Mr. Braam Jonker reports

COTEC HOLDINGS CORP. ANNOUNCES FIRST PRODUCTION OF RECYCLED RARE EARTH MAGNETS FOR HYPROMAG UK

Cotec Holdings Corp.'s 20.6-per-cent investee Maginito Ltd. has achieved first production of recycled rare earth magnets in the United Kingdom.

The production run was completed by Maginito's wholly owned subsidiary HyProMag Ltd. in collaboration with the University of Birmingham at Tyseley Energy Park in the U.K. Further production runs are planned in the coming weeks to provide customer and project partner samples. Commercial production at Tyseley is targeted for mid-2024, with initial throughput targeted at 20 tonnes per year of rare earth magnets and alloys, scaling up to a minimum of 100 tpa in subsequent months. Larger scale-up scenarios of up to 1,000 tpa are currently being evaluated.

HyProMag is the main industrial partner for the Tyseley large scale recycling plant and the exclusive licensee for underlying HPMS technology, developed at the University of Birmingham and now being commercialized by HyProMag.

The Tyseley plant forms the basis for the 2024 development of magnet recycling and manufacture in Germany by HyProMag GmbH and for the feasibility study of a multispoke and hub operation in the United States through the joint venture between CoTec and Maginito.

The Tyseley production scale-up is underpinned by the successful piloting operation, which was commissioned in 2022 at the University of Birmingham with over 3,000 finished rare earth magnets produced from piloting to date.

Julian Treger, Cotec chief executive officer, commented: "This has been a critical milestone for the HyProMag team, and we are delighted by the success they have achieved. The HyProMag technology could play a vital role in the future rare earth elements independence of the West. Cotec will endeavour to be on the forefront of this development through its support of HyProMag's efforts in the U.K. and Germany and through its joint venture with Maginito in relation to the United States.

"We are looking forward to working with the HyProMag team in the new year as we focus on the rollout of their technology in the United States."

About Cotec Holdings Corp.

Cotec is a publicly traded investment issuer listed on the Toronto Venture Stock Exchange and the OTCQB and trades under the symbol CTH and CTHCF respectively. The company is an environment, social and governance (ESG)focused 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 four investments to date and is actively pursuing operating opportunities where current technology investments could be deployed.

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