HydroGraph Provides Update Letter to Shareholders

Executive Summary

• HydroGraph outlines significant progress toward commercializing its ultra‑pure graphene, detailing production capacity expansions at existing and new facilities and a pipeline of 65+ projects.
• The company announced a settlement agreement that will result in the issuance of 750,000 common shares on October 28 2025, providing a full and final release of a commercial dispute.
• Management is evaluating strategic options such as a potential NASDAQ listing and U.S. integration, though no decisions have been made.

Key Details

• Production Capacity: Current output ~1 ton/month (≈12 t/yr). Planned upgrades at Manhattan, KS (2‑3 additional Hyperion reactors) to reach ≈30 t/yr. New Austin, TX lease will add up to 2 reactors; construction slated for Spring 2026.
• Future Facility: Texas site adjacent to an acetylene pipeline planned; break‑ground Q1 2026, 70,000 sq ft building operational by end‑2026 with 5 reactors targeting >350 t/yr capacity.
• Commercial Pipeline: Over 65 projects in development across medical devices, composites, coatings, etc.; 60+ customers currently testing; ~500 kg inventory on hand; average development cycle ≈2 years, many expected to close in FY 2026.
• Patents & Innovation: First graphene‑related patents announced; ongoing partnership with Graphene Engineering and Innovation Centre (GEIC) in Manchester, UK.
• Settlement Agreement: Resolution of a commercial dispute contingent on issuance of 750,000 common shares, expected October 28 2025; shares not subject to hold period under Canadian securities law.
• Strategic Review: Management considering U.S. integration and possible NASDAQ listing; no formal application filed yet.
• Government Interest: Engaged in discussions with U.S. government/military regarding domestic graphene supply and strategic applications.

Notable Quotes

“We have made considerable progress on all of these points and continue to build on these accomplishments as we begin Fiscal Year 2026.” – Kjirstin Breure, Chairman & CEO

All forward‑looking statements are subject to risks and uncertainties detailed in the release.