Azteca Restart Update

Initial construction funding received and contractor mobilisation now progressing the Azteca restart into execution.

Cadence Minerals plc (AIM: KDNC) announces an update on the restart of the Azteca Plant at the Amapá Iron Ore Project in Brazil following receipt of the first construction funding tranche under the Azteca funding structure and progression toward contractor mobilisation and execution activities.

Highlights

• First construction funding tranche received on 25 May 2026 following completion of clarification documentation requested by the offtaker regarding licence sequencing and funding drawdowns.
• DEV has executed the primary contractor agreement, with mobilisation activities expected to commence next week and full contractor mobilisation expected during the second week of June 2026.
• Approved refurbishment and installation works at Azteca are now progressing into execution following grant of the Installation Licence ("LI") announced on 5 May 2026.
• DEV has continued to advance operational readiness activities, including the appointment of senior operational leadership for the mine and plant operations and the engagement of additional environmental and licensing advisory support.
• Commissioning activities are currently expected approximately 60 days from receipt of the initial funding tranche under an accelerated execution schedule, or 90 days where standard operational contingency is incorporated.

Kiran Morzaria, Chief Executive Officer of Cadence, commented:

"Having just returned from site, I remain encouraged by the practical progress being made at Azteca and the level of operational readiness across the project.

During the visit, I worked closely with our JV partners and technical teams on execution scheduling, critical path activities and operational readiness planning. This included recruitment of senior operational personnel for the mine and plant operations, strengthening the site management structure and implementation of site control systems..

With the LI granted, funding now progressing and contractor mobilisation expected to commence shortly, Azteca recommissioning is progressing rapidly into the execution phase."

Current Status

The LI granted by SEMA/AP authorises the approved refurbishment, construction and installation works associated with the Azteca restart programme.

DEV has also continued to strengthen the operational and environmental management workstreams supporting the Azteca restart, including the appointment of senior operational leadership for the mine and plant operations together with additional environmental and licensing advisory support.

Based on the current execution schedule, commissioning activities are expected approximately 60 days from receipt of the first construction funding tranche on 25 May 2026 under an accelerated schedule, or 90 days from that date where standard operational contingency is incorporated, subject to completion of approved works and receipt of the LO.

DEV has executed the primary contractor agreement and expects mobilisation activities to commence next week with full contractor mobilisation expected during the second week of June 2026.

Execution Schedule and Timetable

As previously disclosed, management's end-June commissioning target was based on anticipated receipt of the LI by the end of March 2026 and an approximately 90-day execution programme incorporating operational contingency.

Although the LI was granted approximately one month later than originally anticipated, DEV and Cadence continued to target end-June commissioning through acceleration of the execution schedule. This effectively utilised the operational contingency previously built into the programme.

Additional time was subsequently required to finalise clarification documentation requested by the offtaker regarding licence sequencing and funding tranche mechanics.

Based on the current execution schedule, DEV now expects commissioning activities approximately 60 days from receipt of the first construction funding tranche on 25 May 2026 under an accelerated execution schedule, or 90 days from that date where standard operational contingency is incorporated.

Accordingly, given the licensing timeline and the request for clarification by the offtaker, the stated commissioning target for end June 2026 has now moved to end of July under an accelerated development timeline and end of August 2026, if we include normal contingencies.

Licensing and Remaining Approvals

In accordance with the standard Brazilian environmental licensing sequence, an LO is required for commercial operations and is expected to be granted following completion of the approved construction and refurbishment works authorised under the LI and implementation of the relevant operational and environmental control measures.

Workstreams supporting progression toward the LO are already underway and are focused on demonstrating compliance with the applicable LI conditions and operational readiness requirements.

The Company will provide further updates as mobilisation and execution activities progress.

Cadence Ownership

As of the end of March 2026, Cadence's total investment in the Amapá Project is approximately US$16.1 million, representing a 36.2% equity stake.

About the Amapá Project

The Amapá Iron Ore Project is a fully integrated iron ore operation in Brazil with established mine, rail, port and beneficiation infrastructure. The Project hosts a JORC-compliant Mineral Resource of 276 million tonnes at 38% Fe and a Proven and Probable Ore Reserve of 195.8 million tonnes at 39.34% Fe.

An updated Pre-Feasibility Study published on the 3 December 2024 confirmed the potential to produce 67.5% Fe direct reduction ("DR") grade concentrate at 5.5 Mtpa, with a post-tax NPV (10%) of US$1.97 billion over a 15-year mine life.

As part of a staged redevelopment strategy, the Azteca Project is intended to be recommissioned as the initial production facility, targeting approximately 380,000 tonnes per annum of ~65% Fe concentrate from existing tailings. This initial production is intended to generate early cash flow to support ongoing operations and the broader development of the Project, subject to permitting.

Cautionary and Forward-Looking Statements