World First: TMC and PAMCO Achieve a New Nodule Processing Milestone, Unlocking Critical Energy & Steelmaking Materials at Existing Facilities

• TMC and PAMCO have successfully demonstrated the production flowsheet for its initial commercial production using a 2,000-tonne sample of nodules collected during TMC subsidiary Nauru Ocean Resources Inc.'s 2022 test mining, at PAMCO's commercial operating facility in Hachinohe, Japan
• Following the commercial-scale production of calcine in September 2024, PAMCO engineers fed calcine material into the company's 3,000 kVA DC electric-arc furnace where it was smelted into high-grade nickel-copper-cobalt alloy and manganese silicate products
• The manganese silicate is used to produce silicomanganese for steelmaking, which studies show has significant cost advantages over conventional manganese ores
• Over a 14-day continuous campaign, PAMCO successfully demonstrated the process, collected and analyzed data, confirmed process control set points, monitored furnace integrity, and gained operational experience
• This demonstration supports anticipated definitive processing agreements as TMC prepares to submit the world's first exploitation application for commercial production
• The achievement further validates TMC's capital-light approach by utilizing PAMCO's existing facility, which has been in commercial operation since 1965, eliminating the need for upfront onshore capital expenditures

NEW YORK, Feb. 18, 2025 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (NASDAQ:TMC) ("TMC" or the "Company"), an explorer of the world's largest undeveloped resource of critical battery metals, today announced that it had successfully produced a high-grade nickel-copper-cobalt alloy and manganese silicate during a smelting campaign, run as part of the 18-month feasibility program designed to process a 2,000-tonne sample of deep-seafloor polymetallic nodules at its partner PAMCO's Rotary Kiln Electric-Arc Furnace (RKEF) operating facility in Hachinohe, Japan.

Following the recovery of 3,000 tonnes of nodules during 2022 test mining by TMC's subsidiary Nauru Ocean Resources Inc (NORI) from its exploration contract area D in the Clarion Clipperton Zone (CCZ), 2,000 tonnes were delivered to PAMCO's RKEF plant to go through a feasibility program consisting of calcining and smelting campaigns. Following the commercial-scale production of calcine in September 2024, over a 14-day continuous smelting campaign in January and February 2025, PAMCO operators fed approximately 450 tonnes of calcine material into a 3,000 kVA DC electric-arc furnace and produced high-grade nickel-copper-cobalt alloy and manganese silicate [see video]. By utilizing existing processing capacity with minimal modifications to existing equipment, TMC can avoid the high costs and risks associated with building new processing plants, while demonstrating the feasibility of integrating processing of CCZ nodules into established metallurgical operations.

The completion of the processing feasibility study marks a key milestone in the company's efforts to de-risk the onshore component of its project as it prepares to submit the world's first exploitation application to begin commercial nodule production in international waters.

TMC's Head of Onshore Development, Dr Jeffrey Donald, commented: "Successfully converting nodules into high-grade nickel-copper-cobalt alloy and manganese silicate at PAMCO's existing facility is a major milestone, eliminating the need to build new infrastructure from scratch. PAMCO has proven they are ready to receive and process nodules as soon as TMC delivers them. Their deep expertise in large-scale nickel laterite processing, combined with skilled engineers and operators, has been instrumental in demonstrating that nodule processing can be seamlessly integrated into established metallurgical operations—saving years in development time and billions in CAPEX. Their commitment to innovation and efficiency has helped us refine our near-zero-solid-waste processing approach, potentially redefining how critical minerals are sourced."

PAMCO's senior executive officer in charge of the project, Mr. Chitaru Okamura, commented: "We are very pleased that the smelting trial was successful following the calcination trials. These two trials are the main processes in nodule smelting, and we have made great progress in clearing the technical challenges toward commercial production. Through the trial, together with the support from TMC, we have demonstrated our facilities can be applied to nodule smelting and our smelting technology and operational know-how we have cultivated can be fully utilized for commercial nodule operation. Moving forward, we will gear up to finalize the project feasibility."

He added: "PAMCO will continue to promote this project, which aligns with the company philosophy to ‘Leverage the power of people to deliver the Earth's resources in more useful forms and contribute to the happiness of humankind.'"

