Mr. Brian Leeners reports

HOMERUN RESOURCES INC. EXECUTES MEMORANDUM OF UNDERSTANDING WITH CEITEC FOR SILICON CARBIDE WAFER AND SUBSTRATE COOPERATION IN BRAZIL

Homerun Resources Inc. has executed a memorandum of understanding with Centro Nacional de Tecnologia Eletronica Avancada SA (CEITEC), a state-owned semiconductor company headquartered in Porto Alegre, Rio Grande do Sul, Brazil. This strategic agreement establishes general guidelines for technical and institutional co-operation between the two organizations, focusing on the joint development of studies, projects and activities in the field of silicon carbide substrate and wafer technologies. The co-operation aims to develop, produce, qualify and establish manufacturing capabilities for semiconductor-grade SiC substrates and wafers produced by Homerun for offtake by CEITEC to foster a complete, vertically integrated local supply chain within Brazil.

CEITEC develops and manufactures semiconductor devices with innovative technologies, contributing directly to the energy transition and digital transformation. Homerun, an advanced material developer, converts high-purity silica into essential raw materials, feedstocks and substrates required by these same sectors. By aligning CEITEC's specialized microelectronics fabrication and material qualification expertise with Homerun's raw material security and industrial processing capabilities, the partnership represents a transformational step toward high-barrier semiconductor self-reliance in the Americas. This collaboration focuses on Homerun developing advanced SiC substrates and wafers suitable for CEITEC's critical semiconductor applications.

Areas of mutual interest and objectives

Under the terms of the three-year MOU, both companies have committed to deploy their best efforts in several critical areas of mutual interest:

• Plan and promote the identification and assessment of needs to develop joint projects of mutual interest;
• Identify, discuss and propose collaborative projects to develop capabilities for manufacturing SiC wafers and substrates suitable for semiconductor applications in Brazil;
• Exchange information regarding co-operation opportunities as they are identified;
• Identify and engage other relevant technology partners, industrial players and suppliers to participate in joint project teams;
• Seek domestic and international funding sources to support specific technical projects, with a singular focus on fostering the complete, end-to-end SiC value chain in Brazil;
• This collaboration focuses on Homerun developing advanced SiC substrates and wafers suitable for CEITEC's critical semiconductor applications.

Complementary roles and responsibilities

To operationalize this initiative, technical teams from both organizations will collaborate under structured work plans defined in separate, specific co-operation agreements. The individual responsibilities have been mapped as follows.

CEITEC intends to:

• Provide highly precise technical requirements and specifications for SiC substrates and wafers suitable for semiconductor applications;
• Support the technical development and physical validation of SiC semiconductor devices utilizing qualified substrates and wafers, offering direct engineering feedback for material and processing improvement;
• Contribute its advanced semiconductor manufacturing expertise and identify technological requirements, resource gaps and potential strategic partners to construct a complete SiC value chain in Brazil.

Homerun intends to:

• Provide and develop high-purity SiC materials, substrates and wafers, leveraging its secure raw materials, processing technologies and localized capabilities according to mutually established technical standards;
• Develop and co-ordinate the specific raw material processing and thermal consolidation steps required to produce semiconductor-grade SiC substrates and wafers, including the identification and engagement of technology partners or specialized equipment suppliers;
• Work collaboratively with CEITEC to construct a comprehensive technology road map outlining the development, qualification, scaling and eventual industrialization of a local SiC supply chain in Brazil.

Addressing the critical semiconductor bottleneck

Modern microelectronics are rapidly approaching their fundamental physical limits, causing a global, industry-wide transition toward silicon carbide as a major material paradigm shift. For high-power power electronics and advanced integrated circuits, SiC (particularly the 4H-SiC polytype) exhibits a wide electronic bandgap of 3.23 eV, nearly triple that of legacy silicon (1.1 eV) enabling zero-degradation handling of extreme voltages. Furthermore, SiC features a thermal conductivity of 490 W/mK (more than three times higher than silicon's 150 W/mK), which prevents localized thermal distortion and signal drift in extreme high-temperature, radiation-heavy or space environments.

