Mr. Julian Treger reports

COTEC HOLDINGS CORP. NOTES HYPROMAG USA SECURES POWER AND ADVANCES PROJECT READINESS FOR TEXAS RARE EARTH MAGNET RECYCLING AND MANUFACTURING HUB

Cotec Holdings Corp. has noted the press release issued today by its joint venture, HyProMag USA LLC, providing an update on development activities for its Texas Hub rare earth magnet recycling and manufacturing project in Dallas-Fort Worth, Tex. Following the commencement of formal power supply discussions announced on June 22, 2026, HyProMag USA has secured electrical power capacity with Oncor Electric Delivery Company LLC for the Texas Hub development and expects the facility's electricity requirements to be supplied predominantly from renewable energy resources.

Key highlights:

• Power capacity secured: power capacity secured with Oncor for both cutting and finishing operations and the phase 1 development, with a pathway through a substation upgrade to provide power for phase 2;
• Contractor selection and permitting under way: Pegasus TSI Inc. has commenced contractor selection for cutting and finishing operations, and Weston Solutions Inc. is advancing permitting activities;
• Cutting and finishing operations targeted for first half 2027: targeted commissioning of cutting and finishing operations in first half 2027 with the processing of neodymium iron boron magnet blocks, initially supplied from HyProMag Group operations, to produce finished magnets;
• Phase 1 development: phase 1 development is targeted for completion in mid-2028 and is designed to produce approximately 550 tonnes per annum of NdFeB magnet blocks and finished magnets and approximately 484 tpa of co-products, representing approximately 1,034 tpa of total payable production;
• Phase 2 development: phase 2 development envisions expansion to approximately 1,526 tpa of total payable production;
• Renewable energy supply: electricity supply expected to be sourced predominantly from renewable energy resources.

Julian Treger, chief executive officer of Cotec, commented: "Securing power with Oncor, advancing permitting activities through Weston Solutions and commencing contractor selection are important milestones for the Texas Hub. Initial cutting and finishing operations in 2027 are expected to establish U.S. magnet finishing and qualification capabilities aligned with internationally recognized magnetic material and quality standards while the full phase 1 development will deliver integrated recycling and magnet manufacturing capacity. Together, these activities further derisk the project and demonstrate continued progress towards establishing a domestic and sustainable rare earth magnet supply chain in the United States."

Cutting and finishing operations

Cutting and finishing operations in 2027 comprise the initial magnet finishing and qualification facility, enabling production and qualification of finished NdFeB magnets using magnet blocks supplied from HyProMag group operations. The facility is designed to process NdFeB magnet blocks and support qualification of finished magnets in accordance with ASTM A977/A977M, the national classification standard for magnetic materials, together with quality management systems aligned with ISO 9001 and customer-specific quality, performance and traceability requirements. The objective is to establish qualification capabilities that meet the requirements of U.S. customers and establish a strategic training facility for the finishing of NdFeB magnets in advance of the main Texas Hub developments.

Permitting and contractor selection

Weston is advancing permitting activities for the Texas Hub while HyProMag USA's engineering partner Pegasus has commenced a request for quotation process for the selection of a general contractor for cutting and finishing operations. Pegasus and BBA USA Inc. are HyProMag USA's United States-based engineering, procurement and construction management firms.

Phase 1 and phase 2 development

Phase 1 represents the first integrated recycling and magnet manufacturing stage of the Texas Hub and is designed to produce approximately 550 tpa of sintered NdFeB magnet blocks and finished magnets, together with approximately 484 tpa of co-products, representing total payable production of approximately 1,034 tpa. Upon completion of phase 2, the Texas Hub is expected to produce approximately 1,048 tpa of sintered NdFeB magnet blocks and cylinders, together with approximately 478 tpa of co-products, representing total payable production of approximately 1,526 tpa.

Ownership

HyProMag USA is owned 50:50 by Cotec and HyProMag Ltd. HyProMag Ltd. is 100 per cent owned by Maginito Ltd., which is owned 79.4 per cent by Mkango Magnetic Materials Ltd. and 20.6 per cent by Cotec.

About Cotec Holdings Corp.

Cotec 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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