Minerals for a sustainable future

Annual Report 2024

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A forward-looking resource company with integrated operations in exploration, extraction and production of high-end minerals and metals

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SAFETY | ENVIRONMENT | INNOVATION

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The construction was completed in November, and we started the stepwise commissioning of the various elements of the plant. More than 400 000 working hours were recorded by the EPC contractors without any Lost Time Injuries. This is an impressive accomplishment!

On 23 December, we reported that the first few kilograms of mineral concentrate had been produced from the Engebø plant. The complexity of the production ramp-up of a new mine and processing plant cannot be understated. At Engebø we are lucky to have a unique family of entrepreneurial employees with a broad range of skillsets, all needed to tackle the various hurdles in our way as we increase towards design scale production rates.

Our Engebø plant will become a prominent global player within two strategic industrial minerals. We will be the only garnet producer in Europe and the second producer of natural rutile after Ukraine. The strategic position of Engebø as a long-term producer in Europe with excellent access to overseas markets has strengthened beyond what we expected just a few years ago.

Global uncertainty leads to more focus on the secure supply of critical minerals

2024 continued a trend toward increasing global uncertainty. Well established partnerships and alliances are being challenged. Increased protectionism and tariffs mark a shift away from free trade which will impact the trade patterns across most commodities, and not least critical minerals. This has led to a call across Europe for regional production and ample supply of critical minerals.

Engebø plant construction completed, moving into commissioning and production ramp-up

The Engebø project team and contractors continued their progress in the construction of Engebø Rutile and Garnet during 2024. Despite various challenges within construction, logistics as well as currency fluctuations, the progress of the installation of the process plant has been impressive.

Dear shareholder,

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Safety – Environment – Innovation

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Attention to the environment

In our drive towards becoming a mineral producer with a record low carbon footprint, we need to carefully consider the impact our operations will have on nature and biodiversity. In 2024, we completed a comprehensive environmental monitoring program on land and in the marine environment to establish a complete baseline for the status of environment and biodiversity in the Engebø area prior to commencing production.

Nordic Mining has been an active promoter of the Canadian ESG scorecard system Towards Sustainable Mining (TSM) that was developed by the Mining Association of Canada. We intend to report according to TSM from the day we start operating at Engebø and will seek to adapt the TSM to comply with and include other inter- nationally recognized standards for ESG.

A long-term sustainable mineral producer

In 2024, we progressed our development of the high-purity quartz deposit in the Kvinnherad Municipality and in November we started a bulk test program to fully understand the commercial potential of the hydrothermal quartz vein. The preliminary analysis was positive, indicating that the resource has the potential to be amongst the purest quartz products globally.

During the many years of developing a greenfield mine in Norway, the first in nearly four decades, we have gained significant experience and competence that we intend to further leverage. As we enter 2025, we review our strategy to position Nordic Mining for building a new mineral industry for a sustainable future.

Finn Ivar Marum

CEO

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Minerals for a sustainable future

Minerals and metals are vital to modern society, driving technological advancements and supporting the transition to a sustainable future. As demand for critical minerals continues to rise alongside technological innovations and the need for sustainable solutions, we recognize our responsibility to operate in a way that minimizes our environmental footprint while creating positive ripple effects for local communities and stakeholders.

With this growing demand, the shift towards a more sustainable mining industry is important. The industry must actively work to reduce its environmental and social footprint while taking climate action. Nordic Mining’s strategy for Environmental, Social and Governance (”ESG”) matters is tied to our projects and is built on four key pillars:

Business ethics and anti-corruption

Environmental and climate responsibility

Social responsibility

A safe and healthy work environment

A key part of our commitment to sustainability is the adoption of the Towards Sustainable Mining (TSM) initiative. TSM is a globally recognized program that helps mining companies manage environmental and social risks. The Norwegian Mineral Industry Association is leading the implementation of this system in the Norwegian mining industry. Under TSM, we will report on

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eight key protocols related to community engagement, environmental stewardship, and energy efficiency. Our reporting will begin in 2025 once operations are fully established, with the first scores published in 2026. The work with TSM is ongoing and already partially integrated into our processes and we believe it will drive sustainable change in the mining sector.

