Mr. Eugene Hercun reports

COTEC HOLDINGS CORP. NOTES PORTFOLIO COMPANY MAGIRON COMPLETES INDEPENDENT DEFINITIVE FEASIBILITY STUDY CONFIRMING STRONG ECONOMICS AND RAPID RESTART PATHWAY

Cotec Holdings Corp. has noted yesterday's press release by MagIron LLC. MagIron has reported the completion of an independent definitive feasibility study and reserve and resource statement for the restart of MagIron's plant 4 facility in Minnesota and the Reynolds pellet plant in Indiana to produce direct-reduced (DR) grade pellets.

The feasibility study has an effective date of Jan. 14, 2026, and was prepared by Behre Dolbear & Company (USA) Inc., an independent, globally recognized multidisciplinary consulting firm.

Highlights of the definitive feasibility study, as reported by MagIron, include:

• Base-case after-tax NPV (4.9 per cent) of approximately $1,598-million (U.S.) and an internal rate of return of 27.60 per cent;
• Payback period of approximately three years and seven months;
• Mine life of approximately 32 years;
• Upfront capital costs of approximately $435-million (U.S.), with approximately $190-million (U.S.) associated with mining and rail equipment which is expected to be leased;
• Average annual DR-grade pellet production of approximately 2.6 million tonnes and total life of mine production of 84 million tonnes;
• Life-of-mine average cash costs of approximately $92.42 (U.S.) per dry metric tonne of DR pellet (FOB Reynolds);
• Targeting a final investment decision (FID) in early 2026.

The MagIron study confirms a technically robust and economically attractive restart plan and positions MagIron to become a domestic supplier of high-quality DR-grade iron units to the U.S. electric arc furnace steel market. The study incorporates pilot-plant testwork conducted at the Natural Resources Research Institute at the University of Minnesota, which validated MagIron's processing flowsheet.

MagIron has stated that it intends to restart its portfolio of previously operating facilities to achieve production of approximately 2.5 million to 2.7 million tonnes per annum of DR-grade pellets using existing infrastructure. The facilities benefit from an estimated $660-million (U.S.) of historical capital investment and have a replacement value exceeding $1.3-billion (U.S.), providing a capital intensity and timeline advantage relative to new-build developments.

MagIron is targeting a FID in early 2026, subject to the successful completion of its project financing, with refurbishment and upgrade activities targeted to commence in mid-2026, followed by commissioning and ramp-up in early 2027.

Julian Treger, chief executive officer of Cotec, commented: "The completion of an independent definitive feasibility study represents an important milestone for MagIron. Based on the posttax base-case economics reported by the company, Cotec's approximate 17-per-cent ownership interest in MagIron equates to significant attributable value on a prefinancing dilution basis. Using MagIron's reported posttax NPV of approximately $1.6-billion (U.S.), this interest implies an attributable value to Cotec of approximately $272-million (U.S.). This outcome reinforces the strategic rationale behind our investment approach and our focus on advancing assets that strengthen domestic supply chains for critical materials."

Qualified persons

Cotec understands that the following qualified persons, along with other qualified persons, participated in the preparation of the feasibility study:

Mineral reserves estimation:  Joseph Kantor, Dr. Robert Cameron

Mineral resource estimates:  Mr. Kantor, Dr. Cameron

Mining engineering:  John Thompson

Mineral processing and engineering:  Mark Jorgenson

Environment and social:  Reinis Sipols

Cotec understands that each of the foregoing qualified persons are independent qualified persons. None of them have any relationship with Cotec. Each of these foregoing qualified persons has reviewed and approved the technical information contained in the news release that is relevant to their area of responsibility and verified the data underlying such technical information.

Cotec has not independently verified the technical information disclosed by MagIron.

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 for the United States and its allies.

Cotec's mission is clear: accelerate the energy transition while strengthening U.S. economic and national security. 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 differentiated platform at the intersection of technology, sustainability and strategic materials.

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