LEADING EDGE MATERIALS REPORTS FISCAL 2025 RESULTS

Executive Summary

• Leading Edge Materials reported a material net loss of C$3.22 M for FY 2025, widening from the prior year’s C$2.69 M loss and highlighting increased compensation and share‑based payments.
• The company closed a private placement on Aug 15 2025, issuing 17,738,500 units at C$0.16 each for gross proceeds of C$2.84 M.
• Post‑year updates include endorsement by Swedish County Administrative Boards of the Norra Kärr exploitation concession application and acceptance as an EIT Raw Materials Project Partner.

Key Details

Financial Results (FY 2025 vs FY 2024)
- Net loss FY 2025: C$3,216,565 (up C$528,841 YoY).
- Net loss Q4 2025: C$756,874 (vs Q3 2025 loss of C$611,307).
- Primary drivers of increased loss:
- Directors & officers’ compensation: C$303,927 vs C$232,702 FY 2024.
- Share‑based payments: C$1,131,468 vs C$775,940 FY 2024.
- Travel expenses: C$148,686 vs C$57,918 FY 2024.
- Working capital as of Oct 31 2025: C$1,880,436 (down from C$3,337,686 YoY).
- Total assets: C$30,468,689; total non‑current liabilities: (C$6,056,852).

Private Placement Financing (Closed Aug 15 2025)
- Units issued: 17,738,500
- Price per unit: C$0.16
- Gross proceeds: C$2,838,160
- Structure: non‑brokered private placement; units comprised of common shares and attached warrants (terms not disclosed).

Operational & Project Updates

Norra Kärr Heavy Rare Earth Elements (HREE) Project
- Application for a 25‑year exploitation concession endorsed by Jönköping and Östergötland County Boards on Dec 3 2025; final decision pending from the Mining Inspectorate of Sweden.
- Pre‑feasibility study slated for completion in 2026.
- Estimated production (initial 26‑yr mine life, 30% of resource): 248 t Dysprosium and 36 t Terbium oxides per year.

Woxna Graphite Mine
- Maintained on a “production‑ready” basis; operational holding costs minimized.
- Ongoing internal restart study (2022 baseline) and metallurgical test work to improve processing efficiency.
- Market context: EU imports ~100,000 t natural graphite annually; strategic interest rising due to supply diversification from China.

Bihor Sud Nickel‑Cobalt Exploration (Romania)
- Ownership increased; competent‑person report in preparation.
- Focus on historic Avram Iancu mine underground galleries; drilling planned in gallery G2 targeting Zn‑Pb‑Cu‑Ag mineralization and further cobalt‑nickel potential.

Regulatory & Strategic Milestones
- Dec 8 2024: Applied to Swedish Mining Inspectorate for Norra Kärr exploitation concession (25‑yr lease).
- Feb 9 2025: Updated Rapid Development Plan for Norra Kärr (HREE concentrate production).
- Feb 16 2025: Value‑creation options disclosed for Woxna Graphite (possible restart, high‑grade flake concentrate).
- Mar 23 2025: Highlighted EU defence raw‑materials strategy; Norra Kärr not included in initial CRMA strategic projects list.
- Jun 9 2025: Signed Certified Adviser agreement with Svensk Kapitalmarknadsgranskning (SKMG) for Nasdaq First North Growth Market.
- Dec 14 2025: Accepted as Project Partner by EIT Raw Materials (European innovation network).

Outlook & Forward‑Looking Statements
- Company believes existing cash and the private placement proceeds will fund corporate overhead for the next 12 months but acknowledges need for additional capital to restart Woxna, develop Norra Kärr production facilities, and advance exploration in Romania.
- No assurance that further financing will be available on acceptable terms.

Notable Quotes

“Our projects are strategically positioned at the intersection of urgent European demand, unprecedented policy support, and a structural shift in how Western nations value supply‑chain resilience.” – Kurt Budge, CEO

All amounts are presented in Canadian dollars unless otherwise noted.