We are committed to aligning our operations with The United Nations Sustainable Development Goals (”SDGs”), which define universal targets to address global challenges. Nordic Mining’s sustainability goals focus on economic, environmental and social performance, guiding all stages of our project, from exploration and development to production and closure.

ENVIRONMENT AND BIODIVERSITY We prioritize the protection of ecosystems and biodiversity supporting SDG 14 (Life Below Water) and SDG 15 (Life on Land) through responsible land and water management. By reducing our footprint and restoring affected areas, we ensure our operations contribute to the environment.

ENERGY EFFICIENCY AND CLIMATE ACTION We are committed to reducing emissions and improving energy efficiency, supporting SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Change). Our projects are designed with a focus on energy efficiency and emission reduction, and we will continue finding solutions and modern innovations to improve energy efficiency further.

SOCIAL RESPONSIBILITY Our people and local communities are the core of our sustainability efforts. We actively contribute to SDG 3 (Good Health and Wellbeing) and SDG 11 (Sustainable Cities and Communities) by fostering safe, inclusive and diverse workplaces while engaging with local communities to promote long-term social improvement.

Sustainability is already a key focus in the company and the ESG team has been working at full capacity throughout 2024 and will use the next years to further develop the systems, processes, data and structures needed to comply with upcoming reporting standards. This period allows us to strengthen our foundation and ensure transparency. By investing in sustainable solutions, we are preparing to meet future reporting requirements and contribute to a responsible mineral industry.

E – Environmental matters

Climate change

Climate change is one of the greatest challenges of our time, and as a mining and minerals company, we recognize our responsibility to

minimize our environmental impact and contribute to a low-carbon future. The Paris Agreement sets ambitious goals to limit global warming to 1.5°C and the European Union aims to be a climate neutral economy by 2050. Reaching a low-carbon future requires a reduction of greenhouse gas (GHG) emissions across industries and a large-scale shift to clean energy sources like solar, wind, hydro, and geothermal power. Mining companies play a crucial role in the transition by supplying the essential minerals needed for green energy technologies.

Nordic Mining’s impact

Nordic Mining operates in a landscape where climate change represents both risks and

opportunities. Physical risks such as extreme weather events, rising temperatures, and natural disasters can disrupt our operations and damage the infrastructure. Increased floods, droughts, and storms can pose challenges to site stability, water management, and worker safety. In addition to physical risks, there are transition risks related to climate policies, technological innovations, and market expectations which are shaping the industry. Stricter environmental regulations and carbon pricing mechanisms could lead to increased operating costs, while rapid technological innovation may require adaptation to new processing methods.

Climate change can also create opportunities for Nordic Mining and companies in the mining and minerals segment. The growing demand for critical minerals is essential to technological developments and the green transition. Investments in energy efficiency, electrification of operations, and renewable energy sourcing can not only reduce emissions but also lower long-term energy costs. By having a sustainable mining practice, we can strengthen stakeholder relationships, access funding for green initiatives, and stay competitive in a market that values responsible sourcing. By tackling climate challenges, we aim to future-proof our operations while contributing to a more sustainable development.

Reducing GHG emissions is a central aspect of our work connected to climate change. To evaluate the GHG emissions from Nordic Mining’s rutile production, Minviro UK carried out an independent Life Cycle Assessment (LCA), covering all stages from extraction to final product. The LCA was conducted in 2022

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and calculated the Global Warming Potential (GWP) and included scope 1, 2 and 3 emissions. The GWP impact of the rutile from our operations was determined to be 0.17 kg of CO 2 equivalents, and the main contributors to our carbon footprint are diesel consumption in mining operations and explosives used for ore extraction. Annual GHG emissions are estimated to be 3085 tonnes of CO 2 equivalents, with an energy consumption of 0.08TWh.

