Mr. Julian Treger reports

COTEC ANNOUNCES MID-PROJECT UPDATE FOR ITS LAC JEANNINE MINE TAILINGS RECLAMATION AND RESTORATION PROJECT, QUEBEC, CANADA

Cotec Holdings Corp. has released a mid-project update following engineering work carried out by BBA on the Lac Jeannine mine tailings reclamation and restoration project in Quebec, Canada.

The feasibility study is currently expected to be completed during Q2 2027. The project has the potential to supply the market with a 67-per-cent-total-iron iron concentrate that qualifies as a critical and strategic mineral under the Quebec and federal critical mineral initiatives. The recently reported updated mineral resource estimate (MRE) and preliminary economic assessment (PEA) for the project increased the after-tax NPV (net present value) to $91.9-million (U.S.) and its IRR (internal rate of return) to 29.6 per cent with a 15-year life of mine, excluding further potential upside from an additional 28 million tonnes of exploration material and the application of the Salter gravity separation technology.

Key findings of the mid-project update

The company and its wholly owned subsidiary, Cotec Quebec Corp. Inc., continue to make good progress with the completion of the feasibility study (FS) and can provide the following project progress:

• Completion of a gap analysis on the 2024 PEA by BBA has provided a derisked path from PEA to FS and environmental impact assessment (EIA) submission;
• Commencement of baseline environmental studies at the site and development of an environmental permitting road map to achieve a targeted EIA submission by Q2 2027;
• Continuing engagement with key local stakeholders, including federal and provincial government agencies, as well as the Innus of Pessamit and Uashat mak Mani-Utenam (ITUM) first nation communities;
• Updated beneficiation circuit, which is being verified through a metallurgical test work program at Corem; initial metallurgical tests at Corem have produced direct-reduction (DR) iron concentrates, which would classify the project at critical mineral status;
• Site preliminary layout and tailings disposal method within the historical pit completed.

Julian Treger, chief executive officer of Cotec, commented: "The project continues to make good progress, and the mid-project review builds on the recently updated and enhanced mineral resource estimate and preliminary economic assessment. We are working closely with our stakeholders, Innu local enterprise Groupe Nipi and BBA and have developed an environmental baseline road map which derisks the project whilst at the same time optimizes value.

"As the FS progresses, the company will target further optimization work, inclusion of the remaining 28 million tonnes of exploration material and application of the Salter gravity separation technology, all of which could potentially add further significant upside. The initial metallurgical results from Corem are very exciting and indicate the project could qualify for critical mineral status with both federal and provincial governments with an upgrade of the concentrate from the current level of 66.8 per cent to greater than 67 per cent total Fe, which is essential for low-carbon, green steel production."

Details of project review:

