Mr. Matthieu Bos reports

FALCON ENERGY MATERIALS PLC SIGNS TERM SHEET FOR US$70 MILLION CONSTRUCTION FINANCING FOR MOROCCO ANODE PLANT

Falcon Energy Materials PLC has entered into a non-binding term sheet with a Tier 1 strategic and financial partner for a financing transaction directed toward the construction of the company's anode material facility in the Kingdom of Morocco.

The term sheet

Pursuant to the term sheet, the financial partner has agreed to provide falcon with $65-million (U.S.) in non-dilutive financing as well as $5-million (U.S.) in support in a future equity issuance. The transaction is subject to the satisfaction of customary conditions including an offtake agreement, completion of definitive documentation, and receipt of all required regulatory and stock exchange approvals. The proceeds from the transaction are expected to be primarily directed toward advancement of the company's natural graphite spheroidization, purification and coating plant (the anode plant) in Morocco.

"We are encouraged by the continued support of our financial partners, following the strong demand for our recent private placement and recent block trade," said Matthieu Bos, chief executive officer of Falcon. "This proposed financing represents a significant milestone and highlights the strong interest in completing the broader financing package. We believe this transaction, once completed, will position Falcon to accelerate execution while limiting dilution and preserving meaningful upside for our shareholders."

The completion of the transaction remains subject to the negotiation and execution of definitive agreements, completion of due diligence and receipt of all applicable approvals, including approval of the TSX Venture Exchange. There can be no assurance that the transaction will be completed on the terms described herein or at all.

The company will provide further updates as material developments occur.

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 toward the development of a state-of-the-art 25,000-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.