La Mancha Investments S. a r. l. to File Early Warning Report

The most recent news (February 20-23, 2026) confirms the closing of a C$25 million non-brokered private placement at C$0.60 per unit. Key highlights include the participation of La Mancha Investments (controlled by the Sawiris family), which maintained its significant stake at 22.8% (30.8% partially diluted), and the entry of Argentem Creek Partners alongside Middle Eastern and European investors. Each unit includes a warrant exercisable at C$0.75 for three years. The proceeds are earmarked for the development of the Morocco Anode Plant and general working capital.

This news is Material - Positive for several reasons: - De-risking Capital: The C$25M raise provides the necessary runway to advance the Morocco Anode Plant, which has an initial CapEx requirement of US$86M. - Institutional Validation: The continued support from La Mancha and the addition of Argentem Creek Partners provide a "stamp of approval" that is critical for a junior developer in a volatile commodity sector. - Strategic Positioning: The news confirms Falcon is successfully executing its strategy to become a non-Chinese source of Coated Spherical Purified Graphite (CSPG). - Market Reaction: The stock price surged to a 52-week high of C$0.94 on the closing news, significantly above the C$0.60 placement price, indicating strong secondary market demand and a "breakout" sentiment.

Falcon Energy Materials (formerly SRG Mining) is developing a vertically integrated graphite business. Its flagship is the Morocco Anode Plant in the Jorf Lasfar industrial hub. - Economics: Technical study shows an After-Tax NPV8 of US$1.15B and an IRR of 82%. - Capacity: Targeted 26,000 tonnes per annum of CSPG. - Advantage: Morocco’s Free Trade Agreements with the US and EU make it a primary destination for IRA-compliant battery materials.