Terreno Resources Corp. — Management Reports 2025

Nov 17, 2025

To our Shareholders:

The Company’s decision to change strategic focus to tantalum is proving to be opportune. Global demand is rising due to technology growth and changing geopolitical situations.

1. Electronics

• About 75% of all electronic components use tantalum, mainly in capacitors.
• It’s essential for phones, computers, cars, and cameras.
• Big tech companies like Apple, Microsoft, and Nvidia drive demand as modern computer chips rely on tantalum.
• The need for more powerful and smaller electronics means tantalum demand is increasing.

2. Medicine

• Tantalum is biocompatible — the body doesn’t reject it.
• Used in implants (hips, knees, spine, teeth), surgical tools, and medical devices like insulin pumps.
• It’s durable, corrosion-resistant, and safe for long-term use.
• Its stability also makes it valuable for nanotechnology and advanced medical devices.

3. Defense

• Mixed with other metals, tantalum becomes extremely strong and heat-resistant.
• Used in jet engines, rockets, and missiles because it can handle high temperatures and stress.
• It’s ideal for military electronics that need to survive radiation and extreme conditions.

4. Geopolitics

• China dominates the market for many critical minerals, including tantalum. Trade embargoes on equipment and the finished metal are threatened.
• The U.S. announced that it intends to purchase US$100 Million of tantalum.
• The Democratic Republic of the Congo (DRC) supplies about one-third of the world’s tantalum, but faces instability and conflict.
• Bolivia is currently opening up to foreign mining investment after years of restrictive policies.

5. Terreno’s Position

• Given the global situation, Terreno’s strategic move to tantalum is well-timed.
• The Company’s approach is focused, disciplined, and designed to be cost-effective.
• The project has the potential to become cash-flow positive quickly with modest investment.
• Our goal is to achieve steady growth and increased shareholder value while avoiding heavy dilution.

In Conclusion, management believes that we have made the right move into tantalum. The metal is in high demand for electronics, medical uses, and defense. Global supply is limited and politically unstable, making new sources potentially valuable. The Company has secured access to extraction equipment and has established working relationships for processing. The Company’s project is well-timed, low-cost, and positioned to create potential strong returns.

We thank you for your continued support.

On behalf of the Bord of Directors

“Richard Williams”
President & CEO