FNI mining units sign annual sale and purchase agreement with Baosteel

Ends 2023 with 4.76 million WMT shipped volume

December 29, 2023 – Global Ferronickel Holdings, Inc. (PSE: FNI) announced today that its subsidiaries, Platinum Group Metals Corporation (PGMC) and Ipilan Nickel Corporation (Ipilan), have signed an annual sale and purchase agreement with Baosteel Resources International Co., Ltd. (Baosteel).

Under the agreement, Baosteel would purchase up to 1.5 million wet metric tons (WMT) of nickel ore for the year 2024 at a price that is determined monthly based on the prevailing market price at the time of sale. About two-thirds of the nickel ore to be sold is expected to be low grade with 0.90% nickel and 48% iron, and between 1.30% and 1.40% nickel with 15% to 25% iron. The remaining one-third will be medium grade with 1.40% and above nickel and 12% to 23% iron. It will be sourced from FNI’s operating mines in Surigao del Norte and Palawan.

FNI Chairman Joseph C. Sy (left) and Baosteel Resources International Co., Ltd. Vice President Wu Jiang

“We are proud to work with Baosteel and continue our long-term relationship” said FNI President Dante R. Bravo. “This agreement and our long history together demonstrate our customer’s confidence in our business and provide further recognition of our efforts in maintaining a reliable supply chain to meet the demands for Baosteel products throughout the Asia-Pacific region and internationally. With almost 10 years relationship, we believe our collaboration aligns with FNI’s mission of providing metals and minerals that are essential for greener, more sustainable products required in everyday life.”

FNI ended 2023 with 4.763 million WMT shipped volume, with 3.297 million WMT from PGMC and 1.466 million WMT from Ipilan. A total of 0.379 million WMT were sold to Baosteel.

Baosteel Resources International Co., Ltd. is a wholly owned subsidiary of China Baowu Steel Group. It is engaged in mineral resource investment, trading, and logistics services. In 2023, China Baowu Steel Group ranked as the largest company in the Materials sector and 44th largest company worldwide by total revenues on the Fortune Global 500, which it has been recognized for 14 years.

About Global Ferronickel Holdings, Inc.

Global Ferronickel Holdings, Inc. (PSE: FNI) is a holding company whose principal subsidiary is Platinum Group Metals Corporation, the Philippines’ second largest nickel ore producer with mining assets in Cagdianao, Surigao del Norte and Brooke’s Point, Palawan. Through our presence across the Philippines and in China, we are pursuing a multipronged strategy to diversify our investment portfolio into value-added nickel processing, cement manufacturing, and port operations and logistics. For more information, visit gfni.com.ph or contact investorrelations@gfni.com.ph.

Forward-Looking Statements

This disclosure contains forward-looking statements that are subject to several risks and uncertainties that could affect the company’s business and results of operations. Although the company believes that the expectations reflected in this disclosure are based on reasonable assumptions, it does not guarantee future performance, actions, or events.