COTEC HOLDINGS CORP. PROVIDES UPDATE ON PROPOSED CHANGE OF BUSINESS TRANSACTION - Announces Proposed Private Placement of Subscription Receipts For Gross Proceeds of up to $12 million

VANCOUVER, BC / ACCESSWIRE / January 26, 2022 / Cotec Holdings Corp. (TSX.V:CTH.H) (the "Corporation") is pleased to provide an update with respect to its previously announced proposed change of business from mineral exploration to an investment issuer (the "Proposed COB") under the rules of the TSX Venture Exchange ("TSXV").

Subject to the receipt of all necessary regulatory and shareholder approvals, including approval by the TSXV of the Proposed COB, following completion of the transactions described below (the "Proposed Transactions"), the Corporation intends to become a Tier 2 Investment Issuer focused on investments in disruptive technologies in the mineral extraction industry.

For further information regarding the reasons for the Proposed COB and the Corporation's proposed investment strategy, please refer to the Corporation's press release dated December 10, 2021.

The Proposed Transactions

On December 10, 2021, the Corporation announced the Proposed COB and provided certain details regarding the following Proposed Transactions that the Corporation expects to form the basis of the Proposed COB:

• an aggregate investment of between US$3.0M - US$4.0 in Binding Solutions Limited ("BSL"), a UK based company governed by the laws of England and Wales that has developed a proprietary cold agglomeration technology for the production of high-quality clean pellets from primary materials, waste dumps, and stockpiles; and
• an AUS$10 million capital commitment to a newly-formed Australian based venture capital fund that will be focused on investments in industrial technologies for heavy industries (the "Fund").

As previously disclosed, the Corporation has entered into a definitive subscription agreement dated December 10, 2021 regarding its investment in BSL. Completion of the investment is subject to a number of customary conditions, including completion of the Proposed Financing and receipt of all necessary TSXV, shareholder and board approvals. In connection with its investment in BSL, CoTec will also receive the exclusive right to apply the pelletization technology to reclamation non-ferrous metal assets in Canada and to reclamation ferrous and non-ferrous metals in Germany, Austria and the Netherlands. The application could be via one or more joint venture entities to be initially owned 50/50 by CoTec and BSL.