Ms. Emma Chapman reports

TECK ANNOUNCES 2024 PRODUCTION AND 2025 GUIDANCE UPDATE

Teck Resources Ltd. today provided select unaudited fourth quarter 2024 production and sales volumes, annual production volumes for 2024, as well as operational and capital guidance for 2025 and production guidance for 2026 to 2028.

The company's fourth quarter 2024 financial results are scheduled for release on Feb. 20, 2025.

Overview of 2024

Teck underwent a significant portfolio transformation in 2024, repositioning itself as a pure-play energy transition metals business focused on copper and zinc.

During 2024, the company completed the sale of 23 per cent of the steelmaking coal business, EVR, to Nippon Steel Corp. and POSCO for upfront proceeds of $1.3-billion (U.S.) and the remaining 77 per cent of EVR to Glencore for proceeds of $7.3-billion (U.S.). Upon closing of the transactions, Teck announced its intention to allocate the transaction proceeds consistent with its capital allocation framework. This included total cash returns to shareholders of $3.5-billion, a debt reduction program of up to $2.75-billion, approximately $1.0-billion for final taxes and transaction costs and cash retained for the company's value accretive copper projects. Given the completion of the sale of EVR on July 11, 2024, the company has removed steelmaking coal business unit information from its 2024 production results in this guidance update.

In 2024, Teck executed $1.25-billion of its authorized share buyback program of $3.25-billion. The company also reduced its debt by $1.6-billion (U.S.) through a bond tender offer for the company's public notes in July and other debt repayments in the second half of 2024.

Teck continued to advance its value accretive copper growth strategy, reinforcing its commitment to long-term value creation through a balanced approach of growth investments and shareholder returns. The company has a pathway to grow copper production to approximately 800,000 tonnes per year before the end of the decade, with planned attributable post-sanction project capital expenditures of between $3.2-billion (U.S.) to $3.9-billion (U.S.) to develop four key near-term copper projects:

• Quebrada Blanca (QB) optimization and debottlenecking (Teck 60-per-cent owner, Chile) -- Low capital intensity option to potentially increase throughput at QB by a further 15 to 25 per cent ($100-million to $200-million estimated attributable capital cost).
• Highland Valley copper mine life extension (Teck 100-per-cent owner, Canada) -- Lower complexity brownfield project extending the life of Canada's largest copper mine to mid-2040s. Estimated life-of-mine copper production of 137,000 tonnes per annum post-2024 ($1.3-billion (U.S.) to $1.4-billion (U.S.) estimated attributable capital).
• Zafranal project (Teck 80-per-cent owner, Peru) -- Long-life, competitive capital cost and lower complexity copper-gold project, SEIA approval received and positioned for a potential sanction decision in H2 (second half) 2025. Estimated copper production of 126,000 tonnes per annum over the first five years with substantial gold byproduct credits ($1.5-billion (U.S.) to $1.8-billion (U.S.) estimated attributable capital).
• San Nicolas project (Teck 50-per-cent owner, Mexico) -- Low capital intensity, lower complexity copper-zinc project in well-established mining jurisdiction in partnership with Agnico Eagle Mines. Estimated production (on 100-per-cent basis) of 63,000 tonnes per annum of copper and 147,000 tonnes per annum of zinc in the first five years. Feasibility study and execution strategy are progressing toward a potential sanction decision in H2 2025 (Teck estimated funding requirement $300-million (U.S.) to $500-million).

2024 production results

The attached table shows a summary of Teck's share of unaudited production and sales of principal products for the fourth quarter of 2024, and 2024 annual production as compared with our previously disclosed guidance as of Oct. 23, 2024.

Two thousand twenty-four annual copper production of 446,000 tonnes increased by 50 per cent compared with the prior year primarily due to the ramp-up of QB, which achieved design throughput rates by the end of the year. Record quarterly copper production of 122,100 tonnes in Q4, increased by 19 per cent compared with the same period in 2023, with QB contributing 60,700 tonnes. Copper sales volumes from QB of 66,400 tonnes were higher than production volumes in the fourth quarter as inventory levels decreased.

