Mr. Matthieu Bos reports

FALCON ENERGY MATERIALS PLC ANNOUNCES ADVANCED DISCUSSIONS TO MAKE STRATEGIC ACQUISITION AND FULLY COMMITTED PRIVATE PLACEMENT OF C$30 MILLION

Falcon Energy Materials PLC is in advanced discussions to acquire a strategic interest in an existing anode producer. Concurrently, the company is pleased to announce a fully committed non-brokered private placement for gross proceeds of $30-million to finance: (i) the potential acquisition; (ii) the company's growth plan in Morocco and internationally; and (iii) general working capital requirements.

"This private placement funds our growth plans in Morocco and internationally and is very well supported by our institutional investors, underscoring their confidence in Falcon's strategy and long-term prospects. Most importantly, the private placement and the potential acquisition further derisks the development of our anode plant in Morocco, positioning Falcon well to advance this key project with multiple catalysts ahead," said Matthieu Bos, chief executive officer of Falcon.

Potential acquisition

The company is pleased to announce that it is in advanced discussions to acquire a strategic minority interest in an existing anode material producer in China. The potential acquisition, if completed, would represent a significant step towards derisking of the company's development of a state-of-the-art anode material production facility in Morocco.

Discussions between the parties are continuing. However, there can be no assurance that these discussions will result in a definitive agreement, or that if a definitive agreement is entered into, that the potential acquisition will be completed in accordance with its terms. The company does not undertake any obligation to update or revise these forward-looking statements, except as required by law, including the policies of the TSX Venture Exchange.

Private placement

Under the terms of the fully subscribed private placement, the company will issue up to 30 million units of Falcon at a price of $1.00 per unit. Each unit will comprise one ordinary share of the company and one-half of a non-transferable share purchase warrant. Each full warrant grants the holder the right to purchase, for a period of 24 months from the date of closing, one additional share at a price of $1.29 per warrant share.

The private placement will be subject to standard regulatory approvals and conditions, including but not limited to, the receipt of all necessary approvals of the TSX-V. All securities issued under the private placement will be subject to a statutory four-month hold period in accordance with applicable Canadian securities laws. No commissions will be payable in connection with the private placement.

The proceeds from the private placement will be used to finance (i) the potential acquisition; (ii) the company's growth plan in Morocco and internationally; and (iii) general working capital requirements.

The company anticipates that insiders of the company will participate in the private placement. The extent of insider participation has not been determined at this time. Any insider participation will be disclosed in accordance with the policies of the TSX-V and applicable securities laws.

The private placement is open to all existing investors as well as new investors. The company encourages interested investors to reach out immediately to register interest in the private placement. Closing of the private placement is expected on or about Sept. 23, 2026, or such other day as the company may choose and remains subject to customary conditions, including the receipt of all necessary regulatory approvals.

About Falcon Energy Materials PLC

Falcon Energy Materials is aiming to be the premier provider of natural coated spheronized purified graphite, a critical component for energy storage solutions. As a dedicated chemical refiner of natural graphite concentrate, Falcon is working diligently toward the development of a state-of-the-art 25,000-tonne-per-annum CSPG production facility in Morocco.

Strategically partnered with leading Chinese technology firms and Tier 1 Moroccan partners, Falcon benefits from advanced technological expertise, access to high-quality raw materials and chemicals, and a prime geographical location factors that will enable it to deliver consistent, high-quality supply to global markets.

With a clear focus on sustainable growth and innovation, Falcon aims to become the go-to producer of natural CSPG, supporting widespread adoption in energy storage and other emerging industries.

We seek Safe Harbor.