Mr. Carlos Vicens reports

FULL CIRCLE LITHIUM'S FCL-X EXTINGUISHES LITHIUM BATTERY FIRES AT FORT MCMURRAY OIL INDUSTRY DEMONSTRATION

Full Circle Lithium Corp. has met with resounding success regarding its live lithium battery burn demonstration held late May in Fort McMurray, Alta. The event, attended by representatives of major oil sands producers, national railways, local fire departments, and health and safety professionals, showcased Full Circle's FCL-X suppression systems -- the only technology in the world proved to quickly and completely extinguish lithium battery fires across a wide spectrum of battery types used in heavy industry.

The Fort McMurray region sits at the heart of Canada's oil sands industry, home to some of the world's largest and most capital-intensive industrial operations. Lithium-ion batteries have become indispensable to daily site operations -- powering everything from autonomous heavy machinery, haul trucks and mobile equipment to mission-critical backup power systems and remote monitoring infrastructure. With that integration comes extraordinary risk. A single thermal runaway event on a large-format industrial battery can escalate within seconds, releasing toxic gases, including hydrogen fluoride, carbon monoxide and methane, threatening lives, destroying equipment and triggering regulatory shutdowns with multimillion-dollar consequences.

A demonstration that left no doubt

During the live demonstration, Full Circle ignited lithium-ion batteries representing multiple chemistries and form factors commonly deployed across oil sands operations and backup power configuration battery arrays. In each case, FCL-X achieved rapid, full suppression -- halting thermal runaway, eliminating reignition risk and neutralizing toxic gas emissions -- with a speed and efficiency that left attending operators and fire service professionals visibly impressed.

Unlike conventional suppression approaches -- which are largely ineffective against lithium battery fires and can require tens of thousands of litres of water over many hours -- FCL-X works through a proprietary chemical mechanism that directly interrupts the electrochemical chain reaction at the core of thermal runaway. The result: Fires that traditional suppression systems cannot control are extinguished decisively by FCL-X.

"The reaction from operators and fire services was immediate. When they watched FCL-X fully shut down live battery fires of different chemistries in real time -- no reignition, no residual thermal risk -- it confirmed what we have always known: FCL-X is not an incremental improvement. It is a category of one. There is nothing else like it anywhere in the world," commented Carlos Vicens, chief executive officer, Full Circle.

The oil sands sector hosts some of the highest concentrations of large-format lithium battery assets in Canada. Battery-powered equipment fleets are rapidly expanding as operators pursue electrification to meet emissions targets and reduce fuel costs. Meanwhile, stationary battery energy storage systems are being deployed across remote and urban-edge facilities to provide power backup and grid support.

The risks posed by these batteries are well documented and sobering. Research published in the International Journal of Coal Science & Technology confirmed that thermal runaway incidents in underground mining and heavy industrial settings pose a severe risk to personnel and infrastructure as confined environments amplify heat damage and the accumulation of toxic gases. The National Institute for Occupational Safety and Health has specifically studied the explosion risks posed by lithium battery thermal runaway in mining enclosures. The U.S. Occupational Safety and Health Administration reported approximately 25,000 lithium-battery-related fire incidents spanning more than 400 device types during 2012 to 2017 alone.

In June, 2024, a lithium battery factory fire in Hwaseong, South Korea, resulted in 23 deaths, with workers reportedly rendered unconscious within seconds from toxic gas exposure. In January, 2025, the Moss Landing BESS facility in California -- the world's largest battery storage site -- suffered a catastrophic fire, forcing the evacuation of approximately 1,200 residents due to toxic smoke plumes. In May, 2024, a BESS fire at the Gateway energy storage facility in San Diego burned for five days, with continued flare-ups.

Mining-specific incidents are equally alarming. Australian mining regulators have documented lithium battery fires aboard open-cut mine vehicles, underground chargers and equipment involved in on-site accidents -- all resulting in thermal runaways, fires and associated personnel and capital risks. NIOSH research confirmed that explosion-proof enclosures used in mining environments can fail to contain a lithium battery thermal runaway event.

No other global solution exists

Full Circle Lithium's FCL-X is the only known solution capable of quickly and fully extinguishing live lithium battery fires across multiple battery types in an industrial setting. While water-based suppression, sand inundation and containment vessels have been explored or deployed in limited scenarios, none address the underlying electrochemical mechanism of thermal runaway, nor have they demonstrated the complete suppression performance achieved by FCL-X.

For oil sands companies, local fire departments, and health and safety professionals in the Fort McMurray region and beyond, this is not merely a product advantage. It is a decisive answer to a problem with no other solution.

"Fort McMurray was a pivotal moment -- not just for Full Circle Lithium, but for the entire oil sands industry. We are now in active discussions with multiple regional operators and local fire departments, and we fully expect these conversations to translate into meaningful sales and long-term safety partnerships. The oil sands sector deserves a real solution to a real threat, and FCL-X is exactly that," said Mr. Vicens, chief executive officer, Full Circle Lithium.

About Full Circle Lithium Corp.

Full Circle is a United States-based manufacturer of sustainable solutions for the lithium battery safety sector. Its flagship product innovation, FCL-X, is a proprietary, non-hazardous, water-based fire-extinguishing agent designed specifically to combat the growing threat of lithium-ion-battery fires. Backed by a world-class technical team, Full Circle is committed to delivering safe, effective and environmentally responsible fire mitigation technologies.

We seek Safe Harbor.