CoTec Holdings Corp. announced that it has entered into an option agreement (option agreement) to acquire 31 mining claims forming the Lac Jeannine Property (the "Property") located in the Côte-Nord region of Quebec, Canada. The Property contains historical tailings of the previous Lac Jeannine iron ore mine operated by the Québec Cartier Mining Company between 1959 and 1985.

Prior to exercising its option to acquire the Property, the Company intends to complete a maiden resource estimate and extract a bulk sample from the Property tailings material. The bulk sample will be used for independent metallurgy testing and further testing with Binding Solutions Limited ("BSL") of its cold agglomeration technology. If the results are positive, the Company intends to complete a feasibility study regarding the recovery and production of low cost and low carbon iron ore pellets from the Property (the "Project").

Pursuant to the Option Agreement, CoTec will pay the vendor USD 40,000 within thirty days of the effective date, USD 60,000 nine months following the effective date (subject to certain conditions and subject to extension for 135 days to allow for completion of bulk testing), USD 250,000 on exercise of the option and USD 1,000,000 at the start of commercial extraction of the tailings. The Company may exercise the option to acquire the mining claims at any time until the earlier of (i) 15 business days after the issuance of all material permits required to construct and operate the Project and (ii) August 7, 2033. If the option is exercised, the vendor will also receive a 1% NSR from the sale of minerals from the historical tailings and a 1.5% NSR from the sale of other minerals from the Property.

The 1% NSR and 1.5% NSR could be reduced, at CoTec's option, to 0.5% and 0.75% through the payment of USD 1,000,000 and USD 2,000,000 respectively.