Mr. Bill McWilliam reports

CORPORATE UPDATE

The corporate reorganization Cascadero Copper Corp. started in late 2014 is nearly complete. Two material changes occurred in 2015. The first occurred in late May, 2015, when the Brazilian partner withdrew as a member of the SESA LLC operating joint venture. This resulted in the closing of the plan of arrangement that was signed on Dec. 6, 2012, and Cascadero assumed a 100-per-cent interest in the JV.

The second material event occurred on Dec. 21, 2015, when Cascadero and Regberg Ltd. signed an agreement that enabled Regberg to acquire a 25-per-cent beneficial interest in the SESA LLC operating joint venture and committed Regberg to advancing $850,000 (U.S.) to earn its 25-per-cent beneficial interest in the joint venture's Argentine property portfolio. Cascadero also granted to Regberg the right to acquire an additional 5-per-cent beneficial interest in the JV for an additional advance of $175,000 (U.S.). No shares of Cascadero or any of its Argentine or Canadian subsidiaries were issued or transferred. The joint venture manages the Argentine assets of Cascadero.

Cascadero currently has two wholly owned Argentine subsidiaries, Cascadero Minerals SA and Salta Geothermal SA. Cascadero currently has one wholly owned Canadian subsidiary, Cascadero Minerals Corp., which is in the process of Argentine registration. CMSA is the registrant of 12 Argentine properties, and it has three additional properties that are pending regulatory issues such as registration and/or transfers. SGSA is the registrant of nine Argentine properties, which constitute the contiguous 8,687-hectare (net) La Sarita group west of and adjoining First Quantum's Taca Taca copper deposit.

Foreign companies must be registered with the Republic of Argentina, which takes time as the regulatory paperwork and the path of a full registration can take up to four months or more and considerable legal work. With federal registration, the foreign company receives a registration number which enables it to have an Argentine bank account to receive money from Canada and other registered foreign entities. Cascadero sends U.S. dollars by wire transfer, which are received by the Argentine Central Bank, which checks the source of proceeds, and, if approved, the proceeds are converted to Argentine pesos and then credited to the bank account of CMSA. U.S.-dollar-denominated bank accounts are not yet available.

Under Argentine law, a foreign company cannot own or become the registrant of Argentine mineral tenures, so it is necessary for the foreign parent to form an Argentine subsidiary, which has to file audited statements with the government, and has to comply with Argentine corporate law and Argentine mining law. The board of directors of a foreign company subsidiary must have a majority of Argentine citizens as directors of the company. The officers and the management of the company can be any other national and/or Argentine dominant. Cascadero prefers to have a three-person board of directors for its subsidiaries, and some of these directors are officers of the companies. Cascadero maintains that a director of Cascadero should be on the board of the subsidiary, and it prefers that this director also acts as chairman and president. The company's subsidiaries have identical capital structures. At this time, both CMSA and SGSA have 2,000 common shares authorized with Cascadero, controlling 1,980 common voting shares, and 20 common voting shares are registered to Bill McWilliam. This enables the president to attend and to vote at the shareholder meetings. Both CMSA and SGSA have new boards and new officers. Mr. McWilliam represents Cascadero as a director, president and shareholder of each subsidiary. The 20 common shares are subject to an assignment agreement.

Cascadero asset update

CMSA is the registrant of 12 Argentine properties, which consist of 27,300 hectares. The 12 mineral tenures are 100 per cent owned by CMSA with no underlying agreements. Ten of the properties are subject to a 1-per-cent net smelter return royalty. The Taron group consists of a contiguous group of six properties that host the Taron cesium-bearing polymetallic epithermal system aggregating 9,369 hectares. Taron is Cascadero's most-advanced property and is the focus of current work. The company intends to start surface work programs on its high-sulphidation gold and silver prospects in the near future.

Permitting

Similar to most countries in the world, prior to conducting exploration on a property, the company is responsible to inform the communities that are interested in the property and may have to post assurance bonds with the provincial mining regulators where required. In some cases, the company has to prepare and file a new and more comprehensive environmental impact analysis with full details of the work programs and their expected impact on the property. The company is responsible for full disclosure to the communities in the neighbourhood as consultation is required to achieve and to maintain the social licence to begin and continue exploration. Some of the properties are on private land, but most are on government-registered land.

