Message From Leadership

Q2 has been a quarter of steady progress. Despite market related challenges, we continue to build on our strengths and remain firmly focused on our long-term goals in the Green Steel Market.

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Safety First -  Always

Safety remains our highest priority. We’re pleased to report our Total Recordable Incident Frequency Rate (TRIFR) sits at 0.9. This is an improvement over the same period last year and a direct result of our team’s dedication to creating a safer workplace. That said, June saw a Lost Time Incident. While our overall trend is heading in the right direction, even one injury is one too many. We remain firmly committed to our goal of zero harm and will continue learning from each incident to strengthen our safety culture.

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Operations & Market Conditions

May and June yielded strong production gains, although rail constraints impacted final output. We successfully built up reclaim inventory, positioning us to leverage improved rail performance anticipated in Q3 for increased dry production.

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The iron ore market saw a decline in pricing during Q2, with averages dropping $8.34/t from Q1 and, at times, exceeding $14/t in downturns. In response, we are prioritizing efforts and initiatives that will bolster mill availability and throughput.

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Investing in People

We welcomed a strong influx of new talent this quarter with 21 new hires, nine work term students, and 25 summer students. Their safety and development are top priorities.

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Community & Industry Engagement

In addition, Tacora proudly took part in EXPO Labrador 2025 in June at the E.J. Broomfield Arena in Happy Valley -Goose Bay. Our team was pleased to connect with industry leaders, government officials, and Labrador Indigenous groups in a productive week of networking and relationship-building.

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Looking Ahead: Q3

Looking ahead, Q3 will focus on key capital investments, including upgrades to Mill 3 Recirc, the commissioning of the Scavenger Plant, and enhancements to Mill 5 gearing and Recirc systems. These projects are crucial in meeting our production goals and reinforcing operational reliability for sustained growth. We continue to work on strategies to decrease our emissions and have set an ambitious goal to become carbon neutral.

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Driving Green Steel Forward

Tacora’s high-grade iron ore plays a pivotal role in global decarbonization efforts. Our core values - Safety, Sustainability, Teamwork, Determination, and Respect - remain the compass for every decision we make. As we move forward, we remain deeply committed to delivering lasting value to our stakeholders, communities, and the environment.

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Sincerely,

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Brian Penney

President and CEO, Tacora Resources