Plascred receives term sheet for $8.5-million financing

Mr. Troy Lupul reports PLASCRED CIRCULAR INNOVATIONS INC. ANNOUNCES NON-BINDING TERM SHEET FROM BUSINESS DEVELOPMENT BANK OF CANADA FOR UP TO $8.5 MILLION BUILDING ON ERA GRANT SUPPORT Plascred Circular Innovations Inc. has received a non-binding term sheet from Business Development Bank of Canada for up to $8.5-million in proposed senior debt financing. This milestone builds on a $5.0-million non-dilutive grant from Emissions Reduction Alberta dedicated to construction of Plascred's Neos commercial facility in Fort Saskatchewan, as well as $500,000 in research and development funding from Alberta Innovates to advance commercialization of the company's patent-pending dual-catalytic pyrolysis platform. Plascred's Neos facility is designed to process approximately 100 metric tonnes of postconsumer plastic waste per day into 500 barrels of renewable green condensate, a low-sulphur, low-carbon circular naphtha used as a feedstock for virgin plastic production. Strategically located at CN Rail's Scotford Yard, Neos will divert about 36,500 tonnes of plastic waste annually and is forecast to avoid 51,000 tonnes of carbon dioxide equivalent emission through life cycle displacement of virgin fossil feedstocks and traditional disposal methods. All production is secured under a five-year offtake agreement with a Global Commodities Company at $120 per barrel, inclusive of freight, providing a predictable revenue stream. The facility design builds on more than 24 months of continuous pilot-scale operations at Plascred's Primus unit in Calgary. The Neos facility is expected to cost approximately $25-million. BDC has provided a non-binding term sheet for up to $8.5-million of senior debt. Combined with ERA's $5.0-million grant, this represents more than half of the targeted $25-million capital package. Equity discussions are continuing, and construction is targeted to begin in first quarter 2026, subject to financing being finalized, with commissioning expected later in 2026. The non-binding term sheet provided by BDC is intended for discussion purposes only. It does not constitute a loan offer or commitment to finance. Any advancement of funds remains subject to, among other things, further due diligence, internal approvals, and negotiation and execution of definitive legal agreements. BDC is not under any obligation to proceed with financing and reserves full discretion to amend or withdraw the terms at any time prior to execution of such definitive agreements. "This proposed financing represents a critical step toward realizing Alberta's circular plastics economy," said Troy Lupul, president and chief executive officer of Plascred. "We're pleased to work with BDC to structure a capital-efficient package alongside our ERA support. These combined supports position Plascred to advance the development of a fully integrated, low-carbon circular solution for plastic waste." A fully integrated platform for circular plastics Neos is engineered for replication and modular expansion as the commercial foundation for Plascred's larger-scale Maximus platform. The proposed Maximus facility is designed to launch at approximately 400 tonnes per day and 2,000 barrels per day condensate and scale up to approximately 2,000 tonnes per day and 10,000 barrels per day condensate through phased deployment. Co-located with Neos at CN Rail's Scotford Yard, Maximus will leverage existing enclosed infrastructure, integrated rail logistics and shared site services, offering significant cost and execution advantages while anchoring Alberta as a hub for scalable, low-carbon plastic circularity. Neos will also integrate Palantir Foundry, an industrial artificial intelligence platform, to capture real-time data on feedstock composition, facility performance and product quality. The platform enables auditable life cycle assessments that verify each tonne of waste plastic is transformed into new plastic, supports extended producer responsibility compliance, tracks greenhouse gas emission and plastic-credit issuance, and builds a digital twin of operations -- delivering full-process traceability and artificial-intelligence-optimized decision making. With strategic site control, integrated rail logistics and a five-year contracted revenue stream, Plascred is advancing a scalable platform for circular plastics infrastructure. Project execution is led by Grey Owl Engineering Ltd., with modular fabrication supported by Alberta-based vendors. This Alberta-first deployment model is purpose-built for replication and growth across North America. About Plascred Circular Innovations Inc. Plascred is at the forefront of rebalancing the future of plastics. The company is transforming plastic waste by granting it a valuable second life. With a vision of advancing toward a climate-positive future, Plascred aspires to be among the largest advanced plastic waste recyclers in North America and globally. Its groundbreaking patent-pending technology is set to revolutionize the approach to plastic waste management and advanced recycling. Plascred also has strategic partnerships with CN Rail, Palantir Technologies Inc., the government of Alberta, Fibreco Export Inc. and a global commodity company. These collaborations provide Plascred with world-class logistics, artificial-intelligence-driven operational intelligence and stable long-term revenue, while driving measurable environmental impact through large-scale waste diversion, carbon dioxide equivalent reduction and circular economy leadership. We seek Safe Harbor.