Mr. Tyrone Docherty reports

SOLAR MODULES FROM CHINA FACE EVEN MORE RESTRICTIONS

First Tellurium Corp. says that, according to a recent article in PV Magazine, expanded restrictions on Chinese polysilicon solar modules by the United States Customs and Border Patrol may result in a near-total ban on modules entering the U.S. from China. These restrictions will place even more pressure on domestic solar companies like First Solar, North America's largest solar panel manufacturer, which produces cadmium telluride modules rather than crystalline polysilicon.

The China-U.S. trade tensions continue to heat up. China recently announced it would restrict exports of gallium and germanium, both essential for production of semiconductors. The country has also warned it may ban the export of technology to make solar panels.

As reported by First Tellurium in February, thin-film cadmium telluride (CdTe) panels have historically faced competition from Chinese-made silicon solar panels. However, Chinese solar companies have been connected to forced labour in the Xinjiang region, prompting the U.S. government to ban more than 1,000 shipments of solar-energy components following a June, 2022, law banning imports from the solar manufacturing region.

"We're approaching a critical phase in the domestic supply chain for cadmium telluride solar panels," said First Tellurium president and chief executive officer Tyrone Docherty. "Rapidly increasing demand, combined with import restrictions, have led First Solar to double its manufacturing capacity this year. Domestic supplies of tellurium will become even more critical."

As a result of Chinese trade tensions and shortages of domestic critical metals, the Biden administration has instituted a stream of policies, particularly the U.S. Inflation Reduction Act, to source solar components from North America and other "friendly" jurisdictions. Doubts persist, however, that the industry can move fast enough to manufacture a steady supply of components to meet the country's clean-energy goals. Wood Mackenzie expects the U.S. solar market to triple in size over the next five years, bringing total installed solar capacity to 378 gigawatts by 2028.

Thin-film cadmium telluride solar modules provide the smallest carbon footprint, lowest water use and shortest energy payback time of any current photovoltaic technology. They produce higher amounts of energy and are less expensive to manufacture than polysilicon. CdTe's energy payback time of less than a year allows for faster carbon reductions without short-term energy deficits. Most utility-scale projects in the United States are powered by CdTe technology.

About First Tellurium Corp.

First Tellurium's unique business model is to generate revenue and value through mineral discovery, project development, project generation and co-operative access to untapped mineral regions in indigenous territory with sustainable exploration.

First Tellurium's Klondike tellurium-gold property in Colorado and polymetallic Deer Horn project in British Columbia anchor a diversified search for metals, working in alliance with indigenous peoples, non-government organizations, governments and leading metals buyers. This is the future of mineral exploration-generating revenue by exploring responsibly and leveraging diverse partnerships.

We seek Safe Harbor.