Mr. Julian Treger reports

COTEC HOLDINGS CORP. NOTES EU STRATEGIC PROJECT DESIGNATION FOR HYPROMAG GMBH

Cotec Holdings Corp. has noted the press release issued on Oct. 9, 2026, by HyProMag USA LLC, its U.S.-based joint venture rare earth permanent magnet recycling and manufacturing company.

HyProMag USA announced the selection of HyProMag GmbH (HyProMag Germany) as a "strategic project" under the European Union's Critical Raw Materials Act (CRMA). HyProMag Germany was included among 46 strategic projects announced by the European Commission to support the development of critical raw materials supply chains across Europe. HyProMag Germany operates a rare earth magnet recycling and manufacturing facility in Pforzheim, Germany, using the patented hydrogen processing of magnet scrap (HPMS) technology, the same technology that HyProMag USA is deploying in the United States.

According to the European Commission, the selected projects are intended to contribute to the European Union's objectives of strengthening critical raw materials value chains, increasing processing and recycling capacity, enhancing competitiveness, and improving supply chain resilience.

Julian Treger, chief executive officer of Cotec Holdings, commented: "The designation of HyProMag Germany as a strategic project reflects the growing recognition of rare earth magnet recycling as an important component of critical minerals supply chains. The development of recycling capacity in Europe is complementary to HyProMag USA's objective of establishing a domestic source of recycled rare earth magnetic materials in the United States."

About HyProMag USA LLC

HyProMag USA is owned 50/50 by Cotec Holdings and HyProMag Ltd. HyProMag Ltd. is 100 per cent owned by Maginito Ltd., which is owned on a 79.4-per-cent/20.6-per-cent basis by Mkango Magnetic Materials Ltd. and Cotec. Maginito holds a 90-per-cent direct and indirect interest (assuming conversion of Maginito's convertible loan) in HyProMag Germany.

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 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 and reclamation 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 differentiated platform at the intersection of technology, sustainability and strategic materials.

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