Mr. Andrew White reports

CHAR TECH COMPLETES THOROLD PHASE 1; PIONEERING PROJECT NOW SET FOR COMMERCIAL BIOCARBON RAMP-UP

Char Technologies Ltd. has substantially completed phase 1 mechanical and electrical construction at its Thorold renewable energy facility, the company's first commercial renewable energy and biocarbon production facility, jointly owned 50/50 between the company and The BMI Group. The Thorold facility will move to commercial production of biocarbon achieving the facility's first commercial revenues.

The Thorold facility has achieved substantial mechanical and electrical completion and is ready for full end-to-end operational kickoff and ramp-up. The immediate next steps are for the Electrical Safety Authority and the Technical Standards and Safety Authority to provide final approvals as each system is brought fully on-line and up to temperature for commercial biocarbon and pyrolysis gas production.

The company is on track with the timeline set out in its August update, with commercial operations ramping up through October and production and revenue increasing through the end of 2026 as the Thorold facility moves toward its full phase 1 run rate. Phase 1 is designed to produce up to 5,500 tonnes of biocarbon per year, supplying customers, including ArcelorMittal Dofasco, which will use it to replace fossil carbon in its steelmaking under the previously announced offtake agreement.

Reaching this milestone reflects the partnerships Char Tech has built across its value chain, including feedstock suppliers, joint venture partners and offtake partners, in the steelmaking and ferrosilicon sectors.

With the substantial completion of phase 1 mechanical and electrical construction, 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.

"Completing phase 1 at Thorold marks a critical milestone for Char Tech as the facility transitions to first revenues and establishing ourselves as a leader in the biocarbon industry," said Andrew White, chief executive officer of Char Tech. "The journey has not been a straight line, and the perseverance of our team, our partners and our shareholders has been critical to reaching this point. There is still hard work ahead as we move towards the RNG phase of construction and production, but this is an enormous leap forward towards that ultimate goal."

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 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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