Mr. Kurt Budge reports

LEADING EDGE MATERIALS' WOXNA GRAPHITE TARGETS PREMIUM APPLICATIONS WITH CONFIRMATION OF PURIFICATION ROUTE

Leading Edge Materials Corp. has provided an update on test work completed on ore sourced from the company's 100-per-cent-owned Woxna graphite mine. The program was designed to evaluate new processing techniques aimed at producing large-flake, high-purity flake graphite concentrate suitable for premium industrial and battery applications.

Kurt Budge, chief executive officer, wrote: "These results are an important step forward for Woxna. Achieving 99.96-per-cent purity through a straightforward two-stage alkaline process -- without energy-intensive preheating -- demonstrates that Woxna can produce battery and high-end industrial-grade graphite through an industrially practical and cost-effective route.

"Equally encouraging is the large-flake retention from flotation, which is a key value driver for premium applications. It is also worth noting that this test work was conducted on historical stockpiled ore showing signs of oxidation -- conditions that are known to reduce flotation efficiency -- so we have good reason to expect even stronger performance from freshly mined material. Taken together, these results meaningfully reinforce our confidence in Woxna's commercial potential.

"With global demand for natural flake graphite forecast by Benchmark Mineral Intelligence to more than double by 2035 and a supply deficit in battery-grade material already beginning to emerge, the timing for advancing Woxna toward production could not be more compelling. Europe needs a domestic, responsibly sourced graphite supply chain, and Woxna is one of very few assets on the continent capable of delivering it."

Milling and flotation test work

Woxna ore was processed using VeRoLiberator (VeRo) milling equipment across a range of settings to assess whether the method could liberate graphite while preserving intact large flakes. Specialist contractor ProGraphite then conducted a testing program evaluating VeRo performance, followed by limited flotation and purification trials. Milling tests were conducted using VeRo technology, which achieves high levels of graphite liberation in a single pass, using significantly less energy than conventional methods and operating dry. Six tests were performed across a range of settings to identify conditions that retain large flake size while achieving sufficient liberation. The milled products were sent to ProGraphite for analysis and characterization. Clear differences were observed between VeRo settings, with samples varying significantly in particle size distribution -- including flake size -- and degree of liberation. Further optimization work is planned to establish the ideal settings for commercial-scale production. In addition to particle size analysis, samples were examined using optical microscopy, SEM (scanning electron microscopy) and MLA (mineral liberation analysis). The MLA results were particularly informative regarding liberation, though mineral composition varied slightly between samples; the principal components were consistent across all. ProGraphite then conducted flotation testing, beginning with a flash flotation approach that produced a concentrate with an LOI (loss on ignition) of 94 per cent. Performance was below expectations based on historical data, with a notable proportion of graphite reporting to the scavenging stage after rougher flotation. This is attributed to two factors: the ore not being freshly mined and the VeRo settings having been configured to prioritize flake size retention over maximum liberation. Nonetheless, the flotation test demonstrated that a relatively coarse, large-flake concentrate can be produced from the ore, achieving a flake content of over 50 per cent at an LOI of 94 per cent. Higher purity is attainable, though likely at the cost of some reduction in particle size.

Purification test work

ProGraphite conducted a series of purification trials on the flotation concentrate to evaluate the effectiveness of different purification methods and process conditions. Methods tested included alkaline purification -- using either HCl (hydrochloric acid) or H2SO4 (sulphuric acid) as the acid component -- and hydrofluoric acid (HF) purification, with additional investigation into the influence of preheating and process temperature.

The initial alkaline purification campaign established that HCl alone, Test 1A, yields only moderate purity in a single stage, achieving LOI values of 97.65 per cent and necessitating a second purification step to exceed 99 per cent.

Preheating the concentrate to 300 to 400 C prior to purification significantly reduced sulphur levels, though it produced an anticipated increase in iron content. The best overall results were achieved through a two-stage process combining a sodium hydroxide bake with subsequent HCl leaching -- the highest LOI value of the entire test series at 99.99 per cent, Test 2B. Without the energy-intensive preheating step, an LOI of 99.96 per cent with similar impurity profiles was achieved, making Test 1B interesting for an industrial process.

While the findings are preliminary and further optimization work is planned, they support the technical viability of a Woxna restart and provide a solid foundation for continuing engineering and process development studies. The company intends to assess whether an updated PEA (preliminary economic assessment) is warranted as this work progresses.

Natural flake graphite -- outlook

According to Benchmark Mineral Intelligence, global demand for natural flake graphite is forecast to more than double within a decade -- rising from approximately 1.2 million tonnes in 2025 to nearly three million tonnes by 2035 -- driven by the rapid expansion of electric vehicle production and battery energy storage.

Benchmark projects a persistent supply shortfall in the minus-100-mesh, 94-to-95-per-cent-carbon segment, the preferred feedstock for battery applications, with the deficit beginning now and growing to almost one million tonnes by 2040.

Against this backdrop, the geographic concentration of production -- with China accounting for the vast majority of global natural flake graphite supply and controlling almost all anode refining capacity -- has prompted downstream battery manufacturers and automakers to accelerate diversification of their supply chains.

Woxna, as one of Europe's few fully permitted and production-ready natural flake graphite operations, is strategically positioned to meet growing regional demand for responsibly sourced, low-carbon graphite -- offering European battery and industrial customers a credible, sovereign alternative to Chinese supply.

Qualified person statement

The technical information related to the Woxna graphite project in this announcement has been reviewed and verified by Christopher Stinton of Zenito Ltd., BSc (honours), CEng, MIMMM, an independent qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Stinton is an employee of Zenito, which provides technical consulting services in relation to the company's Woxna graphite project.

About Leading Edge Materials Corp.

Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical raw material projects located in the European Union. Critical raw materials are determined as such by the European Union based on their economic importance and supply risk. They are directly linked to high-growth technologies such as lithium-ion batteries and permanent magnets for electric motors, wind turbines and defence applications. The company's portfolio of projects includes the 100-per-cent-owned Woxna graphite mine (Sweden), 100-per-cent-owned Norra Karr heavy rare earth elements project (Sweden) and the 90-per-cent-owned Bihor Sud nickel-cobalt exploration alliance (Romania).

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