Korea Zinc Urges Shareholders to Vote for Long-Term Corporate Value as Leading Proxy Advisors, Including ISS and Glass Lewis, Recommend Support for Board Nominee

About this update from Korea Zinc Co., Ltd.

SEOUL, South Korea, September 07, 2026 --( BUSINESS WIRE )-- Korea Zinc Co., Ltd. (KRX: 010130) announced that major proxy advisory firms, including Institutional Shareholder Services ("ISS") and Glass Lewis, the world's two leading independent proxy advisors, have recommended that shareholders vote in favor of Baek In-kyu, the Board's nominee for the Audit Committee, ahead of its Extraordinary General Meeting ("EGM") on September 9. Korea Zinc urged shareholders to exercise their voting rights based on the objective assessments of these global proxy advisory institutions and the company's long-term value. The company emphasized that the upcoming EGM represents an important opportunity to determine what kind of Board, with what expertise and capabilities, can best support the long-term interests of Korea Zinc and all its shareholders, as well as the company's next stage of growth. In particular, Korea Zinc noted that, as it pursues large-scale global growth projects, including Project Crucible in Tennessee, Board expertise, management continuity, a stable execution framework and consistent communication with U.S. government and local stakeholders are critically important. ISS, Glass Lewis and Other Major Proxy Advisors Recommend Support for Baek In-kyu Among the major proxy advisory firms that have published their analyses of the Korea Zinc EGM agenda to date, recommendations have clearly converged in favor of Mr. Baek. A majority of proxy advisory institutions, including ISS and Glass Lewis—whose research serves as a key reference for global institutional investors in their voting decisions—have recommended a vote FOR Mr. Baek. The major advisors have highly regarded Mr. Baek's expertise in accounting, audit, and internal controls. A Korean proxy advisory firm also noted the absence of an accounting professional, such as a certified public accountant, on the current Audit Committee and stressed the need to strengthen its expertise. Korea Zinc stated that these recommendations underscore the importance of enhancing the Audit Committee's professional capabilities at a time when the company is expanding its global operations, pursuing large-scale strategic investments, and working to build long-term corporate value. Enhancing Long-Term Corporate Value Through Strong Business Performance and Active Shareholder Returns Korea Zinc continues to deliver solid business results while strengthening the competitiveness of its core business and advancing future growth initiatives. In the first half of 2026, the company recorded revenue of KRW 12.445 trillion and operating profit of KRW 1.3332 trillion, both marking record first-half figures for the company. During the same period, Korea Zinc paid cash dividends totaling KRW 204 billion, or KRW 10,000 per share. The company also expects to meet its previously stated target of a total shareholder return ratio of at least 40% again in 2026, after achieving the target in both 2024 and 2025. Going forward, Korea Zinc intends to create sustainable long-term corporate and shareholder value by balancing core business competitiveness and profitability, investments in future growth, and active shareholder returns. Project Crucible and the Importance of Stable Execution Korea Zinc is developing Project Crucible, an approximately KRW 10 trillion (based on current exchange rates) integrated critical minerals smelting project in Clarksville, Tennessee. Project Crucible is strategically important not only to Korea Zinc's global growth but also to the development of a resilient U.S. critical minerals supply chain. Accordingly, at this juncture, it is essential to have a Board with the expertise to understand the company's business and growth strategy in depth and support large-scale global projects, together with the management continuity and execution stability needed to carry forward strategies already underway without disruption. Korea Zinc plans to steadily execute Project Crucible by leveraging the smelting technology and operational capabilities it has built over more than half a century, and to ensure that the project's results translate into long-term value for the company and all its shareholders. Criminal Complaint Filed Against MBK and Young Poong Over Separate U.S. Activities That Risk Creating Unnecessary Confusion Around Project Crucible The success of a large-scale strategic project such as Project Crucible depends on maintaining clear and consistent project ownership, decision-making authority, and an external communication framework. Without any prior consultation with Korea Zinc, MBK and Young Poong created an internet domain using the Project Crucible name and used it for events and external activities in the United States, while referring to the possibility of Young Poong's technology participating in the project. Such conduct risks creating the misleading impression that MBK and Young Poong are official supporters of, or participants in, Project Crucible. Following a determination that the use of the Project Crucible name and related marks, along with the associated U.S. activities, may constitute violations of the Unfair Competition Prevention Act and obstruction of business, a criminal complaint was filed with the Seoul Jongno Police Station in August. Nevertheless, in materials distributed overseas on September 2, MBK and Young Poong disclosed that they had engaged with U.S. stakeholders to discuss the successful development of Project Crucible and the potential contribution of Young Poong's smelting technology. Raising the possibility of project participation, or of technical or business roles, that have neither been discussed with nor approved by the company may create unnecessary confusion regarding the project's ownership and participation structure. Interests relating to the control dispute must be clearly separated from the official framework for advancing Project Crucible. As the official project owner, Korea Zinc will continue to cooperate consistently with the U.S. government, local communities and business partners while focusing on stable execution. Strengthening Board Independence and Expertise Korea Zinc emphasized that the independence and expertise of its Board are essential to ensuring the success of Project Crucible and enhancing long-term corporate value. Director independence refers to the ability to make judgments in the interests of the company and all its shareholders, independent of any particular stakeholder, including management. At the same time, as the company's global operations and large-scale investments expand, expertise in business, finance, accounting, risk management and global markets is increasingly critical. Korea Zinc is building a Board with a balanced set of competencies required to support its future growth strategy, spanning accounting, audit and internal controls, global business, critical minerals, finance and capital allocation, and risk management. September 9: A Choice for Long-Term Corporate Value Creation and Stable Execution Korea Zinc asked shareholders to base their decisions at the EGM on the assessments of independent professional institutions, the expertise of the nominee, the company's business performance and shareholder returns, the feasibility of executing its future growth strategy, including Project Crucible, and the company's long-term value for all shareholders. "We are encouraged that leading proxy advisory institutions, including ISS and Glass Lewis, the world's two leading independent proxy advisors, have recognized Baek In-kyu's expertise in accounting, audit and internal controls, as well as his suitability as an Audit Committee member," a Korea Zinc spokesperson said. "We will continue to strengthen both the independence and expertise of our Board and advance a decision-making framework that serves the interests of all shareholders." "Conducting activities in the United States using the Project Crucible name without prior consultation with the company, and referring to the possible participation of Young Poong's technology, which has been neither officially discussed nor approved, risks creating unnecessary confusion about the project's ownership and execution framework," the spokesperson added. "The company has filed a criminal complaint over this conduct, alleging violations of the Unfair Competition Prevention Act and obstruction of business. As the official project owner, we will continue to maintain consistent communication with the U.S. government, local communities and business partners," the spokesperson said. "Building on the expertise of our Board, management continuity, and a stable execution framework, we will advance Project Crucible without disruption and create sustainable long-term corporate and shareholder value through robust business performance and active shareholder returns." View source version on businesswire.com: https://www.businesswire.com/news/home/20260907621898/en/ Contacts Headline Communications. INC for Korea Zinc Co., Ltd. +82-2-747-1324 [email protected]

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