Two thousand twenty-four annual zinc in concentrate production of 615,900 tonnes decreased by 4 per cent compared with the prior year, as anticipated in the company's mine plan, primarily due to a higher proportion of copper-only ore relative to copper-zinc ore at Antamina. This was largely offset by an increase of 3 per cent in annual production at Red Dog, with 555,600 tonnes produced.

Two thousand twenty-four annual refined zinc production of 256,000 tonnes was 4 per cent lower than the prior year, as a result of a localized fire in the electrolytic zinc plant at Trail on Sept. 24, 2024, which impacted production in the fourth quarter, as previously disclosed.

Guidance

The company's production, unit cost and capital expenditure guidance for 2025, and annual production guidance for 2026 to 2028 are outlined in the attached tables. The guidance ranges below reflect the company's operating plans, which include known risks and uncertainties. Events such as extreme weather, unplanned, or extended operational shut-downs and other disruptions could impact actual results beyond these estimates. Teck's unit costs are calculated based on production guidance volumes and variances from estimated production ranges will impact unit costs. The company's disclosed guidance ranges for capital expenditures do not include postsanction capital expenditures for the unsanctioned near-term growth projects, noted above. The company's disclosed production guidance ranges also do not include the production associated with these unsanctioned projects. Guidance will be updated at the time a sanction decision is made.

The company remains highly focused on managing our controllable operating expenditures. The company's underlying key mining drivers such as strip ratios and haul distances remain relatively stable. Inflation on key input costs, including the cost of certain key supplies and mining equipment, labour and contractors, and changing diesel prices, are included in the company's 2025 annual capital expenditure, capitalized stripping and unit cost guidance. The company's unit cost guidance for 2025 reflects actions taken across the company's operations to reduce costs, embedding its management operating system across its operations to improve consistency and efficiency.

As a result of structural cost reductions across the company's business, it expects its 2025 general and administration and research and innovation costs to decrease by approximately 15 per cent and 35 per cent, respectively, compared with 2024. This excludes investment in the implementation of a new enterprise resource planning (ERP) system across the company, which the company expects to commence in 2025. This will be a multiyear program and capital costs associated with this investment for the first year are included in its 2025 guidance, outlined below. Certain costs associated with the ERP implementation will be expensed.

Based on the company's current elevated cash and cash equivalents balance resulting from the receipt of proceeds from the sale of the steelmaking coal business, the company expects to have higher investment interest income for the foreseeable future.

Production guidance

The attached table shows Teck's share of unaudited production of our principal products in 2024 and its guidance for 2025 and the next three years.

Sales guidance

The attached table shows the company's sales guidance for the first quarter of 2025 for zinc in concentrate sales at Red Dog.

Copper

Total copper production in 2025 is expected to increase to between 490,000 and 565,000 tonnes compared with 446,000 tonnes produced in 2024.

Through Q4 2024, QB achieved design throughput rates, saw an improvement in recoveries, and coupled with an increase in grade, resulted in a record quarterly production. This resulted in total production in 2024 of 207,800 tonnes. Teck's 2025 annual QB production is expected to increase to between 230,000 to 270,000 tonnes, which is 10,000 tonnes lower than Teck's previously disclosed guidance. Teck had scheduled planned maintenance in January, 2025, for minor modifications; however, the company extended the scheduled shutdown to conduct maintenance and reliability work, and complete additional tailings lifts as part of the operational ramp-up. As a result, production was halted for approximately half of January and is expected to recommence this week. The company has adjusted its guidance range to account for the additional downtime. As previously noted, although the company expects an overall increase in ore grades in 2025 over 2024, it expects to mine in lower grade areas in the first quarter of 2025, in line with the scheduled mine plan. The company's previously disclosed production guidance for 2026 to 2027 remains unchanged at 280,000 to 310,000 tonnes. Annual production for 2028 is expected to be between 270,000 to 300,000 tonnes, in line with expected grade variation in the mine plan. The QB debottlenecking project, outlined above, could lead to a further increase in throughput by 10 to 15 per cent, with associated production increases dependent on ore feed grade and recoveries. The results of the QB debottlenecking project are not reflected in the company's disclosed production guidance ranges.

