Mr. Josh Wardell reports

STRACON GROUP PUBLISHES 2025 SUSTAINABILITY REPORT

Stracon Group Holding Inc. has published its 2025 sustainability report, the company's fourth annual sustainability report, highlighting the company's continued commitment to responsible business practices and sustainable value creation across its operations.

The report outlines the company's approach to environmental stewardship, health and safety, governance, social impact, talent development, innovation, and climate-related initiatives. It reflects the company's continuing efforts to integrate sustainability considerations into business decision making while maintaining a strong focus on operational excellence and long-term stakeholder value. The report covers the year ended Dec. 31, 2025, and has been prepared with reference to the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). It has been reviewed and approved by the company's executive management and board of directors. No external third party assurance was sought for its contents. The report and the accompanying 2025 ESG (environmental, social and governance) data book are available on the company's website. Unless otherwise indicated, all monetary amounts are in U.S. dollars.

Steve Dixon, chief executive officer of Stracon, said: "The 2025 report covers the company's first full year of enhanced governance and disclosure as a public issuer. It records social responsibility programs operating across every project, 1,714 people hired from the communities that host the company's work, and the start of Scope 3 measurement. The company intends to be measured on whether these results improve year over year."

2025 sustainability report highlights:

1. Health and safety: reported a group LTIFR (lost-time injury frequency rate) of 0.29 (2024: 0.45) and a TRIFR (total recordable injury frequency rate) of 2.02 (2024: 1.10), in each case per one million hours worked, against 2026 targets of below 0.49 and below 1.06, respectively.
2. Public issuer transition: completed the company's transition to a public issuer; Stracon Holdings SA, the group's predecessor holding company, was listed on the Lima Stock Exchange (BVL) on Feb. 11, 2025, and Stracon Group Holding was listed on the Toronto Stock Exchange on Dec. 22, 2025, under the symbol STG; the transition was supported by the implementation of enhanced governance, disclosure and ESG oversight frameworks;
3. Operating footprint: operated 60 active projects (2024: 54) in six countries across the Americas, with 8,298 employees as at Dec. 31, 2025 (2024: 9,981), and 20.7 million hours worked (2024: 22.8 million); year-end backlog was $2.19-billion, compared with $1.78-billion at Dec. 31, 2024;
4. Community investment: achieved 100-per-cent implementation of social responsibility programs across Stracon Group projects and invested $809,485 (U.S.) in community development initiatives;
5. Grievance and ethics reporting: launched the Stracon Group Ethics Line (Stracon Group Te Escucha), a group-wide grievance and ethics reporting platform administered by KPMG and available to employees, suppliers, clients, communities and third parties;
6. Local employment and procurement: recorded 1,714 hires from local communities during the year, representing 25 per cent of total hires (2024: 18 per cent); 54 per cent of senior management was hired from local communities and 51 per cent of the group's suppliers qualified as local suppliers (2024: 23 per cent);
7. Digital transformation: advanced digital transformation initiatives that reduced paper consumption by more than 430,000 sheets annually and delivered savings of more than 53,000 labour hours per year through automation and digital solutions;
8. Climate governance: updated the integrated management systems policy to reflect the company's commitments to climate change mitigation and, in September, 2025, launched a Scope 3 assessment of employee transportation; subsequent to year-end, in February, 2026, Stracon received the Huella de Carbono Peru diploma from Peru's Ministry of the Environment at Level 1, the first of four levels under that program, for the calculation of greenhouse gas emissions;
9. Talent and leadership development: continued investment in talent and leadership development through the group-wide town hall, the ReconoSe recognition program, the successors program and the 360 leadership development program; training averaged 36.3 hours per employee (2024: 45.2 hours);
10. Work force diversity: women represented 9 per cent of the work force, an increase of two percentage points from both 2023 and 2024, and the group maintained an approximately 1:1 base salary ratio between women and men;
11. Water and waste: at the Constancia project in Peru, 100 per cent of the water used at the aggregates plant was reused through a recirculation system, and approximately 1,783 tonnes of waste were diverted from disposal at Stracon operations;
12. Land rehabilitation: rehabilitated 200 hectares in the Jangas and Independencia districts of Huaraz, Ancash, Peru, as part of the Pierina mine closure plan; no negative impacts on biodiversity were identified across the group's companies during the year.

Backlog is a supplementary financial measure. It represents management's estimate of anticipated revenue from the unexecuted portion of contracts awarded to the company and excludes letters of intent, proposals and other non-binding arrangements. Backlog is not derived from the consolidated financial statements, does not have a standardized meaning, is not a measure of revenue recognized or to be recognized under IFRS (international financial reporting standards), and may not be comparable with similar measures presented by other issuers. For the composition of backlog and the basis on which it is determined, see the company's management discussion and analysis for the year ended Dec. 31, 2025, available on SEDAR+.

About Stracon Group Holding Inc.

Stracon Group is an integrated, engineering-led and technology-enabled mining infrastructure and services group operating in six countries across the Americas: Canada, the United States, Mexico, Colombia, Peru and Chile. Headquartered in Toronto, Canada, Stracon Group provides end-to-end solutions across the mining life cycle, including engineering and technology solutions, industrial services, equipment and support services, and infrastructure development and ownership. The company partners with leading global mining operators to design, build, operate and maintain critical infrastructure that supports safe, efficient and sustainable mining operations.

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