Velox receives $1M (Australian) from Arena for Kotai

Ms. Nicole Morcombe reports VELOX'S EXPORTABLE SOLID STATE HYDROGEN PROJECT ADVANCING TOWARD COMMERCIALISATION Velox Energy Materials Inc. has successfully completed Milestone 2 under the Australian Renewable Energy Agency (Arena) Transformative Research Accelerating Commercialisation (TRAC) program for the Kotai hydrogen project, led by Curtin University's hydrogen storage research group. Velox, together with Curtin, continues to drive forward the commercialization of the Kotai hydrogen project and its solid-state sodium borohydride hydrogen export technology. Highlights: The company's Arena-funded Kotai hydrogen project has achieved its Milestone 2 objectives, validating the exportable solid-state hydrogen technology at the lab scale, demonstrating both synthesis of sodium borohydride and hydrogen release at high pressure. The successful completion of Milestone 2 triggers a $1-million (Australian) funding payment from Arena, providing continuing support for the project. The project is on track to meet Milestone 3, which will scale up the technology before moving to production at a demonstration facility. The achievement of Milestone 2 triggers a funding payment of $1-million (Australian) from Arena, part of a $5-million (Australian) TRAC grant awarded to the Kotai hydrogen project. This grant was originally announced on April 9, 2024, and supports the development of a novel hydrogen export pathway using sodium borohydride (NaBH4) powder. The total project budget is approximately $16.5-million (Australian), including contributions from Curtin University and Velox through its wholly owned subsidiary WA Hydrogen Pty. Ltd. John Curtin distinguished professor Craig Buckley, head of Curtin University's hydrogen storage research group and an Australian expert on the IEA hydrogen technology collaboration project (TCP) Task 51: Hydrogen Materials for Energy Storage, commented: "This milestone demonstrates that sodium borohydride can deliver hydrogen at high pressure safely and efficiently, which is a significant advancement for global hydrogen transport. By validating both synthesis and hydrogen release at lab scale, we've proven the feasibility of a closed-loop system powered by renewables. The next step will show how this technology can compete with traditional carriers such as ammonia and liquid hydrogen while offering superior safety and sustainability. "Curtin University is proud to lead research that addresses one of the biggest challenges in the hydrogen economy: safe, cost-effective storage and transport. Through our partnership with Velox and support from Arena, we're translating our team's hydrogen storage expertise into practical solutions that can position Australia as a global clean energy hub. This milestone is a testament to what collaboration between academia, industry and government can achieve." Interim chief executive officer Nicole Morcombe commented: "Low-cost, safe transport and storage of hydrogen remains one of the greatest challenges to unlocking the full potential of the hydrogen economy. Through Kotai Energy and our partners, Velox is developing a highly efficient and scalable process that uses an inert powder, sodium borohydride, to store hydrogen and release it on demand, wherever it's needed. A unique feature of this system is its ability to regenerate the spent material using renewable energy, creating a circular and sustainable hydrogen supply chain. "With Arena's support, we are transitioning from lab-scale validation to pilot-scale deployment, accelerating the path to commercialization. We are grateful for Arena's backing and look forward to continuing our collaboration with Curtin University to deliver real-world solutions that meet both environmental and economic goals." Key technical advancements achieved: 10 grams of sodium borohydride synthesized and purified through an electrochemical process; Continuous 10-gram-per-hour hydrogen release through hydrolysis in a single vessel; Hydrogen output up to 1,000 bar, confirming viability of high-pressure, on-demand delivery. These results confirm proof-of-concept for the closed-loop hydrogen export system and lay the foundation for the next phase of development, targeting scaled production and continuous flow processing. Pathway to commercialization With the successful completion of Milestone 2 and the receipt of $1-million (Australian) in Arena funding plus $100,000 (Australian) from Curtin, the project now progresses toward Milestone 3, which will span the next phase of the research program. This milestone will focus on scaling up the electrochemical synthesis of sodium borohydride and demonstrating hydrogen release, building on the validated proof of concept. The Arena grant also supports the design and construction of a pilot plant, which will be a critical step in transitioning the technology from laboratory to commercial scale. Commercial discussions have commenced regarding the pilot plant's location and operational terms with a prospective site offering access to advanced infrastructure for hydrogen production, testing and certification. This facility will demonstrate the conversion of sodium borate into sodium borohydride using renewable energy and its subsequent transformation into hydrogen gas at exportable quantities. The pilot plant will serve as a key validation platform for attracting future investment and enabling market deployment. Velox continues to play a central role in the commercialization strategy, contributing technical expertise, project development capability and market insight. Velox also holds an exclusive option to acquire 100 per cent of the intellectual property developed within the Kotai hydrogen project. The overarching goal of the project is to develop sodium borohydride technology that is cost competitive with existing hydrogen carriers, such as ammonia and liquid hydrogen. The target is to reduce the cost of hydrogen delivered to overseas consumers, positioning sodium borohydride as a