Highland Valley copper production is expected to increase significantly in 2025 as mining continues in the Lornex pit, releasing ore which is both higher grade (more metal) and softer (higher mill throughput). These factors combined will more than offset expected lower recovery rates associated with the Lornex ore. The company's expected recovery rates have been adjusted, and as a result, Teck's 2025 annual production is expected to be between 135,000 and 150,000 tonnes. The company's previously disclosed 2026 and 2027 annual production guidance is unchanged, and its 2028 annual production guidance is expected to be between 70,000 and 90,000 tonnes. The company's disclosed production guidance does not include HVC MLE, which could be sanctioned in 2025. As a result, the company's 2028 annual production guidance reflects production at the end of mine life of HVC. If the project is sanctioned, production guidance would be updated at that time.

The company's share (22.5 per cent) of copper production at Antamina will remain relatively stable over the next few years and its previously disclosed annual production guidance for 2025 and 2027 is unchanged, with a slight increase to annual production guidance in 2026. Annual production guidance for 2028 is outlined in the attached table.

Carmen de Andacollo continues to operate in extreme drought conditions. In 2024, risk mitigation plans to increase water availability through increased well field capacity were implemented, enabling mill throughput rates consistent with the company's mine plan through the second half of 2024. However, continuing drought conditions remain a risk to production, which is reflected in the company's annual production guidance for 2025 to 2028.

Teck's 2025 copper net cash unit costs, including QB, are expected to be between $1.65 (U.S.) to $1.95 (U.S.) per pound, a significant reduction from the company's 2024 net cash unit cost guidance of $1.90 (U.S.) to $2.30 (U.S.) per pound, reflecting strong cost discipline across Teck's operations. The company expects a reduction in its operating expenses across its copper business unit compared with 2024 as QB operations stabilize and the company embedded its management operating system across its operations, with a focus on efficiency and cost optimization. The improvement in its 2025 copper net cash unit costs compared with 2024 guidance reflects reduced operating costs across our business, an increase in copper production, lower copper treatment, and refining charges and higher byproduct credits, which are largely driven by an increase in molybdenum production at QB and Highland Valley Copper.

In 2025, QB net cash unit costs are expected to be between $1.80 (U.S.) to $2.15 (U.S.) per pound, a significant reduction from the company's 2024 QB net cash unit cost1 guidance of $2.25 (U.S.) to $2.55 (U.S.) per pound. The improvement in QB net cash unit costs is primarily due to an increase in copper production and higher molybdenum byproduct credits, but also reflects completion of ramp-up and the expected stabilization of QB operations through 2025.

Zinc

Total zinc in concentrate production in 2025 is expected to be between 525,000 and 575,000 tonnes, compared with 615,900 tonnes in 2024. Production in each of the next three years is expected to decrease primarily due to declining grades at Red Dog.

Red Dog is expected to produce between 430,000 and 470,000 tonnes of zinc in 2025, compared with 555,600 tonnes in 2024, primarily due to a decline in zinc grades. The company is currently mining in two pits, Aqqaluk and Qanaiyaq, with the latter to be depleted midway through 2025 as per the mine plan. As the Qanaiyaq pit nears the end of life, the company has seen an increase in ore tonnes in Qanaiyaq, but at lower average zinc grades compared with what was previously expected, leading to a decrease in the company's 2025 annual zinc production guidance. The company's previously disclosed 2026 and 2027 annual production guidance is unchanged and 2028 annual production guidance reflects declining zinc grades as the Aqqaluk pit nears the end of mine life. Teck's advancing studies to extend the life of the operation, having commenced construction of an all-season access road to more efficiently drill the nearby Anarraaq and Aktigiruq deposits, which are critical to the extension of the mine life of Red Dog.

Teck's share (22.5 per cent) of zinc production at Antamina is expected to be between 95,000 and 105,000 tonnes in 2025, consistent with its previously disclosed guidance. Based on Antamina's mine plan, 2025 is expected to see a higher proportion of copper-zinc ore relative to copper-only ore compared with 2024. Annual zinc production between 2026 and 2028 is expected to be lower than 2025, as the company expects more copper-only ore relative to copper-zinc ore, consistent with the mine plan.

