Mr. Troy Lupul reports

PLASCRED ENTERS INTO COMMERCIAL SUPPLY AGREEMENT WITH CIRCULAR MATERIALS

Plascred Circular Innovations Inc. has executed a commercial agreement with Circular Materials (CM) to supply postconsumer plastic waste collected in Alberta to Plascred for advanced recycling into refined hydrocarbon condensate for use in new plastic production.

Circular Materials is a national not-for-profit producer responsibility organization founded by leading consumer goods, retail, food, beverage and restaurant companies. Circular Materials manages extended producer responsibility (EPR) obligations on behalf of producers by contracting collection, transportation, and processing services and supporting compliance with mandated recovery requirements.

Under the agreement, Circular Materials will supply Plascred with postconsumer flexible plastic packaging collected in Alberta for processing under a tolling arrangement. The agreement provides Plascred with a steady supply of sorted flexible plastics for processing, helping derisk feedstock procurement and transportation while supporting commercial processing revenue through the tolling arrangement. In turn, the agreement supports Circular Materials' efforts to ensure producers obligated under EPR in Alberta benefit from technological innovation that delivers environmental benefits and economic efficiency.

"This initiative with Plascred reflects Circular Materials' ongoing commitment to advancing the circular economy and leveraging new technology to help return recycled material directly back to producers for use in new products and packaging," says Allen Langdon, chief executive officer of Circular Materials. "This will drive local innovation for a plastics circular economy that is environmentally effective and economically efficient."

Plascred was selected by Circular Materials through a request for expressions of interest (REOI) process, designed to identify technologies, systems and processes capable of recovering resources from plastic packaging waste and supporting resource recovery targets under provincial EPR regulations.

Neos facility

The company's proposed Neos facility, to be located at CN Rail's Scotford Yard in Alberta's Industrial Heartland, is designed to process up to 100 tonnes per day of mixed plastic waste into 500 barrels per day of refined hydrocarbon condensate, a drop-in replacement for fossil-derived naphtha. All production is contracted under a fixed price five-year offtake agreement at $120 per barrel with a global commodities company. The Circular Materials supply agreement provides a contracted portion of Neos's total sorted plastic feedstock requirements with potential for increased quantities as Plascred demonstrates processing capacity and operational performance.

"This agreement is a defining milestone for Plascred and for Neos. It validates our technology, secures EPR feedstock supply backed by leading consumer brands in Canada, and strengthens project economics through a tolling arrangement where Plascred is paid to process the material," said Troy Lupul, president and chief executive officer of Plascred. "We're proud to partner with Circular Materials to deliver a Canadian solution for one of the country's most challenging plastic waste streams."

About Plascred Circular Innovations Inc.

Plascred is an Alberta-based company developing an advanced plastic recycling facility. The company's engineered, modular platform converts mixed plastic waste into refined hydrocarbon condensate for use in virgin plastic production, petrochemical feedstock and upstream energy applications.

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