• Completion of an updated MRE and positive PEA for the project:
  • Based on continuous tailings reclamation method and the production of a gravity concentrate by conventional processing techniques and at a discount rate of 7.0 per cent (and based solely on the 2026 MRE), the pretax NPV is $141.5-million (U.S.), its IRR is 33.8 per cent, the after-tax NPV is $91.9-million (U.S.), and its IRR is 29.6 per cent, with payback achieved in 2.3 years and a profitability index (PI) of 1.2. The after-tax NPV does not include any potential benefit from government incentives, tax or otherwise.
  • The 2026 PEA does not include further tailings that are present outside of the indicated and inferred drilling area of the 2025 drilling campaign and further potential upside from the application of the Salter gravity separation technology that would allow access to the ultrafine material contained in the tailings.
• No federal EIA:
  • A confirmation letter was received in May, 2026, from the Impact Assessment Agency of Canada (IAAC) confirming that, based on the information available to date, the project would not be subject to the federal impact assessment process defined in the Impact Assessment Act. The project would therefore be subject only to the provincial environmental impact assessment and review (EIA) procedure.
• Completion of a gap analysis on the PEA by BBA has provided a derisked path from PEA to FS and EIA submission:
  • In May, 2026, Cotec completed an updated positive PEA on the project. The company engaged the services of BBA in late 2025 to support in the next phase of project development. BBA has completed a review of the information available to date and an assessment of the project's readiness to advance toward an FS -- the gap analysis. This work included identifying technical, regulatory and scheduling gaps relative to FS requirements, with the objective of informing project decision making, development priorities and the path forward for public disclosure under National Instrument 43-101.
• Commencement of baseline environmental studies and development of a permitting road map to achieve a targeted EIA submission by Q2 2027:
  • In January, 2026, following the onboarding of BBA, a site visit to the Lac Jeannine mine was carried out to collect baseline water samples from lakes/old mine pits and streams in the area. A detailed list of environmental studies that are to be carried out in the coming months by BBA and Groupe Nipi to support the submission of a final EIA for the project was submitted to the provincial Ministry of the Environment (Ministere de l'Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs (MELCCFP)) and the scope of these studies was adjusted based on the comments received from the MELCCFP.
• Commencement of metallurgical test program at Corem to support the production of a 67-per-cent-total-iron concentrate at a finer P80:
  • The project has optimized the previous PEA flow sheet and will target an iron ore concentrate of greater than 67 per cent total iron at a finer P80, which produced a 66.8-per-cent-total-iron concentrate but with around one-third being greater than 850 micrometres. The metallurgical testing program has been compiled to support the engineering design of a plant capable of producing a concentrate that will achieve a premium in the iron ore market. Initial results from the Corem support this alternative flow sheet, which has achieved direct-reduction concentrate grades, which qualify for critical mineral status.
• Completed site layout and optimal tailings disposal method identified:
  • Following detailed discussions between Cotec and BBA, the layout of the project has been finalized incorporating the process plant, staff accommodation, run-of-mine stockpiles and the concentrate load-out location. A strategy for the disposal of the tailings into the old Lac Jeannine mine pit has also been agreed upon, with the objective being to return the landscape to as close to its previous form, with as minimal an impact to the current environment as possible.
  • Early fish DNA sampling of the old pit and adjacent pit indicates the possibility the old pits may contain fish species. Further environmental tests will be carried out to verify the presence or absence of fish in these old pits.
  • Discussions have been held with Fisheries and Oceans Canada as well as Environment and Climate Change Canada regarding the proposed tailings disposal method and the DNA findings. Cotec has presented the planned environmental studies to the aforementioned departments to seek their input on the scope of these studies in order to facilitate the permitting process.
• Commenced engagement with Hydro-Quebec regarding power supply and studying renewable alternatives:
  • Initial discussions have commenced with Hydro-Quebec regarding the potential supply of clean hydroelectric power to the project; Cotec will also be investigating other potential power supply options such as renewables and diesel.
• Progressing stakeholder discussions and support from both federal and provincial government agencies:
  • Cotec has held constructive discussions with the Quebec Ministry of Natural Resources and Forests (MRNF), the MELCCFP, the Ministry of Economy, Innovation and Energy (MEIE), and Investissement Quebec.
• Initiated discussions with the Pessamit and ITUM Innu first nation communities:
  • Cotec is continuing its engagement with the Pessamit and ITUM Innu first nation communities in connection with the project. Cotec also engaged Pessamit-based enterprise Groupe Nipi, an indigenous company from the Innu first nation community of Pessamit, to support BBA on the required environmental studies and will seek to include local first nations in other areas of work as the project progresses.

The Lac Jeannine mine tailings reclamation and restoration project

The Lac Jeannine property comprises a contiguous block of 31 mineral claims covering an aggregate of 1,649.34 hectares in the Caniapiscau regional county municipality (RCM) of the Cote-Nord region of eastern Quebec, approximately eight kilometres southeast of the abandoned town site of Gagnon and 290 kilometres north of the city of Baie-Comeau. The property is located on the traditional territory of the Innu of Pessamit.

The project encompasses the former Lac Jeannine open-pit mine, from which approximately 260 million long tons of ore at 33 per cent iron, in mainly specular hematite form, was extracted between 1961 to 1976. The property also covers the tailings storage facility (TSF), the area where the tailings from the on-site ore concentrator were deposited but not reclaimed. In 1984, the Lac Jeannine Lake mining and processing facilities were shut down.

The Lac Jeannine mine site is identified by Quebec's Ministry of Natural Resources and Forests (MRNF) as the largest abandoned mining site under government responsibility. Cotec's focus is on the tailings material, planned to be reprocessed for residual iron, and the rehabilitation of the TSF to as close to its natural state as possible.

About Cotec Holdings Corp.

Cotec 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 and reclamation 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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