Teck Reaffirms Benefits of Elk Valley Separation

Teck Resources Limited has reaffirmed the strong rationale for its pending separation as the optimal pathway to maximize shareholder value with the greatest certainty.

Teck Metals will be a premier, growth-oriented base metals company with a strong portfolio of producing operations and top-tier copper growth potential.

Elk Valley Resources will be a high-margin Canadian steelmaking coal producer, focused on long-term cash generation and providing cash returns to shareholders, with significant equity value accretion potential.

The separation will create two world-class resource companies and provide investors with choice for allocating investment between two businesses with different commodity fundamentals and value propositions.

As independent companies, Teck Metals and EVR will have streamlined portfolios and be better positioned to pursue individual strategies and goals, achieve their full potentials, and support a sustainable future for the benefit of our employees, communities, and Indigenous peoples in the areas where they operate. Teck Metals will also retain access to steelmaking coal cash flows for a transition period to fund copper growth.

As part of the transaction, Nippon Steel Corporation and POSCO will exchange their minority interests in the Elkview and Greenhills operations for interests in EVR, and NSC will invest a further $1.025 billion for an increased interest in EVR. This participation by two of the world’s largest steel producers highlights the critical importance and strong outlook for steelmaking coal.

Shareholder presentation highlights:

• Teck’s pending separation provides shareholders with a greater set of options to maximize value. Teck shareholders will receive shares in two world-class, pure-play companies providing investors with choice: Teck Metals, a premier, growth-oriented producer of energy transition metals and Elk Valley Resources (“EVR”), a responsible steelmaking coal business with top-tier margins. There is significant value to be realized by Teck shareholders from, and following, the separation, which will open a spectrum of opportunities for both Teck Metals and EVR.

• Teck’s pending separation minimizes execution risk. Teck’s plan provides a responsible exit from steelmaking coal at fair value and in the best interests of all stakeholders. Further, Teck’s separation has no competition or regulatory hurdles, with completion expected by the end of May.

• Glencore’s proposal is not actionable and has been unanimously rejected by Teck’s Board of Directors because:
– It would reduce Teck shareholders exposure to copper and introduce exposure to thermal coal and oil trading.
– Glencore did not present a coherent plan for its proposed coal company. There is no market for shares of a massive new thermal coal-focused company.
– It would expose Teck shareholders to significant jurisdictional, ESG and execution risk.
– The fundamental flaws of Glencore’s proposal make it a non-starter and Glencore’s track record makes it an unsuitable acquirer.

Voting for the pending separation is the only option to unlock Teck’s full value potential. The choice is clear: either vote for a separation that creates two companies with a broad spectrum of opportunities to maximize value, or vote to maintain the status quo.

Teck’s Board of Directors continues to unanimously recommend that shareholders approve the previously announced reorganization of Teck’s business and the previously announced proposal to introduce a six-year sunset for the multiple voting rights attached to the Class A common shares of Teck, among other items of business, at the annual and special meeting of shareholders on April 26, 2023.

To view the management proxy circular providing more information on these proposals click here. For instructions on voting for Teck shareholders, go to www.teckagsm.com.