While these technological benefits are scientifically validated, the primary hurdle to widespread commercialization is manufacturing scalability and extreme raw material purity. Achieving the defect-free, high-purity thresholds required for advanced chips is impossible using run-of-the-mill industrial silica feedstocks. Control must be established at the very beginning of the value chain. Homerun's secure, high-purity, low-iron silica resources from the SME Silica Valley in Brazil provide the essential, highly uniform chemical composition needed to achieve these ultrapure semiconductor thresholds. Through a vertically integrated continuum, ranging from precursor synthesis and advanced thermal consolidation to physical vapour transport single-crystal growth and precision chemical mechanical polishing, Homerun is systematically addressing this structural material bottleneck.

Brian Leeners, chief executive officer of Homerun, highlighted the commercial and regional significance of the co-operation: "Partnering with CEITEC, a key semiconductor manufacturer in Brazil, allows us to close the loop on a local, vertically integrated supply chain. By aligning our high-purity feedstocks and rapid processing technologies with CEITEC's manufacturing and validation expertise, we are positioning Brazil as a powerhouse for advanced silicon carbide substrate technologies during a time of intense global supply chain competition. This collaboration is designed to translate raw earth advantages directly into high-barrier deep-tech semiconductor solutions."

Edelweis Ritt, CMO of CEITEC: "CEITEC, as Brazil's strategic state-owned semiconductor company, is advancing its technological repositioning toward SiC power devices. This collaboration with Homerun, leveraging its work on high-purity silica in Brazil, represents an important step toward developing a vertically integrated SiC value chain in the country and strengthening Brazil's technological and industrial capabilities in a sector that is strategic for the energy transition."

Global semiconductor market momentum

This strategic collaboration occurs during a period of unprecedented expansion in the global chip industry. According to the Semiconductor Industry Association, global semiconductor sales reached $403.3-billion during the second quarter of 2026, marking a 35.1-per-cent increase compared with the first quarter of 2026. World Semiconductor Trade Statistics reports that global sales in June, 2026, alone reached $134.5-billion, a 123.6-per-cent year-over-year increase compared with June, 2025. With global chip sales formally projected to exceed $1.5-trillion in 2026, the demand for stable, localized and secure non-Chinese feedstocks has reached a critical flashpoint. The Homerun-CEITEC partnership addresses this multibillion-dollar demand directly, creating a resilient and high-value pathway from Brazilian natural resources to high-technology manufacturing.

Qualified person

Carlos Henrique Lourenco Bastos has reviewed and approved the scientific and technical information in this news release. Mr. Bastos is a senior geologist, MSc, an independent qualified person registered with the Brazilian Commission for Resources and Reserves. He is a fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and a member of the Society for Mining, Metallurgy & Exploration.

About Homerun Resources Inc.

Homerun is building the silica-powered backbone of the energy and technology transitions across multiple focused verticals: high-purity silica and advanced silica materials, solar, energy storage, semiconductors and photonics, and energy solutions. Anchored by a unique high-purity, low-iron silica resource in the Silica Valley of Bahia, Brazil, Homerun is transforming raw silica sand into essential materials, products and technologies that accelerate clean energy and technology solutions and deliver durable shareholder value:

• Silica: secure supply and processing of high-purity low-iron silica for mission-critical applications, enabling premium solar glass and advanced energy and technology materials;
• Solar: development of the first dedicated 1,000-tonne-per-day high-efficiency solar glass plant in the Americas and the commercialization of extraclear, antimony-free solar glass designed for next-generation photovoltaic performance;
• Energy storage: advancement of long-duration, silica-based thermal storage systems and related technologies to decarbonize industrial heat and unlock grid flexibility;
• Semiconductors and photonics: the processing and purification of raw SME silica sand into tech-grade fused silica, silicon and silicon carbide feedstocks; these feedstocks are designed to support silicon and silicon carbide-on-insulator platforms, ultralow-loss waveguides, and room-temperature quantum spin architectures;
• Energy solutions: artificial-intelligence-enabled energy management, control systems and turnkey electrification solutions that reduce costs and optimize renewable generation for commercial and industrial customers.

With disciplined execution, strategic partnerships and an unwavering commitment to best-in-class environmental, social and governance practices, Homerun is focused on converting milestones into markets -- creating a scalable, vertically integrated platform for clean energy and technology solutions in the Americas.

We seek Safe Harbor.