Mesabi Trust (MSB) investor relations material

Executive summary

• Royalty income for the quarter ended April 30, 2026, decreased significantly due to lower iron ore pellet prices and the absence of bonus royalty revenue, despite higher production and shipments compared to the prior year.

• Net income and distributions per unit both declined sharply year-over-year, reflecting the challenging pricing environment and increased expenses.

• The Trust remains highly dependent on the operations and pricing decisions of its lessee/operator, with limited control over mining or sales activities.

Financial highlights

• Total royalty income for the quarter was $2,077,811, down from $4,349,472 in the same quarter last year.

• Net income for the quarter was $1,087,463, a decrease of $2,543,745 year-over-year.

• Distributions declared per unit were $0.24, compared to $0.56 in the prior year.

• Cash and cash equivalents at quarter-end were $20,285,073, down from $23,162,609 at the start of the quarter.

• Unallocated Reserve decreased to $18,341,533 from $19,611,719 year-over-year.

Outlook and guidance

• Future distributions are expected to remain highly dependent on royalty income, which is subject to iron ore shipment volumes and pricing.

• The Trust cannot predict whether bonus royalties will be received in future quarters due to limited third-party sales and prices below the bonus threshold.

• Trustees will continue to monitor economic and industry conditions to balance distributions and reserve levels.