Mr. Julian Treger reports

COTEC HOLDINGS CORP. PROVIDES OPERATIONAL OVERVIEW AND 2024 KEY TARGETS

Cotec Holdings Corp. has provided an overview of its 2023 operational highlights and key targets for 2024.

On Aug. 12, 2021, the company announced its change of name to Cotec Holdings Corp., Julian Treger's future appointment as chief executive officer of the company and its intended change of business.

Following its successful change of business, Cotec was relisted on the TSX Venture Exchange in April, 2022. It has subsequently completed four investments, attracted a highly experienced and senior board of directors and executive management, and began pursuing operational roll out opportunities for two of its technology investments.

Since 2021, the company's share price has increased almost 300 per cent, from 16 cents to its current level of 60 cents. The company is of the view that Cotec shares are trading significantly below its intrinsic value.

Two thousand twenty-three was an extremely successful year for Cotec, laying the foundation for its transformation from an investor in disruptive natural resource technology to a resource producer applying such technologies to marginal and reclamation assets, and recycling opportunities. The initial production targets for the company are the recovery of rare earth elements (REE) from permanent magnets through the application of the HyProMag technology in the United States and iron concentrate production from the Lac Jeannine property.

Two thousand twenty-three operational highlights:

• Corporate:
  • Raised gross proceeds of $10-million through two non-brokered private placement and a further $2.25-million through the exercise of three million warrants at 75 cents;
  • Formed a partnership with the Birmingham Centre for Strategic Elements and Critical Materials at the University of Birmingham to identify and commercialize disruptive technologies related to the critical mineral extraction industry;
  • Became a member of SAFE. SAFE enhances energy security, and supports U.S. economic resurgence and resiliency, by advancing transformative transportation and mobility technologies whilst ensuring the United States and allies secure key aspects of the technology supply chain.
• Maginito Ltd.:
  • Completed a 3.5 million British pound sterling (GBP) investment in Maginito for a 20.6-per-cent equity interest;
  • Maginito completed the purchase of the 58-per-cent equity interest in HyProMag Ltd. it did not already own in August, 2023;
  • Formed an incorporated U.S. joint venture, HyProMag U.S. LLC, with Maginito for rollout of the HyProMag technology into the U.S. on a 50:50 basis. HyProMag has sublicensed the HPMS technology to HyProMag U.S.;
  • Commenced a request for proposal process for engagement of an engineering firm to undertake the HyProMag U.S. feasibility study;
  • U.S. feasibility study to be completed in 2024, in parallel with the completion of commercial demonstration plants in the United Kingdom and Germany. The U.S. plants will benefit from operational experience and production ramp-up in the U.K. and Germany;
  • Revenue from the U.S. operation is targeted for 2025/2026.
• Binding Solutions Ltd. (BSL):
  • Increased the company's interest in Binding Solutions through a further investment of $684,000;
  • Entered option agreement for the acquisition of Lac Jeannine mining claims in Quebec for application of BSL technology;
  • Engaged drilling contractor for Lac Jeannine, and completed bulk sample and maiden resource drilling program in October, 2023;
  • Negotiations with BSL and other relevant stakeholders under way/to commence, ensuring the commercial framework is in place for the start of the feasibility study during the second half of 2024, subject to the results of the potential economic assessment;
  • BSL secured a $17.5-million (U.S.) investment from Mineral Resources Ltd. at a valuation of $130-million, a 107-per-cent increase over Cotec's investment.
• Ceibo Inc.:
  • Invested $1.5-million (U.S.) in Ceibo, 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;
  • BHP Ventures is also an investor in Ceibo
• MagIron LLC:
  • Increased its investment into MagIron to approximately 17 per cent on a fully diluted basis through five additional investments for an aggregate amount $484,000 (U.S.);
  • MagIron successfully completed independent laboratory-scale metallurgical test work demonstrating the potential to double historical iron recovery achieved at Plant 4 and to produce direct-reduction-grade iron concentrate.
• Key targets for 2024:
  • Completion of the HyProMag U.S. feasibility study;
  • Engage with U.S. government to secure potential grant funding for HyProMag U.S.;
  • Completion of commercial arrangements with all Lac Jeannine stakeholders and commencement of the feasibility study;
  • Identification of one or more application opportunities for BSL and Ceibo;
  • Completion of one further potential technology investment during the first half of 2024;
  • Ramping up shareholder engagement to close the value gap between the company's share price and management's view of Cotec's value proposition;
  • Engagement of a brokerage firm to assist the company in its growth path.

Julian Treger, Cotec chief executive officer, commented: "We are extremely pleased with our achievements to date and the platform for future growth we have created. Cotec's vision is to become a sustainable, low-carbon, mid-tier resource producer. Our main focus for 2024 is to make significant progress in the execution of our asset opportunities which deploy our technologies before accelerating the asset roll-out program. To this end, the rollout of the HyProMag technology in the U.S., with Cotec owning a 50-per-cent direct interest and an additional 10-per-cent indirect interest, is expected to be the first step in achieving this goal.

"Cotec's second target for operational application is the Lac Jeannine property where the company has already taken its first steps for the completion of a potential economic assessment. Further targets for BSL application have been identified and review of these opportunities are under way. We have also identified two initial targets for Ceibo application, which is in a very early stage.

"Cotec is expected to target one more potential technology investment during the first half of 2024 and potentially one more during the second half of the year. Additionally, the company will focus on closing the value gap between the company's share price and its intrinsic value, and improving liquidity."

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 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.

We seek Safe Harbor.