Mr. Patrick Laracy reports

REVIEW AND UPDATE ON AFFILIATED COMPANY ATLAS SALT INC.

Vulcan Minerals Inc. has updated shareholders on the status of Atlas Salt Inc., an affiliated entity that forms a key asset for the company. Atlas is engaged in the development of the Great Atlantic salt project in the Bay St. George basin of western Newfoundland. Vulcan owns 23.5 per cent of the outstanding common shares of Atlas, which trades on the TSX Venture Exchange. Vulcan created and financed Atlas through a corporate spinout in 2012 to pursue the advanced exploration and development of industrial mineral projects originally generated by Vulcan. Subsequently, Atlas defined a substantial rock salt resource and reserve, financed and produced a positive feasibility study, gained environmental approval for mine development, and embarked on the early construction of the mine. Final project financing to fully construct the mine is currently being assembled.

The project financing

Atlas reported on Sept. 1, 2026, that it has secured non-binding letters of interest totalling more than $300-million in debt and equipment financing. As per its news release of that date, its plan is clear.

"As previously disclosed, the company is pursuing approximately $350-million to $400-million of senior secured debt, with the potential for additional subordinate debt, anchored by the updated feasibility study (UFS) released on Sept. 30, 2025. The UFS delivered an after-tax net present value (discounted at 8 per cent) of $920-million, an after-tax internal rate of return of 21.3 per cent, a 4.2-year payback at a steady-state production rate of 4.0 million tonnes per annum and approximately $188-million in average annual after-tax free cash flow over a 25-year mine life."

With an initial capital expenditure for mine development of $589-million, formal expressions of interest for the debt portion are approaching the targeted amount with the balance to be financed through equity. The company commends Atlas on its significant recent progress and looks forward to the ultimate full project financing of the salt mine, the first salt mine development in North America since 2001. The timing appears perfect given that there are significant salt imports into eastern North America to address a domestic supply deficit for road de-icing (seven million to 10 million tonnes annually depending on the severity of the winter). A shortfall is expected to become more pronounced with the recent shutdown of an Ohio mine (Fairport) combined with the aging infrastructure of other salt mines in eastern North America.

President Patrick Laracy noted: "The Great Atlantic salt project offers a long-life revenue stream from a recession proof commodity in a domestically undersupplied market with a competitive advantage against imports that will never go away, namely, a location proximal to the largest road de-icing market in the world."

Exploration update

The company is waiting for assay results from its Carbonear drill project, which will be released upon receipt and review, expected in the next few weeks. An update on prospecting work recently carried out on the Red Cross Lake and Colchester projects will be provided as well.

About Vulcan Minerals Inc.

Vulcan Minerals is a precious and base metal exploration company based in St. John's, Nfld. The company has strategic land positions in multiple active Newfoundland gold and base metal exploration and development belts. It also holds approximately 23.5 per cent of the shares in Atlas Salt Inc. and retains a 3-per-cent net production royalty on the Great Atlantic salt project.

Patrick J. Laracy, PGeo, president, is the qualified person who has reviewed and approved the technical contents of this news release as defined in National Instrument 43-101.

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