The process data and operational experience gathered during the commercial-scale processing trial will inform expected definitive processing agreements between the parties. In November 2023, TMC signed a Memorandum of Understanding with PAMCO to complete a feasibility study to process 1.3 million tonnes of wet polymetallic nodules (PMN) per year into high-grade nickel-copper-cobalt alloy and manganese silicate, which are feedstock for the production of energy infrastructure and steel.

About The Metals Company

The Metals Company is an explorer of lower-impact battery metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for the global energy transition with the least possible negative impacts on planet and people and (2) trace, recover and recycle the metals we supply to help create a metal commons that can be used in perpetuity. The Company through its subsidiaries holds exploration and commercial rights to three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean regulated by the International Seabed Authority and sponsored by the governments of Nauru, Kiribati and the Kingdom of Tonga. More information is available at www.metals.co.

About Pacific Metals (PAMCO)

Since its establishment in 1949, Pacific Metals Co., Ltd. (PAMCO) has performed through Japan's post-war reconstruction and many crises to develop new technologies, launch new products, and implement an effective quality control program with a view to satisfying the needs of the customer and becomes Japanese leading ferronickel producer. With ferronickel as its main product, PAMCO produces nickel slag products obtained as by-products in the smelting process.

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Forward Looking Statements

Certain statements made in this press release are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook" and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, including related to statements regarding the studies to evaluate the processing of polymetallic nodules, the pilot demonstration on a 2,000-tonne nodule sample at PAMCO's Rotary Kiln Electric-Arc Furnace (RKEF) facility in Hachinohe, Japan, the successful production of high-grade nickel-copper-cobalt alloy and manganese silicate, the operational data collected during the 14-day continuous smelting campaign, and any engineering of additional equipment needed for converting nickel-copper-cobalt alloy into an upgraded matte product, as well as the anticipated definitive processing agreements and submission of the exploitation application for commercial production. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside TMC's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: TMC's strategies and future financial performance; the ISA's ability to timely adopt the final mining regulations and/or willingness to review and/or approve a plan of work for exploitation under the United Nations Convention on the Laws of the Sea (UNCLOS); TMC's ability to obtain exploitation contracts or approved plans of work for exploitation for its areas in the Clarion Clipperton Zone; regulatory uncertainties and the impact of government regulation and political instability on TMC's resource activities; changes to any of the laws, rules, regulations or policies to which TMC is subject, including the terms of the final mining regulations, if any, adopted by ISA and the potential timing thereof; the impact of extensive and costly environmental requirements on TMC's operations; environmental liabilities; the impact of polymetallic nodule collection on biodiversity in the Clarion Clipperton Zone and recovery rates of impacted ecosystems; TMC's ability to develop minerals in sufficient grade or quantities to justify commercial operations; the lack of development of seafloor polymetallic nodule deposit; TMC's ability to successfully enter into binding agreements with Allseas Group S.A. and other parties in which it is in discussions, if any; uncertainty in the estimates for mineral resource calculations from certain contract areas and for the grade and quality of polymetallic nodule deposits; risks associated with natural hazards; uncertainty with respect to the specialized treatment and processing of polymetallic nodules that the Company may recover; risks associated with collective, development and processing operations, including with respect to the development of onshore processing capabilities and capacity and Allseas Group S.A.'s expected development efforts with respect to the Project Zero offshore system; TMC's dependence on Allseas Group S.A.; fluctuations in transportation costs; fluctuations in metals prices; testing and manufacturing of equipment; risks associated with TMC's limited operating history, limited cash resources and need for additional financing; risks associated with TMC's intellectual property; Low Carbon Royalties' limited operating history; and other risks and uncertainties, including those under Item 1A "Risk Factors" in TMC's Annual Report on Form 10-K for the year ended December 31, 2022, filed by TMC with the Securities and Exchange Commission ("SEC") on March 27, 2023, as updated and/or supplemented by TMC's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, filed with the SEC on August 14, 2023, and in TMC's other future filings with the SEC, including TMC's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, filed with the SEC on November 9, 2023. TMC cautions that the foregoing list of factors is not exclusive. TMC cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. TMC does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based except as required by law.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ffd9ea4e-820f-4ccf-a202-075453b386ef