Baffinland Announces Agreement for Debtor in Possession (“DIP”) Financing and Extension of Stay of Proceedings

Oakville, ON | June 12, 2026 — Baffinland Iron Mines Corporation (“Baffinland” or the “Company”) announces that it has entered into an agreement with His Majesty in Right of Canada, as represented by Export Development Canada (“EDC”) for debtor-in-possession financing (the “DIP Financing”), comprised of a US$400 million revolving credit facility with the option to increase the facility to US$475M under certain conditions. The Company will have immediate access to US$110M of funding from the DIP Financing for the period between today and June 30, 2026. The DIP Financing will bear customary DIP interest and fees and will mature in twelve months, with the Company having the option to extend the maturity by an additional six months under certain conditions.

The DIP Financing was approved by the Ontario Superior Court of Justice (Commercial List) (the “Court”) yesterday. The Court has also granted an extension to the stay of proceedings until August 28, 2026. The Court will hold a hearing on June 30, 2026 to decide whether to allow the Company to keep the EDC DIP Financing in place, or to order the Company to replace it with another DIP financing offered by other DIP lenders.

The DIP Financing demonstrates strong support from EDC and the Government of Canada for the Company and highlights the importance of Baffinland to all stakeholders, including the territory of Nunavut, the Qikiqtani Inuit Association, Inuit communities, employees, suppliers and contractors.

Baffinland expects to use the initial draws under the DIP Financing to fund critical sea-lift expenditures, fuel purchases, restructuring costs, and other normal course expenditures to ensure no disruptions occur to its operations at the Mary River Mine or Milne Port. The upcoming 2026 shipping season will commence as planned. The Company also intends to maintain the option of advancing the Steensby component of the Mary River Project.

As indicated in the Company’s press release dated May 15, 2026, regarding commencing proceedings under the Companies’ Creditors Arrangement Act (“CCAA”), the Company is currently operating under the protection of a stay of proceedings under the CCAA which provides the Company with the breathing room to evaluate strategic alternatives while maintaining control and stabilizing current operations under the supervision of the court and monitor. These alternatives may include a recapitalization or potential sale of the Company.

For further information, stakeholders can consult the Monitor’s website at https://cfcanada.fticonsulting.com/baffinland/

Baffinland will provide further updates as appropriate.

For any questions or media requests, please contact:

Peter Akman
Head of Stakeholder Relations & Communications
Tel. +1 (289) 834 0744
Email: peter.akman@baffinland.com
Web: https://baffinland.com

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