HyProMag Usa Provides Positive Update to Valuation of Expanded Dallas-Fort Worth Plant and Commences Strategic Review to Explore a U.S. Listing

Texas Facility Expansion Increases Magnet Capacity, Supports Domestic Critical-Minerals Supply Chains and Increases Post-Tax NPV to US$780 million (forecast prices) and US$409 million (current prices)

VANCOUVER, BRITISH COLUMBIA / ACCESS Newswire / December 15, 2025 / CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) ("CoTec" or the "Company") is pleased to note today's press release by HyProMag USA, LLC ("HyProMag USA"), its U.S.-based joint venture rare earth permanent magnet recycling and manufacturing company.

HyProMag USA announced that it has expanded the magnet capacity of its first facility (the "Texas Hub" or the "Project") and has updated the valuation of the Project with the completion of the Class 2 AACE ^[i] capital cost estimate as part of the Detailed Engineering Design and Value Engineering Phase (the "Detailed Design"). The Class 2 AACE capital cost estimate and detailed value-engineering work confirm a significant increase in magnet production capacity and materially improved Project economics.

In parallel, HyProMag USA has commenced a strategic review to evaluate a potential separate listing in the U.S. for late 2026 or early 2027, subject to successful execution of the Project and meeting the required regulatory approvals.

Key Highlights

• Uplift in project valuation: Detailed Engineering results for state-of-the art rare earth magnet recycling and manufacturing operation in the United States with a Texas Hub supported by two pre-processing spoke sites co-located at Intelligent Lifecycle Solution ("ILS") sites in South Carolina and Nevada ^[ii] :

  • US$409 million post-tax Net Present Value ("NPV") ^[iii] and 27.6% real internal rate of return ("IRR") based on current market prices ^{[iv], [v]}

  • US$780 million post-tax NPV and 38.7% real IRR based on forecast market prices ^[vi]

• Increased magnet production capacity: 941 metric tons per annum of recycled sintered NdFeB magnets and 611 metric tons per annum of associated NdFeB co-products (total payable capacity - 1,552 metric tons NdFeB) over a 40-year operating life

• Competitive operating profile: Low all-in sustaining cost ("AISC") ^{Xii, [vii]} of US$22.3 per kg of NdFeB product versus current weighted average market price of US$56.8 per kg of NdFeB products, with significant scope for price recovery from current market conditions