Mr. Julian Treger reports

COTEC HOLDINGS CORP. NOTES HYPROMAG USA ADVANCES NORTH TEXAS RARE EARTH MAGNET FACILITY WITH FIRST MAJOR EQUIPMENT DELIVERY

Cotec Holdings Corp. has noted the press release issued today by its joint venture, HyProMag USA LLC, which has seen the delivery of the first major process equipment to its rare earth magnet recycling and manufacturing facility in Northlake, Tex., marking an important milestone as the project advances toward financing, commissioning and operations.

Key highlights:

• First major process equipment delivered: the first major process equipment has arrived at the Northlake Texas facility, reflecting continued progress in detailed engineering and procurement;
• Site secured in Dallas-Fort Worth: in December, 2025, HyProMag USA secured a long-term lease for the Northlake, Tex., facility at Ironhead Commerce Center, Building 1, Denton county, Texas, near critical infrastructure, including the BNSF intermodal rail link and Alliance Airport;
• Development advancing: electrical power capacity secured through Oncor Electric Delivery Company LLC, permitting progressing with Weston Solutions Inc. and contractor selection under way;
• Phased timeline: initial magnet cutting and finishing operations targeted for the first half of 2027, followed by commissioning of phase 1 integrated recycling and manufacturing operations in mid-2028;
• Production and jobs: the Northlake, Tex., facility targets approximately 1,526 metric tonnes per year of total payable production upon completion of phase 2 and is expected to create approximately 100 direct jobs;
• Expansion potential: the expansion prefeasibility study announced on Oct. 27, 2026, targets approximately 4,192 metric tonnes per year of neodymium iron boron magnet production and approximately 6,000 metric tonnes per year of total saleable materials by 2034 across four plants.

Julian Treger, chief executive officer of Cotec, commented: "The delivery of the first process equipment to the Northlake, Tex., facility marks an important milestone for HyProMag USA as we advance toward commercial operations. The project is expected to create around 100 direct jobs and support work force training and skills development, helping build the skilled work force required for advanced manufacturing in the United States. By establishing a domestic source of recycled rare earth magnets, HyProMag USA will strengthen U.S. manufacturing capacity and contribute to a more secure and resilient rare earth magnet supply chain."

Equipment delivery and site

The arrival of the equipment reflects continued progress in detailed engineering and procurement as HyProMag USA develops a secure, sustainable and domestic source of recycled rare earth permanent magnets in the United States. In December, 2025, HyProMag USA secured a long-term lease agreement for the Northlake, Tex., facility, located at Ironhead Commerce Center, Building 1, Dallas-Fort Worth, Denton county, Texas. The project site is strategically located near critical infrastructure, including the BNSF intermodal rail link and Alliance Airport.

Project development and timeline

The Northlake, Tex., facility is expected to become one of the first commercial-scale integrated rare earth magnet recycling and magnet manufacturing operations in the United States. Project development continues to advance, with electrical power capacity secured through Oncor Electric Delivery Company LLC, permitting progressing with Weston Solutions Inc. and contractor selection under way. HyProMag USA is targeting initial magnet cutting and finishing operations in the first half of 2027, followed by commissioning of phase 1 integrated recycling and manufacturing operations in mid-2028.

The milestone follows the successful completion of the expansion prefeasibility study as announced on Oct. 27, 2026, which confirmed the potential to significantly increase HyProMag USA's production capacity while maintaining robust project economics. The expansion PFS highlighted the opportunity to establish one of the largest rare earth magnet recycling and manufacturing platforms in the United States, targeting approximately 4,192 metric tonnes per year of NdFeB magnet production and approximately 6,000 metric tonnes per year of total saleable materials by 2034 across four plants.

The Northlake, Tex., facility is expected to create approximately 100 direct jobs and play an important role in supporting the development of a secure, resilient and sustainable domestic rare earth magnet supply chain. By recovering valuable magnetic materials from end-of-life products and manufacturing scrap, HyProMag USA aims to transform waste streams into a domestic resource for new magnet production, reducing reliance on imported rare earth materials and supporting U.S. manufacturing.

About HyProMag USA LLC

HyProMag USA is developing advanced rare earth magnet recycling and manufacturing operations to establish a secure domestic U.S. supply chain for NdFeB magnets, essential components for artificial intelligence infrastructure, medical systems, robotics, electric vehicles and advanced electronics. Leveraging the revolutionary hydrogen processing of magnet scrap technology, developed over 15 years with over $100-million (U.S.) in research and development investment, HyProMag USA is designed to deliver faster magnet-to-magnet short-loop recycling that uses 88 per cent less energy and reduces carbon emissions by 85 per cent compared with conventional methods. HPMS accepts a wide range of magnet-bearing feedstocks -- including end-of-life EV motors, data centre and industrial equipment, consumer electronics, and manufacturing scrap -- enabling recovery of magnet-grade material without chemical processing.

Ownership

HyProMag USA is owned 50:50 by Cotec and HyProMag Ltd. HyProMag Ltd. is 100 per cent owned by Maginito Ltd., which is owned 79.4 per cent by Mkango Magnetic Materials Ltd. and 20.6 per cent by 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 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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