IRC (01029) purchases mining equipment

IRC (01029) announces that on October 29, 2026, the buyer (a wholly-owned subsidiary of the Company) entered into a novation agreement with the seller and the original buyer, pursuant to which the original buyer agreed to novate, and the buyer agreed to assume, all rights and obligations of the original buyer under the procurement agreement (including the obligation to pay the total outstanding consideration of approximately RUB1.258 billion (tax inclusive, equivalent to approximately US$15.5 million)) for the procurement of mining equipment. The Group intends to acquire additional machinery to enhance its overall operational capacity to cope with the projects currently underway and to be undertaken in the future by the Group. The acquisition of mining equipment under the novation agreement aligns with the Group's strategic objective of integrating its own mining fleet and undertaking drilling and excavation works itself, thereby gradually reducing its reliance on external mining contractors. By procuring its own mining equipment, the Group will be able to gradually take over the mining works currently outsourced to contractors and fully capture the operational and economic benefits brought by the Sutara mine. This strategic initiative is expected to enable the Group to achieve long-term cost control and strengthen operational control over its mining activities. In particular, the Directors note that mining equipment is highly specialized, made to order and not readily available on the open market. To the best of the Directors' knowledge, information and belief, manufacturing new mining equipment typically requires a delivery lead time of more than 12 months. The mining equipment procured can be deployed for use immediately and meets the technical requirements necessary to satisfy the Group's immediate and short-term operational needs at the Sutara mine. Accordingly, entering into the novation agreement enables the Group to shorten the lengthy procurement cycle and immediately satisfy its current operational needs.