Noranda Income Fund Provides Update on Operational and Production Challenges, Announces Suspension of Cellhouse Maintenance, Canadian Business Journal

TORONTO, Oct. 19, 2022 (GLOBE NEWSWIRE) — Noranda Income Fund (TSX:NIF.UN) (the “Fund”) today announced an update to its previously disclosed issues regarding cell house operating conditions and equipment vulnerabilities. provided information. Zinc production and production quality.

Due to the accelerated deterioration of the operating conditions of the cellhouses, the fund is proceeding with aggressive repairs of a number of cells, which will be completed during the shutdown of the cellhouses. In addition to completing targeted cell repair, which is expected to take 4-6 weeks, the team will perform cell-by-cell integrity assessments and proceed with additional repairs as needed. This may extend the timeline further. The shutdown, which is scheduled to begin by the end of October, will continue until all cell repairs deemed necessary are completed, adversely affecting production in 2022.

The Fund believes that the large-scale cell repair program described above will contribute to stabilizing operating conditions in the cell house in the short term, but the repair does not fully address the underlying issues affecting operating conditions. No. The evaluations carried out so far have led to the conclusion that all cells in the cell house should be replaced to stabilize and improve operating conditions. Accordingly, a careful review by management is ongoing, evaluating potential exchange options and related capital investment requirements, and therefore the Fund has not yet made a decision on its next steps. As part of this review process, management engaged a third-party engineering firm to conduct a study of the necessary cell replacements, as well as previously planned crane replacements. The fund is also considering funding options and assessing business implications. Due to the procurement of long lead items, it is likely that the full replacement of cells and cranes will not be completed by the end of 2024, requiring all operations to be halted for approximately seven weeks. The cost of a complete cell and crane replacement is currently estimated at about $100 million. Further updates will follow once a decision on the long-term replacement plan for the cell house is finalized and funding is secured.

As a result of the shutdown of the cell house maintenance, which will begin by the end of October 2022, and the uncertainty regarding its duration, the Fund will continue to meet its previously disclosed 2022 full-year forecast, which was last updated on July 25, 2022. We expect to fall short of our production and sales guidance. 225,000 tons and 240,000 tons of zinc. In addition, the Fund will provide annual production and sales guidance for the foreseeable future as processing facility capacity will remain limited until the underlying issues affecting the operating conditions of the cell house are fully addressed. We do not plan to provide it.

“The health and safety of our employees is always our number one priority, and until we are able to finalize a plan to replace all cells and implement such a plan, we will continue to rehabilitate cells and reduce risk. , and is proceeding to shut down its cell house operations.Lower production levels have had a negative impact on overall profitability, but current positive market conditions have led to a significant level of financial support during this period. We are providing support.”

Third Quarter 2022 Financial Results Announcement
The fund plans to report financial and operational results for the third quarter ended September 30, 2022 in November. At that time, the fund expects to be able to provide an update on the maintenance outage of the cell house. The release date for the third quarter will be confirmed approximately one week before the earnings release date.

Readers are cautioned that the summarized communications presented in this press release are of limited disclosure. It is not an appropriate source of information for readers unfamiliar with funds and is not a substitute for reading the Consolidated Financial Statements and MD&A. Readers relying solely on this summary may miss information critical to decision making.

Forward-Looking Information
Certain information in this press release includes the Fund’s ability to rehabilitate existing cell houses and fund and realize complete cell and crane replacements, and the impact of such repairs and replacements on production and sales. Although they contain statements about expected impact, they are “forward-looking information.” “forward-looking statements” within the meaning of the Canadian provincial securities laws; In some cases, but not necessarily all, forward-looking information using forward-looking terms such as “plans”, “targets”, “expects”, “does not expect” and “expects” can be identified. , “opportunity exists”, “positioned”, “estimate”, “intend”, “assume”, “predict”, “do not predict”, “believe” or such A variation of a word or phrase, or a particular action, event or outcome, “could”, “could”, “could”, “could” ‘, ‘could’, ‘could’, ‘could’, ‘could’ or ‘achieved’. Statements containing forward-looking information are not historical facts but represent management’s expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that we believe to be reasonable as of the date of this press release; and are subject to unknown risks, uncertainties, assumptions and other factors. , the level of activity, performance or outcomes, including but not limited to the factors described in more detail in the “Risk Factors” section of the Fund’s Annual Information Form dated March; materially different from what is expressed or implied by the information on December 30, 2022 for the year ended December 31, 2021, the Fund’s other periodic filings are available at www.sedar.com. These factors are not intended to represent an exhaustive list of factors that may affect the Fund. However, these factors should be carefully considered. There is no assurance that such estimates or assumptions will prove correct. The forward-looking statements contained in this press release are made as of the date of this press release and the Fund does not make any forward-looking information or statements that include the factors or assumptions underlying them. We expressly disclaim any obligation to update or modify. new information, future events or other results, except as required by law;

About Noranda Income Fund
The Noranda Income Fund is an income trust trading on the Toronto Stock Exchange under the symbol ‘NIF.UN’. Noranda Income Fund owns an electrolytic zinc processing facility and ancillary assets (the “Processing Facility”) located in Salabury-de-Valleyfield, Quebec. The processing facility is his second largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of zinc customers are located. Produces refined zinc metal and various by-products from procured zinc concentrates. The processing facility is operated and managed by Canadian Electrolytic Zinc Limited, a wholly owned subsidiary of Glencore Canada Corporation. For more information on the Noranda Income Fund, please visit www.norandaincomefund.com.

For more information:

Paul Einarson Chief Executive Officer of Canadian Electrolytic Zinc Limited, Manager of Noranda Income Fund Phone: 514-745-9380 [email protected]

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