Greenland signs mandate letter with German bank

Mr. Ruben Shiffman reports GREENLAND RESOURCES SIGNS MANDATE AGREEMENT WITH EUROPEAN BANK Greenland Resources A/S, a fully owned Greenlandic subsidiary of Greenland Resources Inc., has signed a mandate letter with a major German bank to act as the export credit agency (ECA) co-ordinator for the project. The ECA co-ordinator role covers the relevant tasks up to debt financial close. The bank has extensive experience in acting as the ECA co-ordinator in project financings worldwide, as well as being one of Europe's most prestigious institutions. The bank will now be in a position to start working with some of the ECAs discussed in previous news releases (primarily EKN, Finnvera and EIFO). The company's debt part of the capex is around $750-million (U.S.). Mandating the bank complements the company's strategy to increase European Union and specifically German content in the project. Germany remains the largest molybdenum user in the EU and expects to increase defence expenditures significantly during the next decade. Over 80 per cent of all defence metallic components require molybdenum. The company recently received a 30-year exploitation licence and has also signed offtake agreements with the some of the largest EU steel companies, including some that control a significant part of the German steel market and will roast in Belgium. The company intends to expand the business relationship with the bank in other areas related to the German steel market. About molybdenum and the EU The EU is the second-largest molybdenum user worldwide (around 122 million pounds of molybdenum per year, 19 per cent of the global demand according to IMOA), has large processing capacity, produces the best specialty steel products worldwide but has no molybdenum extraction. Green energy technologies, steel and defence are the key drivers for market growth. When molybdenum is added to steel and cast iron, it enhances strength, hardenability, weldability, toughness, temperature strength and corrosion resistance. To a greater degree, the EU steel-dependent industries, like automotive, construction and engineering, represent around 18 per cent of EU GDP (gross domestic product). Greenland Resources strategically located Malmbjerg project has the potential to supply in and for the EU approximately 25 per cent of the EU demand of environmentally friendly high-quality primary molybdenum from a responsible EU associate country for decades to come, as well as 100 per cent of EU defence molybdenum consumption. More than 80 per cent of the metallic materials (including carbon and stainless steels) to be used for defence applications require molybdenum alloying. The primary molybdenum in the Malmbjerg project is ideal for EU defence and high performance steel applications because of low deleterious elements and long-term security supply. The EU expects to increase defence expenditures from current 1.5 per cent to around 5 per cent of GDP. Primary molybdenum is only produced in China (87 per cent) and the United States (13 per cent), China imposed export controls on molybdenum and is now a net importer. Molybdenum is categorized as a critical and/or strategic mineral across the top five defence nations in the world: the United States, China, Russia, India and South Korea. About magnesium and the EU The EU uses around 145,000 tones of magnesium per year (15 per cent of the global demand) but has no treatment facilities nor extraction. Electric vehicle production and sustainable manufacturing practices are key drivers for market growth. Magnesium is a light metal with a high strength-to-weight ratio, primarily utilized in the form of magnesium metal or magnesium compounds, such as caustic-calcined magnesia, magnesium chloride, hydroxide and sulphates. Magnesium metal is primarily used as casting alloy in automotive and aerospace industries (64 per cent), aluminum-base alloys for packaging and transportation (18 per cent), and in the desulphurization of iron and steel (4 per cent). Smelter production of magnesium metal in 2024 was one million metric tonnes, 85 per cent coming from seawater, while smelter capacity worldwide is double. Also, approximately 75 per cent of magnesium compounds serve industrial purposes, including fertilizers, cattle feed, Epsom salts, heat-resistant bricks, deicing etc. (USGS 2024). China produces 89 per cent of the world magnesium and Europe sources 97 per cent of its magnesium from China (EC, 2023). Qualified person statement The news release has been reviewed and approved by Jim Steel, PGeo, MBA, a qualified person as defined by Canadian Securities Administrators National Instrument 43-101, Standards of Disclosure for Mineral Projects. About Greenland Resources Inc. Greenland Resources is a Canadian public company with the Ontario Securities Commission as its principal regulator and is focused on the development of its 100-per-cent-owned Climax-type primary molybdenum deposit located in central-east Greenland. The project has also magnesium as a byproduct, a market dominated 89 per cent by China. The Malmbjerg project is an open-pit operation with an environmentally friendly mine design focused on reduced water usage, low aquatic disturbance and low footprint due to modularized infrastructure. The Malmbjerg project benefits from a National Instrument 43-101 definitive feasibility study completed by Tetra Tech in 2022, with an $820-million (U.S.) capex and a levered after-tax IRR (internal rate of return) of 33.8 per cent and payback of 2.4 years, using a price of $18 (U.S.) per pound molybdenum. The proven and probable reserves are 245 million tonnes at 0.176 per cent MoS2, for 571 million pounds of contained molybdenum metal. As the high-grade molybdenum is mined for the first half of the mine life, the average annual production for years 1 to 10 is 32.8 million pounds per year of contained molybdenum metal at an average grade of 0.23 per cent MoS2, approximately 25 per cent of EU total yearly consumption and 100 per cent of EU defence needs. On byproduct magnesium, the project uses approximately 35,000 cubic metres per day of saline water with around 900 parts per million of magnesium and the company is working on extracting magnesium from the saline water using innovative technologies. In addition, the molybdenum concentrate has a magnesium component. The company is aiming to incorporate magnesium in the economics of the feasibility study. On June 19, 2025, the company was awarded an exploitation license for molybdenum and magnesium. With offices in Toronto, the company is led by a management team with an extensive record in the mining industry and capital markets. The project is supported by the European Raw Materials Alliance (ERMA). ERMA is managed by EIT RawMaterials, an organization within the EIT, a body of the European Union. We seek Safe Harbor.