Minviro also performed a benchmarking study as part of the LCA that compared rutile from our operations with alternative titanium-bearing feedstocks, including natural and synthetic rutile, as well as titanium slag. The results from the study showed that rutile from our operations has a significantly lower GWP impact, positioning

it as a more sustainable alternative in the market. Results from the GWP benchmarking are summarized in the chart below.

Nordic Mining’s ambitions

Nordic Mining’s goal is net zero emissions from our operations. We are committed to being transparent about our carbon footprint, by publicly disclosing carbon emissions from our operations and providing benchmarking data for our products when available. By collaborating with suppliers and customers, we aim to reduce emissions throughout the value chain.

In terms of location, Nordic Mining’s Engebø project has a great advantage by having the open-pit mine located just a few hundred meters from the process plant and port, meaning a tight

infrastructure with minimal transportation. We have investigated options for electrification of the fleet and will, when feasible, transition to a fully electrified mining operation.

Waste management

One of the biggest challenges in the mining industry is finding sustainable ways to manage extractive waste. Mining and mineral extraction generates large volumes of waste, including waste rock and tailings.

Nordic Mining’s impact

Our operations produce waste in the form of waste rock and tailings, and to ensure proper waste management we have a Construction Environmental Management Plan (CEMP) in place for the construction phase of the Engebø project and a Waste Management Plan in place for the operational phase. The CEMP identifies potential environmental risks and outlines measures to prevent environmental incidents and enhance performance. The Waste Management Plan follows EU’s best available techniques 1 for extractive waste management and ensures that the right measures are in place to minimize environmental impact and protect human health. It also includes strategies for reducing waste and exploring opportunities for re-use of waste materials for both internal and external use. Refer to section Water, marine resources, biodiversity and ecosystems for more information on waste management related to marine biodiversity.

In Nordic Mining’s CEMP, our goal is that 90% of the non-hazardous waste from the construction site will be sorted (source sorting). In 2024, we managed to source sort 92% of all non-hazardous waste from the construction. Data is based on monthly reports received from the EPCs.

As part of the demands in Nordic Mining’s Environmental Discharge Permit issued by the Norwegian Environment Agency (Miljø- direktoratet), we are required to report production volumes, waste volumes, energy consumption and waste control results on an annual basis. In addition, we are required to work on finding alternative ways to minimize the need for disposal, which is also reported annually.

We are committed to complying with the requirements in our operating license given by the Directorate of Mining (DirMin). In recent years, the Ministry of Trade, Industry and Fisheries has introduced additional and more stringent require- ments to our operating license. These require- ments are closely followed and we actively work to ensure compliance and documentation of our adherence to these regulatory requirements.

Nordic Mining’s ambitions

Our goal is to reduce waste and to improve resource efficiency by integrating sustainable practices in our operations. We continuously monitor and assess our waste streams, seeking to reduce waste volumes, improve tailings management and to explore circular economy solutions to reuse waste rock.

Water, marine resources, biodiversity and ecosystems

Water, marine resources and biodiversity are essential for the health of ecosystems. As a mining and minerals company, we know that our

European Commission Reference Document on Best Available Techniques for Management of Waste from the Extractive Industries, in accordance with Directive 2006/21/EC 2018.

Minviro (2022) Prospective Life Cycle Assessment Study of Nordic Mining’s Natural Rutile Project at Engebø.

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operations can have direct and indirect impacts on these resources. Excess materials from our production consist of waste rock from the mine and tailings from the processing plant. In line with our operating license given by the Directorate of Mining (DirMin), waste rock is deposited on a land-based disposal site, and deep-sea tailings in the fjord.

Nordic Mining’s impact

Our activities will affect water resources in multiple ways, from water consumption to discharges that can impact local water bodies and marine environments, leading to disturbances in aquatic habitats and biodiversity. Under- standing and managing our environmental impact is a key priority. As a result, we have developed a Water Stewardship Program in collaboration with SRK Consulting, built on a Water Balance Model, a Water Impact Assess- ment and a Water Management Plan.

