Cotec investment MagIron completes pilot plant testing

Mr. Julian Treger reports COTEC INVESTMENT MAGIRON COMPLETES PILOT PLANT TESTS, ACHIEVING EXCEPTIONAL RECOVERY RATES Cotec Holdings Corp.'s approximately 16.5-per-cent investment, MagIron LLC, has successfully completed its comprehensive independent pilot plant test work program conducted in partnership with the University of Minnesota, Natural Resources Research Institute (NRRI), at Coleraine, Minn. The test work forms a key component of MagIron's continuing feasibility study for the restart of Plant 4 in Grand Rapids, Minn. The independent pilot-scale program has confirmed the technical viability of MagIron's new and innovative process flow sheet and demonstrates exceptional iron recovery rates and concentrate quality, consistent with previous bench-scale results conducted since 2022. The flotation pilot plant, while making direct-reduction-grade (DR-grade) concentrate of 68.3 per cent total iron (post-LOI (loss on ignition)), achieved an 83.5-per-cent iron recovery. Meanwhile, the flotation pilot plant, while making blast-furnace-grade concentrate of 66.4 per cent total iron (post-LOI), achieved an iron recovery of 85.9 per cent. The original Plant 4 previously produced BF-grade concentrate at an iron recovery of 40.0 per cent. On a comparable basis, the new Plant 4 flow sheet iron recovery is slightly more than double that of the prior facility. These results validate MagIron's ability to produce DR-grade iron oxide concentrate, supporting the company's strategy to supply high-grade feedstock for the growing electric arc furnace (EAF) steel sector. Data from the pilot plant and bench testing campaign form the foundation of the forthcoming National Instrument 43-101-compliant mineral resource and reserve estimate and will be incorporated into the independent feasibility study being completed by Behre Dolbear, which is expected to be finalized shortly. Julian Treger, chief executive officer of Cotec, commented: "The completion of the pilot plant study and its exciting results are a major step forward for MagIron towards the execution of its strategy to restart these assets. We remain very bullish on MagIron and are confident that they could become a major player in the U.S. steel industry. As a large shareholder, MagIron's success will further improve the substantial value proposition of Cotec." Larry Lehtinen, chief executive officer of MagIron, commented: "The successful completion of our bench testing and pilot plant programs marks another major milestone in the restart of Plant 4. The results confirm that MagIron's new process has the potential to deliver outstanding recovery and product quality metrics. These findings reinforce the robustness of our flow sheet and provide critical validation as we advance our feasibility study and prepare to publish our NI 43-101-compliant resource and reserve statement in the coming weeks." About Cotec Holdings Corp. Cotec Holdings is redefining the future of resource extraction and recycling. Focused on rare earth magnets and strategic materials, Cotec integrates breakthrough technologies with strategic assets to unlock secure, sustainable and low-cost supply chains. Cotec's mission is clear: accelerate the energy transition while strengthening strategic critical mineral supply chains for the countries the company operates in. By investing in and deploying disruptive technologies, the company delivers capital-efficient, scalable solutions that transform marginal assets, tailings, waste streams and recycled products into high-value critical minerals. From its HyProMag USA magnet recycling joint venture in Texas to iron tailings reprocessing in Quebec to next-generation copper and iron solutions backed by global majors, Cotec is building a diversified portfolio with long-term growth, rapid cash flow potential and high barriers to entry. The result is a game-changing platform at the intersection of technology, sustainability and strategic materials. We seek Safe Harbor.