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CoTec Holdings Corp. Increases Investment In Magiron Following Significant Increase In Magiron Valuation

Vancouver, British Columbia – June 19, 2023 – CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec” or the “Company”) is pleased to announce that it has invested a further US$120,225 into MagIron LLC (“MagIron”). The investment was part of a larger US$500,000 fundraise that was supported by existing shareholders and was completed at a pre-money valuation of US$150 million (“Fundraise”). The investment further increases CoTec’s equity interest in MagIron from 16.89% to 16.94% on a fully diluted basis. CoTec’s initial investment of US$2.1 million was made at a post-money valuation of US$13.4 million.

MagIron has successfully completed an extensive campaign of independent laboratory metallurgical test work (“Test Work”) for its 100% owned Plant 4 iron ore project. The initial results have confirmed a new process flowsheet which has demonstrated the potential to double the historical iron recovery achieved at Plant 4 and to produce Direct Reduction grade iron concentrate.

The Test Work was performed under MagIron’s direction by independent experts at the Natural Resources Research Institute (“NRRI”) of the University of Minnesota with assistance from Canadian based Soutex Inc., a consultant specialising in ore processing and metallurgical processes. Applying the results of the Test Work significantly increases MagIron’s internal assessment of Plant 4’s valuation. This increase in valuation formed the basis of the US$150 million valuation for the Fundraise.

The funds will be used to further progress the restart of Plant 4 and for general corporate purposes.

Julian Treger, CoTec CEO commented: “We are very pleased with the results from the Test Work and the progress made to date at MagIron. MagIron will test these results at scale during the second half of the year through a limited restart of Plant 4.

“We believe that the US$150 million valuation of the Fundraise fairly reflects the value added through the Test Work and other initiatives, recognizing the need to continue testing these results at scale. MagIron will endeavour to structure the raise of its restart funding in a way that minimises dilution for current shareholders and reflects the significant progress and value creation since our initial investment.

“At a US$150 million valuation, our ~17% interest in MagIron is worth approximately US$25 million, exceeding the current market capitalization of CoTec. Considering that our MagIron investment is only one of four valuable business interests we hold, this highlights the significant disconnect between what we believe to be the intrinsic value of CoTec and our current share price.”

About CoTec

CoTec is an ESG-focused company investing in innovative technologies that have the potential to fundamentally change the way metals and minerals can be extracted and processed. The Company is committed to supporting the transition to a lower carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation. CoTec is a publicly traded mining issuer listed on the Toronto Venture Stock Exchange and the OTCQB and trades under the symbols CTH.V and CTHCF respectively.

For further information, please contact:

Braam Jonker – (604) 992-5600

Forward-Looking Information Cautionary Statement

Statements in this press release regarding the Company and its investments which are not historical facts are "forward-looking statements" that involve risks and uncertainties, including statements relating to management’s expectations with respect to the MagIron investment and other current and potential future investments and the benefits to the Company which may be implied from such statements. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. For further details regarding risks and uncertainties facing the Company please refer to “Risk Factors” in the Company’s filing statement dated April 6, 2022, a copy of which may be found under the Company’s SEDAR profile at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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