Mr. Andrew White reports

CHAR TECH COMPLETES THOROLD KILN INSTALLATION

Char Technologies Ltd. has provided an update on commissioning activities at its Thorold renewable energy facility, the company's first commercial renewable energy and biocarbon production facility that is jointly owned 50/50 between the company and The BMI Group, which specializes in the acquisition and conversion of heavy industrial infrastructure into deployment-ready, multisector platforms, following BMI's previously announced $8-million project-level equity investment directly into the Thorold facility.

Installation of the commercial HTP kiln is complete, including the kiln's heat tube, a long-lead critical path component. With mechanical installation of the kiln finished, the remaining construction step is the connection of the pyrogas piping and instrumentation. With the kiln installation complete, kiln commissioning can commence, and, following completion of the pyrogas piping and instrumentation, final commissioning will continue through to commercial operations.

The company is targeting commercial operations at the Thorold facility by the end of September, 2026, with production and associated revenue expected to increase through the end of 2026, as the facility ramps toward its phase 1 run rate. Phase 1 of the Thorold facility is designed to produce up to 5,000 tonnes per year of biocarbon, with clients including ArcelorMittal Dofasco under the previously announced offtake agreement, to reduce fossil carbon in the steelmaking processes.

Following completion of phase 1, the company intends to proceed with phase 2 construction, which includes installation of a second HTP kiln, addition of methanation equipment to upgrade synthetic gas into renewable natural gas and construction of an on-site RNG pipeline injection point.

"The team and our partners at BMI have brought the kiln through to completed installation, and we are now down to the final pyrogas piping before commissioning advances to commercial operations," said Andrew White, chief executive officer of Char Tech. "This is the last major step on phase 1, and it moves the Thorold facility toward its first commercial biocarbon revenues and it sets the stage for phase 2 to commence."

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 the Southern Ontario Jobs and Growth Fund.
• The BMI Group made an $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.

Char Tech's HTP platform is also advancing a new vertical focused on the permanent destruction of PFAS in waste water biosolids. Operating at temperatures sufficient to break down long-chain fluorinated compounds, the system enables municipalities and industrial operators to eliminate PFAS while converting biosolids into energy and low-carbon solid products.

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