Mr. Karl Kottmeier reports

EMP METALS PROVIDES FIRST HALF 2026 CORPORATE UPDATE

EMP Metals Corp. has provided a corporate update highlighting significant milestones achieved during the first half of 2026 as the company advances Project Aurora toward demonstration operations.

The first six months of 2026 have been transformational for EMP Metals as the company advanced Project Aurora from construction into commissioning while strengthening its financial position and securing key government support. During the period, EMP completed major site infrastructure, received all required project permits, initiated commissioning activities, introduced first raw brine into the demonstration facility and continued advancing toward integrated demonstration operations.

Construction and site development

Field development activities progressed significantly during the first half of the year, including successful workover programs on the company's brackish water supply well and disposal well, establishing the infrastructure required to support continuous flow plant operations.

Construction of the demonstration facility also progressed substantially, with completion of the site's major infrastructure, including the process building, office trailers, site storage facilities and installation of permanent piping connecting the demonstration facility directly to the wellhead.

The company also received all major process equipment from Saltworks, marking completion of equipment deliveries for the demonstration plant and allowing construction to transition into commissioning.

Permitting and regulatory milestones

EMP successfully secured all key regulatory approvals and land access agreements required to advance Project Aurora. These approvals represent an important milestone in derisking the project and ensured construction and commissioning activities progressed on schedule throughout the first half of the year.

Commissioning progress

Commissioning activities continue to progress on schedule, with approximately 50 per cent of the overall commissioning program now complete, building upon the factory commissioning completed at Saltworks. Saltworks has mobilized its commissioning and operations team to site, where work is under way across the integrated processing systems.

On July 1, 2026, a significant operational milestone was achieved with the successful introduction of the first raw brine into the preconditioning process system. The company has now begun optimizing system performance and tuning the process using raw brine from the reservoir. The company remains on track to complete commissioning activities in Q3 before transitioning into fully integrated demonstration operations and process optimization.

The introduction of raw brine marks the transition from mechanical commissioning to process commissioning, where operating parameters will be optimized under continuous flow conditions. Data generated during this phase will form the basis for commercial engineering and future economic studies. Performance metrics will be released once commissioning is complete.

Financing and government support

To support continued advancement of Project Aurora, EMP successfully completed an oversubscribed financing during the first half of 2026, further strengthening the company's balance sheet as it enters the demonstration phase.

The company also secured significant non-dilutive government support through approvals under the B.C. Innovative Clean Energy (BCIN) Fund and the National Industry-Led Network of Centres of Excellence (NGen) program. In addition, EMP received its first funding allocation under the Saskatchewan Critical Minerals Innovation Incentive (SCMII), reflecting continued government recognition of the strategic importance of domestic lithium development and critical mineral processing.

EMP Metals chief executive officer Karl Kottmeier commented: "The first half of 2026 marked a pivotal period for EMP as we transitioned Project Aurora from construction into commissioning. Every major objective we established for the first half of the year has been achieved, including completing site infrastructure, receiving all major equipment, securing regulatory approvals, strengthening our balance sheet and introducing first brine into the demonstration plant. As we enter the second half of 2026, our focus shifts to completing commissioning, optimizing the integrated process and generating the operating data that will support commercial-scale development."

Project Aurora is EMP's integrated, continuous-flow lithium refining demonstration system designed to process 10 cubic metres per day of raw brine from wellhead to lithium chemicals. The facility is intended to validate process performance, optimize operating parameters, and generate engineering and economic data to support future commercial-scale development.

The demonstration program represents a key step toward commercializing EMP's lithium brine resource in Saskatchewan. Operational data generated throughout the demonstration campaign will support engineering design, process optimization and economic evaluation for a future modular commercial facility capable of producing more than 3,000 tonnes per year of lithium products.

EMP's Saskatchewan lithium resource continues to benefit from favourable brine chemistry free of hydrogen sulphide (H2S) and oil-derived organics, shallow low-cost drilling, established infrastructure and a supportive critical minerals regulatory environment, positioning the company to pursue initial commercial modules targeting 1,500 to 3,000 annually, expandable thereafter.

About EMP Metals Corp.

EMP is a Canadian-based lithium exploration and development company focused on large-scale resources using direct lithium extraction (DLE). EMP currently holds over 205,000 net acres (83,000 hectares) of subsurface dispositions and strategic wellbores in Southern Saskatchewan.

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