TECK RESOURCES LTD

ZINC SEGMENT

Performance

Gross profit from our zinc segment of $359 million in the first quarter increased by $166 million compared to the same period last year. Higher zinc prices and higher by-product revenues at both Red Dog and Trail were partially offset by lower zinc sales volumes from Red Dog due to the timing of sales. Gross profit before depreciation and amortization 2 at Trail improved significantly in the first quarter to $258 million from

$80 million in the same period last year and from $105 million in Q4 2025 due to the continued implementation of initiatives to enhance profitability and cash flow and higher by-product revenue related to silver and germanium.

Zinc production at Red Dog in the first quarter decreased by 10,600 tonnes from the same period last year to 106,200 tonnes, primarily due to lower grades, as expected in the mine plan. Red Dog's lead production of 21,600 tonnes decreased by 3,400 tonnes compared to the same period last year due to lower grades and recoveries. Zinc sales volumes from Red Dog of 52,400 tonnes in the first quarter were 38,400 tonnes lower than the same period last year, due to reduced production as expected in the mine plan and the timing of sales, but were above the high end of our previously disclosed guidance range of 40,000 to 50,000 tonnes.

Refined zinc production at Trail Operations in the first quarter was 73,800 tonnes, an increase of 15,500 tonnes compared to the same period last year as a result of the zinc electrolytic plant running at full capacity for most of this quarter compared to a year ago.

Notes:

The table below summarizes the change in gross profit in our zinc segment for the quarter.

Property, plant and equipment expenditures in the first quarter totalled $50 million, including $27 million for sustaining capital, of which $9 million relates to our Trail Operations and $18 million relates to our Red Dog Operations. The remainder of expenditures relate to our Red Dog mine life extension project.

Markets

Zinc prices on the LME in the first quarter of 2026 averaged US$1.47 per pound, representing a 2.4% increase from the previous quarter and a 14.0% increase from the first quarter of 2025. This represented the third consecutive quarter of rising average zinc prices.

The zinc concentrate market saw spot treatment charges continue to decline through the first quarter. This reflected a combination of rising by-product prices at smelters and growing disruptions to global mine supply. Following a rebound in 2025, global zinc mine production growth estimates for 2026 are now trending negative, with annual declines at a number of major operations. As a result, we anticipate the concentrate market to remain constrained by mine supply, though at present Chinese zinc concentrate imports remain well above year-ago levels.

Global reported zinc metal inventory cover remains low in weeks of consumption. However, those held in Shanghai Futures Exchange warehouses did rise to the highest level since 2022 at the end of the first quarter. Refined zinc demand for 2026 is expected to be broadly similar to that in 2025. North American zinc market demand remains relatively resilient, though physical premiums over LME cash did drift lower over the course of the first quarter.

Operations

Red Dog

Zinc production in the first quarter of 106,200 tonnes decreased from the 116,800 tonnes produced in the same period last year, primarily due to lower grades as expected in the mine plan. Lead production of 21,600 tonnes in the first quarter was lower than 25,000 tonnes produced in the same period last year, reflecting lower grades and recoveries.

Zinc sales volumes of 52,400 tonnes in the first quarter were 38,400 tonnes lower than the same period last year, due to reduced production as expected in the mine plan, and the timing of sales. Sales volumes in the first quarter were above the high end of our previously disclosed guidance range of 40,000 to 50,000 tonnes.

Operating costs, before changes in inventory, capitalized stripping and royalties of US$114 million in the first quarter, were in line with the same period last year as mill throughput remained consistent.

Red Dog Mine Life Extension (Red Dog MLE)

We are focused on the Red Dog MLE project, formerly known as the Red Dog Anarraaq and Aktigiruq Extension Program (AAEP), which is located in the Red Dog district in Alaska, where we have several high-quality opportunities located between 10 and 20 kilometres from our existing Red Dog Operations. The project is currently in the prefeasibility study stage. In 2026, we expect growth capital expenditures of between $200–$250 million, and are focused on completing the all-season road access, continuing drilling of the deposit and advancing the prefeasibility study.

Trail Operations

Refined zinc production of 73,800 tonnes in the first quarter was 15,500 tonnes higher than the same period last year as a result of the zinc electrolytic plant running at full capacity for most of this quarter compared to a year ago. Refined lead production was 23,300 tonnes in the first quarter, 300 tonnes higher than the same period last year. Production of by-products, such as silver and germanium, were consistent with the same period last year.

Our continued focus at Trail has been on improving its profitability and cash generation through prioritizing processing of residues over maximizing refined zinc production. Processing residues enables us to reduce concentrate purchase volumes in the low treatment charge environment, improving profitability. The benefit of these initiatives combined with improved pricing for by-products such as silver and germanium contributed to an increase in profitability in the first quarter compared to the same period last year and compared to Q4 2025. Building on our germanium expertise, in collaboration with the Canadian government, we are exploring options to increase our germanium production.

Operating costs, before changes in inventory, in the first quarter were $11 million or 8% higher than the same period last year at $154 million, primarily due to increased contractor and maintenance costs.

Cost of Sales

Cost of sales was $681 million in the first quarter compared with $587 million in the same period last year. The increase was primarily driven by increased concentrate purchase costs at Trail, offset by reduced sales volumes of zinc and lead concentrates from Red Dog, and lower royalty costs tied to the profitability of Red Dog.

Total cash unit costs1 for Red Dog were US$0.61 per pound in the first quarter, consistent with the same period last year. Net cash unit costs1 of US$0.41 per pound in the first quarter were US$0.18 per pound lower than the same period last year due to higher by-product credits driven by increased silver and germanium prices. Our first quarter 2026 net cash unit costs1 also reflect the normal seasonality of sales at Red Dog.

Outlook

Our 2026–2028 annual production and 2026 annual cost guidance for our zinc segment is outlined in our guidance tables on pages 26–29, and is unchanged from our previously disclosed guidance.

We will be completing required maintenance at our Trail Operations in the second quarter, which will require a shutdown of the lead circuit, as expected in our plans and our previously disclosed annual 2026 production guidance. As a result, we expect lower production of lead and other by-products in the second quarter, with minimal impact on refined zinc production.

As previously disclosed, grades at Red Dog are expected to reduce as the operation nears the end of mine life. We are currently mining in the Aqqaluk and Qanaiyaq pits, with the latter expected to be depleted in 2026. Higher than average precipitation events have caused slippage along a known fault in the Aqqaluk pit requiring mining in areas with lower grade, resulting in lower production of zinc in concentrate expected in 2026, 2027 and 2028, as reflected in our previously disclosed guidance.

We expect sales of zinc in concentrate at Red Dog to be in the range of 30,000 to 40,000 tonnes in the second quarter of 2026, reflecting seasonality of Red Dog sales.

2026 annual sustaining capital expenditures in our zinc segment are expected to be between $150–$200 million, similar with 2025. Capitalized stripping costs in 2026 are expected to decrease to $5–$10 million as Red Dog nears the end of mine life.

As outlined above, Red Dog MLE has several high-quality opportunities that could extend the mine life of Red Dog beyond 2032. The expected 2026 capital spend for these activities is $200–$250 million.

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