Iron Bear Resources Boosts Indicated Iron Ore Resource by 114% to 4.5 Billion Tonnes at Canadian Iron Bear Project

114% Resource Increase Highlights Enhanced Geological Confidence at Iron Bear Project

Iron Bear Resources has significantly upgraded its Indicated Mineral Resource estimate for its Canadian iron ore asset, now totaling 4.5 billion tonnes grading 29.5% total iron and 20.6% magnetic iron. This represents a 114% increase from the previous 2.1 billion tonnes and was validated by Snowden Optiro. The upgrade reflects improved geological confidence following additional metallurgical testing and field mapping during the 2025 summer season.

The increase was driven by the discovery of previously unrecognized geological formations during phases 3 and 4 of metallurgical studies. Prior to the 2026 drilling campaign, a thorough technical review led by Snowden Optiro revised the mineral resource model, enhancing confidence levels. The total 100% owned mineral resource now stands at 13.6 billion tonnes at 30.03% total iron across inferred and indicated JORC 2012 compliant categories, ranking the project among the world’s large-scale iron ore resources.

Vale Partnership Secures Fourth US$2 Million Funding Tranche as Development Agreement Progresses

During the quarter ending 30 June 2026, Iron Bear Resources received the fourth tranche of US$2.0 million from strategic partner Vale S.A., continuing the funding of the Iron Bear Project under the Development Agreement signed on 17 February 2025. Vale has committed up to US$138 million in two phases to earn a 75% stake in the project, supporting accelerated de-risking and targeting a development decision within three to five years. Additionally, US$2.5 million remains held under the Vale agreement, separate from the A$14.2 million cash balance.

The partnership with Vale validates the project’s technical and commercial potential, with Vale providing extensive technical, financial, and operational expertise. Vale’s global iron ore production experience significantly reduces execution and funding risks. Managing Director Paul Berend highlighted ongoing support from Newfoundland and Labrador and Quebec governments and the collaborative relationship with Vale to unlock the project’s potential.

Pre-Feasibility Study on Schedule for July 2026 Completion Led by Expert Engineering Firms

The Pre-Feasibility Study is advancing on schedule for completion in July 2026, led by Hatch Ltd alongside Snowden Optiro, IDOM Consulting, and Fortin Pipelines Pty Ltd. These experienced firms are assessing cost optimization and production scale-up scenarios to enhance capital efficiency. The study integrates technical and operational solutions developed jointly with Vale, leveraging their operational expertise.

This study is a critical milestone in the Iron Bear Strategic Development Plan, providing a foundation for evaluating the project’s technical, operational, and economic viability. It aims to reduce development risks and guide progression toward detailed engineering and final investment decisions, aligning with the three to five-year development timeline outlined in the Vale agreement.

Completion of Environmental and Social Baseline Studies by Specialist Contractors

During the quarter, Iron Bear Resources completed initial environmental and social baseline studies conducted by Sikumiut Environmental Management Ltd, Transfert Environnement et Société, and GHD. These studies are essential components of the Pre-Feasibility Study, establishing environmental and social benchmarks to support regulatory approvals and operational planning.

The data collected meets requirements from Canadian federal and provincial regulators and stakeholders, advancing the permitting process for major resource projects in the Labrador Trough. Completion of these studies marks significant progress in de-risking the project’s approval pathway and underscores the company’s commitment to collaboration with regulatory bodies and local communities in Newfoundland and Labrador and Quebec.

Application Filed for Project of National Significance Status in Canada

Iron Bear Resources has applied to Canada’s Major Projects Office for designation of the Iron Bear Project as a Project of National Significance. This status could offer streamlined approval processes, enhanced government coordination, and access to funding programs such as the Canada Infrastructure Bank, Canada Growth Fund, and Indigenous Loan Guarantee Program, improving financing options and reducing execution risk.

This designation is typically granted to projects demonstrating substantial economic or strategic value. Given Iron Bear’s scale and importance to low-carbon steel supply, the application aims to optimize regulatory and financing pathways, potentially accelerating development timelines and reducing overall project costs.

World-Class Resource and Strong Scoping Study Economics Support Project Viability

The Iron Bear Project boasts a world-class resource base supported by a scoping study completed in August 2025. The study reported a net present value of US$9.8 billion at an 8% weighted average cost of capital, an internal rate of return of 18.6%, and pre-production capital expenditure of US$4.64 billion based on producing 25 million tonnes annually and long-term iron ore prices of US$90 per tonne (IODEX 62% grade). The resource totals 13.6 billion tonnes at 30.03% total iron across inferred and indicated JORC 2012 categories.

Strategically located within 35 kilometres of an open-access heavy haul railway linked to an open-access iron ore export port, the project avoids the need for dedicated rail or port infrastructure. Pilot plant operations have demonstrated production of high-quality direct reduction concentrate grading 71% iron and 1.2% silica, suitable for low-carbon steelmaking. Additionally, pilot pellet production validated high-value low-carbon direct reduction pellets with excellent physical and metallization properties and ultra-low deleterious elements, positioning the project to capture premium pricing in the growing low-carbon steel market.

Renewable Energy Integration Enhances Power Supply Security and Low-Carbon Credentials

A power de-risking study indicates the Iron Bear concentrator can operate entirely on low-cost renewable energy, providing a competitive edge and aligning with global low-carbon steel production trends. The abundant renewable resources in Labrador, combined with the project’s high-quality products, position Iron Bear to meet increasing demand for low-carbon iron ore globally.

This renewable energy approach reduces long-term operating costs and strengthens market positioning, enabling premium pricing for low-carbon products. As steelmakers worldwide aim to lower scope 3 emissions from raw materials, Iron Bear’s low-carbon offering presents a strategic advantage for securing customer offtake agreements and pricing stability throughout the project lifecycle.

Exploration Assets in New Zealand and Western Australia Complement Core Project Focus

In addition to its flagship Iron Bear Project, Iron Bear Resources owns exploration assets in New Zealand and Western Australia containing gold, copper, nickel, and platinum group elements. These assets offer optionality for discovery-stage value creation while the company remains focused on advancing Iron Bear toward development.

This diversified portfolio balances geographic and commodity exposure, while capital and management efforts prioritize accelerating the Iron Bear Project’s development within the targeted three to five-year timeframe, maintaining potential upside from exploration activities in secondary jurisdictions.

Strong Financial Position Supported by Vale Partnership Funding

As of 30 June 2026, Iron Bear Resources held A$14.2 million in cash, with an additional US$2.5 million held under the Vale Development Agreement, providing liquidity for ongoing operations and pre-feasibility activities. Vale’s staged funding approach aligns capital infusions with project milestones, mitigating near-term capital needs and financial risk for shareholders.

The receipt of the fourth US$2.0 million tranche during the quarter confirms consistent funding and Vale’s commitment to the joint development. This financial structure supports efficient project advancement through pre-feasibility toward detailed engineering and final investment decisions, minimizing dilution risk and aligning stakeholder interests around project de-risking and progression.