Mr. Julian Treger reports

COTEC NOTES PORTFOLIO COMPANY HYPROMAG USA AND INTELLIGENT LIFECYCLE SOLUTIONS COMMISSION INSERMA RARE EARTH MAGNET PRE-PROCESSING SYSTEM IN SOUTH CAROLINA

Cotec Holdings Corp. has noted Friday's press release by HyProMag USA LLC, its United States-based joint venture rare-earth permanent magnet recycling and manufacturing company.

• Commissioning of Inserma hard disk drive magnet preprocessing system at the ILS facility in Williston, S.C.;
• Operational milestone advances U.S. rare-earth magnet recycling platform and supports domestic supply chains for advanced manufacturing and AI (artificial intelligence) infrastructure;
• The Williston site houses two automated Inserma preprocessing units that separate magnet assemblies from end-of-life hard disk drives in approximately three seconds per drive, with combined capacity exceeding 60,000 drives per week.

HyProMag USA hosted a commissioning event for the Inserma hard disk drive magnet separation system installed at the ILS facility in Williston, S.C. (Williston site), on Friday, March 13, 2026.

The commissioning marks an operational milestone in HyProMag USA's growing U.S. rare-earth magnet recycling platform and represents the first stage of feedstock preparation supporting the company's broader hub-and-spoke manufacturing strategy. Under this model, magnet-bearing materials are recovered and preprocessed at regional facilities such as the Williston site before being supplied to HyProMag USA's planned rare-earth magnet recycling and manufacturing hub in Dallas-Fort Worth, Tex.

The commissioning event was attended by federal, state and regional leaders who highlighted the importance of expanding domestic capabilities in critical materials and advanced manufacturing.

"This investment demonstrates how South Carolina continues to attract innovative companies to build the technologies that will power the next generation of American manufacturing -- creating jobs," said Congressman Joe Wilson. "Rare-earth minerals are critical to our national security, and we must take control of our domestic manufacturing and supply chains to protect American interests."

"We're grateful to Congressman Wilson and the many state and local South Carolina leaders who joined us to mark this important milestone," said Julian Treger, chief executive officer of Cotec Holdings. "Partnership and community support are essential as we work to establish a new domestic platform for rare-earth magnet recycling and manufacturing in the United States. Through collaborations with companies like ILS and strong engagement with local stakeholders, HyProMag USA is building the feedstock supply chains and operational capabilities needed to support large-scale magnet production in the years ahead."

About HyProMag USA LLC

HyProMag USA is owned 50:50 by Cotec Holdings and HyProMag Ltd. HyProMag Ltd, is 100 per cent owned by Maginito Ltd., which is owned on a 79.4-per-cent/20.6-per-cent basis by Mkango Resources Ltd. (Alternative Investment Market/TSX-V: MKA) and Cotec.

About Cotec Holdings Corp.

Cotec Holdings is redefining the future of resource extraction and recycling. Focused on rare-earth magnets and strategic materials, Cotec integrates breakthrough technologies with strategic assets to unlock secure, sustainable and low-cost supply chains.

Cotec's mission is clear: accelerate the energy transition while strengthening strategic mineral supply chains for the countries the company operates in. By investing in and deploying disruptive technologies, the company delivers capital-efficient, scalable solutions that transform marginal assets, tailings, waste streams and recycled products into high-value critical minerals.

From its HyProMag USA magnet recycling joint venture in Texas, to iron tailings reprocessing in Quebec, to next-generation copper and iron solutions backed by global majors, Cotec is building a diversified portfolio with long-term growth, rapid cash flow potential and high barriers to entry. The result is a differentiated platform at the intersection of technology, sustainability and strategic materials.

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