Toronto, Ontario--(Newsfile Corp. - August 17, 2026) - STRACON Group Holding Inc. (TSX: STG) (BVL: STG) ("STRACON Group" or the "Company"), today announced the publication of its 2025 Sustainability Report, the Company's fourth annual sustainability report, highlighting the Company's continued commitment to responsible business practices and sustainable value creation across its operations.

The report outlines the Company's approach to environmental stewardship, health and safety, governance, social impact, talent development, innovation and climate-related initiatives. It reflects the Company's ongoing efforts to integrate sustainability considerations into business decision-making while maintaining a strong focus on operational excellence and long-term stakeholder value. The report covers the year ended December 31, 2025 and has been prepared with reference to the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). It has been reviewed and approved by the Company's executive management and board of directors. No external third-party assurance was sought for its contents. The report and the accompanying 2025 ESG Data Book are available on the Company's website at www.stracon-group.com. Unless otherwise indicated, all monetary amounts are in United States dollars.

Steve Dixon, Chief Executive Officer of STRACON, said "The 2025 report covers the Company's first full year of enhanced governance and disclosure as a public issuer. It records social responsibility programs operating across every project, 1,714 people hired from the communities that host the Company's work, and the start of Scope 3 measurement. The Company intends to be measured on whether these results improve year over year."

2025 Sustainability Report Highlights:

1. Health and safety: Reported a Group LTIFR of 0.29 (2024: 0.45) and a TRIFR of 2.02 (2024: 1.10), in each case per one million hours worked, against 2026 targets of below 0.49 and below 1.06, respectively.

2. Public issuer transition: Completed the Company's transition to a public issuer. STRACON Holdings S.A., the Group's predecessor holding company, was listed on the Lima Stock Exchange (BVL) on February 11, 2025, and STRACON Group Holding Inc. was listed on the Toronto Stock Exchange (TSX) on December 22, 2025 under the symbol STG. The transition was supported by the implementation of enhanced governance, disclosure and ESG oversight frameworks.

3. Operating footprint: Operated 60 active projects (2024: 54) in six countries across the Americas, with 8,298 employees as at December 31, 2025 (2024: 9,981) and 20.7 million hours worked (2024: 22.8 million). Year-end backlog was US$2.19 billion, compared with US$1.78 billion at December 31, 2024.

4. Community investment: Achieved 100% implementation of Social Responsibility Programs across STRACON Group projects and invested US$809,485 in community development initiatives.

5. Grievance and ethics reporting: Launched the STRACON Group Ethics Line (STRACON Group Te Escucha), a Group-wide grievance and ethics reporting platform administered by KPMG and available to employees, suppliers, clients, communities and third parties.

6. Local employment and procurement: Recorded 1,714 hires from local communities during the year, representing 25% of total hires (2024: 18%). 54% of senior management was hired from local communities, and 51% of the Group's suppliers qualified as local suppliers (2024: 23%).

7. Digital transformation: Advanced digital transformation initiatives that reduced paper consumption by more than 430,000 sheets annually and delivered savings of more than 53,000 labour hours per year through automation and digital solutions.

8. Climate governance: Updated the Integrated Management Systems Policy to reflect the Company's commitments to climate change mitigation and, in September 2025, launched a Scope 3 assessment of employee transportation. Subsequent to year end, in February 2026, STRACON received the Huella de Carbono Perú diploma from Peru's Ministry of the Environment at Level 1, the first of four levels under that program, for the calculation of greenhouse gas emissions.

9. Talent and leadership development: Continued investment in talent and leadership development through the Group-wide Town Hall, the ReconoSe recognition program, the Successors Program and the 360 Leadership Development Program. Training averaged 36.3 hours per employee (2024: 45.2 hours).

10. Workforce diversity: Women represented 9% of the workforce, an increase of two percentage points from both 2023 and 2024, and the Group maintained an approximately 1:1 base salary ratio between women and men.

11. Water and waste: At the Constancia project in Peru, 100% of the water used at the aggregates plant was reused through a recirculation system, and approximately 1,783 tonnes of waste were diverted from disposal at STRACON operations.

12. Land rehabilitation: Rehabilitated 200 hectares in the Jangas and Independencia districts of Huaraz, Ancash, Peru as part of the Pierina mine closure plan. No negative impacts on biodiversity were identified across the Group's companies during the year.