Refined zinc production at the company's Trail operations is expected to be between 190,000 and 230,000 tonnes in 2025, compared with 256,000 tonnes in 2024. To maximize value from the company's Trail operations, in light of the current tightness in the zinc concentrate market and aligned with the company's focus on improving its profitability and cash generation, Teck expects to reduce its zinc production at Trail in 2025, as reflected in its 2025 annual production guidance. The company will continue to operate Trail, albeit at lower production rates, and remain focused on implementing a range of initiatives to further improve cash generation. The repair of one of the four sections of the electrolytic plant impacted by a fire in the third quarter of 2024 continues to progress and is expected to be completed by the end of the first quarter of 2025. The company's annual 2025 production guidance does not require usage of all sections of the electrolytic plant. Teck's annual production guidance of 260,000 to 300,000 tonnes for 2026 to 2028 assumes a return to full production levels, consistent with the capacity of its Trail operations, subject to market conditions and optimizing for value and financial outcomes.

The company's 2025 zinc net cash unit costs are expected to be 45 U.S. cents to 55 U.S. cents per pound, consistent with its 2024 annual guidance, despite a reduction in annual zinc in concentrate production expected in 2025. The company's 2025 zinc net cash unit costs are expected to remain consistent year over year despite lower zinc production. The decrease in zinc production is offset by lower zinc treatment charges, higher byproduct credits, and continued focus on efficiency and cost optimization.

Capital expenditure guidance

Teck's 2025 capital expenditures are expected to decrease from its 2024 guidance levels following completion of construction of the QB2 project in 2024. This decrease is expected to be partially offset by capital expenditures to progress the company's near-term copper growth strategy. The capital required for its near-term growth projects, noted above, is dependent on the timing of permit approvals and completion of studies and detailed engineering work prior to potential sanction decisions. Postsanction expenditures are not included in the company's capital expenditure guidance below for 2025 and its share of estimated postsanction total attributable capital for these projects is noted above.

The company's 2025 sustaining capital and capitalized stripping expenditures are expected to be between $1.0-billion to $1.2-billion, in line with Teck's previously disclosed guidance for the company's current portfolio of operating assets. Sustaining capital expenditure in 2025 is expected to be between $750-million to $845-million, of which $600-million to $670-million relates to the company's copper business and $150-million to $175-million relates to the company's zinc business. Capitalized stripping costs in 2025 are expected to be between $260-million to $300-million.

The company's 2025 growth capital expenditure guidance for copper primarily relates to its near-term copper growth projects -- HVC MLE, Zafranal and San Nicolas -- and is focused on completing feasibility studies, and advancing detailed engineering work, project execution planning and permitting. The advancement of engineering and execution planning for these projects through 2025 is expected to increase the company's growth capital expenditures, excluding QB, compared with 2024. In addition, the company will work toward operational optimization at QB, which will inform the company's low capital-intensity debottlenecking project at QB. Growth capital expenditure guidance for 2025 does not include postsanction project capital, which would be disclosed at the time of sanctioning. The company also expects to continue to progress its medium to long-term portfolio options with prudent investments to advance the path to value.

Teck's 2025 growth capital expenditure guidance for zinc primarily relates to the construction of an all-season access road at Red Dog to more efficiently drill the Anarraaq and Aktigiruq deposits, thus progressing the potential for mine life extension.

The attached table shows its capital expenditure guidance for 2024 and 2025.

About Teck Resources Ltd.

Teck is a leading Canadian resource company focused on responsibly providing metals essential to economic development and the energy transition. Teck has a portfolio of world-class copper and zinc operations across North and South America and an industry-leading copper growth pipeline. The company is focused on creating value by advancing responsible growth and ensuring resilience built on a foundation of stakeholder trust. Headquartered in Vancouver, Canada, Teck's shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B, and the New York Stock Exchange under the symbol TECK.

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