Mr. Andrew White reports

CHAR TECH NEARS FINAL MECHANICAL INSTALLATION AT THOROLD FACILITY

Char Technologies Ltd. has provided a further update on commissioning activities at its Thorold renewable energy facility, the company's first commercial renewable energy and biocarbon production facility, jointly owned 50/50 between the company and The BMI Group.

Building on the completed installation of the commercial high-temperature pyrolysis (HTP) kiln, the pyrogas treatment piping has been fabricated and installation at the Thorold facility begins this week. This is the last remaining major mechanical construction step at the facility. With the piping in place, commissioning will run and ramp up through to commercial operations.

The company remains on track toward the timeline set out in its August update. Commercial operations at the Thorold facility continue to be targeted to ramp up through October, with production and associated revenue expected to increase through the end of 2026 as the facility moves toward its phase 1 run rate. Phase 1 is designed to produce up to 5,000 tonnes per year of biocarbon, with clients including ArcelorMittal Dofasco under the previously announced offtake agreement to reduce fossil carbon in its steelmaking processes.

Following completion of phase 1, the company intends to proceed with phase 2 construction, which includes installation of a second HTP kiln, addition of methanation equipment to upgrade synthetic gas into renewable natural gas (RNG) and construction of an on-site RNG pipeline injection point.

"The pyrogas piping is fabricated and it goes in this week, which takes us to the end of the major construction items for phase 1," said Andrew White, chief executive officer of Char Tech. "From here it is commissioning through to commercial operations as we ramp up the facility through October."

Quick facts

• Char Tech has secured offtake agreements with ArcelorMittal Dofasco (steelmaking) and Elkem ASA (ferrosilicon) for biocarbon, demonstrating broad industrial demand for biocarbon.
• In December, 2022, the government of Ontario announced approved funding of $6,438,168 for the project through the Forest Sector Investment and Innovation Program, a business support program designed to improve productivity and innovation, enhance competitiveness, support new market access, and strengthen regional economies.
• In December, 2025, the government of Ontario announced approved funding of $2,259,142 for the project through the Forest Biomass Program, a business support program that is a key element of Ontario's actions to drive forest sector growth.
• The government of Canada provided $4,938,168 for the project through the Investments in Forest Industry Transformation program and also provided $1.5-million for the project through the Federal Economic Development Agency for Southern Ontario Jobs and Growth Fund.
• The BMI Group made a $8-million project-level equity investment directly into the Char Tech Thorold renewable energy facility, resulting in 50/50 ownership of the facility between Char Tech and BMI.

About Char Technologies Ltd.

Char Tech is a Canadian clean-technology company developing first-in-kind high-temperature pyrolysis (HTP) systems that process unmerchantable wood and organic waste to generate two renewable energy revenue streams, renewable natural gas or green hydrogen, and a solid biocarbon that serves as a carbon-neutral, drop-in replacement for metallurgical coal.

Char Tech's HTP platform is also advancing a new vertical focused on the permanent destruction of PFAS in wastewater biosolids. Operating at temperatures sufficient to break down long-chain fluorinated compounds, the system enables municipalities and industrial operators to eliminate PFAS while converting biosolids into energy and low-carbon solid products.

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