Victoria, British Columbia--(Newsfile Corp. - September 21, 2026) - ALUULA Composites Inc. (TSXV: AUUA) (OTCQB:AUUAF) ("ALUULA" or the "Company") announces that on September 17, 2026, it has signed a milestone staged funding agreement as a result of Canada's Industrial and Technological Benefits ("ITB") Policy. The ITB Policy contractually requires companies that have been awarded coast guard or defence procurement contracts to undertake business activity in Canada equal to the value of the contracts won. Through this program, a major contract has been awarded to Seaspan Shipyards to design and build six new vessels for the Coast Guard.

As part of the ITB Policy requirements within Seaspan's contract, Seaspan's Spanish partner IBERCISA Deck Machinery has agreed to fund 50% of a $730,000 CAD research and development project to be undertaken by ALUULA. ALUULA will fund 50% of the project and conduct R&D in collaboration with the University of British Columbia's (UBC) Composites Research Network (CRN). Together, as part of this project and other ongoing work, ALUULA and CRN will explore further optimisation, testing and validation of ALUULA's high-performance composite materials for defence shelter and cover applications on land and at sea. All parties related to the funding agreement are at arm's length.

Advancing Canadian businesses

"We appreciate the ITB program and Seaspan for supporting a performance-driven, innovative, and sustainable business like ALUULA," said Sage Berryman, CEO & President of ALUULA. "Initiatives like these are vital to building a resilient, prosperous future for Canadian industry. Funding like this will help accelerate our ability to bring leading-edge, recyclable composite solutions for maritime defence, while strengthening Canadian talent, R&D, and manufacturing capacity."

ALUULA Marine - developing recyclable materials to meet the ocean's demands

This investment marks a milestone in helping to advance ALUULA's mission to develop innovative and sustainable composite materials, aligning with the Company's focus on commercial industrial applications. This includes defence projects, such as ultra-light, ultra-strong, sustainable portable shelters, particularly for extreme cold or challenging environments. ALUULA's patented materials are eight times stronger than steel for equivalent weight and are recyclable. They are purpose-built to meet the rigorous demands of the sea-being strong, lightweight, waterproof and high-performing, even under extreme cold, ultraviolet exposure and saltwater conditions.

About ALUULA Composites

ALUULA is an ultra-light, high-performance and recycle-ready composite materials brand that enhances the performance of outdoor gear as well as commercial and industrial equipment. Proudly owned and manufactured on the Canadian west coast, ALUULA's innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. ALUULA's materials are known for their unique construction capabilities and their ability to make products lighter, stronger, and more sustainable.

aluula.com | (TSXV: AUUA) & (OTCQB: AUUAF)

About Seaspan

Seaspan is a key partner to Canada's National Shipbuilding Strategy, with a track record of supporting domestic innovation through responsible investment in Canadian companies. By upholding its ITB obligations, Seaspan fosters a thriving innovation ecosystem benefitting Canada's economy and environment.

About IBERCISA Deck Machinery

Ibercisa Deck Machinery S.A. is a Spanish technology company specializing in the design and manufacturing of naval deck machinery for all types of vessels, including fishing, merchant, tug, navy and oceanographic ships.

TSX Venture Exchange

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

The information in this news release includes certain information and statements about management's view of future events, expectations, plans, and prospects that constitute forward-looking statements, including, but not limited to: the ITB Policy, the collaboration with CRN, funding commitments by Ibercisa and ALUULA and the Company's defence projects. These statements are based on assumptions subject to significant risks and uncertainties as described in the Company's management discussion and analysis. Because of these risks and uncertainties and as a result of a variety of factors, performance may differ materially from those anticipated and indicated by these forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

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