Cadence Mineral Regulatory News (KDNC)

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Cadence Minerals Plc

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

Amapá - Installation Licence Granted

Key regulatory approval unlocks approved site works and advances fully funded Azteca restart toward production, cash flow and the broader Amapá development pathway.

Cadence Minerals plc (AIM: KDNC) is pleased to announce that DEV Mineração S.A. ("DEV"), owner and operator of the Amapá Iron Ore Project in Brazil ("Amapá" or the "Project"), has received the Installation Licence from the State of Amapá Environmental Authority, Secretaria de Estado do Meio Ambiente ("SEMA/AP").

The Installation Licence ("LI") authorises refurbishment, construction and installation works within its scope at the Amapá site, including those required for the restart of the Azteca Plant ("Azteca") and the larger US$1.9bn NPV Amapá Project. This represents a key transition for the Project from planning and permitting into execution.

The immediate operational focus remains the restart of Azteca as a low-capital reprocessing operation, intended to provide the first operating platform and near-term cash flow for Amapá.

Highlights

• Installation Licence granted: DEV has received Installation Licence No. 006/2026 from SEMA/AP, enabling approved works at the Amapá site.

• Execution gateway: Azteca now moves from engineering, funding and regulatory preparation into site mobilisation and delivery.

• Azteca restart in focus: The initial phase targets the processing of partly processed material to establish operations and early cash flow.

• Fully funded restart pathway: The binding US$4.6 million prepayment offtake facility provides funding for licensing, refurbishment, commissioning and initial working capital.

• Cash-flow platform: Subject to successful commissioning and operation, Azteca is expected to generate early cash flow to support working capital, ongoing operations and the funding of the DFS.

• Broader development retained: The LI also supports the staged pathway toward the larger 5.5 Mtpa DR-grade Amapá Project, which remains subject to further studies, financing and operating licenses.

Kiran Morzaria, Chief Executive Officer of Cadence Minerals, commented:

"The grant of the Installation Licence is a major milestone for DEV and for Amapá. It marks the transition of the Project into its next phase - from preparation into approved execution and then production.

Azteca is positioned as the practical first step in bringing Amapá back into production. It is supported by a fully funded structure, benefits from existing plant, and is designed to establish the initial cash-flow platform for the wider Project.

Our focus is now on disciplined delivery - mobilisation, procurement, licence compliance, refurbishment and commissioning.

On behalf of Cadence, I would like to congratulate the DEV team, our JV partners and advisers for their continued focus and execution, and to recognise the efficiency and constructive engagement of SEMA and the State of Amapá in advancing this important regulatory milestone. Azteca provides a clear pathway to near-term production and cash flow, while supporting the longer-term development of the Amapá Project and the enduring benefits it can bring to the State."

Installation Licence

DEV has received Installation Licence No. 006/2026 from SEMA/AP. The LI authorises approved installation works within its scope at the Amapá site, including refurbishment and replacement of existing operational structures, construction of new processing components (including magnetic separation, ball mill and screening circuits), and associated site infrastructure.

The licence is subject to conditions including environmental management, monitoring and reporting obligations, and health, safety and site-management requirements during the works programme. The LI does not replace or remove the requirement for any additional licences or consents that may be required under federal, state or municipal legislation, such as the Termo de Ajustamento de Conduta with Instituto do Patrimônio Histórico e Artístico Nacional. DEV will continue to manage all approvals in accordance with applicable statutory processes.

Azteca Execution Plan

Detailed mechanical and electrical engineering has been completed, and the refurbishment execution programme is in place. Certain preparatory activities were undertaken within the scope permitted prior to LI issuance; the LI now enables the wider approved refurbishment, construction and installation programme.

DEV is progressing into mobilisation and execution for the approved works. Initial activities will focus on contractor mobilisation, sequencing of work programmes, activation of funding drawdowns and commencement of approved works in accordance with licence conditions and applicable environmental, health and safety requirements.

Operating Licence and Timetable

Following completion of the approved works and commissioning activities, DEV will progress the Operating Licence ("LO") process required for commercial operations and shipments at Azteca.

The LO process is expected to be principally focused on demonstrating satisfaction of the applicable LI conditions and implementation of the approved environmental control measures, rather than a new project design approval process.

Subject to licence-condition compliance, execution progress and receipt of the LO, commissioning remains targeted for the end of June 2026. The Company will update shareholders should there be any material variation to this timetable.

Funding Structure

As previously announced, the Azteca restart is supported by a binding US$4.6 million prepayment and working capital facility provided by Cadence and its offtake partner.

The facility comprises approximately US$3.45 million allocated to licensing, refurbishment and commissioning activities, together with approximately US$1.15 million of working capital to support logistics and the first shipment.

With the grant of the LI, the remaining funds from the US$3.45 million is available to support the approved works programme. The working capital component becomes available upon commencement of production and is intended to support logistics and the first shipment.

Repayment of the facility is linked to future iron ore shipments, aligning funding with operational cash flow generation. As previously disclosed, the structure is intended to fund the full restart of Azteca, with no further equity currently expected to be required from Cadence to bring the plant into production.

Strategic Context

Azteca remains Cadence's near-term operational focus within its staged redevelopment strategy. Subject to successful commissioning and operation, Azteca is expected to provide an initial operating platform and near-term cash flow, supporting ongoing operations and the advancement of the broader development pathway, including the DFS and early-stage works for the 5.5 Mtpa DR-grade project.

The broader Amapá development remains a longer-term pathway subject to further technical studies, financing, construction planning and regulatory approvals. Cadence will provide further updates as material milestones are achieved.

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 Amapá

Amapá is formed of two distinct developments: the Azteca Project, and the larger Amapá Iron Ore Project.

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

The much larger 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.

Cautionary and Forward-Looking Statements

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as "believe", "could", "should", "envisage", "estimate", "intend", "may", "plan", "will", or the negative of those variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the company's future growth results of operations performance, future capital, and other expenditures (including the amount, nature, and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the company. Any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The company cannot assure investors that actual results will be consistent with such forward-looking statements.