Mr. Julian Treger reports

COTEC HOLDINGS CORP. FILES SECOND QUARTER 2023 RESULTS AND REPORTS $10.4 MILLION NET INCOME WITH FOCUS NOW ON OPERATIONAL ROLL-OUT

Cotec Holdings Corp. has filed its unaudited interim condensed consolidated financial statements and the accompanying management discussion and analysis (MD&A) for the three and six months ended June 30, 2023. The financial statements and MD&A can be accessed under the company's SEDAR+ profile.

The company announced its second profitable quarter with net income for the quarter and six months ended June 30, 2023, of $10.4-million and $9.9-million, respectively.

Other highlights for the quarter:

• Increased the company's interest in MagIron LLC to 16.94 per cent on a fully diluted basis through two additional investments in the aggregate amount of $221,239 (U.S.). The second additional investment in MagIron was completed at $150-million (U.S.) valuation following successful completion of metallurgical test work demonstrating the potential to double historical iron recovery achieved at plant 4 and to produce direct reduction-grade iron concentrate.
• Invested $1.5-million (U.S.) into Ceibo Inc., developer of a revolutionary process to leach low-grade primary copper sulphides, such as chalcopyrite, and copper waste material using a proprietary high-throughput inorganic leaching technology. Cotec has started the process to identify opportunities for Ceibo to commercially deploy its technology with a view to participating in any such opportunities that Ceibo chooses to pursue as a co-investor or joint venture partner.
• Maginito Ltd., a company in which Cotec holds a 10-per-cent equity interest, signed definitive agreements for purchase of the 58-per-cent equity interest in HyProMag Ltd. it does not already own. HyProMag is focused on commercializing its patented rare earths recycling technology. The transaction was completed on Aug. 3, 2023.
• Commenced the due diligence and negotiations that culminated in the signing of an option agreement on Aug. 8, 2023, for the purchase of the 31 mining claims forming the Lac Jeannine property in Quebec. The property contains historical tailings of the previous Lac Jeannine iron ore mine operated by the Quebec Cartier Mining Company between 1959 and 1985. Cotec intends to complete a maiden resource estimate and extract a bulk sample from the property for testing with Binding Solutions Ltd. (BSL) of its cold agglomeration technology with a view to ultimately produce low-carbon iron ore pellets (see Cotec announcement dated Aug. 9, 2023).

Julian Treger, chief executive officer of the company, commented: "The second quarter was an exceptional quarter for Cotec. We achieved another profit on the back of investment appreciation, added the Ceibo investment, cemented the foundation of our operational rollout through Maginito's HyProMag acquisition, and commenced due diligence and negotiations that ultimately secured the Lac Jeannine property.

"Maginito's completion of the HyProMag acquisition now provides it with full control over a low-carbon and energy-efficient rare earths recycling technology at a critical time. Maginito is targeting first production from the U.K. in 2023 and Germany in 2024, and Cotec and Maginito are working towards a joint venture to roll out production in the U.S. on a parallel path. We expect to increase Cotec's interest in Maginito to 20.6 per cent during the third quarter by exercising our right to exchange our existing convertible loan to Mkango Resources Ltd. (the 90-per-cent owner of Maginito) for additional Maginito shares.

"Securing the Lac Jeannine property is another potential game changer for Cotec and, subject to feasibility, permitting and development financing, we are targeting revenue from the sale of iron ore pellets produced from tailings on the property by 2025/2026. Through the application of BSL's cold agglomeration technology, the company is focused on the production of very-low-carbon iron ore pellets at competitive operating cost and low capital intensity.

"The Maginito and Lac Jeannine/BSL operational opportunities are perfect examples of the Cotec strategy of securing technology through minority investment and then monetizing the technology by securing significant ownership interests in assets to which the technology can be applied. Cotec's longer-term goal is to secure several more low-carbon, energy-efficient and green disruptive technologies and operational application opportunities to elevate us to mid-tier producer status, but for now our focus is the operational rollout of the technologies already in our portfolio. Our target is to generate revenue by 2025/2026 that could be used to fund future investments and maximize shareholder returns while minimizing additional equity dilution."

About Cotec Holdings Corp.

Cotec is a publicly traded investment issuer listed on the TSX Venture Exchange and the OTCQB and trades under the symbol CTH and CTHCF, respectively. The company is an ESG-focused (environment, 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 for the purpose of applying those technologies to undervalued operating assets and recycling opportunities, as the company transitions into a mid-tier mineral resource producer.

Cotec 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. The company has made five investments to date and is actively pursuing operating opportunities where current technology investments could be deployed.

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