CSMA is the registrant of the following properties, which include four high-sulphidation precious metal prospects; CMSA property taxes are approximately $62,000 (U.S.) per year:

1. Ochaqui Silver (3,440 hectares) is a bulk minable silver-zinc showing;
2. Centauro (2,928 hectares) is a silver-cesium showing;
3. Tocomar is a geothermal prospect and is situated in the southern part of the Centauro mineral tenure;
4. Campo Viejo (3,000 hectares) is silver-lead-zinc-gold mineralized prospect;
5. Las Burras (2,700 hectares) is a copper-gold-molybdenum discovery with four mineralized drill holes from surface to approximately 130 metres downhole;
6. Incahuasi (2,700 hectares) adjoins Las Burras to the northwest with four drill holes that indicate the presence of a large alteration system that may be related to an apophsys of the Las Burras magmatic system;
7. Santa Rosa I (2,866 hectares) consists of a high-grade gold vein and three areas that indicate the presence of sediment-hosted gold systems in the southern part of the tenure and an area of disseminated gold-silver values in outcrop in the northern and eastern part of the tenure;
8. El Oculto (1,800 hectares) is bulk mineable silver-gold-zinc-antimony prospect (property registration is pending);
9. Cerro Lari I (4,389) hectares and Cerro Lari II (7,500 hectares) adjoin each other, and are located to the north of the Oculto silver-gold showing; the properties are prospective for gold, silver and uranium (property transfers are pending).

Salta Geothermal SA is essentially an inactive holding company and is the registrant of five 100-per-cent-owned mineral tenures, two 50-per-cent-owned mineral tenures and two 33.33-per-cent-owned mineral tenures. The nine mineral tenures consist of a contiguous claim block of 11,510 gross hectares (net 8,687 to SGSA) that adjoins First Quantum Mineral's Taca Taca copper deposit to the west. SGSA's interest in each property is subject to a 1-per-cent NSR applicable to SGSA's interest, and there are no underlying agreements. SGSA pays approximately $18,600 (U.S.) per year in provincial taxes.

Cascadero identified the Sierra Taca Taca area as a high-potential domain for copper porphyry and sediment-hosted gold deposits in 2004. The company acquired its first mineral tenure in 2004 and most recently in 2011:

1. Sarita Sur (2,376 hectares) -- gold and uranium;
2. Sarita Este (830 hectares) adjoins Taca Taca to the west; sampling, trenching and geochemistry have indicated the potential for two buried base metal deposits; trenches in a volcanic tuff revealed narrow up-to-one-metre-thick vertical high-sulphidation alteration zones that assayed up to 160 grams per tonne gold (5.1 ounces Au); the mineralization in both cases is in close proximity to Taca Taca and may represent apophyses of the Taca Taca porphyry system; this is a high-priority drill target; the property requires a property-scale induced polarization geophysical program;
3. La Sarita Sur (600 hectares) -- gold and uranium;
4. La Sarita I (1,491 hectares) -- gold;
5. La Sarita II (1,400 hectares) -- porphyry setting;
6. Francisco I (1,313 gross hectares) (net 657 to SGSA) is jointly owned 50 per cent by First Quantum Minerals and 50 per cent by SGSA;
7. Francisco II (1,000 hectares) (net 500 to SGSA) is jointly owned 50 per cent by First Quantum Minerals and 50 per cent by SGSA; these tenures adjoin Taca Taca to the immediate west; Cascadero believes that, in addition to the mineral potential of the tenures, they may provide critical space for the infrastructure required to develop large-scale mineral deposits; the area is constrained to the east by the Salar de Arizaro, which is a water preserve; the Salar is unlikely to be available for tailings storage or waste dumps; Taca Taca is constricted on the west by Sierra Taca Taca that rises from 3,500 metres to 4,700 metres in the space of a few kilometres to the west;
8. Desierto I (1,500 hectares) (net 333 hectares to SGSA) has three parties that each own one share of the property;
9. Desierto II (1,500 hectares) (net 500 hectares net to SGSA) has three parties that each own one share of the property; SGSA owns one share of each of the Desierto I and II; the Desierto tenures are prospective for silver in low-sulphidation quartz veins and buried base metal deposits.

Six of the tenures, No. 2, No. 3, No. 6, No. 7, No. 8 and No. 9 are contiguous, and directly adjoin Taca Taca to the north, south and west. Sarita I, Sarita Este, Sarita Sur, and Desierto I and II are believed to have discovery potential. Francisco I has several two-metre intervals of gold mineralization in one drill hole on the east side of the claim block. Francisco II has copper-gold-molybdenum in a few drill holes to the west of the Taca Taca Francisco II claim boundary as the Taca Taca mineralization crosses the boundary in this location. The six tenures are located in a Graben-style setting, which is relatively flat area that slopes to the north and south.

The content of this news release has been reviewed and approved by Dave Trueman, PGeo, who is the qualified person for the company.