LEADING EDGE MATERIALS REPORTS QUARTERLY RESULTS TO JULY 31, 2026 AND ANNOUNCES CLOSING OF THE SECOND TRANCHE OF PRIVATE PLACEMENT

Leading Edge Materials Corp. reported its quarterly financial results for the period ending July 31, 2026 (Q3 2026), coinciding with the closing of the second tranche of a previously announced private placement. The company posted a Q3 2026 net loss of $882,239, a sequential improvement from the $1,357,598 loss recorded in Q2 2026. This reduction was primarily driven by lower share-based compensation, which fell to $285,658 in Q3 from $804,590 in Q2. However, the loss widened year-over-year compared to Q3 2025’s $611,307, attributed to higher professional fees and share-based compensation.

The firm closed the second tranche of its private placement, issuing 1,100,000 units at $0.25 per share for gross proceeds of CAD$275,000. This follows the first tranche, closed on August 18, 2026, which comprised 16,032,000 units at $0.25 per share for CAD$4,008,000. Total gross proceeds from the financing round stand at approximately CAD$4.28 million. Each unit consists of one common share and one warrant, allowing the purchase of one common share at C$0.40 per share, with expiration set two years from the respective closing dates.

As of July 31, 2026, working capital improved to $1,724,001, while total assets stood at $31,338,835 and the accumulated deficit reached $55,555,007. Proceeds from the financing are designated for the Norra Kærr Pre-Feasibility Study (PFS), environmental permitting, Woxna restart studies, and general working capital.

On the operational front, Leading Edge Materials was granted a 25-year Exploitation Concession for the Norra Kærr Heavy Rare Earth Elements (HREE) project in Sweden on June 28, 2026. Testwork at the Woxna Graphite Mine achieved 99.96% LOI using a two-stage alkaline process. Additionally, a first-pass diamond drilling program commenced on September 8, 2026, to test regional graphite occurrences.

Leading Edge Materials Corp. (LEM) is closing the second tranche of its financing, an expected follow-up to the capital raises announced in July and August 2026. This move directly addresses the liquidity shortfall and going concern warning highlighted in the company’s Q2 2026 Management’s Discussion and Analysis.

The sequential improvement in the net loss is non-operational, stemming from reduced share-based compensation rather than revenue generation or cost discipline in core operations. The company remains pre-revenue and cash-burning.

The Norra Kærr mining lease was already announced in June 2026; this release confirms funding to advance the Preliminary Feasibility Study (PFS) and permitting. It does not introduce new project milestones or offtake agreements.

The financing is dilutive, issued at $0.25, which sits at the lower end of the recent trading range. While it extends the cash runway, it underscores the company's reliance on repeated equity raises to fund development.

Leading Edge Materials Corp. is a Canadian mining company focused on critical raw materials for the European market. Its flagship asset is the Norra Kærr Heavy Rare Earth Elements (HREE) project in Sweden, positioned as Europe's most advanced HREE project. The project targets dysprosium, terbium, and yttrium for permanent magnets used in electric vehicles, wind turbines, and defense applications. The project holds a 25-year Exploitation Concession granted in June 2026.

The company also holds other assets, including the Woxna Graphite Mine in Sweden, a fully built and permitted natural flake graphite mine. Recent testwork shows a viable route to 99.96% LOI for battery-grade graphite. Additionally, the company has a 90%-owned joint venture in Romania called Bihor Sud Nickel-Cobalt Exploration, which targets polymetallic and cobalt-nickel mineralization. A Competent Person Report was filed in early 2026.

Norra Kærr is currently in the pre-feasibility and permitting phase. The target timeline to production is approximately 3-4 years from the mining lease grant. The company leverages the EU Critical Raw Materials Act and geopolitical tensions to position itself as a strategic, non-Chinese supplier of critical minerals.