Cotec Holdings Corp. Files Second Quarter 2023 Results and Reports $10.4 Million Net Income With Focus Now on Operational Roll-Out

VANCOUVER, BC / ACCESSWIRE / August 14, 2023 / CoTec Holdings Corp. (TSXV:CTH) ("CoTec" or the "Company") is pleased to announce that it has filed its unaudited interim condensed consolidated financial statements and the accompanying management discussion and analysis ("MD&A") for the three and six months ended June 30, 2023. The financial statements and MD&A can be accessed under the Company's SEDAR profile at www.sedarplus.ca.

The Company announced its second profitable quarter with net income for the quarter and six months ended June 30, 2023, of S10.4 million and $9.9 million respectively.

Other highlights for the quarter:

• Increased the Company's interest in MagIron LLC ("MagIron") to 16.94% on a fully diluted basis through two additional investments in the aggregate amount of US$221,239. The second additional investment in MagIron was completed at US$150 million valuation following successful completion of metallurgical test work demonstrating the potential to double historical iron recovery achieved at Plant 4 and to produce Direct Reduction grade iron concentrate.
• Invested US$1.5 million into Ceibo Inc. ("Ceibo"), developer of a revolutionary process to leach low-grade primary copper sulphides, such as chalcopyrite, and copper waste material using a proprietary high throughput inorganic leaching technology. CoTec has started the process to identify opportunities for Ceibo to commercially deploy its technology with a view to participating in any such opportunities that Ceibo chooses to pursue as a co-investor or joint venture partner.
• Maginito Limited ("Maginito"), a company in which CoTec holds a 10% equity interest, signed definitive agreements for purchase of the 58% equity interest in HyProMag Limited ("HyProMag") it does not already own. HyProMag is focused on commercializing its patented rare earths recycling technology. The transaction was completed on August 3, 2023.
• Commenced the due diligence and negotiations that culminated in the signing of an option agreement on August 8, 2023, for the purchase of the 31 mining claims forming the Lac Jeannine property in Quebec. The property contains historical tailings of the previous Lac Jeannine iron ore mine operated by the Québec Cartier Mining Company between 1959 and 1985. CoTec intends to complete a maiden resource estimate and extract a bulk sample from the property for testing with Binding Solutions Limited ("BSL") of its cold agglomeration technology with a view to ultimately produce low carbon iron ore pellets (see CoTec announcement dated August 9, 2023).

Mr. Julian Treger, CEO of the Company commented, "The second quarter was an exceptional quarter for CoTec. We achieved another profit on the back of investment appreciation, added the Ceibo investment, cemented the foundation of our operational roll-out through Maginito's HyProMag acquisition and commenced due diligence and negotiations that ultimately secured the Lac Jeannine property.