Malmbjerg molybdenum project

Greenland Resources has received a positive assessment letter from the Greenland Mineral License and Safety Authority (“MLSA”) stating that the Company fulfilled the formal submission requirements of the Act on Mineral Activities and that a draft exploitation license is expected to be issued within the next 3 months. If the Company has no further comments to the draft, the exploitation license is submitted for approval to the government of Greenland.

The Company also expects to provide an update on the Capex financing process within the next few weeks.

Based on the current Project NI 43-101 Definitive Feasibility Study, the Project is set to potentially become the largest public revenue source in Greenland for decades to come (>US$1b in taxes) and create over 500 local jobs during construction and 200 local jobs during the 20 year mine life. Moreover, it aims to provide new life skills and training opportunities for the people of Greenland while establishing critical infrastructure on the east coast.

Additionally, the Project holds the potential to emerge as the largest molybdenum supplier to the EU Green Deal, aligning with high sustainable standards and responsible sourcing practices. Currently the EU is the second largest user of molybdenum worldwide and despite having a self-sufficient molybdenum processing capacity and high-quality steel and chemical products that require molybdenum, they have no molybdenum mines. With China dominating 45% of the world molybdenum market (bi-product and primary) and primary molybdenum being less than 15% of the total world molybdenum production, the EU has only one western country currently supplying "primary" molybdenum, crucial for producing high-performance steels including military grade and advanced chemical products, sectors led worldwide by the EU.

Furthermore, the Project economics are favourably positioned, as current molybdenum prices are above US$23 per pound, notably higher than the US$18 per pound of molybdenum considered in the Company’s NI 43-101 Feasibility Study.

Molybdenum and the European Union

Molybdenum is a critical metal used mainly in steel and chemicals that is needed in all technologies in the upcoming green energy transition (World Bank, 2020; IEA, 2021). When added to steel and cast iron, it enhances strength, hardenability, weldability, toughness, temperature strength, and corrosion resistance. Based on data from the International Molybdenum Association and the European Commission Steel Report, the world produced around 576 million pounds of molybdenum in 2021 where the European Union (“EU”) as the second largest steel producer in the world used approximately 24% of global molybdenum supply and has no domestic molybdenum production. To a greater degree, the EU steel dependent industries like the automotive, construction, and engineering, represent around 18% of the EU’s ≈ US$16 trillion GDP. Greenland Resources strategically located Malmbjerg molybdenum project has the potential to supply in and for the EU approximately 25% of the EU consumption, of environmentally friendly high-quality molybdenum from a responsible EU Associate country, for decades to come. The high quality of the Malmbjerg ore, having low impurity content in phosphorus, tin, antimony, and arsenic, makes it an ideal source of molybdenum for the high-performance steel industry lead worldwide by Europe, specifically the Scandinavian countries and Germany.