First Tellurium obtains tellurium supply for PyroDelta

Executive Summary

• First Tellurium Corp.'s subsidiary, PyroDelta Energy Inc., has entered into a critical minerals supply agreement with Fenix Advanced Materials to secure high-purity, refined tellurium for the manufacturing of advanced thermoelectric generators.
• The agreement aims to mitigate risks associated with volatile and politicized foreign supply chains by securing a reliable domestic source of ultrahigh-purity tellurium (99.9999%).
• First Tellurium has also engaged Hillside Consulting for a short-term marketing and distribution engagement to increase corporate awareness.

Key Details

• Supply Agreement: PyroDelta Energy Inc. (subsidiary of First Tellurium) reached an agreement with Fenix Advanced Materials (Trail, B.C.) to supply high-purity, refined tellurium and other critical minerals.
• Purpose: The supply is intended for the manufacture of PyroDelta's advanced thermoelectric generators, specifically for use in thermoelectric modules.
• Material Quality: Fenix supplies ultrahigh-purity tellurium at 99.9999% purity.
• Strategic Rationale: The agreement addresses concerns regarding foreign supply chain flux and politicization, ensuring a stable domestic source for future demand.
• Counterparty Background: Fenix Advanced Materials is a world leader in ultrahigh-purity tellurium supply and is part of the "MetalTechAlley" cluster in the West Kootenay/Lower Columbia region. Fenix sources feedstock from domestic smelting and refining operations.
• Marketing Engagement: First Tellurium engaged Hillside Consulting and Media Inc. (Penticton, B.C.) for marketing and distribution services.
• Marketing Term: The engagement period commences on Oct. 23, 2025, and ends on Oct. 29, 2025.
• Marketing Scope: Services include SEO, email and social media channels, content creation (ad copy, writing, video, and ad creation) to increase corporate awareness using publicly available information.
• Marketing Consideration: Hillside Consulting will receive a cash fee of $20,000 plus applicable taxes.
• Independence: Hillside is an arm's-length party and does not currently own any shares of First Tellurium.

Notable Quotes

• Tyrone Docherty, First Tellurium President and CEO: "This has been a key concern for us... The foreign supply chains for critical minerals are constantly in flux, and they have become highly politicized. We wanted to lock in a reliable source, and Fenix has assured us they can meet expected future demand regardless of foreign supply issues."
• Don Freschi, Fenix CEO: "Our feedstock comes largely from domestic smelting and refining operations... We have long-standing agreements in place, which provides us with a stable and reliable supply of critical metals for further refining. We look forward to working with PyroDelta and First Tellurium and supplying them with the metals they need as they bring the thermoelectric generators to market."