Azteca Hot Commissioning Underway & CEO interview

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Cadence Minerals plc

("Cadence Minerals", "Cadence", or "the Company")

Azteca Hot Commissioning Underway and CEO interview on site at Azteca

First feed introduced; testing now measures throughput, grade and recovery.

Cadence Minerals plc (AIM: KDNC) announces that DEV Mineração S.A. (“DEV”) has commenced hot commissioning of the Azteca processing plant at the Amapá Iron Ore Project in Brazil. Following completion of cold and wet commissioning and technical consent from the Amapá State Environmental Secretariat (“SEMA/AP”), DEV has begun processing existing feed material to assess throughput, concentrate grade and recovery. Commercial operations remain subject to successful commissioning and receipt of the Operating Licence.

Highlights

Hot commissioning underway: with initial operation targeted at 25%–50% of plant capacity to measure throughput, concentrate grade and recovery.

Commercial production target: Approximately 380,000 tonnes per annum of approximately 65% Fe concentrate, subject to successful commissioning, licensing and ramp-up.

Restart capital advanced: All restart and refurbishment capital has been advanced under existing project arrangements. Initial operating working capital is available subject to receipt of the Operating Licence.

Bridge repairs underway: Repairs to the Pedra Branca do Amapari bridge have commenced, with completion targeted before the first shipment to address a known logistics risk.

Operating Licence submissions progressing: DEV expects to provide supporting maintenance and environmental monitoring documentation this week. The final commissioning report will follow completion of testing.

Kiran Morzaria, Chief Executive Officer, commented:

“The refurbishment is complete. Now we have to prove the performance. Our team is putting existing material and infrastructure back to work, focused on consistent results as we work towards commercial operations.

“Credibility comes from delivery. Producing a consistent product and delivering it to customers would establish an operating record at Amapá that shareholders, potential partners and financiers can assess. Successful operation could also generate cash to help advance the larger redevelopment, after operating needs and funding obligations are met. Our approach is straightforward: get it running, prove it, then improve it.

“Reaching hot commissioning reflects the work of our site team and contractors, and I thank them for getting us here. I also want to thank SEMA and the State of Amapá for their professionalism and efficiency to date, and our shareholders for their continued support.”

CEO Interview from Azteca

An interview with Kiran Morzaria, recorded on site at Azteca, discusses hot commissioning, infrastructure preparations and the next steps towards commercial operations and the wider Amapá redevelopment. The video also includes clips of site operations underway. Watch the interview here: https://youtu.be/oDfiSmmRuY8

Commissioning: and Licensing

DEV completed cold and wet commissioning following refurbishment of Azteca. These stages checked the equipment, controls and water circuit ahead of integrated testing with feed material.

The hot commissioning programme targets initial operation at 25%–50% of plant capacity. The team is measuring throughput, concentrate grade and recovery, adjusting operating settings and checking environmental controls.

Azteca uses magnetic separators and spirals to recover iron from existing material that was previously mined, crushed, ground and partly concentrated. The feed comes from the historical stockpiles identified in the commissioning plan.

The target of approximately 380,000 tonnes per annum of approximately 65% Fe concentrate relates to intended commercial production following commissioning and ramp-up, rather than current commissioning output.

Regulatory Position

Following its site inspection, SEMA/AP issued technical consent for DEV’s hot commissioning plan. SEMA/AP’s technical consent permits temporary commissioning tests for a maximum of 45 days from the start of feeding. Based on the first few days of testing, management expects commissioning to be completed before the end of that period.

SEMA/AP has requested evidence of dam instrumentation maintenance, slope repairs and erosion control, together with environmental monitoring records, a dam stability declaration and the final commissioning report.

DEV expects to provide the supporting maintenance and environmental monitoring documentation this week

The dam stability declaration will be submitted as part of DEV’s regular September submission to ANM and provided to SEMA/AP. The Installation Licence compliance report has already been submitted, and the final commissioning report will follow completion of testing.

Commissioning remains subject to the prescribed environmental controls. Any concentrate produced must remain controlled on site and cannot be sold or dispatched until the Operating Licence is granted. Processing will stop when the commissioning objectives are achieved and will start pending receipt of the Operating Licence.

Infrastructure: Preparing the Route to Market

Repairs to the timber deck of the Pedra Branca do Amapari bridge have commenced, with completion targeted before the first shipment. The bridge remains in use under temporary operating controls. The works are intended to reduce reliance on those controls and support readiness for commercial deliveries.

Commercial shipments remain dependent on plant performance, the required approvals and logistics readiness.

Funding and Operating Improvements

All capital required for Azteca’s restart and refurbishment has been advanced under existing project arrangements. Initial operating working capital is available under those arrangements, subject to receipt of the Operating Licence.

The additional capital from the recent fundraising is intended to support bridge repairs and associated infrastructure works, and to fund optimisation and additional-feed studies.

The studies will assess whether Azteca can recover more concentrate, increase throughput and extend its operating life. Investment decisions will be based on the results, with any changes subject to technical assessment, funding and applicable approvals.

Next Milestones and Wider Development

Management’s priorities for the remainder of 2026 are to complete commissioning, address SEMA/AP’s outstanding requirements, secure the Operating Licence, complete the bridge repairs and prepare for commercial production and shipment. Timing remains dependent on regulatory approval, plant performance and logistics readiness.

Successful commercial operation at Azteca would establish an operating record at Amapá and is intended to generate cash to help advance the larger project once operating needs and funding obligations are met.

Alongside the Azteca programme, management is preparing for the Definitive Feasibility Study, planned to commence in 2027. Azteca’s Operating Licence and start-up remain the immediate priorities, with further advancement of port and railway licensing intended to follow.

The larger Amapá redevelopment remains subject to further technical studies, financing, construction planning and regulatory approvals.

Cadence Ownership

As at 31 May 2026, Cadence’s total investment in the Amapá Project was approximately US$16.1 million. Cadence holds a 36.2% equity interest in Pedra Branca Alliance Pte Ltd (“PBA”), which owns 100% of DEV, the owner and operator of the Amapá Project.

About the Amapá Project

The Amapá DR Iron Ore Project comprises established mine, rail, port and beneficiation infrastructure in Brazil. The Project hosts a JORC-compliant Mineral Resource of 276.2 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 3 December 2024 confirmed the potential to produce 67.5% Fe direct reduction grade concentrate at 5.5 Mtpa, with a post-tax NPV (10%) of US$1.97 billion over a 15-year mine life.

Cautionary and Forward-Looking Statements