Rio Tinto Canada Inc. is investing C$25.6 million (US$21.2 million) to acquire a roughly 8% stake in Western Copper and Gold Corp. and a foothold in the exploration company's Casino copper project in Canada's Yukon.

"The investment by Rio Tinto, a leading global mining group which operates in 35 countries around the world, and whose purpose is to produce the materials essential to human progress is a strong endorsement of the Casino project," said Western Copper and Gold President and CEO Paul West-Sells.

A feasibility study completed in 2013 envisioned utilizing both a mill and heap leaching to recover the copper, gold, silver, and molybdenum found at Casino. Western Copper, however, has more than doubled the size of the Casino deposit since that study was completed.

According to a 2020 calculation, Casino hosts 2.17 billion metric tons of millable measured and indicated resources averaging 0.16% (7.43 billion lb) copper, 0.18 g/t (12.7 million oz) gold, 1.4 g/t (100.2 million oz) silver, and 0.017% (811.6 million lb) molybdenum; plus 217.4 million metric tons of heap leach measured and indicated resource averaging 0.03% (166.5 million lb) copper, 0.25 g/t (1.8 million oz) gold, and 1.9 g/t (13.3 million oz) silver.

This is a 106% increase in the millable measured and indicate tonnage over a 2010 resource estimate that formed the basis for the 2013 feasibility study. The amount of copper and gold in these categories has increased by 3.3 billion lb and 6.6 million oz, respectively.

A preliminary economic assessment that will outline a new Casino mine plan based on these expanded resources is slated for completion around mid-year.

Based on the expanded 2020 resource calculation, the PEA will consider a large open pit mine feeding sulfide ore to a mill and oxide ore to a heap leach facility that will recover gold, silver, and copper.

The primary objective of the PEA is to demonstrate positive economic indicators that justify further project development steps, including the completion of a feasibility study that provides further details for a mine that Western Copper can resubmit for permitting.

These plans have been bolstered by Rio Tinto's investment, which involves the acquisition of 11.81 million Western shares at C$2.17 each.

Western, which will remain the sole owner and continue to be the operator at Casino, will use the cash from Rio Tinto's strategic investment to fund specific areas of PEA. This provides Rio Tinto an opportunity to better understand the potential of Casino.

"We look forward to working with Rio Tinto to advance Casino," said West-Sells.

In connection with the strategic investment, Rio Tinto will have the right to appoint:

Western Copper and Gold Corp.

Rio Tinto's C$26.5 million investment in Western will allow the global mining company an opportunity to better understand the potential of the Casino copper project in Canada's Yukon.

• One member to a Casino project technical committee.

• One non-voting observer to attend all Western Copper board meetings.

• Up to three of its own workers at the Casino project.

• One director of the company, if Rio Tinto's ownership increases to at least 12.5%

In addition, Rio Tinto will have a right to participate in future Western share issuances to maintain its ownership in the company.

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