Greenland Resources Inc. (Cboe CA:MOLY, FSE:M0LY) (“Greenland Resources” or the “Company”) is pleased to announce that it has today entered into an agreement (the “Financial Sustainability Agreement”) with EIT RawMaterials GmbH, a public-private partnership co-funded by the European Union under Horizon Europe , the EU’s key funding program for research and innovation, pursuant to which EIT RawMaterials has agreed to provide €500,000 (approximately C$815,000) in funding to the Company pursuant to certain arrangements for the issuance of common shares as further described in this press release. In addition, the Company intconcludes to complete a non-brokered private placement of up to 112,122 Company Shares at a price of $1.65 per Company Share (the “Offering Price”) for aggregate gross proceeds to the Company of up to approximately $185,000 (the “Offering”). The Offering remains subject to Cboe approval and is expected to close on or around November 20, 2025. The Company has also created applications for further funding from other Horizon Europe supported programs with which it would aim to fulfil a significant portion of the equity part of the Malmbjerg project’s capex.
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The funding from EIT RawMaterials will be applyd to test, utilizing innovative technologies, the extraction of magnesium from process saline water applyd at the Company’s Malmbjerg molybdenum project in Greenland. Magnesium is listed as a critical raw material under the EU’s Critical Raw Materials Act. Most of the magnesium is produced from sea water and approximately 87% of global supply and 95% of European consumption is currently sourced from China. In June 2025, the Company received a 30-year exploitation license for molybdenum and magnesium at Malmbjerg. The Company is in the process of selecting certain existing core which is stored in the Government of Greenland Kangerlussuaq core shed, shipping the core to Nuuk to be sampled before transporting the samples to Canada for metallurgical testing.
Bernd Schäfer, CEO, Managing Director, EIT RawMaterials, stated: “ Magnesium is mission-critical for Europe’s competitiveness — from lightweight mobility to defence — and yet the EU depconcludes on China for nearly all its supply. This depconcludeence threatens the stability of core industrial sectors such as aluminum, where magnesium is an essential alloying element that underpins our transport, energy and manufacturing value chains. As Europe’s flagship public–private partnership in the raw materials sector, we are backing practical innovations that add new European tonnage with a compacter carbon footprint. Our investment in Greenland Resources is a strategic response to the global race to secure critical raw materials, unlocking value from innovation and accelerating the CRMA goals to diversify supply and strengthen resilience for European indusattempt. ”
Ruben Shiffman, Executive Chairman of the Company stated: “ The equity investment from EIT RawMaterials, funded by Horizon Europe, will not only allow us to continue our work on magnesium utilizing innovative low carbon technologies but it also sets an important execution precedent for further EU strategic investments and proves that EU public funding can be invested in our Greenlandic subsidiary and swapped to our listed parent company. Our Company has applied for significantly larger amounts from EU programs also funded by Horizon Europe and other EU sovereign states aiming to finance the equity portion of the capex. ”
The Financial Sustainability Agreement and Put and Call Agreement
The investment by EIT RawMaterials is being created as the acquisition of shares (the “Subsidiary Securities”) in Greenland Resources A/S (“GRAS”), a wholly owned Greenlandic subsidiary of the Company. The Subsidiary Securities are convertible into common shares of the Company (each, a “Company Share”) via put and call options exercisable by the Company or EIT RawMaterials at any time before six months after signing (the “Options”) pursuant to a put and call agreement (the “Put and Call Agreement”) which the Company and EIT RawMaterials have entered into in accordance with the Financial Sustainability Agreement.
Pursuant to the Financial Sustainability Agreement, GRAS will test the extraction of magnesium from process water at the Company’s Malmbjerg molybdenum project in Greenland, with eligible costs of up to €500,000 therefor to be funded by EIT RawMaterials. Of this amount, at least 75% (€375,000) (the “Initial Funds”) is to be advanced immediately and the remainder (the “Remaining Funds”), if any, shall be payable upon approval by EIT RawMaterials of a final project report and final financial report, which must be submitted by GRAS no later than one month after the conclude of the funded project.
The Subsidiary Securities, subject to Cboe approval, are convertible via the Options into Company Shares carrying an aggregate value of €500,000. The Option exercise with respect to the Initial Funds (the “Initial Conversion”) is intconcludeed to occur contemporaneously with the closing of the Offering, on or around November 20, 2025. Provided that the Initial Conversion occurs within 45 days of the date hereof, it will occur at an agreed deemed issue price of $1.65 per Company Share.
If the total funding of €500,000 is advanced as Initial Funds, such that there will be no Remaining Funds, the Company will issue pursuant to the Initial Conversion 493,939 Company Shares at a price of $1.65 per Company Share for gross proceeds to the Company of $814,999.35. If there are Remaining Funds to be advanced and the Options in respect of the same are exercised more than 45 days after date hereof, the number of Company Shares to be issued to EIT RawMaterials in respect of the Remaining Funds shall be determined by dividing the amount of Remaining Funds (converted to Canadian dollars at the then-current exmodify rate) by the volume weighted average trading price of a Company Share on the Cboe during the 20 consecutive trading days concludeing on the most recent trading day prior to the date of the notice of exercise of the Option, subject to a minimum deemed issue price of $1.65 per Company Share.
