Mr. Julian Treger reports

COTEC HOLDINGS CORP. ENTERS OPTION AGREEMENT FOR ACQUISITION OF LAC JEANNINE MINING CLAIMS FOR APPLICATION OF BINDING SOLUTIONS TECHNOLOGY

Cotec Holdings Corp. has entered into an option agreement to acquire 31 mining claims forming the Lac Jeannine property located in the Cote-Nord region of Quebec, Canada.

The property contains historical tailings of the previous Lac Jeannine iron ore mine operated by the Quebec Cartier Mining Company between 1959 and 1985. Prior to exercising its option to acquire the property, the company intends to complete a maiden resource estimate and extract a bulk sample from the property tailings material. The bulk sample will be used for independent metallurgy testing and further testing with Binding Solutions Ltd. (BSL) of its cold agglomeration technology. If the results are positive, the company intends to complete a feasibility study regarding the recovery and production of low-cost and low-carbon iron ore pellets from the property.

Julian Treger, Cotec chief executive officer, commented: "This is a major milestone for Cotec, and demonstrates our strategy of acquiring interests in a technology and applying it to low-carbon, high-value mineral extraction opportunities. Cotec and BSL are targeting the production of DR-grade iron ore pellets to support the development of a sustainable green steel industry at almost 0 per cent carbon emissions compared to traditional induration processes.

"If successful, targeted revenue could be expected from the property as early as 2025/2026 and the value of Cotec's interest in this project alone could significantly exceed its current market capitalization.

"Cotec will be working and collaborating with local, provincial and federal stakeholders targeting the completion of our feasibility study, followed by permitting and construction. This accelerated time frame can be compared to the standard seven-to-10-year development time of traditional mining projects, again emphasizing the clear advantage of the Cotec model."

The option agreement

Pursuant to the option agreement, Cotec will pay the vendor $40,000 (U.S.) within 30 days of the effective date, $60,000 (U.S.) nine months following the effective date (subject to certain conditions and subject to extension for 135 days to allow for completion of bulk testing), $250,000 (U.S.) on exercise of the option and $1-million (U.S.) at the start of commercial extraction of the tailings. The company may exercise the option to acquire the mining claims at any time until the earlier of: (i) 15 business days after the issuance of all material permits required to construct and operate the project; and (ii) Aug. 7, 2033. If the option is exercised, the vendor will also receive a 1-per-cent net smelter return (NSR) from the sale of minerals from the historical tailings and a 1.5-per-cent NSR from the sale of other minerals from the property. The 1-per-cent NSR and 1.5-per-cent NSR could be reduced, at Cotec's option, to 0.5 per cent and 0.75 per cent through the payment of $1-million (U.S.) and $2-million (U.S.), respectively.

Webinar

For more context, please join Mr. Treger, chief executive officer, for a live event on Thursday, Aug. 10, at 11 a.m. ET (8 a.m. PT). A question-and-answer period will follow the brief presentation. Register on-line.

About Cotec Holdings Corp.

Cotec is an ESG-focused (environmental, social and governance) company investing in innovative technologies that have the potential to fundamentally change the way metals and minerals can be extracted and processed. The company is committed to supporting the transition to a lower-carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation.

We seek Safe Harbor.