our balance sheet with a $400 million senior unsecured notes offering, providing ample liquidity to fund our organic growth plans over the coming years. Near-term, we will be focused on commencing the construction of the Boa Esperança Project, which we expect to occur in Q2 2022, further advancing construction of the external shaft of the Pilar Mine, an integral component of our Pilar 3.0 initiative, and continuing to grow our asset base through ongoing exploration.

“As we look to the future, we are excited to solidify our position as one of the world's cleanest and fastest growing copper producers. With decarbonization and tightening emission standards expected to drive significant copper demand growth in the years ahead, our fully-funded growth strategy leaves us well-positioned to be at the forefront of low carbon-intensive copper production.”

*Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Adjusted EBITDA, Adjusted net income attributable to owners of the Company, Adjusted net income per share attributable to owners of the Company, C1 cash cost per pound of copper produced, C1 cash cost per ounce of gold produced and All-in Sustaining Costs (“AISC”) per ounce of gold produced are non-IFRS measures – see the Notes section of this press release for additional information. C1 cash cost per pound of copper produced are net of by-product credits from metal produced at the MCSA Mining Complex. AISC per ounce of gold produced are net of by-product credits from metal produced at the NX Gold Mine.

FOURTH QUARTER & FULL-YEAR REVIEW

Mining & Milling Operations – strong Q4 operating results contributed to another year of record copper production
The MCSA Mining Complex processed 646,319 tonnes of ore grading 2.01% copper, producing 11,918 tonnes of copper in concentrate during the quarter after metallurgical recoveries of 92.7%; full year 2021 copper production totaled 45,511 tonnes based on approximately 2.4 million tonnes processed at copper grades of 2.08% and metallurgical recoveries of 92.4%.
Higher quarter-on-quarter copper production was driven primarily by increased mill throughput volumes related to (i) the ramp-up of mining activity and processing of stockpiled ore from the Surubim open pit mine and (ii) a return to higher mill capacity levels following the completion of preventative mill maintenance, which impacted mill throughput volumes in Q2 and Q3 of 2021.
The NX Gold Mine processed 47,159 tonnes grading 6.24 grams per tonne, producing 8,544 ounces of gold after metallurgical recoveries of 90.3% and 5,859 ounces of silver produced as by-product; full year 2021 tonnes processed totaled 171,581 at an average grade of 7.27 grams per tonne, producing 37,798 ounces of gold after metallurgical recoveries of 94.2% and 25,031 ounces of silver produced as by-product.
Commissioning of the NX Gold Mine's paste-fill plant, where construction was completed in Q3 2021, continued during the fourth quarter and concluded in January 2022. The paste- fill plan is expected to improve overhand cut and fill mining operations and enhance pillar recovery throughout the mine.
Organic Growth Projects – clear and fully-funded organic growth strategy
During the fourth quarter, the Company finalized a redesign of the new external shaft of the Pilar Mine to allow for higher sustained production rates as part of the Pilar 3.0 initiative, which was announced subsequent to year-end. Plans to construct a larger shaft were driven by continued exploration success within the Deepening Extension Zone and in the upper levels of the Pilar Mine, enabling the creation of a two-mine system whereby the upper levels of the mine will be serviced by the existing shaft, while the Deepening Extension Zone will utilize the new, larger external shaft. Pilar 3.0 is expected to enable higher annual production volumes of 2.6 to 3.0 million tonnes compared to the current production rate of approximately 1.3 million tonnes per annum at the Pilar Mine.
The Company announced that its Board of Directors approved the construction of the Boa Esperança Project subsequent to year-end. Construction is expected to commence in Q2 2022, with first production anticipated in H2 2024.

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