Vale Sells Sudbury Basin Assets to Errington

Vale Canada Limited, a subsidiary of Vale S.A., entered into a definitive purchase and sale agreement to transfer 24 freehold parcels and four mining licences of occupation in Ontario's Sudbury Basin to Errington Metals Inc., a wholly-owned subsidiary of Errington Metals Corp.

Under the terms of the deal, Vale will receive 2,336,472 common shares of Errington Metals Corp. upon closing. This issuance represents approximately 4.99% of the company's outstanding common shares on a non-diluted basis as of April 22, 2026. The shares will carry a mandatory four-month hold period under Canadian securities laws.

Vale also secures a 1.5% net smelter returns royalty on the transferred property. This rate will increase to 2.5%, capped at an aggregate 3% including existing royalties, if Errington does not incur $2,000,000 in exploration expenditures on the ground within five years of closing, provided Vale continues to hold the consideration shares.

The transaction includes future production milestone cash payments. Errington has agreed to pay Vale $5,000,000 within 30 days of achieving commercial production, followed by another $5,000,000 within 30 days of processing five million tonnes of run-of-mine ore from the property.

Closing is expected five business days after all necessary third-party, governmental, and TSX Venture Exchange regulatory approvals are secured, and no later than October 20, 2026, with a possible extension to January 20, 2027 under specific conditions.