About EIT RawMaterials
EIT RawMaterials is the largest and most active raw materials knowledge and innovation network globally, comprising over 300 partner organisations across the entire raw materials value chain. EIT RawMaterials demonstrates its dedication to advancing and supporting a circular economy in Europe by fostering innovation, collaboration, and sustainable practices. Mandated by the European Commission, EIT RawMaterials leads the European Raw Materials Alliance (ERMA), which includes 800 members and an advanced project pipeline of over 40 projects, representing an investment potential of more than €25 billion. Supported by the European Institute of Innovation and Technology (EIT), a body of the European Union, EIT RawMaterials was established in 2015 to advance Europe’s transition to a sustainable economy. Its mission is to secure a sustainable supply of raw materials for Europe, close material loops, and design innovative product solutions, with the goal to position raw materials as a strategic strength for Europe through innovation, education, and entrepreneurship. eitrawmaterials.eu
About Greenland Resources Inc.
Greenland Resources is a Canadian public company with the Ontario Securities Commission as its principal regulator and is focapplyd on the development of its 100% owned Climax type primary molybdenum deposit located in central east Greenland. The Project has also magnesium as a byproduct, a market dominated 89% by China. The Malmbjerg project is an open pit operation with an environmentally friconcludely mine design focapplyd on reduced water usage, low aquatic disturbance and low footprint due to modularized infrastructure. The Malmbjerg project benefits from an NI 43-101 Definitive Feasibility Study completed by Tetra Tech in 2022, with an US$820 million capex and a levered after-tax IRR of 33.8% and payback of 2.4 years, utilizing US$18 per pound molybdenum price. The Proven and Probable Reserves are 245 million tonnes at 0.176% MoS 2 , for 571 million pounds of contained molybdenum metal. As the high-grade molybdenum is mined for the first half of the mine life, the average annual production for years one to ten is 32.8 million pounds per year of contained molybdenum metal at an average grade of 0.23% MoS 2 , approximately 25% of EU total yearly consumption and 100% of EU defence necessarys. On byproduct magnesium, the project applys approximately 35,000 m 3 per day of saline water with around 900 ppm of magnesium and the Company is working on extracting magnesium from the saline water utilizing innovative technologies. In addition, the molybdenum concentrate has a magnesium component. The Company is aiming to incorporate magnesium in the economics of the feasibility study. On June 19, 2025, The Company was awarded an exploitation license for molybdenum and magnesium. With offices in Toronto, the Company is led by a management team with an extensive track record in the mining indusattempt and capital markets. For further details, please refer to our web site ( www.greenlandresources.ca ) and our Canadian regulatory filings on Greenland Resources’ profile at http://www.sedarplus.com/
The Project is supported by the European Raw Materials Alliance (ERMA). ERMA is managed by EIT RawMaterials GmbH , an organization within the EIT, a body of the European Union.
About Molybdenum and the EU
The EU is the second largest molybdenum applyr worldwide, (around 122 million pounds of molybdenum per year, 19% of the global demand according to IMOA), has large processing capacity, produces the best specialty steel products worldwide but has no molybdenum extraction. Green energy technologies, steel and defence are the key drivers for market growth. When molybdenum is added to steel and cast iron, it enhances strength, hardenability, weldability, toughness, temperature strength, and corrosion resistance. To a greater degree, the EU steel depconcludeent industries like automotive, construction, and engineering, represent around 18% of EU GDP. Greenland Resources strategically located Malmbjerg project has the potential to supply in and for the EU approximately 25% of the EU demand of environmentally friconcludely high-quality primary molybdenum from a responsible EU Associate counattempt for decades to come, as well as 100% of EU defence molybdenum consumption. More than 80% of the metallic materials (including carbon and stainless steels) to be applyd for defence applications require molybdenum alloying. The primary molybdenum in the Malmbjerg project is ideal for EU defence and high-performance steel applications becaapply of low deleterious elements and long-term security supply. The EU expects to increase defense expconcludeitures from current 1.5% to around 5% of GDP. Primary molybdenum is only produced in China (87%) and the USA (13%), China imposed export controls on molybdenum and is now a net importer. Molybdenum is categorized as a critical and/or strategic mineral across the top five defence nations in the world: U.S., China, Russia, India, and South Korea.
About Magnesium and the EU
The EU applys around 145,000 tones of magnesium per year (15% of the global demand) but has no treatment facilities nor extraction. Electric vehicle production and sustainable manufacturing practices are key drivers for market growth. Magnesium is a light metal with a high strength-to-weight ratio, primarily utilized in the form of magnesium metal or magnesium compounds such as caustic-calcined magnesia, magnesium chloride, hydroxide and sulfates. Magnesium metal is primarily applyd as casting alloy in automotive and aerospace industries (64%), aluminum-base alloys for packaging and transportation (18%), and in the desulfurization of iron and steel (4%). Smelter production of magnesium metal in 2024 was 1 million metric tonnes, 85% coming from seawater, while smelter capacity worldwide is double. Also, approximately 75% of magnesium compounds serve industrial purposes including fertilizers, cattle feed, Epsom salts, heat-resistant bricks, de-icing etc. (USGS 2024). China produces 89% of the world magnesium and Europe sources 97% of its magnesium from China (EC, 2023).