To track and assess how our operations affect marine ecosystems, biodiversity, water and surrounding habitats, we have developed an in-depth environmental monitoring program using state of the art technology to track and assess how our operations affect marine ecosystems, biodiversity, water and surrounding habitats. Ongoing monitoring and evaluations, both monthly and quarterly, cover airborne dust, vibrations and noise, as well as risk of emissions into the fjord surface water and fresh-water bodies. Water samples are collected, analyzed and registered monthly and reported annually to the Norwegian Environment Agency (Miljø- direktoratet) through their portal ”Vannmiljø”.

In line with our environmental monitoring program, extensive baseline monitoring of the

fjord has been finalized during 2024 ensuring updates of the baseline prior to production start-up. The monitoring covers soft and hardbottom habitats, beach zone, water quality and sedimentation rates. This data is collected through regular measurement rounds, ensuring a complete baseline, and reporting is done in

collaboration with DNV. The data provides valuable information for understanding the natural state prior to production start-up and enables us to take proactive steps to monitor and reduce our impact and safeguard the surrounding environment. Refer to the table above to see a selection of some of the actions

that have been performed as part of the baseline monitoring.

We have an ambitious goal for the Engebø Project, with a goal of biodiversity net gain for life of mine. We are currently monitoring and tracking biodiversity actions, and there is also a Biodiversity Action Plan in place. The plan is developed in collaboration with DNV and Asplan Viak to support our work to reduce, restore and compensate biodiversity loss for the project’s footprint and to ensure that we reach our biodiversity targets.

Our biodiversity plan includes a system for tracking “nature points”, which measures biodiversity, both terrestrial and marine.

Calculation of terrestrial biodiversity net loss and gain is based on a methodology which accounts for biodiversity loss due to negative impact of the Engebø project, and biodiversity gain due to restoration measures and offsets. In the first years of the project, we will have a negative nature point score due to terrain interventions and waste rock deposits that impact the natural environment. However, through restoration efforts and by implementing other mitigating measures, we aim to gradually improve the score and eventually achieve a positive balance. It is also possible to achieve a positive score from the outset, as the terrain interventions are being carried out in areas of low natural value, such as regions dominated by spruce and pine. When we restore these areas, we plan to establish deciduous forests with tree species that promote high biodiversity, significantly improving the natural value of the land.

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Every year, we will review the budget for nature points and will implement specific actions each year to increase our score. In 2024 we replanted trees, prepared a habitat for frogs which involved relocating all frog eggs from the sedimentation basin area before starting the groundwork and established meadows. In 2025 we plan to establish a pond for amphibians, continue to form meadows and start planning on restoring peatbogs.

Currently, there is no specific methodology for calculating the net loss or net gain of marine biodiversity. The marine environment is dynamic, which means that biodiversity loss

does not always occur within a given area. To calculate marine biodiversity, we use a methodology based on terrestrial biodiversity, with some modifications. We have set goals regarding biodiversity in the fjord, where the main goal is to minimize biodiversity impact during operations. We have also set a goal to restore biodiversity.

In 2024, thorough baseline monitoring of several indicators of the biodiversity and the general state of the fjord has been conducted. This gives us valuable information about the current state of the fjord and which mitigations we can take to minimize our impact.

Nordic Mining’s ambitions

We have a long-term planning perspective for the mining project at Engebø. In 2022, a conceptual closure and reclamation plan was completed which outline a management system to ensure that we can successfully rehabilitate the mine site at closure. In line with our biodiversity goal, we aim for a high degree of restoration to return the area to nature and enable meaningful use for the local populations post-closure.

S – Social matters

Own workforce

Our employees are our most valuable resource, and we prioritize their health, safety, and well-being. We have a proactive approach by ensuring that these values are integrated in all stages of our operations. By fostering a strong culture of health, safety, and mutual respect, we ensure that every individual can succeed and contribute to Nordic Mining’s goals.

