Falcon Energy awards pilot plant construction contract

Mr. Matthieu Bos reports FALCON ENERGY MATERIALS ACHIEVES KEY MILESTONE TOWARD FULL PILOT PLANT AND COMMERCIAL CSPG OPERATIONS Falcon Energy Materials PLC has made significant progress in the construction of its pilot plant at Jorf Lasfar, near Casablanca, Morocco -- a milestone positioning the company as a leader in the development of large-scale, high-purity coated spherical purified graphite (CSPG) for the global battery industry outside of China. The pilot plant remains firmly on track for completion in Q4 2025, with first CSPG samples for customer testing expected as early as September, 2025. These samples are instrumental in securing long-term offtake agreements for Falcon's proposed 25,000-tonne-per-annum commercial-scale anode plant -- the first of its kind outside China. Highlights: Construction contract awarded to Open Steel Structure Maroc SARL, the Moroccan subsidiary of Open Building Systems of China, leveraging its expertise in industrial-scale battery infrastructure; Construction steel shipments to site scheduled for early September; All major processing equipment delivered to Hensen Graphite Carbon Corp. for assembly and testing; Pilot plant production capacity targeted at 100 kilograms per day of CSPG, enabling large-scale customer qualification programs; Commissioning remains on schedule for Q4 2025; Anode plant is projected to generate EBITDA (earnings before interest, taxes, depreciation and amortization) of $152-million per year at a 62-per-cent margin. Strategic advantage of the pilot plant in Morocco The pilot plant is being developed within the industrial zone of Falcon's strategic partner, Fluoralpha SA, at Jorf Lasfar -- one of Morocco's most advanced industrial hubs. This prime and strategic location offers direct access to world-class port infrastructure, competitive operating costs, and proximity to both European and North American markets. The construction contract for the pilot plant building, offices and ancillary infrastructure has been awarded to Open Steel. With extensive industrial experience, Open Steel is also currently working for the Cobco joint venture, a partnership between global battery precursor leader CNGR and Al Mada, Morocco's largest private equity fund. Located directly adjacent to Falcon's site in Jorf Lasfar, this clustering of advanced battery materials production creates an unmatched ecosystem. Construction steel shipments to site are expected in early September and building completion is scheduled for November. "With this pilot plant, Falcon is not just producing graphite samples -- we are achieving key milestones that bring us closer to establishing a major anode production facility and securing a reliable, diversified supply of essential materials," stated Matthieu Bos, chief executive officer of Falcon. "Our customers demand secure and sustainable supply chains. Confident in the abundant availability of high-quality graphite feedstock worldwide, Falcon is committed to delivering a scalable, end-to-end solution from mine to market." The pilot plant will serve as a pivotal step toward building Falcon's commercial anode plant, designed for 25,000-tonne-per-day CSPG output, which is projected to generate EBITDA of $152-million per year at a 62-per-cent margin. This facility, combined with the support from its technical partner, Hensen, will establish a vertically integrated, non-Chinese supply source -- a critical development in an era of rising demand and geopolitical supply risk. Falcon has purchased all the necessary pilot plant equipment to produce large-scale CSPG samples for potential customers. All the key components have been delivered to Hensen in China, where the pilot plant will be assembled and tested prior to shipment to Morocco. "Our collaboration with Hensen and Fluoralpha is more than just construction progress -- it's the creation of a full industrial value chain that will serve markets for decades to come," Mr. Bos added. About Falcon Energy Materials PLC Falcon Energy Materials aims to become a fully integrated supplier of battery anode materials. The company's integrated business model would result in the creation of a mine-to-market active anode material producer, hosting a large high-purity graphite production mine in the Republic of Guinea and a value-added coated spherical purified graphite conversion facility in Morocco. With attractive operating costs, proximity to European end markets and strong ESG (environmental, social and governance) credentials, the company is poised to become a reliable supplier while promoting sustainability and supply chain transparency. Falcon is committed to generating sustainable, long-term benefits that are shared with the host countries and communities where it operates. We seek Safe Harbor.