Mr. Kurt Budge reports

LEADING EDGE MATERIALS ADVANCES MIDSTREAM PROCESSING STRATEGY FOR THE NORRA KARR HEAVY RARE EARTH ELEMENTS PROJECT

Leading Edge Materials Corp. has provided an update on its mid-stream processing strategy for eudialyte concentrate from the Norra Karr heavy rare earth elements (HREE) project -- and the path toward pilot-scale hydrometallurgical testing, a key step in demonstrating the process at commercial scale. This builds on the significant flow sheet development work completed over the past 15 years, and new research into silicate management under the Vinnova-financed Shlenk project.

Eudialyte processing

Eudialyte is recognized globally as one of the most promising mineral sources of heavy rare earth elements, with projects in Greenland and Australia being developed in addition to Norra Karr in Sweden. With eudialyte, the behaviour of silicates during leaching needs to be managed to prevent gel formation. Two well-known approaches are dilution, reducing silicate concentrations through sufficient dilution during leaching and inhibiting gel formation, and pretreatment, treating the eudialyte concentrate ahead of leaching to prevent silicate release during dissolution, while preserving rare earth element solubility. Studies have demonstrated that under correctly selected pretreatment conditions for a given source material, silicate leaching can be effectively prevented. The pretreatment option was used in the company's 2021 preliminary economic assessment (PEA) and current project development workstreams are focused on performance and cost optimization and upscaling studies.

Pilot-scale hydrometallurgical testing

The pretreatment approach has shown strong results in laboratory-scale testing for Norra Karr material and an extended pilot is intended to further strengthen hydrometallurgical understanding. To achieve optimal pilot data, a new high-grade eudialyte concentrate will be produced. Over the summer, the company is conducting a domain sampling program using the existing drill core library. This will be followed by further mineral processing to produce eudialyte concentrate while also generating valuable nepheline syenite as co-product for customer trials.

Consistent with the design set out in the company's 2021 PEA, mineral processing at Norra Karr will only feature crushing, grinding and magnetic separation; the eudialyte concentrate would then be transported to a mid-stream hydrometallurgical facility at a separate, established industrial location -- keeping the footprint at Norra Karr small and placing chemical processing where infrastructure already exists.

New innovation research: the Shlenk project

The pilot work program will benefit from research into improved processing methods, including through the company's collaboration with RISE (Research Institutes of Sweden) under the 1.5-million-Swedish-kronor ($200,000 (Canadian)) financed Shlenk project -- "Silicate management in leaching of eudialyte from Norra Karr."

Shlenk is one of two research projects involving the company's wholly owned swedish subsidiary, Greenna Mineral AB, that have recently been granted funding by the Swedish government through Vinnova's Impact Innovation call, "Resilient metals and minerals supply for strengthened preparedness," alongside the NordAL (Nordic Alumina) project.

Together with 17 other projects, these initiatives form part of a national effort to strengthen Sweden's metals and minerals supply chain in peacetime, during heightened preparedness and in times of crisis. The combined program represents more than 70 million Swedish kronor (approximately $10-million (Canadian)) in financing, of which approximately 42 million Swedish kronor ($6-million (Canadian)) is provided by Vinnova.

For the company, this financing represents strong recognition of the strategic importance of its work at Norra Karr and its contribution to building a more resilient and secure supply chain for critical raw materials in Sweden and the Nordics.

The work is carried out within Swedish Metals & Minerals, a joint initiative by the Swedish Energy Agency, Formas, and Vinnova under the framework of Impact Innovation.

Kurt Budge, chief executive officer, commented: "Following the grant of the 25-year mining lease, our work continues towards developing Norra Karr, the EU's [European Union] first heavy rare earth elements mine.

"Progressing with our prefeasibility study, we continue to derisk and enhance the processing flow sheet for Norra Karr. We have a clear plan: working with the best eudialyte concentrate, verifying our pretreatment approach to silicate management and generating the data we need to run at pilot scale.

"Heavy rare earths like dysprosium and terbium are foundational to the technologies driving electrification and defence readiness across Europe, and Norra Karr remains one of the continent's richest deposits. The support from Vinnova is a strong validation of the strategic role Norra Karr can play in strengthening Sweden's and Europe's resilience in critical raw materials."

About the Norra Karr project

Norra Karr is one of Europe's most significant deposits of heavy rare earth elements, hosted in an eudialyte-bearing alkaline rock body in southern Sweden. The project's strategic value is underpinned by its high dysprosium and terbium (Dy/Tb) content, critical inputs for permanent magnets used in electric vehicles, wind turbines and defence applications.

On June 28, 2026, an exploitation concession (25-year mining lease) was granted by the Swedish government following a formal recommendation from the mining inspectorate (Sw. Bergsstaten), which submitted the application to the government for a final decision after all involved agencies had either endorsed the application or recommended approval.

The strategic importance of heavy rare earth elements to Europe's industrial future has never been more apparent. As China's export controls have demonstrated, access to dysprosium, terbium and yttrium cannot be taken for granted -- and the consequences of supply disruption are severe. Norra Karr, now holding an exploitation concession, is key to addressing Europe's critical risk exposure.

The scientific and technical information contained in this news release relating to the Norra Karr project, including details of forecast dysprosium, terbium and yttrium production, are set out the National Instrument 43-101 technical report entitled "Preliminary Economic Assessment of Norra Karr Rare Earth Deposit and Potential By-Products, Sweden," with an effective date of Aug. 18, 2021, and an issue date of Aug. 19, 2021, prepared for Leading Edge Materials by SRK Consulting (U.K.) Ltd. The report is available on the company's website and under its SEDAR+ profile.

Qualified person

The scientific and technical information contained in this news release relating to the Norra Karr project has been reviewed and approved by John Willis of SRK Consulting (U.K.), a chartered professional and a member of the Australasian Institute of Mining and Metallurgy, who is an independent qualified person under the terms of NI 43-101 for REE (rare earth element) deposits. SRK qualified persons are all independent as defined under NI 43-101, Standards of Disclosure for Mineral Projects.

About Leading Edge Materials Corp.

Leading Edge Materials is a Canadian-listed company focused on developing critical raw material assets across the European Union. Its primary focus is the wholly owned Norra Karr heavy rare earth element project in Sweden -- one of the world's most strategically significant heavy rare earth deposits and among the few advanced-stage projects within the European Union capable of producing dysprosium, terbium and yttrium at meaningful scale.

Situated in one of the globe's most politically and regulatory stable mining environments, Norra Karr is well positioned to contribute directly to the objectives of the EU's Critical Raw Materials Act, including the bloc's target of sourcing 10 per cent of its critical raw material consumption domestically by 2030. Beyond rare earths, the company also holds the Woxna graphite mine in Sweden -- a fully constructed and permitted facility -- as well as a 90-per-cent stake in the Bihor Sud nickel-cobalt exploration alliance in Romania.

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