Nordic Mining’s impact

Our operations are dependent on a foundation of safety. We continuously assess and manage potential risks to prevent injuries and health issues. During our construction phase, we reported zero Lost Time Injuries (LTI). We are committed to creating a safety-driven culture. Mental health and inclusivity are key priorities, and we promote a respectful environment for all employees, regardless of ancestry, race, gender, religious beliefs, or sexual orientation, with zero tolerance for harassment or discrimination.

Nordic Mining’s ambitions

Going forward with the start of our production, we aim to strengthen our commitment to safety and inclusivity by further enhancing our health and safety protocols and fostering an environment

where diversity and respect are core values. Our goal is to ensure that every employee feels valued, respected, and empowered to reach their full potential in a safe and inclusive workplace.

Workers in the value chain

Nordic Mining recognizes that our responsibility extends beyond our own workforce to the workers within our broader value chain. We believe that maintaining high ethical standards is essential for creating value for all parties involved.

Nordic Mining’s impact

We are committed to ensuring that all workers in our value chain are treated with respect and fairness. This includes promoting ethical conduct on all levels, from our employees to third-party contractors and suppliers. We ensure compliance with applicable laws and regulations, promote transparency, and enforce zero tolerance for bribery, corruption, or unethical business practices.

In July 2022, the Norwegian Transparency Act came into effect, requiring companies to carry out human rights due diligence across their operati- ons, supply chains, and business relationships. As part of our commitment to transparency, we provide detailed reporting on our compliance with the Norwegian Transparency Act. Nordic Mining’s reporting on the Norwegian Transparency Act will be made available on the company’s website by 30 June 2025.

Nordic Mining’s ambitions

Looking ahead, we will continue to strengthen our commitment to ethical conduct and responsible business practices by encouraging greater accountability and transparency throughout the supply chain.

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Affected communities

Our social responsibility is closely tied to the communities where we operate. Mineral production can bring new opportunities for local development and economic growth. Our goal is to contribute to the well-being of local communities and residents by providing job opportunities and supporting local services. We are committed to actively engaging with communities and stakeholders to build strong, sustainable relationships throughout the life of the mine.

Nordic Mining’s impact

Our operations aim to bring about meaningful contributions to the affected communities, both in terms of economic development and social welfare. We have worked to establish transparent and respectful relationships with local communities and stakeholders, ensuring they are well informed and that their concerns are heard and addressed. This is done through bi-annual meetings with a Resource Group, and quarterly neighborhood meetings in both Vevring and Kvammen to create an arena for communication and the possibility to raise potential concerns. We continue to assess and mitigate any potential impacts on the health and well-being of those living in the areas we affect.

Nordic Mining’s ambitions

We are committed to enhancing our community engagement efforts. We aim to strengthen our relationship with local communities further and will respect the cultural, political and social diversity of the area in which we operate.

G – Governance matters

Business conduct

Our commitment to high ethical standards and transparency is central to how we operate. We

prioritize integrity, fairness, and respect in all our interactions with employees, partners, customers, and the wider community.

Nordic Mining’s impact

We maintain strong corporate governance, ensuring compliance with laws, regulations, and international industry practices. Our operations uphold human rights, labor rights, anti-corruption measures, and environmental responsibility. We have not identified any issues deviating from these standards, reflecting our commitment to

responsible business practices. As previously mentioned, we provide reporting on our compliance with the Norwegian Transparency Act which is available to the public on our website.

As part of our commitment to strong governance and regulatory compliance, we have recently conducted a review and update of all company policies as the Group’s new CEO assumed his position 1 March 2025. This process has ensured that our policies remain current and

approved by the correct authorities within the Group. The policies have been formally reviewed, approved and signed by new CEO, Finn Ivar Marum, in March and April 2025.

Nordic Mining’s ambitions

We aim to further integrate sustainability and ethical practices into our culture, strengthening compliance and transparency. Our goal is to lead in responsible business conduct within the mining sector and continue upholding values of integrity and respect for people and the environment.

