Victoria, British Columbia--(Newsfile Corp. - April 23, 2026) - ALUULA Composites Inc. (TSXV: AUUA) (OTCQB: AUUAF) ("ALUULA" or the "Company"), a leader in ultra-light, high-performance composite materials, today announces a signed agreement with Export Development Canada (EDC) to retain critical advanced materials manufacturing capability in Canada to help strengthen domestic supply chains and sovereign capacity.

Critical Capability Stays in Canada

As part of this agreement, ALUULA is rehoming select advanced manufacturing equipment following the recent sale of Sheertex's assets. The equipment supports research and development related to the production of ultra-high-molecular-weight polyethylene (UHMWPE) fibre, an exceptionally strong and lightweight material used in a range of industrial applications, including defence systems, ballistic protection, helmets, armour systems, and advanced composite structures for military platforms. ALUULA's intellectual property, and the associated advances in manufacturing, have also enabled the use of UHMWPE in applications requiring lightweight strength in extreme environments, such as soldier systems, operational clothing, packs, and shelters.

While UHMWPE fibre production, which occurs early in the supply chain, is not currently part of ALUULA's business plan, this agreement helps preserve critical sovereign capability across the defence, aerospace, and advanced manufacturing sectors. EDC supported the retention of this equipment in Canada to preserve essential skills, technical expertise, and domestic resilience for dual-use products, strengthening sovereign supply chains and enabling future innovation.

Under the terms of the agreement, Canada has reserved, for a period of three years, the right to access the specific equipment related to the production of UHMWPE fibres, now owned by ALUULA, if it is required for national security or defence.

Closing the Innovation-to-Production Gap

"Canada has world-class research institutions and innovative companies but translating that strength into products built and used in Canada can be challenging," said Sage Berryman, CEO and President of ALUULA. "It requires addressing our innovation challenges with both global thinking and local, opportunistic collaboration, and our joint initiative with EDC is a great example. Ensuring that key capabilities remain here allows industry, researchers, and end users to continue collaborating to move advanced materials from concept to real-world applications."

Several innovative Canadian companies that are beginning to explore UHMWPE-enabled products for global defence applications welcome initiatives like this.

"In the shelter industry, material performance directly impacts durability, mobility and protection in some of the world's most challenging environments," said Ray Castelli, CEO of Weatherhaven. "Having direct access to advanced materials capability in Canada helps us meet the evolving needs of defence and humanitarian operations."

"For modern uniform and technical apparel systems, advanced materials are becoming a critical differentiator in performance, durability, and protection. As a supplier across defence, government, and aviation programs, ensuring these capabilities remain in Canada strengthens our ability to deliver reliable, high-performance solutions at scale," said Michael Smith, President at Unisync.

Strengthening Sovereign Supply Chains

"Canada is at a nation-building moment, and defence and advanced manufacturing capabilities are central to it. Keeping advanced materials innovation in Canada reinforces our country's sovereignty and long-term competitiveness and resilience," says Guillermo Freire, Senior Vice-President, Mid-Market Group at EDC. "We're pleased that ALUULA is providing a new home for this important manufacturing technology, helping ensure critical capabilities remain in Canada."

About ALUULA Composites

ALUULA is an ultra-light, high-performance and recycle-ready composite materials brand that enhances the performance of outdoor gear as well as commercial and industrial equipment. Proudly owned and manufactured on the Canadian west coast, ALUULA's innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. ALUULA's materials are known for their unique construction capabilities and their ability to make products lighter, stronger, and more sustainable.

ALUULA's Brand Partners

The term "brand partners" does not refer to formal partnerships with our customers. The term refers to marketing relationships with our customers who use ALUULA's technology as a brand ingredient in their products.

TSX Venture Exchange

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

Certain statements in this news release contain forward-looking information within the meaning of applicable securities laws in Canada ("forward-looking information"). The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Forward-looking information in this news release includes, but is not limited to: the Company's plans to retain and store the UHMWPE manufacturing equipment; the Company maintaining access to such equipment; the future use of such equipment for research and development, skills development and production; the future demand for advanced materials; and the potential benefits from the Company's collaboration with EDC. The forward-looking information is based on assumptions which includes, but is not limited to: that the Company will be able to successfully re-home and store the UHMWPE manufacturing equipment; that the Company will maintain access to the UHMWPE manufacturing equipment; that global demand for advanced materials will continue to grow; that the collaboration between EDC and the Company will strengthen domestic supply chains and sovereign capacity; and that the risks and uncertainties described in the Company's Management's Discussion and Analysis for the year ended October 31, 2025 do not occur. The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from current expectations. These factors include, but are not limited to: the Company may not be able to successfully store and retain the UHMWPE manufacturing equipment; the anticipated benefits from the collaboration between the Company and EDC may not be realized; changes in global demand for advanced materials; changes in government policies, regulations, or priorities with respect to manufacturing of advanced materials; and, the risks, uncertainties and other factors described in Company's Management's Discussion and Analysis for the year ended October 31, 2025. All forward-looking information in this news release is qualified in its entirety by this cautionary statement and, except as may be required by law, the Company undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.

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