LEADING EDGE MATERIALS CLOSES FIRST TRANCHE OF C$ 6,000,000 PRIVATE PLACEMENT WITH BINDING STANDBY SUBSCRIPTION AND COMMITMENT OF CORNERSTONE SHAREHOLDER

Leading Edge Materials Corp. closed the first tranche of a previously announced C$6,000,000 private placement on August 18, 2026. The company raised CAD$4,008,000 by issuing 16,032,000 units at C$0.25 per unit. Each unit consists of one common share and one common share purchase warrant. Warrants carry an exercise price of C$0.40 and expire two years from closing, on August 18, 2028.

Cornerstone shareholder Eric Krafft provided a binding standby subscription commitment to ensure the full C$6M raise is completed. Net proceeds are earmarked for advancing the Norra Kär Pre-Feasibility Study (PFS), environmental permitting, Woxna graphite mine studies, and general working capital. A 6% finder’s fee was paid on a portion of the placement. Securities carry a hold period until December 19, 2026.

Leading Edge Materials Corp. (LEM) closed a financing transaction that serves as a routine follow-up to its July 13, 2026 announcement. The deal was fully expected and priced at $0.25 per unit. The transaction provides critical liquidity to address the explicit going concern warning issued in the company’s Q2 2026 financials, which were reported on June 19, 2026.

Net proceeds of approximately $3.76 million, after fees, extend the company's runway. However, given the Q2 2026 cash burn of approximately $710,000 and an accumulated deficit of $54.67 million, the capital is considered incremental rather than transformative. A binding standby commitment from Eric Krafft mitigates execution risk and signals insider confidence, though it does not alter the fundamental liquidity constraints. The news is positive for survival and project advancement but does not change the high-risk, pre-revenue status of the company.

Leading Edge Materials Corp. is a Canadian mining company focused on critical raw materials in Europe. Its flagship asset is the Norra Kär Heavy Rare Earth Elements (HREE) Project in Sweden, which holds a 25-year exploitation concession (mining lease) granted in June 2026. The project targets dysprosium, terbium, and yttrium, materials critical for electric vehicles, wind turbines, and defense applications.

The company also holds secondary assets, including the Woxna Graphite Mine in Sweden, which is fully constructed, permitted, and maintained on a production-ready basis. Additionally, Leading Edge Materials has increased its stake in the Bihor Sud Nickel-Cobalt exploration alliance in Romania to 90%.

Regarding development stages, a pre-feasibility study is underway for Norra Kär, with environmental permitting in progress. Meanwhile, the Woxna operation is undergoing metallurgical optimization.