Titan Mining Announces Strong Kilbourne Graphite Project Economics and Expanded U.S EXIM Support to Accelerate U.S. Graphite Independence

The Kilbourne Project Study confirms robust economics for the project, with an after-tax NPV_(7%) of $513 million, 37% IRR, and 2.7-year payback. In parallel, EXIM has approved an additional $5.5 million of non-dilutive MMIA funding, on similar terms as previously announced, to accelerate feasibility work at Kilbourne. EXIM has also issued a non-binding Letter of Interest for up to $120 million of project financing, expected to fund the majority of construction capital, subject to customary due diligence and approvals.

All dollar amounts are stated in U.S. dollars unless otherwise noted.

Highlights

• Critical Materials Complex: Titan’s Empire State Mines in New York State is evolving into a multi-metal critical materials complex, anchored by zinc and graphite, with germanium testing underway that could further strengthen the site’s role in U.S. defense and semiconductor supply chains.

• Robust Economics: After Tax NPV_(7%) for the stand-alone Kilbourne Graphite Project of $513 million, post-tax IRR of 37%, and 2.7-year payback, confirming Kilbourne to be the highest return graphite project in the USA.

• High Margins: Average EBITDA of $125 million through LOM. Blended EBITDA margins of 58-69% supporting resilient returns across market cycles.

• Scale & Impact: Average production of ~40,000 metric tonnes per annum of graphite concentrate, at nameplate capacity, nearly 50% of current U.S demand, from an integrated operation in New York State.

• Expanded United States Government partnership:

  • EXIM has approved an additional $5.5 million of non-dilutive funding under MMIA, on similar terms as previously announced, to accelerate resource drilling, metallurgical test work, and engineering work programs for the Feasibility Study. This is the first Feasibility Study for a domestic project funded by EXIM, underscoring the strategic importance of fast-tracking Kilbourne.

  • EXIM has also issued a $120 million LOI expected to cover the majority of the construction capital, materially de-risking financing and underscoring the Project’s strategic role in U.S. national security and defense supply chains.

• Capital Efficiency: Initial construction capital of $156 million, leveraging existing Empire State Mine infrastructure, government financing programs, and cash flow from Titan’s zinc operations to minimize dilution and execution risk.

• Product Strategy: Initial output of Concentrate, Micronized Natural Flake Graphite, and Purified Micronized Graphite (PMG), with transition to Coated Spherical Purified Graphite, all critical inputs for industrial, defense and energy sectors.

• Significant Exploration Upside: The Kilbourne Project Study is underpinned by an Inferred Mineral Resource of 22.4 million tons grading 2.91% Cg (653,000 tons contained graphite), based on a 1.5% Cg cut-off grade. Significant exploration upside remains, with only 30% of the known strike length drilled to date.

• Near-Term Production Pathway: Qualification sales production commencing in Q4 2025 with customer qualifications commencing Q1 2026. The demonstration facility significantly de-risks the Kilbourne Project, accelerates time-to-market, and provides early validation of Titan’s downstream processing strategy.

• Fast Tracking Development: Feasibility Study in 2026 with targeted start of construction in 2027.

• Job creation & economic impact: Project expected to create approximately 160 additional permanent positions, establishing a total workforce of over 300 employees across ESM operations in upstate New York, while generating tax revenue and local economic benefits for St. Lawrence County and New York State.

• Zinc operations: Ongoing production from the Empire State Mine provides cash flow stability, with production expected to grow incrementally. Exploration potential across Titan’s land package and operational synergies with the Kilbourne Project further enhance value and reduce execution risk.

John Jovanovic, Export-Import Bank of the United States, said: “This investment demonstrates EXIM’s commitment to strengthening domestic supply chains for strategic minerals essential to our national security and economic prosperity. Titan’s innovative approach to developing America’s first integrated graphite capability in more than 70 years aligns directly with our mission to support U.S. jobs and reduce foreign dependencies in critical sectors.”

“The Kilbourne Project Study represents a pivotal milestone in advancing U.S. critical mineral independence,” said Rita Adiani, CEO and President of Titan Mining. “Backed by EXIM’s $120 million Letter of Interest and additional non-dilutive MMIA funding, Titan is poised to be able to supply nearly half of the nation’s natural graphite demand through a fully integrated operation in New York State.”

Adiani continued, “EXIM’s support is far more than capital—it is validation of Titan’s strategic role in establishing America’s graphite independence. By providing non-dilutive funding at the feasibility stage and confirming project-finance support for construction, EXIM is enabling Titan to move faster while preserving balance-sheet strength. Together with our established zinc operations generating cash flow, we are building a U.S.-anchored critical minerals platform with clear, long-term growth.”

Cautionary Note: The Kilbourne Project Study is preliminary in nature and includes Inferred Mineral Resources, considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Preliminary Economic Assessment will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Project Summary

The Kilbourne Project hosts a maiden Inferred Mineral Resource of 22.4 M tons grading 2.9% Cg, with significant expansion potential as only ~30% of the strike length has been drilled. Development is planned as a conventional open-pit mine with an average annual production of ~40,000 metric tonnes of graphite concentrate (at nameplate capacity). Processing will use a flotation-based concentrator, achieving 95% Cg at ~90% recovery, with downstream secondary transformation facilities to produce high-purity micronized and spherical graphite for battery applications. Co-located within Titan’s Empire State Mine complex in New York, the project benefits from established infrastructure, utilities, and a skilled workforce. Work completed to date includes drilling, metallurgical testing, and construction of a demonstration plant to begin customer qualification in 2026.

