Candente Copper Corp.DNT $0.085 TSX, BVL: DNT, OTC: CCOXF | Market Cap $15.2MDescription: Candente Copper is a mining exploration company that is developing the large scale Cañariaco Norte copper deposit in Northern Peru. The 100%-owned deposit contains Measured and Indicated Resources totaling 752.4 million tonnes grading 0.45% copper, 0.07 g/t gold and 1.9 g/t silver (0.52% Cu equivalent) containing 7.533 billion pounds of copper, 1.7 million ounces of gold and 45.2 million ounces of silver. The deposit also holds 157.7 million tonnes of Inferred Resources containing 1.434 billion pounds of copper. Although this core property is well defined, this is really an open-ended discovery story, as a second mineralized copper porphyry (Cañariaco Sur) has been discovered adjacent to the Cañariaco Norte deposit. The company has delineated a significant copper, gold and silver mineralization zone which extends for a minimum of 700 meters by 500 meters and is open in all directions. There is also strong evidence of a third porphyry deposit at the Quebrada Verde target. So, the real scale of the potential project areas is not yet known, but all signs point to considerable expansion and much larger future reserves.

The Value: The initial Pre-Feasibility study conducted in 2011 indicated potential annual production of 262 million pounds of copper (119 kil0tons), 39,000 ounces of gold, and 911,000 ounces of silver over a mine life of 22 years. This is significant output, representing close to 5% of current production in Peru today. Although the metrics are moving targets based on metals prices, the Cañariaco Norte project has recently shown an after-tax Net Present Value

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Research Type: Trend Timeliness: Opportunistic Date: June 11, 2018

Candente’s minimum production estimates are equal to 4.97% of current copper output in Peru.

of US$912M and a potential Internal Rate of Return of 17.2%. The economics are very favorable at the recent range for copper prices. To put this in perspective, Candente’s market cap of Cdn$15.2M represents barely 1% of the underlying value of the tested mineralization on these

properties. And reserves resources could rise significantly in the future with further drilling and delineation of the deposits at adjacent and nearby holdings. Copper Trends: With copper being the most prevalent metal at the site, trends in this commodity are the most important to the company. Under a scenario with long-term copper prices at US$2.2550/lb (today’s price is $3.28/lb) and a discount rate of 8%, the project has a very favorable payback period of just 4.84 years. Peru was the only country to show production growth in copper (1.7%) in 2017 and now ranks as the #2 producer, accounting for about 12% of world supply. This is a copper-friendly business environment.

Copper tends to have very long, multi-year trends, so the current uptrend has been encouraging for producers. On a very short-term basis, a 30-day view (see below) shows a spike in prices due to mine strikes and supply questions. For producers, even a price in the $3.00-$4.00 range would create

a stable environment, though signs point to higher prices. The key: short- and long-term trends are currently favorable for copper. A Word About the Team: It is a bit redundant to say that “management matters,” because that is essentially true for every company, but particularly true for junior miners. In that regard, Candente has an exceptionally experienced team with substantial experience in its core geographies and areas of focus. CEO and co-founder Joanne Freeze entered the mineral exploration business in 1979 and has managed exploration programs and evaluated projects for both junior and major international mining companies, including household names such as Queenstake Resources Ltd., Arequipa Resources Ltd., Mountain Province Mining Inc., Placer Dome Inc., Dia Met Minerals Corp., Hughes-/ Lang Group and Utah Mines Ltd. She lived and worked in Peru from 1994 to 1997 where she carried out both project generation work and property evaluations for Canadian and Peruvian companies. CEO Freeze is backed by VP of Exploration Michael Thicke, a 30-year global exploration veteran with an extensive background in finding porphyry copper systems. He has experience discovering these structures deposits throughout South America with Rio Algom (now BHP Billiton) and was a member of the team that discovered the large- scale Spence porphyry copper deposit. The Future: All mining projects need strong, underlying commodity prices to pique investor interest, so that box is solidly checked with copper at $3.50/pound, close to 50% higher than the “good” benchmark pricing that would make the Norte project attractive and profitable. So, clearly the value in Candente will be unlocked through drilling. In November 2017, the

company sold a Peruvian service subsidiary (which held no mineral properties) to raise Cdn$970,000 in non-dilutive funds. In March 2018, Candente further bolstered its balance sheet with the settlement of Cdn$490,717 of debt to creditors via a stock swap. More recently, the company provided an update on the Cañariaco project and other activities in Peru. Part of this update highlighted infrastructure projects that were greenlighted by the Peruvian government for the district of Cañaris, including a major road project. This is very significant news, as the wheel turns slowly for government projects and plans for these upgrades go back to 2013. This is the first time that this region of Peru has experienced this kind of development. Along with this infrastructure,

officials also announced rule changes that will reduce timelines for receiving permits and also allow longer periods to carry out drilling programs once permits are received.  As a result, Candente is now working on applications for new drilling permits for the Cañariaco project.Interest in the Region Heating Up: One of the best indications of the future for a mining region is to watch what the larger operators are doing. On June 8, 2018, Anglo Pacific Group

Improving commodity and company fundamentals have opened the door for positive catalysts not yet

reflected in the stock price.

Past drilling provided strong evidence for major expansion of the resource profile.

Improving commodity and company fundamentals have opened the door for positive catalysts not yet

reflected in the stock price.

Improving commodity and company fundamentals have opened the door for positive catalysts not yet

reflected in the stock price.

PLC announced that it had acquired the existing 0.5% Net Smelter Return Royalty (“NSR”) over the Cañariaco Copper Project from Entrée Resources Ltd. A $279 million market cap company listed on the London Stock Exchange, Anglo Pacific concentrates on building a portfolio of royalty streams related to mining. Their goal is to find and buy streams with long life spans and above average unit economics. From their press release, Anglo explained “The acquisition is in line with the Company’s strategy to invest smaller amounts in development stage opportunities which have the potential for higher returns along with significant growth potential.” This is a tremendous vote of confidence in Candente’s properties from a seasoned operator that has been in business for more than 50 years. Final Thoughts: In its recent update, the company also revealed that it has begun planning site visits with third parties interested in strategic investments or partnerships to advance the Cañariaco project. The company has already signaled that further drilling is coming and the Sur & Verde deposits, in particular, could have a major impact on both copper and gold reserves. With strong underlying commodity prices and positive catalysts on the horizon, we encourage mining-oriented investors to get to know Candente at this opportune time in its history.

T50 Research

June 11, 2018

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