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PRESS RELEASE Toronto , August 5 , 2026 LABRADOR IRON ORE ROYALTY CORPORATION - RESULTS FOR THE SECOND QUARTER ENDED JUNE 30 , 2026 The Directors of Labrador Iron Ore Royalty Corporation ( " LIORC " or the " Corporation " ) present the second quarter report for the period ended June 30 , 2026 . Financial Performance In the second quarter of 2026 , LIORC's financial results were negatively affected by low concentrate for sale ( " CFS " ) and pellet sales volumes . Royalty revenue for the second quarter of 2026 was $ 33.7 million , a 27 % decrease from the second quarter of 2025 and a 5 % decrease from the first quarter of 2026. Equity ( losses ) earnings from Iron Ore Company of Canada ( " IOC " ) totaled ( $ 7.6 ) million in the second quarter of 2026 compared to $ 2.3 million in the second quarter of 2025 and ( $ 6.4 ) million in the first quarter of 2026. Net income per share for the second quarter of 2026 was $ 0.17 per share , which was a 58 % decrease from the same period in 2025 and a 19 % decrease from the first quarter of 2026. The adjusted cash flow per share for the second quarter of 2026 was $ 0.29 per share , a 28 % decrease from the same period in 2025 and 5 % lower than the first quarter of 2026. While adjusted cash flow is not a measure recognized under IFRS Accounting Standards , the Directors believe it provides a useful analytical indicator of cash available for distribution to shareholders . Iron ore prices improved modestly in the second quarter of 2026 , supported by resilient demand in emerging markets despite higher seaborne supply and flat global steel output . According to data from the World Steel Association , overall global crude steel production during the second quarter of 2026 remained unchanged compared to the same period in 2025. In China , second quarter steel production fell 1.7 % year - over - year . This contraction was primarily driven by ongoing weakness in the domestic property market , which reduced demand for construction grade steel , as well as strict carbon emission caps and rising compliance costs that led steelmakers to reduce low - margin volume in favor of high - value specialty products . China's decline was countered by expansion in other regions , where non - China steel production grew by 2.2 % year - over - year in the second quarter . Growth was fueled by robust manufacturing and infrastructure activity in major emerging markets such as India and Turkey . European steel output also rebounded from historical lows in 2025 . Pellet premiums in the second quarter were supported by increased demand from global steelmakers seeking low- emission feedstocks to minimize direct carbon liabilities under the EU Carbon Border Adjustment Mechanism , now in effect . On the supply side , iron ore production remained strong . Combined sales from the world's three largest seaborne producers ( Rio Tinto , Vale , and BHP ) rose approximately 2 % in the quarter ended June 30 , 2026 , compared with the same quarter of 2025 , ensuring that global markets were well supplied even as prices found steady demand - side support . IOC sells CFS based on the Platts index for 65 % Fe , CFR China ( “ 65 % Fe index ” ) . All references to tonnes and per - tonne prices in this report refer to wet metric tonnes , other than references to Platts quoted pricing , which refer to dry metric tonnes . Historically , IOC's wet ore contains approximately 3 % less ore per equivalent volume than dry ore . In the second quarter of 2026 , the 65 % Fe index averaged US $ 122 per tonne , a 1 % increase over the prior quarter and a 12 % increase over the average of US $ 108 per tonne in the second quarter of 2025. IOC sells blast furnace ( “ BF ” ) pellets and direct reduction ( " DR " ) pellets based on a premium to the 65 % Fe index . In 2026 , Platts began publishing a new Atlantic Iron Ore Blast Furnace Pellet Contract Price Premium based on the 65 % Fe index ( the " BF pellet premium " ) to reflect the higher liquidity and usage of Atlantic pellet premium contract settlements over the 65 % Fe index . The BF pellet premium averaged US $ 31 per tonne in the second quarter of 2026 , up from an average of US $ 28 in the prior quarter . The Platts DR pellet premium for 67.5 % Fe pellets over 65 % Fe index ( the " DR pellet premium ” ) was US $ 43 per tonne , up from an average of US $ 42 per tonne in the prior quarter and down from an average of US $ 46 per tonne in the same quarter of 2025 .