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The Company announced on 23 December 2024 that the first mineral concentrates were produced at the Engebø Rutile and Garnet Project as commissioning advances and production ramp-up commences. The operations at Engebø will focus on maintaining the quality of the mineral concentrates as the production is ramping up to designed operating rates over the next quarters and reach stable operations during 2025.

OPERATIONS

ENGEBØ – rutile and garnet

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complete the scope of work for the EPC and subcontractors. These activities have no impact on the production ramp-up as final testing of machinery is ongoing with EPCs and mechani- cal process equipment suppliers.

The construction project reported 995 working days by the four EPCs, including subcontractors, with zero LTIs. Total hours worked at site for the project, by the EPCs, exceeded 400 000 hours by end of 2024.

Despite challenges in worldwide logistics with congested ports around the world, the project was able to mitigate all significant fabrication and logistics risks related to mechanical process equipment packages without impacting the planned construction schedule.

The administration and workshop buildings were completed in the first quarter and the operations team started using the facilities for operation readiness in May. The operations team started a significant onboarding process growing to around 75 employees by the end of the third quarter, which is sufficient for full commissioning of ore and early stage of production ramp-up. In steady state operations, the total expected number of employees is 110–120, including the mining services provider.

Significant milestones achieved in relation to commissioning of the process plant:

First ore to primary crushing, including ore pass design verification in September

First ore to the milling and mineral separation circuits achieved in November

First mineral concentrate was produced at Engebø on 23 December

In the second quarter, the company entered into a 5-year mining alliance agreement with Sunnfjord Industripartner AS to provide mining services for the open-pit operations. The contract commenced in September with machinery and resources ramping up activities in parallel with preparing for production ramp-up. The construction phase has facilitated the ore required for the first 3 months of production ramp-up and the initial focus for mining activities is to provide access to high grade ore for continued production and prepare all required infrastructure for efficient mining operations.

Long-term offtake agreements secured for all production from Engebø

In 2023, Nordic Mining, through its wholly owned subsidiary Engebø Rutile and Garnet AS (ERG),

entered into a global exclusive offtake agreement for the full planned garnet production from Engebø for the first five years of production. The offtake agreement is for the supply and delivery of a minimum total of 762,500 metric tonnes of garnet concentrate in the five-year contract period, with a target of 825,000 metric tonnes, which is the full planned garnet production in the first five years of production. Further to the initial garnet offtake, the parties shall discuss extension of the cooperation, comprising for example joint marketing, sales, and distribution of garnet from the Engebø Rutile and Garnet Project. The consideration under the garnet offtake agreement will be based on a pre-agreed price schedule.

In 2022, Nordic Mining, through its wholly owned subsidiary ERG, entered into two rutile offtake agreements.

The Engebø deposit has among the highest grades of rutile (TiO 2 ) compared to existing producers and other projects under develop- ment. The deposit also contains significant quantities of high-quality almandine garnet. Based on the current resource and reserve estimates, the mine-life is 39 years, comprising 15 years of open pit mining followed by 24 years of underground mining and stockpile reclamati- on. Favorable location, topography and local, green hydropower enables efficient and climate friendly production of high-quality natural rutile and garnet. Offtake agreements have been secured for up to the full production of rutile and garnet for the first five years of production.

The Company successfully completed the staged release of funds from the USD 100 million senior secured bond escrow account for the Engebø Project. The first release of USD 30 million occurred in March, followed by a second USD 30 million release in May, and the final USD 48 million release in August. Each release was contingent upon an independent engineer confirming that the cost-to-complete test was satisfied. These third-party assessments affirmed that the project remains on schedule and within budget, ensuring sufficient funding for its completion.

The construction of the Engebø Project has been completed through four lump-sum EPC (“Engineering, Procurement and Construction”) contracts with Sunnfjord Industripartner AS, Åsen & Øvrelid AS, Nordic Bulk AS and Normatic AS, and all parts of the mine and processing plant have been installed and commissioned at site.

