Mr. Julian Treger reports

COTEC HOLDINGS CORP. NOTES HYPROMAG USA DEPLOYMENT OF MOBILE INSERMA SYSTEM, EXTENDING HARD DISK DRIVE PROCESSING TO CUSTOMER SITES ACROSS THE UNITED STATES

Cotec Holdings Corp. has noted the press release issued today by its joint venture, HyProMag USA LLC, announcing the deployment of its third Inserma Anoia SL hard disk drive separation system as a mobile processing unit, expanding HyProMag USA's processing and customer engagement capabilities across the United States. The deployment further strengthens HyProMag USA's partnership with Intelligent Lifecycle Solutions, and supports the expansion of a scalable nationwide platform for the recovery and recycling of rare earth magnets from end-of-life HDDs.

Feedstock inventories currently under contract and in storage, together with active procurement programs, continue to strengthen the feedstock platform and are expected to support initial commissioning and ramp-up activities for phase 1 at the planned Dallas-Fort Worth facility in 2028. HyProMag USA has also completed commercial sales of recovered printed circuit board material to downstream smelter partners, generating revenue that supports the acquisition and retention of magnet-bearing feedstock inventory.

Key highlights:

• Processing capability expanded: HyProMag USA's third Inserma HDD separation system has been deployed as a mobile processing unit to support customer qualification programs, secure on-site recovery campaigns and future feedstock growth opportunities across the United States.
• Commissioning readiness advanced: Feedstock inventories currently under contract and in storage, together with active procurement programs, are expected to support initial commissioning and ramp-up of phase 1 activities at the Texas hub in 2028.
• PCB revenue supports magnet acquisition: Commercial sales of recovered PCB material to smelter partners have generated revenue within the HDD processing flow sheet, partly offsetting the cost of acquiring and retaining magnet-bearing feedstock for future rare earth recycling operations.
• Feedstock channels diversified: Sourcing activities continue to expand across industrial, health care, government and information technology asset disposition sectors.
• Secure processing platform: R2v3-certified operations, ISO-certified management systems and documented chain-of-custody procedures support secure handling of data-bearing equipment.
• Data centre market focus: Mobile processing capability enables on-site recovery programs within hyperscale data centres and secure IT asset disposition environments.
• Inserma testing: A next-generation Inserma system designed specifically for the high-capacity HDDs used in hyperscale data centres, including helium-filled units, is currently being tested, with early results indicating processing times of under three seconds per drive and successful processing of modern high-capacity data centre formats.
• Partnership network expanding: Relationships across the data centre, electronics recycling and rare earth magnet value chain continue to support platform growth.

Julian Treger, chief executive officer of Cotec, commented: "The deployment of our third Inserma system as a mobile processing unit represents an important step in the development of the Dallas-Fort Worth project. Together with continued progress in feedstock sourcing and commercial PCB recovery, it strengthens our operating platform and expands our ability to engage directly with customers across multiple end markets. These milestones provide increasing confidence in our ability to support commissioning activities and establish a long-term domestic supply of recycled rare earth materials."

Graham Davy, managing director of ILS, commented: "The focus of the ILS team has been on demonstrating that HDDs can be efficiently processed into separate, marketable material streams. We have continued to build feedstock inventories, completed commercial sales of recovered PCB materials to smelter partners for HyProMag USA and expanded our capabilities through the deployment of a mobile Inserma system. The mobile unit allows us to work directly with customers at their facilities, supporting trial programs, demonstrating material recovery performance and creating opportunities to secure additional feedstock supply."

Expanding feedstock access

To support continued growth in feedstock volumes, HyProMag USA has deployed its third Inserma HDD separation system as a mobile processing unit to complement existing operations in South Carolina and Nevada. Unlike the fixed installations currently operating through the ILS partnership, the system has been configured for mobile deployment and is intended to support customer trials, feedstock development programs and on-site processing campaigns across the United States.

Feedstock inventories currently under contract and in storage, together with active procurement programs, continue to strengthen the feedstock platform and are expected to support initial commissioning and ramp-up activities at the Texas hub. Feedstock sourcing activities continue to expand beyond HDDs into industrial, health care, government and IT asset disposition sectors, increasing confidence in the scalability of HyProMag USA's feedstock platform and supporting future supply requirements for the Texas hub.

Commercial PCB recovery

ILS has completed commercial sales for HyProMag USA of recovered PCB material to downstream smelter partners. The sales validate an additional revenue stream within the HDD processing flow sheet and show that value can be recovered from secondary material streams. Magnet-bearing materials are being retained as feedstock inventory for future rare earth recycling operations. Revenue from recovered PCB material partly offsets the cost of acquiring magnet-bearing feedstock, improving the economics of building the inventory required to support Texas hub operations.

Secure recovery and chain of custody

ILS operates under internationally recognized recycling and management standards, including R2v3 certification and ISO-certified management systems, supporting responsible recycling practices, operational controls and continuous improvement initiatives. The recovery process is supported by documented chain-of-custody procedures designed to provide traceability from collection through processing and final disposition. These controls support the requirements of data centre operators, IT asset disposition providers, enterprise customers and government organizations seeking secure and auditable management of end-of-life electronic equipment.

Building strategic partnerships

HyProMag USA continues to expand relationships across the electronics recycling, data infrastructure and rare earth magnet value chain. Working alongside data centre operators, IT asset disposition providers, recyclers, technology companies and downstream processing partners, HyProMag USA is developing an integrated platform for the collection, recovery and recycling of magnet-bearing materials. HyProMag USA is evaluating additional feedstock pathways, including industrial and transportation-related material streams, with pilot programs and commercial opportunities under review.

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 it 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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