Based on the positive Kilbourne Project Study results, Titan will advance the project to feasibility, supported by additional drilling, expanded metallurgical testing, site-specific engineering, and environmental permitting programs. Pilot-scale purification and downstream test work will generate product samples to secure offtake agreements, further de-risking commercialization and positioning Kilbourne as a cornerstone of U.S. graphite supply.

The capital expenditure estimate for the Kilbourne Project Study is based on a scoping-level engineering assessment. Direct costs cover the supply and installation of equipment, including the associated direct installation workforce, as well as costs of buildings and site preparation. Indirect costs include expenses not directly involved in process operations, such as engineering, procurement and construction management services, development studies, legal fees, other temporary contractor services and fees. Sources on capital costs include vendor budget quotations, historical data, similar projects, and factors.

Assumptions: The estimate uses imperial units for mining, site infrastructure, and Concentrate Plant inputs (metric for downstream of the Concentrate Plant); assumes the mining mobile fleet is leased and all mechanical/process equipment is purchased new; bases equipment costs on information and test work available at the time of study; assumes local sourcing of earthworks materials (fill, sand, gravel, crushed rock) and year-round constructability; and notes that totals may vary slightly due to rounding.

1. The independent Qualified Person for the Mineral Resource Estimate, as defined by NI 43-101 is Mr. Todd McCracken (PGO 0631) of BBA USA Inc. The effective date of this Mineral Resource Estimate is December 3, 2024.
2. Three-dimensional (3D) wireframe models of mineralization were based on the geological interpretation of the logged lithology and sub-domained based on contiguous grade intervals greater than or less than 0.50% Cg defining two mineralized sub-domains.
3. Geological and block models for the Mineral Resource Estimate used data from a total of 45 surface diamond drill holes (core) and 1 surface channel sample. The drill hole database was validated prior to mineral resource estimation and QA/QC checks were made using industry-standard control charts for blanks and commercial certified reference material inserted into assay batches by Empire State Mine personnel.
4. Quantities and grades in the Mineral Resource Estimate are rounded to an appropriate number of significant figures to reflect that they are estimations.
5. The mineral resource estimate was constrained using the following optimization parameters, as agreed upon by Empire State Mine and the QP. The parameters include mining costs of $4.60/ton for mineralized rock, $3.50/ton for unmineralized rock, and $2.00/ton for overburden and tailings, with a 5.0% dilution and 95.0% mining recovery. Processing costs are $14.00/ton milled, with a 91.0% processing recovery and a concentrate grade of 95.0%. No general and administrative (G&A) costs were applied. The selling price is $1,090/ton of concentrate, with transportation costs of $50/ton and no additional selling costs. The overall slope angles are 23 degrees for overburden and tailings, and 45 degrees for rock.
6. Process recovery estimates based on Phase I testing done at SGS Lakefield and Forte Dynamics, open circuit recovery 86.5% with expected increase to 90-91% in closed circuit.
7. The reported mineral resource estimate has been tabulated in terms of a pit-constrained cut-off value of 1.50% Cg.
8. The block model was prepared using Datamine Studio RM™. A 30 ft x 30 ft x 15 ft block model was created, and samples were composited at 5.00 ft intervals. Grade estimation for graphite used data from drill hole data and was carried out using Ordinary Kriging (OK), Inverse Distance Squared (ID 2), and Nearest Neighbor (NN) methods. The OK methodology is the method used to report the mineral estimate statement.
9. Grade estimation was validated by comparison of the global mean block grades for OK, ID2, and NN by domain and composite mean grades by domain, swath plot analysis, and by visual inspection of the assay data, block model, and grade shells in cross-sections.
10. The specific gravity assessment was carried out for all domains using measurements collected during the core logging process. The mean specific gravity value within the mineralized domains is 2.75.
11. The Mineral Resource Estimate was prepared following the CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines (November 29, 2019).

Use of Proceeds from Expanded EXIM MMIA Support

The additional $5.5 million approved by EXIM under its MMIA initiative will fund critical-path activities to accelerate the Kilbourne Project, including:

• Resource Drilling – to grow the mineral resource base and improve confidence in the existing Inferred Mineral Resource.

• Metallurgical & Product Qualification Work – to refine flowsheets and qualify multiple downstream product categories, including micronized and purified graphite grades for battery, industrial, and defense applications.

• Engineering, Permitting and Site Management Plans – to advance feasibility-level design, de-risk construction, and align project development with U.S. federal procurement and permitting requirements.

This funding is non-dilutive to Titan shareholders and is on the same terms as previously announced MMIA support.

About Titan Mining Corporation

Titan is an Augusta Group company which produces zinc concentrate at its 100%-owned Empire State Mine located in New York state. Titan is also an emerging natural flake graphite producer and targeting to be the USA’s first end to end producer of natural flake graphite in 70 years. Titan’s goal is to deliver shareholder value through operational excellence, development and exploration. We have a strong commitment towards developing critical minerals assets which enhance the security of the domestic supply chain. For more information on the Company, please visit our website at www.titanminingcorp.com

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