The main construction activities at Engebø were completed during the fourth quarter. Only a minor balance of plant items remains to

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Despite a promising first half, the pigment market softened in the latter part of the year due to seasonal slowdowns, a weak housing market, and broader economic uncertainties. However, the introduction of anti-dumping duties by the European Commission on Chinese TiO₂ imports between 35 to 40 percent created a more favorable environment for western producers. This regulatory shift, combined with expected economic stimulus measures and lower interest rates, is likely to support long-term demand.

The titanium metal sector remained a key area of strength, with global aircraft demand driving steady consumption of titanium sponge. Producers reported full capacity production levels, while the semiconductor industry showed signs of recovery, further supporting demand.

However, early signs of recovery emerged towards the end of the year, suggesting a more positive outlook for 2025.

There is currently no production of garnet in Europe and the global supply of high-quality garnet for high-end applications has over the last years been short of the demand. The existing main producers are in Australia, China, India, and South-Africa. Regulatory measures introduced by the Indian government in 2016 continue to affect a substantial part of the Indian garnet production. It is uncertain when and to what extent Indian production will re-enter the market. In the USA, domestic production is significantly short of the demand.

Nordic Mining successfully maintained its strategic position throughout the year with long-term offtake agreements for rutile and garnet, ensuring stable sales volumes and predictable revenue streams from 2025. The company’s agreements, covering up to full production for the first five years, provide resilience against short-term market fluctuations and position it well for future growth. With improving macroeconomic conditions, regulatory support, and strong demand in key sectors, the outlook for 2025 remains positive, offering promising opportunities for value creation for investors.

The global market for minerals is influenced by a range of economic, geopolitical, and regula- tory factors, and in 2025 the market faces significant uncertainty, particularly regarding future trade policies and tariffs. The Group is paying close attention to the development and is keeping a close dialogue with our suppliers and customers.

In June 2022, it entered into a five-year rutile offtake agreement with Iwatani, a reputable Japanese trading house. As part of the agreement, Iwatani made an equity investment of NOK 191.7 million in Nordic Mining for the Engebø Project at the time of signing. The offtake agreement is for the sale of 20,000 tonnes per annum of natural rutile from the Engebø Project over five years based on the market price, with commercial terms, for 95% natural rutile concentrate and adjusted for actual TiO₂ content.

In October 2022, ERG signed the final rutile offtake agreement. The consideration under the rutile offtake agreement will be based on the market price for 95% natural rutile concentrate, adjusted for actual TiO₂ content, as determined from TZMI index or annual price discussions between the parties.

These three offtake agreements are expected to cover substantially all the planned production for the first five years of both rutile and garnet.

Long-term fundamentals for rutile and garnet supply continue to be strong

The titanium market experienced a dynamic 2024, marked by periods of growth and challenges across different sectors. The year began with a recovery in the titanium dioxide (TiO₂) pigment market as demand increased and inventories were replenished, allowing producers to operate at higher utilization rates. Titanium feedstock suppliers also saw improved conditions, with sales volumes surpassing production levels. The titanium metal sector remained robust throughout the year, driven by a strong backlog in the aviation industry and increasing military expenditures.

Although rutile prices weakened since late 2023 due to the pigment sector’s struggles, they stabilized by year-end and are expected to strengthen in 2025 as market conditions improve.

Several major rutile deposits are expected to be depleted in the coming years, while an increase in titanium sponge and metal produced by western producers is expected. Nordic Mining is well positioned to supply rutile, a critical mineral, to this segment.

The industrial abrasives market faced challen- ges, particularly in North America and Europe, where high interest rates and slowing industrial activity weighed on demand. Supply chain disruptions from South Africa and elevated freight costs from Australasia added pressure.

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In addition to Nordic Mining’s production of rutile and garnet from Engebø, the Group continues its engagement in other strategic initiatives within high-end industrial minerals and metals. This includes exclusive exploration rights to a quartz deposit in Norway and patented rights for a new technology for production of alumina which are jointly owned with the Institute for Energy Technology.

