World First: TMC and PAMCO Achieve Breakthrough in Commercial-Scale Processing of Polymetallic Nodules, Successfully Producing Calcine

• TMC and PAMCO successfully produced calcine from a 2,000-tonne sample of nodules collected during TMC subsidiary Nauru Ocean Resources Inc.'s 2022 test mining, at PAMCO's Hachinohe Rotary Kiln Electric-Arc Furnace (RKEF) facility in Japan
• The nodules were heated to remove moisture and initiate the mineral transition to metallic form, producing approximately 500 tonnes of calcine in preparation for smelting
• In the coming months, PAMCO intends to commence the next phase of the processing trial by transferring the calcine material to its electric arc furnace for smelting into a high-grade nickel-copper-cobalt alloy and manganese silicate product
• The goal of the commercial-scale campaign is the collection and analysis of process data and operational experience in preparation for expected definitive processing agreements between the parties

NEW YORK, Sept. 09, 2024 (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 high temperature material (calcine) during the first phase of a commercial-scale campaign to process a 2,000 tonne sample of deep-seafloor polymetallic nodules at its partner PAMCO's Hachinohe Rotary Kiln Electric-Arc Furnace facility in Hachinohe, Japan.

Undertaken on PAMCO's 131-meter-long #6 commercial kiln, engineers fed approximately 1200 tonnes of nodules into the kiln via conveyor at up to 60 tonnes per hour, and produced roughly 500 tonnes of calcine which will cool slowly before being transferred to PAMCO's demonstration smelting facility [see video]. With sufficient quantities of calcine material now produced to proceed to the next phase of the trial, PAMCO intends to commence commercial-scale smelting of the calcine into a high-grade nickel-copper-cobalt alloy and manganese silicate in the coming months.

TMC's Head of Onshore Development, Dr Jeffrey Donald, commented: "After years of carefully-planned development, bench-scale tests, engineering studies and pilot demonstrations it's very exciting to see the world's first commercial-scale processing of our nodules. With decades of experience in processing nickel laterite at industrial scale in its Hachinohe facility, and with dozens of highly capable and disciplined technical and operating personnel on our project, PAMCO is the perfect partner to help optimize our near-zero-solid-waste flowsheet in preparation for commercial production. We appreciate PAMCO's professional efforts and technical contributions to the development of this process."

PAMCO's senior executive officer in charge of the project, Mr. Chitaru Okamura, commented: "We are pleased to announce the trial production of calcined nodules for the first smelting trial using our commercial scale kiln was completed in collaboration with PAMCO and TMC technical teams. This marks an important milestone in commercial nodule processing into battery metals, representing the world's first trial. We are excited to move forward with the next important challenge, the smelting campaign using our facilities."

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 lithium-ion batteries, electrical 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 and any engineering of additional equipment needed for converting nickel-copper-cobalt alloy into an upgraded matte product. 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, 2023, filed by TMC with the SEC on March 25, 2024, and in TMC's other future filings with the SEC, including TMC's Quarterly Reports on Form 10-Q. 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/73670440-1315-44c0-aa32-6341624d775e