Mr. Jean Paschini reports

ADF GROUP INC. ANNOUNCES PROPOSED FINANCING FROM INVESTISSEMENT QUEBEC

ADF Group Inc. intends to enter into an agreement with Investissement Quebec (IQ) for a loan of up to $10-million to finance capital expenditures related to the expansion project of the site of its subsidiary Groupe LAR Inc. in Metabetchouan-Lac-a-la-Croix, Saguenay-Lac-Saint-Jean (the Metabetchouan project).

The Metabetchouan project, valued at $40-million, will include the transformation of the current plant, the construction of an adjacent extension and the acquisition of state-of-the-art equipment, and is expected to create 82 jobs in the Saguenay-Lac-Saint-Jean region. The Metabetchouan project will be carried out in parallel with the project to modernize ADF's facilities in Terrebonne (the Terrebonne project and with the Metabetchouan project, the projects), which represents an investment of $10-million and aims in particular to adapt a fabrication bay dedicated to structures intended for the Quebec hydroelectric market.

The corporation has also entered into an agreement for loans granted under the ESSOR program, governed by IQ on behalf of the government of Quebec, in the amount of $4-million, interest-free, for the Metabetchouan project, and $1-million, bearing interest at a fixed rate of 4.1 per cent, for the Terrebonne project.

This financing, which remain contingent upon the conclusion of agreements between the parties, is in addition to the contribution agreement signed on May 26, 2026, with the government of Canada through the Strategic Response Fund, under which the government of Canada committed a contribution of up to $12.5-million to the corporation, including a non-repayable portion of $6.25-million and a repayable interest-free portion of $6.25-million. The refundable portion will be payable in eight equal annual instalments beginning Feb. 1, 2029. Government disbursements are subject to the terms and conditions of the agreement and will be made as the projects progress and eligible claims are submitted.

The corporation is actively pursuing its efforts to finalize the financing package necessary to carry out the projects and intends to explore all avenues of financing available for this purpose, including with financial institutions and government agencies.

About ADF Group Inc.

ADF Group is a North American leader in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel buildups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. ADF Group is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. The corporation operates two fabrication plants and two paint shops, in Canada and in the United States, and a construction division in the United States, which specializes in the installation of steel structures and other related products.

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