Mr. Kurt Budge reports

LEADING EDGE MATERIALS' INVESTOR UPDATE ON SIGNIFICANT ACTIVITIES

Leading Edge Materials Corp. has provided an investor update on significant activities.

Overview -- becoming a European CRM (critical raw materials) producer

Concerns about critical raw materials -- security of supply, supply chain resilience and defence requirements -- have been recurring themes at conferences attended by the company in recent months, with heavy rare earth elements (HREEs) and natural graphite frequently mentioned; geopolitical uncertainty is the new norm and it is driving partnership, collaboration and greater levels of support for mining.

On June 17, 2025, the G7 Critical Minerals Action Plan was announced, focused on "diversifying the responsible production and supply of critical minerals, encouraging investments in critical mineral projects and local value creation, and promoting innovation" in the G7, and with partners beyond, "working together to swiftly protect economic and national security."

At the EIT Raw Materials Summit in March, graphite and defence were frequent mentions on the first day, with widespread calls for more action, now the Critical Raw Materials Act is in force, and the need for more money.

Against this backdrop, Leading Edge Materials' CRM portfolio is very well positioned and the company is working on becoming a European CRM producer.

Norra Karr is a globally significant source of HREEs with the economic advantage of valuable industrial minerals, specifically nepheline syenite; a production start within three to four years is in reach. In parallel, Leading Edge Materials is evaluating the restart of production from the fully built and permitted Woxna graphite mine.

On exploration, and possibly future production, Leading Edge Materials has strengthened its position in Romania, with Leading Edge Materials Romania (LEMR) being granted ownership and operational permits for the Avram Iancu mine by CNCAN (National Commission for Control of Nuclear Activities) under the supervision of IAEA (International Atomic Energy Agency) and European Atomic Energy Community (EURATOM).

This is significant recognition of the funds invested and commitment made by the company in country and gives Leading Edge Materials real owner-operator autonomy over a deposit described as one of the most important deposits historically in operation in Bihor (IAEA report, November, 1997) and noted for uranium, copper, lead, nickel and zinc mineralization (IMWA Symposium 2007: Water in Mining Environments, May, 2007).

Norra Karr -- application progresses

On April 8, 2025, the chief executive officer was invited to Solvay's inauguration of a new production line for rare earth permanent magnets (REPM) in France. Solvay is partnering with emerging mining and recycling players to accelerate the establishment of a robust, reliable and sustainable supply chain, crucial for Europe's competitiveness and industrial and technological sovereignty. The essential creation of a European rare earth supply chain was again the theme of Solvay's presentation at the Rare Earth Industry Association (REIA) conference in Montreal last week.

In recent months, the company's application for a new exploitation concession (bearbetningskoncession), 25-year mining lease has been out for consultation. The county administrative boards (CABs) of Jonkoping and Ostergotland have now communicated that they, at this time, cannot approve the environmental impact assessment (EIA) submitted by the company's Swedish subsidiary, Greenna Mineral AB. The CABs state that additional data and analysis are needed.

The decision and statement from the CABs tell Leading Edge Materials that the company has some additional work to do describing the impact of the project, with an emphasis on water, cultural values and impact on other forms of land use. Obviously, these are crucial topics that must be addressed properly in Leading Edge Materials' application. It should be noted that, while the CABs reject Leading Edge Materials' application as it currently stands, they also offer the company the opportunity to supplement it. The company's Swedish environmental permitting team is already reviewing the comments from the CABs in detail, and Leading Edge Materials believes that it will be able to respond with supplementary information to the company's application to the satisfaction of the CABs and other stakeholders.

Developing Norra Karr is of the utmost importance not only for Sweden but for Europe. Geopolitical tensions and unstable global trade flows mean that it is more important than ever to produce HREEs in Sweden. That will enable Leading Edge Materials to extract metals that are essential to both achieving a complete energy transition and secure defences.

Europe relies heavily on China for its imports of HREEs. China dominates all stages of the rare earth elements supply chain from mining to permanent magnet manufacturing. The speed at which China can build new production is awe inspiring, and, with an established industrial base decades in the making, it has the ability to innovate beyond anything Europe can dream.

