Mr. Matthieu Bos reports

FALCON ENERGY MATERIALS INITIATES US$100 MILLION DAMAGES CLAIM AGAINST REPUBLIC OF GUINEA

Falcon Energy Materials PLC has formally commenced international arbitration proceedings over the illegal expropriation of the Lola graphite project by the Republic of Guinea and other breaches of the bilateral investment treaty between the governments of the United Arab Emirates and Guinea (UAE-Guinea BIT).

The company lodged a request for arbitration (RfA) under the UAE-Guinea BIT with the International Centre for Settlement of Investment Disputes (ICSID), part of the World Bank. The RfA is filed in accordance with the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID convention). The RfA contains a description of the background to the dispute, a summary of the company's claims and an initial estimate of compensation for the damages sustained by the company resulting from the actions of the government of Guinea, currently estimated at $100-million (U.S.).

Falcon's chief executive officer, Matthieu Bos, said: "While we regret that legal proceedings have become necessary, we are fully prepared to present our claim for compensation in arbitration, encompassing both the loss of the company's assets in Guinea and the additional damages arising from the actions of the government of Guinea. Following our recent capital raise, the company has secured full support from its shareholders to pursue this case as well as sufficient funding to cover all legal costs, and we remain confident that shareholders' interests are protected. We will continue to refine our claims as part of the arbitration process while we keep our focus firmly on the development of our Anode plant in Morocco."

Background to the request for arbitration

On May 14, 2025, by virtue of a decree signed by its president, Guinea unilaterally revoked the exploitation licence of the project. The company subsequently approached the Ministry of Mines in an effort to resolve the situation amicably. In the absence of any response, Falcon notified Guinea of a dispute under the UAE-Guinea BIT, which triggered a six-month period to seek an amicable resolution to the dispute. The company agreed to continue negotiating beyond the six months in an attempt to resolve the dispute amicably. However, it became clear that Guinea will not offer any compensation to Falcon for its losses.

The ICSID convention has been ratified by 158 states, including Guinea. An award issued by an ICSID tribunal is enforceable in any one of those 158 member states as if it were a judgment of one of their own courts. Partly because of this, states have historically often complied voluntarily with the payment terms of such awards.

The company has engaged LALIVE, an international law firm, to act on its behalf. LALIVE has offices in Geneva, Zurich and London, and specializes in international arbitration. The firm has extensive experience in international investment arbitration concerning mining and other natural resources and is representing investors and states as counsel worldwide.

About Falcon Energy Materials PLC

Falcon Energy Materials is aiming to be the premier provider of natural coated spheronized purified graphite, a critical component for energy storage solutions.

As a dedicated chemical refiner of natural graphite concentrate, Falcon is working diligently towards the development of a state-of-the-art 26,000-tonne-per-annum CSPG production facility in Morocco.

Strategically partnered with leading Chinese technology firms and Tier 1 Moroccan partners, Falcon benefits from advanced technological expertise, access to high-quality raw materials and chemicals, and a prime geographical location-factors that will enable it to deliver consistent, high-quality supply to global markets.

With a clear focus on sustainable growth and innovation, Falcon aims to become the go-to producer of natural CSPG, supporting widespread adoption in energy storage and other emerging industries.

We seek Safe Harbor.