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STRATEGIC ASSETS AND

INITIATIVES

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sample processing. A field work campaign was successfully completed in November, extracting 10 tonnes of ore for processing test work at large scale. The processing test work continues into 2025, and the primary objective is to produce product samples for industrial testing. We see this as a crucial next step to validate the quality of the product, which will mitigate risks moving forward. Based on positive conclusions from this activity, we may start the work with a drilling campaign during the 2nd half of 2025, followed by a prefeasibility study (PFS).

Other activities this year involve desktop studies on social and environmental impact, implemen- tation of the area into the municipality master plan, and basic evaluations of mining methods. Some of these activities will also proceed in 2025.

TITANIUM – Advanced materials

Nordic Mining’s subsidiary ERG will produce high grade natural rutile with substantially lower carbon footprint compared with peering producers of titanium feedstock. In addition, the rutile from Engebø has low levels of radioactive elements like Uranium and Thorium, making it ideal for production of high-quality titanium metal.

Following the CRMA initiative from the EU, titanium metal has been listed as a critical and strategic material in the EU. Nordic Mining has completed a preliminary conceptual study of future production of titanium sponge from the Engebø rutile deposit. A possible future engagement to establish new production of titanium sponge will likely be organized as a separate unit in the Group.

SEABED MINERALS – Research and Knowledge Building

Nordic Mining has taken pioneering initiatives related to seabed mineral exploration and knowledge building in Norway. Nordic Mining participated in the MarMine project on marine mineral resources which was concluded in 2020. The project was coordinated by the Norwegian University of Science and Technology. The Norwegian Research Council granted NOK 25 million to the project which had a strong industrial basis and participation. After a strategic review, the Company has decided to pause its engage- ment in seabed mineral exploration, focusing on strategic growth initiatives onshore.

HIGH PURITY QUARTZ – Positioning for future growth in IT and sustainable energy

The Kvinnherad Quartz deposit is a hydrothermal quartz vein in Western Norway, located close to infrastructure approximately 700 meters from the county road and the ocean. Nordic Mining has actively been engaged with local stakehol- ders over many years to establish good communi- cation and long-term relations.

During the second quarter of 2024, Nordic Mining’s MoU partner at the Kvinnherad Quartz deposit decided to finalize its cooperation with regards to the development of the project, and Nordic Mining decided to continue its engage- ment as sole owner of the exploration rights through its wholly owned subsidiary Nordic Quartz. No consideration was paid in relation to the takeover of the MoU partners exploration rights, and Nordic Quartz will use its rights in the MoU to enter into the landowner agreement as the sole party.

The total Mineral Resource Estimate currently stands at 4.3 Mt, with 2.9 Mt of Indicated resources @65% hydrothermal quartz, and 1.3 Mt of Inferred resources @66% hydrothermal quartz. Geochemical analysis and processing test work has shown that quartz from this deposit can be used to produce a High Purity Quartz (HPQ) product, which makes it unique since there are few deposits globally suited for that purpose. HPQ is vital in the production of photovoltaic components, semiconductors, specialized glassware, and fiber optics.

Processing activities have been the focus in 2024. This includes analysis of quality variations in the deposit, flow sheet verification, and bulk

ALUMINA – Sustainable Technology Development

Nordic Mining has since 2009 been engaged in development of a new technology for alumina production as a sustainable alternative to the current production. The technology has successfully been developed together with the Institute for Energy Technology («IFE») and has been patented in several countries including Norway, USA, Canada and with the European Patent Office. In June 2019, the Company was granted a EUR 5.9 million project from EU’s Horizon 2020, the AlSiCal project, together with 15 partners in 9 countries. The AlSiCal was finalized in Q2 2024, proving the technical viability of the technology 2 . The group will evaluate possible opportunities that may be of interest for utilizing the AlSiCal technology.

Kvinnherad quartz deposit.

CEO’ s report

SUSTAINABILITY report