CEO Address to Shareholders

• The CEO’s shareholder letter (8 Apr 2026) announces three new commercial agreements:
• Club Car partnership to supply graphene‑enhanced components for recreational vehicles.
• Volvo Trucks contract adding roughly US$10 M of business, expanding the automotive pipeline to about US$50 M over the next 24 months.
• Multi‑year supply agreement with Chevron Phillips Chemical for Tribograf™ powder (≈ US$2 /t per well; ~70 000 wells/year).
• The company completed a $25.6 million equity offering in Oct 2025, led by strategic shareholder Martinrea (MRE‑TSX), to fund capacity expansion.
• Liquidity is now “more than three times” the Q1 2025 level, reflecting the recent financing and strong cash generation.
• Dry‑process graphene mill nearing completion; annual capacity will rise ~25% to ~5 000 t/yr.
• Management expects higher adjusted gross margins and EBITDA for the remainder of FY 2026 as the new capacity comes online.

• Commercial contracts are new, sizable (≈ US$50 M pipeline) and diversify revenue into recreational‑vehicle and heavy‑truck segments, reducing reliance on traditional automotive OEMs. This is a material positive catalyst.
• Equity financing was already disclosed in Oct 2025; the news merely reiterates that proceeds have been deployed. The financing itself is therefore routine, but its effective use to fund capacity expansion validates prior guidance.
• Capacity expansion moves the company toward a 5 000 t/yr graphene output, supporting higher margin product mix (Tribograf™ powder). This aligns with earlier guidance and improves long‑term earnings potential – another material positive.
• Overall, the announcement exceeds expectations for near‑term revenue growth and confirms that the strategic plan is on track, making the news materially positive for valuation.

Martinrea International Inc. designs, engineers and manufactures lightweight structures, propulsion systems and advanced manufacturing solutions for the global automotive industry. Its flagship growth driver is the dry‑process graphene mill, slated to increase annual capacity to ~5 000 t of high‑value graphene powder, enabling higher‑margin products such as Tribograf™ (sold to Chevron Phillips) and new applications with Club Car and Volvo Trucks.