Mesabi Trust (MSB) investor relations material

Executive summary

• For the quarter ended July 31, 2026, royalty income and net income declined sharply year-over-year due to lower iron ore prices and the absence of bonus royalty revenue.

• Iron ore pellet production and shipments increased compared to the prior year, but realized prices were below the bonus royalty threshold.

• Distributions to unitholders were reduced to $0.05 per unit, down from $0.12 per unit in the prior year quarter.

Financial highlights

• Three months ended July 31, 2026: total royalty income was $2.33M (down from $5.42M), net loss was ($95K) vs. net income of $4.74M in prior year.

• Six months ended July 31, 2026: total royalty income was $4.41M (down from $9.77M), net income was $992K (down from $8.38M).

• Expenses rose significantly due to increased legal fees, totaling $2.58M for the quarter (up from $863K).

• Distributions declared for the quarter were $0.05 per unit, and $0.29 per unit for the six months (vs. $0.12 and $0.68, respectively, in prior year).

• Unallocated Reserve decreased to $17.6M from $22.8M a year ago, reflecting lower royalty income and higher expenses.

Outlook and guidance

• Future distributions are expected to remain highly dependent on royalty income and expense levels.

• Trustees are unable to predict if bonus royalty payments will resume, as iron ore prices remain below the threshold.

• The Mesabi Metallics Project may impact the regional market, but its effect on future royalties is uncertain.