Mr. Andrew White reports

CHAR TECH RECEIVES FINAL ESA APPROVAL AT THOROLD FACILITY, CLEARING KILN FOR BURNER STARTUP

Char Technologies Ltd. has been informed that Ontario's Electrical Safety Authority (ESA) has granted final electrical approval for the Thorold renewable energy facility, jointly owned 50:50 by the company and the BMI Group. The approval allows the Thorold facility to bring the phase 1 high-temperature pyrolysis (HTP) kiln up to operating temperature.

ESA approval is the first of the two regulatory sign-offs the company identified in its October 1 announcement of phase 1 mechanical and electrical substantial completion. The second and final sign-off would come from the TSSA, which is scheduled at the Thorold facility next week, following this week's kiln burner start-up. This is the last regulatory step before phase 1 moves into full commercial production.

The company remains on the timeline set out in its Oct. 1 announcement, with commercial ramp-up through October and production and revenue increasing through the end of 2026. Phase 1 is designed to produce up to 5,500 tonnes of biocarbon per year for customers including ArcelorMittal Dofasco, which will use it in place of fossil carbon in its steelmaking under its off-take agreement with the company.

"Our team has done an outstanding job getting the Thorold facility ready for final TSSA approval," said Andrew White, chief executive officer of Char Tech. "That approval is the last step before commercial production, and what we prove at the Thorold facility carries directly into every project we have in development."

Phase 2 will add a second HTP kiln, methanation equipment to upgrade synthetic gas into renewable natural gas (RNG), and an onsite pipeline injection point. When the Thorold facility begins producing RNG, it will be the first facility in the world to produce RNG and biocarbon simultaneously from wood waste.

Quick facts

• 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 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.

We seek Safe Harbor.