Mr. Steven Dean reports

OCEANIC DEMONSTRATES CRITICAL MINERAL LEVEL, DIRECT REDUCTION CONCENTRATE AT HOPES ADVANCE

Oceanic Iron Ore Corp. has provided results of phase 1 of its 2025 metallurgical testwork program on the company's 100-per-cent-owned Hopes Advance project, located in Northern Quebec, Canada.

The results from phase 1 of the 2025 program indicate the potential to produce a high-grade, direct reduction (DR) Iron product, based on laboratory-scale flotation testing which may be achievable with modest modifications to the existing flowsheet as detailed in the company's current preliminary economic study (the PEA study).

The benefits of producing a DR iron product would include, but are not limited to the following:

• Recognition as high-purity iron, identified as a critical mineral in Quebec and in Canada;
• A required high-quality product, used in green-steel making process, reducing related carbon emissions, compared with the typical blast furnace/basic oxygen furnace (BF/BOF) steelmaking process;
• Further price premia for a higher-grade and lower impurity product, relative to benchmark pricing;
• Facilitates steelmaking planning due to product blending potential with other operator's lower grade material;
• Offers optionality for potential strategic partners as to product choice. The current Hopes Advance BF/BOF product is already at a relatively high grade of 66.6 per cent Fe (iron) with 4.5 per cent SiO2 (silicon dioxide).

Steven Dean, chairman of Oceanic, said: "As expected, preliminary metallurgical testwork completed to date has demonstrated that the Hopes Advance project has the potential to produce DR-grade product characteristics through modest adjustments to the existing flowsheet, contributing to lower steelmaking costs and to the global green-steel movement.

"The PEA study already demonstrates the ability for Hopes Advance to produce a relatively high-grade product. The ability to now pursue DR-grade potential adds meaningful optionality to the flowsheet and broadens the appeal of the project, globally.

"Combined with its other distinct characteristics (including scale, coastal location and low impurity profile) these results continue to reinforce Hopes Advance as one of the more technically compelling iron ore development opportunities globally. We look forward to receiving results from phase 2 of the program in the coming months."

The 2025 program

The overall objective of the 2025 program is to evaluate whether the project can generate a high-grade, low-impurity DR-grade premium iron product for the benefit of green steel producers and other potential strategic partners seeking low operating cost sources of high-quality product, that also aligns with current critical mineral qualification standards, both provincially and federally in Canada. This would enhance the project's product versatility by offering customers flexibility in product selection.

The 2025 program contemplates two phases, with phase 1 covering mineralogical analysis as well as initial flotation testwork to assess the potential to achieving a DR grade product, and phase 2 applying results from phase 1 to optimize relative reverse flotation conditions.

The company engaged COREM, based in Quebec City, Que., to conduct the requisite laboratory testwork for the 2025 program. COREM is independent of Oceanic Iron Ore Corp. as defined by National Instrument 43-101. The company also engaged BBA Engineering Ltd. (BBA) to assist management with the scope and reporting in relation to the 2025 program. Both Corem and BBA are well-known experts in the iron ore industry, and particularly experienced in working with other iron ore projects within the Labrador trough.

Material selected for testing

In 2012, the company conducted both a comprehensive metallurgical bench scale testing program as well as a pilot plant testwork program on the Hopes Advance product (the 2012 program). The 2012 program confirmed, among other things:

• Product quality suitable for (blast furnace) pellet or sinter feed;
• 66.6 per cent Fe grade concentrate with low deleterious elements and silica content less than or equal to 4.5 per cent;
• High weight and Fe recoveries using a simple flow sheet.

The 2012 program produced both a gravity concentrate product, as well as a magnetic concentrate product at pilot plant scale at its principal Castle Mountain deposit. This product was considered appropriate for the 2025 program as mineral resources identified at the Castle Mountain deposit represents 45 per cent of the current measured and indicated mineral resource estimate for the project.

Moreover, based on the company's PEA study, the project was able to recover 84 per cent of its final product through its gravity circuit, with the remaining 16 per cent being recovered through low intensity magnetic separation. As such, the company elected to focus phase 1 testing on the Castle Mountain gravity concentrate.

