CNRC TO ACQUIRE INTEREST IN COPPER MINING COMPANY

CHARLESTON, W.Va., Aug. 14, 2023 /PRNewswire/ -- Houston Natural Resources Corp (OTC: HNRC) ("HNRC or the Company"), now known as Cunningham Natural Resources Corp ("CNRC"), announced today that it is acquiring a 10% interest in Kharrouba Copper Company, Inc ("KCC" or "Company") with the potential to increase its position over time. Based on the investment being made by HNRC, KCC would have an enterprise value of about US$60 million dollars.

KCC is a Canadian Company, with growing copper mining and processing operations in the Kingdom of Morocco. KCC commenced operations in 2017 and is currently in the expansion of its operations. Over the next 12-15 months, it plans a further expansion and an extensive drilling campaign to expand its reserve and resource base. KCC has also encountered cobalt in a number of its mines and plans to add cobalt exploration as part of its overall exploration program. KCC has a significant land position totaling some 78,826 acres all offering excellent potential for increasing KCC's reserve base substantially. KCC's operations are low cost and expect to generate healthy positive cash flows.

KCC is led by Scott M. Hand, the Executive Chairman of the Company, with over 49 years of experience in the mining industry. Mr. Hand was the former Chairman and CEO of Inco Limited before its sale to Vale for US$19 billion in 2007. Frank Marzoli is President of KCC and was a founder and former director of Royal Nickel Corporation (now Karora Resources Inc.)

Increasing Demand for Copper is in a super cycle. Automakers have been scrambling to secure supplies of key metals like copper that are needed for the production of electric vehicles. Copper has recently been at the forefront of the industry due to its central role in the green energy transition as a key metal and its rapidly dwindling global reserves. Commodity Insights expects the refined and concentrate copper markets to be in deficit in 2027. At a nine-year high in 2022, copper exploration budgets were mostly directed toward mine site exploration and away from generative programs, led by major companies seeking to extend the life and capacity of their producing mines.

A Bill Gates backed mining company is Silicon Valley's newest unicorn, with a recent investment of US$200 million, to dig for copper and lithium using AI. Berkeley, California based KoBold Metals ("KoBold"), which explores for metals such as copper, lithium and cobalt using artificial intelligence. The capital injection values KoBold at more than US$1 billion. Part of the investment will be used to help it develop copper reserves it recently acquired in Zambia. The fundraising round is backed by existing investors including Bill Gates's Breakthrough Energy Ventures, a climate-tech venture-capital firm that invests money on behalf of the likes of Jeff Bezos and Jack Ma. Also involved in the round: venture-capital firm Andreessen Horowitz and BOND, a venture-capital firm co-founded by Mary Meeker. A division of T. Rowe Price that manages client money led the round.

The Company is continuing to look at opportunities in the energy transition sector in addition to developing its existing energy assets.

About Houston Natural Resources Corp 

Houston Natural Resources Corp. (OTC: HNRC) (www.hnrcholdings.com) is a diversified energy company with oil and gas interests. The Company has recently acquired a 100% interest in Cunningham Energy LLC, with appraised reserves of US$352 million. The Company also has minority investments in Rhino Energy Ltd, CE Energy Sponsors, LLC and HNR Acquisition Corp. The Company will also continue to seek new energy and energy transitions opportunities as it focuses on creating more value for shareholders.

About Cunningham Energy LLC

Cunningham Energy (www.cunninghamenergy.com) is an independent producer of oil and gas based in Charleston, West Virginia. CE was formed in 2008 for the purpose of acquiring, exploring, and producing oil and gas in the Appalachian, Illinois, and Williston Basins. Since inception we have relied on previous experience in parallel with the application of modern technologies to succeed in the ever-changing field of efficient energy production. Cunningham Energy is uniquely positioned to take advantage of current and future trends in oil and natural gas production throughout these basins with a technically driven and capital disciplined approach.

About Cunningham Natural Resources Corp

Cunningham Natural Resources Corp (www.cunninghamnaturalresources.com) will be focused on traditional oil and gas opportunities and energy transition materials including mining opportunities in copper, lithium, gold, as well as other precious and rare earth metals. The investment focus will be global with sustainability at the core of the strategy.

FORWARD-LOOKING STATEMENTS:

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties.

Contact:

Cunningham Natural Resources Corporation
500 Virginia Street East, 10^th Floor.
Charleston, West Virginia 25301
Phone: (304) 244-4862
E-mail: [email protected]

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SOURCE Cunningham Natural Resources Corp