Europe is compelled to change its ways, think and act radically differently to have a secure future.

Highlighting Sweden's role in CRMs, Sweden's Energy, Business and Industry Minister, Ebba Busch, recently stated: "Sweden has unique opportunities to be and remain a strong player in global mineral politics. We have the most sustainable mining industry in the world -- ethically sustainable, environmentally sustainable and with good working conditions."

The company is developing and will manage Norra Karr with social acceptance and transparency toward the local community as its primary considerations. The new application for mining licence represents a reduction of 65 per cent in land area compared with the old application, which was initially approved in 2013. Chemical processing of the HREE-rich eudialyte concentrate will take place at an existing industrial location and not on site. With the elimination of chemical processing, the company has largely addressed stakeholder concerns about pollution risk to Lake Vattern.

The changes to the application are in response to the public's concerns to the old application. This is what responsible mining companies do -- they listen. Proposed activities at site are now similar to those of a quarrying operation, similar to what already exists around Lake Vattern. Leading Edge Materials' target is to make products from 100 per cent of what the company extracts, HREE-rich eudialyte concentrate and industrial mineral nepheline syenite being the two most critically important.

Looking ahead, a Swedish mining licence (bearbetningskoncession) is decided by the chief mining inspector. If the chief mining inspector and CABs disagree about an application, the government can then make the decision. Leading Edge Materials' objective is to provide supplementary information and explanation on the sufficiency of the company's enhanced application to the full satisfaction of the CABs so that the development of Norra Karr can progress unimpeded.

Alongside the mining lease process, prefeasibility (PFS) work streams are under way. Test work has now been completed on nepheline syenite and aegirine to determine their mineralogy, chemical composition and leachate chemistry. The promising results are being used to determine possible market segments and specifications that can be achieved and potential demand and pricing, to be included in an updated PFS economic model for Norra Karr. The company envisages the PFS will be completed in Q1 2026.

Woxna graphite mine -- potential restart

The company is collaborating with an engineering consultant on updating the in-house production restart study, originally completed in 2022. Leading Edge Materials has initiated crushing test work on Woxna ore to explore improved liberation and preservation of graphite flakes. Additionally, metallurgical test work is planned to evaluate potential upgrades to the processing plant, aimed at optimizing performance.

Leading Edge Materials' objective is to produce a high-quality, high-grade flake graphite concentrate. The company continues to receive inbound inquiries and remain optimistic about Woxna's future prospects.

This continuing work stream will support the development of a new business plan, which could facilitate future project financing discussions and potentially unlock access to Swedish or European Union public funding.

Bihor Sud -- major milestone

Exploration activities at the Bihor Sud project have continued steadily, bolstered by the addition of four new geologists who joined the team in January. Recent work has included underground mapping, diamond drilling, geophysical surveys, core logging and sampling. To accelerate progress, the company plans to change drilling contractors within the next one to two months.

The company remains focused on defining a large-scale, minable mineral resource at Bihor Sud, particularly within gallery G2, where exploration is targeting promising zinc-lead-copper-silver mineralization. Results to date have been encouraging and highlight the project's strong potential for a significant polymetallic discovery.

A major milestone was the granting of ownership and operational permits for the Avram Iancu mine. Historical mining and exploration at this site have left behind hundreds of kilometres of galleries and underground workings. In addition to continuing work at G2, the Romanian team has initiated preliminary investigations at Avram Iancu. It successfully located the entrance to a three-kilometre tunnel observed to be in good condition. Based on historical reports, this tunnel connects with up to 15 kilometres of workings and zones containing massive sulphides in carbonate-replacement deposits with primary copper-bearing minerals -- including chalcocite and bornite.

About Leading Edge Materials Corp.

Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical raw material projects located in the European Union. Critical raw materials are determined as such by the European Union based on their economic importance and supply risk. They are directly linked to high-growth technologies such as lithium-ion batteries and permanent magnets for electric motors, wind turbines and defence applications. The portfolio of projects includes the 100-per-cent-owned Woxna graphite mine (Sweden), the 100-per-cent-owned Norra Karr heavy rare earth elements project (Sweden) and the 51-per-cent-owned Bihor Sud nickel-cobalt exploration alliance (Romania).

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