The purpose of this second report of the Monitor (the "Second Report") is to provide this Court with information regarding:

1. The activities of the Monitor since the First Report;
2. The Debtors' actual cash receipts and disbursements for the period of May 15, 2026 to May 29, 2026, and a comparison to the cash flow forecast attached as Appendix "B" to the First Report of the Monitor, along with an updated cash flow forecast for the period ending August 28, 2026 (the "June Forecast");
3. The process undertaken by the Debtors, with the assistance of the Monitor, to secure the Debtors' annual fuel supply which needs to be delivered during the July-to October shipping season (the "Sealift Season") and the resulting arrangement entered with Kildair Services ULC ("Kildair");
4. The solicitation process undertaken by the Debtors and the Monitor to secure debtor-in-possession ("DIP") financing for the CCAA Proceedings (the "DIP Solicitation Process");
5. The Applicants' motion for the granting of a Second Amended and Restated Initial Order (the "SARIO"), and the Monitor's recommendation thereon, providing, inter alia, for the following:
(i) Approval of:
1. The DIP Facility Term Sheet (the "DIP Financing Agreement") dated June 3, 2026, between BIM and BIM LP, as Borrowers; NIO and 123, as Guarantors; and His Majesty in Right of Canada, as represented by Export Development Canada ("EDC") (the "DIP Lender") pursuant to which the DIP Lender has agreed to advance up to a maximum principal amount of $400 million (the "DIP Facility") to the Borrowers (which amount will be increased to a maximum of $475 million in the event of a Finished Product Non-Funding Scenario (defined below)), subject to the terms and conditions of the DIP Financing Agreement, with an initial loan amount of up to $110 million (the "Bridge Advances") being available during the four week period beginning on the date of the SARIO (the "Bridge Period"); and
2. A priority charge in favour of the DIP Lender on all the assets, property and undertakings of the Debtors in order to secure the obligations under the DIP Financing Agreement as described below (the "DIP Charge");
1. Approval of the authority for the Applicants to pay certain pre-filing amounts to certain critical suppliers with the consent of the Monitor;
2. An extension of the Stay Period to August 28, 2026; and
3. Sealing of the Confidential Exhibits to the Third Van Tonder Affidavit (defined below); and
(f) The recommendation of the Monitor in respect of the above.

1. The activities of the Monitor since the granting of the Initial Order;
2. The weekly cash flow forecasts for the period of May 15, 2026 to June 5, 2026 (the "May 22 Forecast") of the Debtors;
3. An update on the steps undertaken by the Debtors and the Monitor to date to secure debtor-in-possession ("DIP") financing for the CCAA Proceedings (the "DIP Solicitation Process");
4. The Applicants' motion for the granting of an Amended and Restated Initial Order (the "ARIO"), and the Monitor's recommendation thereon, providing, inter alia, for the following:
1. An increase in the Administration Charge to $5 million;
2. An increase in the D&O Charge to $20.4 million;
3. Certain additional restructuring authorizations consistent with the Model Initial CCAA Order; and
4. An extension of the Stay Period to June 5, 2026.

1. The qualifications of FTI to act as Monitor and an overview of the involvement of FTI and its affiliates with the Applicants to date;
2. The proposed conduct of the CCAA Proceedings;
3. The weekly cash flow forecast for the period of May 16, 2026, to May 29, 2026 (the "May 14 Forecast") of the Applicants and Baffinland Iron Mines LP ("BIM LP") (collectively, the "Debtors");
4. The Applicants' request for a stay of proceedings against the Applicants (including an extension of the stay of proceedings to BIM LP) for an initial 10- day period and the Proposed Monitor's recommendation thereon;
5. The Applicants' request for approval of a charge in the amount of $2 million (the "Administration Charge") for the initial Stay Period securing the fees and expenses of the Monitor and legal counsel to the Monitor (the "Monitor's Counsel"), legal counsel of the Applicants (the "Applicants' Counsel"), and the Proposed Monitor's recommendation thereon; and
6. The Applicants' request for approval of a charge in the amount of $14 million (the "D&O Charge") for the initial Stay Period securing the indemnification by the Debtors of its directors and officers, or against any member of the Operating Committee to the extent such member is or was directly or indirectly exercising the powers of the directors of any of the Debtors (collectively, the "D&O Parties") against obligations and liabilities that they may incur as directors or officers of the Applicants, or in the case of members of the Operating Committee, in their capacity as persons exercising the powers of directors, after the commencement of the CCAA Proceedings, except to the extent that, with respect to any individual, the obligation or liability was incurred as a result of the individual's gross negligence or wilful misconduct, and the Proposed Monitor's recommendation thereon.

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79 Wellington Street West
Suite 2010, P.O. Box 104
Toronto, Ontario M5K 1G8

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