Mr. Brent Willis reports

VOYAGEUR PHARMACEUTICALS ACHIEVES FIRST MILESTONE ON FEASIBILITY STUDY FOR IODINE PRODUCTION; SECURES USD $1 MILLION PAYMENT

Voyageur Pharmaceuticals Ltd. has achieved the first milestone under its non-dilutive collaboration and financing agreement with Bayer AG dated Feb. 10, 2026, by submitting a complete feasibility work plan and timetable which has been approved by Bayer.

Voyageur's Houston research and development team has successfully proved out the company's proprietary patent-pending Mueller iodine extraction process, including laboratory production of 99.8-per-cent purity iodine from Anadarko-basin-produced water. Those results provided the technical confirmation required for Bayer to advance the program. The transportable pilot plant is now nearing completion and is scheduled to enter field operation this fall. On that basis, Bayer has remitted the first milestone payment of $1-million (U.S.) to Voyageur. Together with the initial funds of $350,000 (U.S.) paid on March 31, 2026, following execution of the agreement, Voyageur has now received $1.35-million (U.S.) of the $2.35-million committed by Bayer. This financing will allow Fluor to complete the FEL-3 feasibility study once the pilot plant is operational and field data are available. The remaining second milestone payment of $1-million (U.S.) is scheduled to be released upon completion of that study.

"Achievement of this first milestone under our agreement with Bayer is an important step forward for Voyageur," said Brent Willis, president and chief executive officer of Voyageur. "It confirms that the feasibility work is advancing as planned and triggers the first major non-dilutive payment under the collaboration. This capital is expected to further accelerate our iodine supply strategy and move us closer to validating a reliable North American source of high-purity iodine for use in contrast media drugs. Combined with our Frances Creek barium project and planned drug manufacturing capabilities, this work remains central to building a secure, vertically integrated supply chain for radiology drugs."

Subject to successful completion of the feasibility study, Bayer and Voyageur may consider advancing the project into a second phase, to negotiate a long-term off-take supply agreement. The project proposes a 1,000 tonnes per year of iodine production, with a staged production rollout, beginning with 200 tonnes per year production. Upon completion and testing of Voyageur's 200-tonne-per-year iodine extraction unit (Mueller process), Voyageur may evaluate to construct and deploy 200-tonne-per-year units to the field and build out over time and potentially expand capacity to 1,000 tonnes per year. In such a scenario, a central Iodine manufacturing facility would process the iodine concentrate created from the Mueller processing units, and manufacture USP-pharmaceutical-grade iodine, used in manufacturing iodine contrast drugs.

The non-dilutive financing will support continued feasibility work through 2026 and reflects technical progress toward potentially establishing a domestic, high-purity iodine supply for Bayer iodine contrast drug manufacturing.

Engineering support from Fluor

Fluor Corp. (NYSE: FLR), a leading global engineering, procurement and construction firm, has been actively supporting Voyageur with engineering, thermodynamic modelling and project planning. Work is progressing on schedule.

Subsequent engineering phases will progress through FEL-2 (concept design) and FEL-3 (basic design) to define a practical demonstration-scale configuration of the modular field unit plus central hub architecture. The FEL-2 phase is expected to require approximately four to five months, followed by FEL-3 of approximately seven to nine months, with corresponding increases in engineering definition and cost-estimate accuracy.

Strategic context

Voyageur's vertically integrated strategy aims to improve supply-chain security, reduce reliance on imported raw materials, and lower operating costs for the production of medical imaging contrast agents. The global contrast media market is estimated at approximately $7.06-billion (U.S.).

Mr. Willis added: "Voyageur is focused on building multiple potential revenue streams through a staged commercialization strategy. This includes near-term opportunities from barium contrast sales, iodine sales under the Bayer collaboration, and longer-term opportunities from barium- and iodine-based contrast drug sales. The Bayer collaboration, combined with technical support from Fluor, continues to strengthen the foundation for scalable domestic iodine production." The company will provide further updates as the feasibility work progresses, and additional technical milestones are achieved.

About Voyageur Pharmaceuticals Ltd.

Voyageur is in development of barium and iodine active pharmaceutical ingredients (API) and intends to offer high-performance, cost-effective imaging contrast agents. With a strategic focus on vertically integrating the barium and iodine contrast markets, Voyageur aims to become a key player by producing its own barium and iodine. Voyageur has developed five barium contrast products that have Health Canada licences.

We seek Safe Harbor.