Mr. Julian Treger reports

COTEC HOLDINGS CORP. PROVIDES OPERATIONAL UPDATE

Cotec Holdings Corp. has provided an update on its operational rollout opportunities and normal course issuer bid (NCIB) program.

Julian Treger, chief executive officer of Cotec, commented: "We are very encouraged by the significant progress made on all fronts of the business and continue to support the share price through our NCIB program as we believe our shares offer considerable value at the current share price levels

"We have engaged engineering companies for both HyProMag USA and Lac Jeannine and are targeting completion of the HyProMag USA bankable feasibility study prior to year-end and the preliminary economic assessment, including a maiden mineral resource estimate, for the Lac Jeannine property during H1 2024. The time frame for the completion of these studies and the target dates for first revenue from these opportunities are testimony to the advantages of the Cotec strategy over the traditional mining approach."

HyProMag USA feasibility study

HyProMag USA has engaged BBA USA Inc. and PegasusTSI to complete the feasibility study with targeted completion prior to year-end. BBA and Pegasus have successfully completed their onboarding process through visiting key manufacturers in Germany, Poland and the HyProMag demonstration plant at Tyseley, United Kingdom. The experience from the United Kingdom and Germany demonstration plants will be transferred expeditiously to the feasibility study.

Site selection for three plants in the United States has commenced. This process will be driven by Pegasus, working with environmental consultant Weston Solutions Inc. The current focus is on Texas -- Fort Worth for the first recycling spoke and magnet production facility (approximately 500 tonnes of NdFeB (neodymium/iron/boron) finished permanent magnets and alloys per annum). Three recycling spokes are targeted and permitting for the various sites will start once site selection has been completed in Q3. Commercial production is targeted for the first half of 2026.

Discussions with potential feedstock suppliers and offtakers in the United States have commenced, targeting agreements to secure recycled feedstock and long-term offtake through strategic partners.

Finally, the company has appointed Robert Harward, a retired Vice-Admiral, U.S. Navy SEAL, and a senior defence technology executive, to the board of Cotec. Mr. Harward will be focused on supporting and guiding HyProMag USA in the application for U.S. government grant support and long-term strategic supply of rare earth permanent magnets to U.S. government prime contractors.

Lac Jeannine PEA (preliminary economic assessment)

The company has completed sampling at the Lac Jeannine property and metallurgy testing and process flow development with its technical consultant and Corem. Corem has produced approximately 30 kilograms of high-grade iron concentrate to date.

Cotec has awarded contracts for the National Instrument 43-101 PEA for the Lac Jeannine project to an interdisciplinary team of consultants, engineers and scientists co-led by Addison Mining Services Ltd. and Soutex Inc. The PEA is anticipated to be completed and published by the first half of 2024. The PEA will incorporate the company's 2023 drill program and metallurgy testing results at Corem, providing a maiden mineral resource estimate for the Lac Jeannine project.

The study's techno-economic analysis will present a scenario with concentrate from Lac Jeannine providing feedstock for a low-carbon pelletizing technology.

Senior representatives of the company have commenced a process to engage and meet with the numerous potential stakeholders, including the government of Quebec.

NCIB

Since its approval on Jan. 23, 2024, the company acquired 625,000 shares under the NCIB at prices ranging between 60 cents and 69 cents.

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. These technologies 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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