Backlog is a supplementary financial measure. It represents management's estimate of anticipated revenue from the unexecuted portion of contracts awarded to the Company and excludes letters of intent, proposals and other non-binding arrangements. Backlog is not derived from the consolidated financial statements, does not have a standardized meaning, is not a measure of revenue recognized or to be recognized under IFRS, and may not be comparable to similar measures presented by other issuers. For the composition of Backlog and the basis on which it is determined, see the Company's Management's Discussion and Analysis for the year ended December 31, 2025, available on SEDAR+ at www.sedarplus.ca.

About STRACON Group

STRACON Group is an integrated, engineering-led and technology-enabled mining infrastructure and services group operating in six countries across the Americas: Canada, the United States, Mexico, Colombia, Peru and Chile. Headquartered in Toronto, Canada, STRACON Group provides end-to-end solutions across the mining lifecycle, including engineering and technology solutions, industrial services, equipment and support services, and infrastructure development and ownership. The Company partners with leading global mining operators to design, build, operate and maintain critical infrastructure that supports safe, efficient and sustainable mining operations.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. All statements contained in this news release other than statements of historical fact are forward-looking statements. Forward-looking statements may relate to, among other things, STRACON Group Holding Inc. and its subsidiaries' (collectively, "STRACON Group", the "Company", "we", "our" or "us") sustainability strategy, objectives, targets, initiatives, commitments, future performance, expected outcomes, plans, priorities and programs.

Often, but not always, forward-looking statements can be identified by the use of words such as "believe", "expect", "anticipate", "estimate", "target", "plan", "intend", "commit", "objective", "goal", "continue", "seek", "may", "will", "can", "should", "could", "would", "potential", "forecast", "outlook" and similar expressions.

In particular, this news release contains forward-looking statements regarding, among other things: (i) STRACON Group's sustainability strategy, priorities and vision; (ii) environmental, health and safety, social responsibility, human capital, diversity and inclusion, community relations, local employment and procurement, innovation and governance initiatives; (iii) climate-related strategies, greenhouse gas emission measurement and reduction initiatives, and energy efficiency programs; (iv) sustainability-related targets, commitments and objectives; (v) the anticipated benefits of digitalization, innovation, artificial intelligence and data analytics initiatives; (vi) future environmental, social and governance performance; (vii) planned investments, programs and partnerships; (viii) community development and Indigenous engagement initiatives; and (ix) future reporting, monitoring, governance and compliance efforts.

Forward-looking statements are necessarily based upon a number of estimates, assumptions and judgments that, while considered reasonable by management as of the date of this news release, are inherently subject to significant business, economic, operational, environmental, regulatory, political and social uncertainties and contingencies. There can be no assurance that such assumptions will prove to be correct.

Actual results, performance or achievements may differ materially from those expressed or implied by the forward-looking statements due to a variety of risks and uncertainties, including, without limitation, changes in economic, market, regulatory or political conditions in the jurisdictions where STRACON Group operates; changes in environmental, health and safety, labour, privacy, human rights, climate-related or other applicable laws and regulations; the availability of capital, equipment, materials and labour; supply chain disruptions; changes in client requirements and project schedules; risks associated with joint ventures, partnerships and subcontractors; employee relations and workforce availability; technological and cybersecurity risks; risks associated with climate change, extreme weather events and the transition to a lower-carbon economy; the Company's ability to successfully implement its sustainability, climate, innovation and operational initiatives; litigation and regulatory proceedings; reputational risks; community relations and social licence considerations; health emergencies, pandemics and other unforeseen events; and other risks disclosed in STRACON Group's public filings from time to time.

Many of these factors are beyond the Company's control and could cause actual outcomes to differ materially from those anticipated in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on forward-looking statements, which are not guarantees of future performance.

Any sustainability metrics, targets and objectives referenced in this news release are based on methodologies, assumptions, estimates and reporting frameworks that may evolve over time and may be refined, updated or restated as additional information becomes available or reporting practices develop. Certain sustainability data may be subject to measurement uncertainties inherent in non-financial reporting.

All forward-looking statements contained in this news release are qualified in their entirety by the foregoing cautionary statements. Readers should also refer to the risk factors and other disclosure contained in STRACON Group's most recent Annual Information Form, Management's Discussion and Analysis and other filings available on SEDAR+ www.sedarplus.ca, which provide additional information regarding risks and uncertainties that may affect the Company. The forward-looking statements contained in this news release are made as of the date hereof, and STRACON Group undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

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