Phase 1 objectives

• Analyze the physical and mineralogical characteristics of the Castle Mountain gravity concentrate product;
• Evaluate potential for direct reduction grade metallurgical characteristics under aggressive flotation conditions;
• Use results of this phase of testing to inform conditions to run subsequent tests on Castle Mountain magnetic concentrate in phase 2.

Phase 1 testwork results

Mineralogical assessment

Mineralogical analyses revealed that the Castle Mountain gravity concentrate comprise approximately 75 per cent hematite, 18 per cent magnetite, 5 per cent quartz and 1.2 per cent ankerite. Liberation studies identified that particle liberation below 75 micrometres proved ideal for flotation testing, thus tests were conducted at grind sizes of 53 and 38 micrometres. These grind sizes were selected as they approximate the fineness required for agglomeration and maximized the potential for successful results in flotation sighter tests.

Flotation results and methodology -- phase 1

Initial flotation testing was conducted at COREM using a reagent scheme developed in collaboration with and approved by management and BBA. The program leveraged BBA and COREM's expertise in reverse silica flotation of iron ore. Collector addition was staged at two-minute intervals, and froth was collected to monitor silica rejection.

Both grind sizes evaluated reached the target of obtaining an iron concentrate containing less than 2.0 per cent SiO2 plus Al2O3 (aluminum oxide) while achieving iron concentrations superior to 67.5 per cent Fe. The preliminary grade-recovery data obtained in phase 1 will guide targets in phase 2 of the 2025 program.

Next steps -- phase 2 testwork

Phase 2 will investigate a conventional staged flotation circuit (rougher, cleaner, scavenger) to simulate operational conditions. Objectives include:

• Developing a preliminary unit operation flowsheet and reagent scheme;
• Establishing grade-recovery relationships;
• Optimizing grind size for Castle Mountain gravity concentrate;
• Evaluating magnetic separation (WHIMS) as an alternative route for gravity concentrate upgrading;
• Testing Castle Mountain magnetic concentrate flotation response and developing reagent scheme.

Approximately 50 kilograms of both gravity concentrate and magnetic concentrate material is anticipated to be used for phase 2 testwork.

The company will provide further updates on the program once phase 2 is complete.

Technical disclosure

The technical information contained in this news release has been reviewed and approved by Derek Blais from BBA Consultants, a qualified person as defined by NI 43-101 and independent of the company, with the exception of the technical disclosure in the "about Oceanic" section below, which was reviewed and approved by Eddy Canova, director of exploration of the company, a qualified person as defined by NI 43-101 and independent of the company.

About Oceanic Iron Ore Corp.

Oceanic is focused on the development of its 100-per-cent-owned Hopes Advance, Morgan Lake and Roberts Lake iron ore development projects located on the coast in the Labrador trough in Quebec, Canada. Oceanic's flagship Hopes Advance project has an NI 43-101 measured and indicated mineral resource of approximately 1.36 billion tonnes and enjoys the distinct advantage of being located at tidewater and not being reliant on third parties for key infrastructure such as port, power and especially bulk transportation to port (negating the need for any rail infrastructure).

In December, 2019, the company published the results of a preliminary economic assessment completed in respect of the flagship Hopes Advance project outlining a base case pretax NPV (net present value) 8 per cent of $2.4-billion (U.S.) (posttax NPV 8 of $1.4-billion (U.S.)) over a 28-year mine life, and a life of mine operating cost of approximately $30 (U.S.)/tonne, producing a blast furnace concentrate product grading at 66.5 per cent Fe with approximately 4.5 per cent silica.

More recently, the company has completed preliminary metallurgical testwork that indicates the potential to produce a high-grade, direct reduction Iron product, based on laboratory-scale flotation testing which may be achievable with modest modifications to the existing flowsheet, thereby providing versatility in product choice and contributing to the global green-steel movement. Further information in respect of the Morgan Lake and Roberts Lake projects, both of which have been explored historically and which have defined historical resources, is also available on the company's website.

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