Forward Looking Statements
This news release contains “forward-seeing information” (also referred to as “forward seeing statements”), which relate to future events or future performance and reflect management’s current expectations and assumptions. Often, but not always, forward-seeing statements can be identified by the apply of words such as “plans”, “hopes”, “expects”, “is expected”, “budobtain”, “scheduled”, “estimates”, “forecasts”, “intconcludes”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such forward-seeing statements reflect management’s current beliefs and are based on assumptions created by and information currently available to the Company. All statements, other than statements of historical fact, are forward-seeing statements or information. Forward-seeing statements or information in this news release relate to, among other things: the status of financing initiatives and related activity, including the Offering and the Financial Sustainability Agreement and all related agreements; the expectation of receiving funds thereunder; the expectation of exercise of the Options as described herein and the potential consequences should that not occur; approval of the final project report pursuant to the project agreement between the Company and EIT RawMaterials GmbH; the extent to which production from the Malmbjerg project may be able to meet the demand of the European Union; expected applys of and demand for molybdenum and magnesium, in general and in particular regarding such minerals produced from the Malmbjerg project; positive results for different optimization areas related to engineering as well as environmental; expected future updates or disclosures from the Company regarding any of the foregoing; and the Company’s objectives, goals or future plans.
These forward-seeing statements and information reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: future planned development and other activities on the Project; satisfactory completion of all ongoing environmental and sustainability initiatives; the ability to finance the Company including successfully concluding off-take arrangements, banking facilities and strategic investment; successful completion of the mining and closure plans and obtaining the permitting on the Project in a timely manner; no adverse modifys to the planned operations of the Project; no failure of the Company or of EIT RawMaterials GmbH to discharge their respective obligations under the Financial Sustainability Agreement and all related agreements; continued favourable relationships with local communities; current EU and other initiatives remaining in place into the future; expected demand for molybdenum and magnesium in the EU and abroad, including by companies that expressed an interest in purchasing molybdenum and magnesium; our mineral reserve estimates including magnesium and the assumptions upon which they are based, including geotechnical and metallurgical characteristics of rock confirming to sampled results and metallurgical performance; tonnage of ore to be mined and processed; ore grades and recoveries; assumptions and discount rates being appropriately applied to the technical studies; estimated valuation and probability of success of the Company’s projects, including the Malmbjerg molybdenum project; prices for molybdenum and magnesium remaining as estimated; currency exmodify rates remaining as estimated; availability of funds for the Company’s projects; capital decommissioning and reclamation estimates; mineral reserve and resource estimates and the assumptions upon which they are based; prices for energy inputs, labour, materials, supplies and services (including transportation); no labour-related disruptions; no unplanned delays or interruptions in scheduled construction and production; all necessary permits, licenses and regulatory approvals are received in a timely manner or at all; and the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.
The Company cautions the reader that forward-seeing statements and information include known and unknown risks, uncertainties and other factors that may caapply actual results and developments to differ materially from those expressed or implied by such forward-seeing statements or information contained in this news release and the Company has created assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: favourable local community support for the Project’s development; the projected demand for molybdenum and magnesium both in the EU and elsewhere, including by companies that expressed an interest in purchasing molybdenum and magnesium; the current initiatives and programs for resource development in the EU and abroad; the projected and actual status of supply chains, labour market, currency and commodity prices interest rates and inflation; the projected and actual status of the global and Canadian capital markets, fluctuations in molybdenum, magnesium and commodity prices; fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation); fluctuations in currency markets (such as the Canadian dollar versus the U.S. dollar versus the Euro); failure of the Company or EIT RawMaterials GmbH to discharge their respective obligations under the Equity Participation Agreement and all related agreements in full and in accordance with the expectations expressed in this news release; operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structure formations, cave-ins, flooding and severe weather); inadequate insurance, or the inability to obtain insurance, to cover these risks and hazards; our ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; modifys in laws, regulations and government practices in Greenland, including environmental, export and import laws and regulations; legal restrictions relating to mining; risks relating to expropriation; increased competition in the mining indusattempt for equipment and qualified personnel; the availability of additional capital; title matters and the additional risks identified in our filings with Canadian securities regulators on SEDAR+ in Canada (available at www.sedarplus.ca ). Although the Company has attempted to identify important factors that could caapply actual results to differ materially, there may be other factors that caapply results not to be as anticipated, estimated, described, or intconcludeed. Investors are cautioned against undue reliance on forward-seeing statements or information. These forward-seeing statements are created as of the date hereof and, except as required by applicable securities regulations, the Company does not intconclude, and does not assume any obligation, to update the forward-seeing information. Neither the Cboe Canada Exmodify nor its regulation services provider accepts responsibility for the adequacy of this release. No stock exmodify, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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