safe, efficient and scalable solution for global hydrogen export. Kotai hydrogen project overview The Kotai hydrogen project is a collaborative initiative between Curtin University's hydrogen storage research group (HSRG) and Velox Energy Materials, focused on developing and deploying a novel technology to transport hydrogen as a powder. The powder is a salt called sodium borohydride (NaBH4), which stores significantly more hydrogen by weight and volume than conventional carriers such as liquid hydrogen, ammonia or liquid organic hydrogen carriers (LOHCs). When NaBH4 is added to water, it releases hydrogen gas. The remaining byproduct, sodium borate (NaBO2), is then regenerated back into sodium borohydride using renewable energy, creating a circular and sustainable hydrogen export system. Funded under Arena's Transformative Research Accelerating Commercialisation (TRAC) program, the project is structured into two phases: Research phase (milestones 1 to 3): focused on lab-scale optimization of NaBH4 electrochemical synthesis, powder processing and hydrogen generation; Commercialization phase (milestones 4 to 6): includes the design, construction and optimization of a pilot plant to demonstrate NaBH4 production and hydrogen release at exportable quantities. The project's ultimate goal is to deliver hydrogen to overseas markets at a competitive cost, positioning sodium borohydride as a safe, efficient and scalable solution for global hydrogen transport. Velox holds an option to acquire 100 per cent of the intellectual property developed through the project. About the hydrogen storage research group, Curtin University The hydrogen storage research group investigates new types of materials for energy storage. The HSRG's expertise in this area is used in conjunction with industry partners to provide real-world solutions to research-level problems in the energy storage space. Its expertise spans multiple research fields, including those of hydrogen-rich materials, new battery technologies and thermochemical energy storage materials. John Curtin distinguished professor Craig Buckley leads the HSRG and has 37 years experience in hydrogen storage research. Prof. Buckley was the Australian executive committee member for the International Energy Agency (IEA) Hydrogen Technology Collaboration Program (TCP) from 2014 to 2024 and is an Australian expert on the IEA Hydrogen TCP Task 51: Hydrogen Materials for Energy Storage. Prof. Buckley is also Program 2 leader: "Hydrogen Exports and Value Chains" for the Future Energy Exports (FEnEx) CRC and a board member of the Hydrogen Society of Australia. Mark Paskevicius is a professor in physics at Curtin University. He is the theme lead for hydrogen within the Curtin Institute for Energy Transition. Mr. Paskevicius is also an Australian expert on the IEA Hydrogen TCP Task 51. He has undertaken experimental research into hydrogen-rich materials and borohydrides for the past 18 years so has immense technical knowledge in materials development and chemical processing. About sodium borohydride (NaBH4) The hydrogen-rich powder called sodium borohydride (NaBH4) that can store more hydrogen by weight and volume than liquid hydrogen, ammonia or LOHCs. This is due to the fact that, when NaBH4 is added to water at its end destination, it releases double the hydrogen it contains. Two molecules of hydrogen from the NaBH4 and two molecules of hydrogen from water are all released when NaBH4 turns into sodium borate (NaBO2). This results in an effective gravimetric and volumetric hydrogen density of 21.4 weight per cent H2 and 137 kilograms H2 per cubic metre for each unit of shipped NaBH4 (assuming a powder packing fraction of 60 per cent). This means that the volumetric hydrogen density in NaBH4 is 1.28 times greater than ammonia and 1.93 times greater than liquid hydrogen. Australian Renewables Energy Agency (Arena) The Australian Renewables Energy Agency was established by the Australian government and supports the global transition to net-zero emissions by accelerating the pace of precommercial innovation, to the benefit of Australian consumers, businesses and workers. Arena supports improvements in the competitiveness of renewable energy and enabling technologies, increases the supply of renewable energy in Australia, and facilitates the achievement of Australia's greenhouse gas emissions targets by providing financial assistance and sharing knowledge to accelerate innovation that benefits all Australians. About Velox Energy Materials Inc. Velox Energy Materials is a publicly traded energy materials company developing and progressing high-value assets in resource and research-friendly jurisdictions. The company's priority focus is the advanced NQV project in Queensland, Australia. The NQV project hosts the Cambridge deposit with a CIM-compliant (Canadian Institute of Mining, Metallurgy and Petroleum) indicated mineral resource of 61.33 million tonnes at 0.34 per cent V2O5 (vanadium pentoxide) and 234.6 parts per million MoO3 (molybdenum oxide), along with an inferred mineral resource of 144.87 million tonnes at 0.33 per cent V2O5 (cut-off grade of 0.25 per cent V2O5) and 241.9 ppm MoO3 (Dufresne et al., 2022). The company is targeting shallow, high-grade mineralization that can be developed using low-cost mining and processing options. The company additionally owns Kotai Energy and the option to acquire 100 per cent of the intellectual property rights associated with the solid-state hydrogen storage project from Curtin University in Western Australia. Kotai is focused on the commercialization of technology that can produce high-pressure hydrogen following transport as an inert powder. Qualified persons The Velox Energy Materials technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101, Standards of Disclosure for Mineral Projects, and reviewed and approved on behalf Velox Energy Materials by Michael Griffiths, FAusIMM, director and vice-president, exploration, for Velox Energy Materials, a qualified person. We seek Safe Harbor.