Grafintec Secures Extension of Site Reservation

Beowulf (AIM: BEM; Spotlight: BEO) is pleased to announce that its wholly owned Finnish subsidiary, Grafintec Oy ("Grafintec"), has received approval from the City of Kotka to extend the reservation of the site for its planned Graphite Anode Materials Plant ("GAMP") in the Keltakallio industrial area.

The extension secures the reservation of approximately 13 hectares on Plot 285-46-168-3 for a further twelve months until 30 June 2027, under the existing agreement signed in July 2025. In accordance with the terms of the agreement, Grafintec may request a further extension of the reservation, subject to the City's approval.

The extension provides Grafintec with the time required to advance the next phase of GAMP's development, following the recently announced strategic financing process. As announced earlier this month, Beowulf entered into a binding Investment Agreement with Bacchus Capital Advisers Limited and affiliated entities for a strategic investment in the Company. Subject to completion of this financing, the Company expects to recommence and accelerate key development activities, including:

• completion of the Environmental Impact Assessment ("EIA");
• advancement of environmental permitting and supporting baseline studies;
• detailed engineering, process optimisation and technical studies to support the next stage of project development;
• continuation of product qualification activities and engagement with potential customers and strategic partners;
• supporting GAMP pilot-scale process development; and
• continued close cooperation with the City of Kotka, Cursor Oy and other stakeholders.

Ed Bowie, Chief Executive Officer of Beowulf, commented:

"With the continued geopolitical instability, developing secure, resilient supply chains for critical raw materials within Europe has never been more important. The Kotka region is an excellent location for the establishment of the GAMP and the development of a European battery hub. I am delighted to continue our cooperation with the City of Kotka and the Cursor business development team."

Rasmus Blomqvist, Managing Director of Grafintec, commented:

"With the extension of the reservation secured, Grafintec will now focus on progressing environmental permitting, engineering and pilot-scale development, while continuing discussions with customers, strategic partners and funding providers.

"The momentum building within the Power Coast battery cluster makes this an exciting time for the project. The extension also reinforces the strong relationship we have built with the City of Kotka and supports our shared ambition to establish a sustainable graphite anode materials production facility that strengthens both Finland's and Europe's battery value chain. We look forward to continuing our excellent cooperation with the City of Kotka, Cursor and other stakeholders as we advance the project towards its next major milestones."

Power Coast and the Kotka-Hamina region

The Keltakallio industrial area continues to strengthen its position as one of Northern Europe's leading battery materials hubs, supported by the Power Coast battery cluster initiative. Grafintec's planned facility is located immediately adjacent to Easpring Finland New Materials Oy's cathode active materials ("CAM") plant, where excellent progress continues to be made with construction, with commercial production slated for 2027. Together with excellent logistics through the Port of Hamina-Kotka, competitive renewable electricity, water availability and established industrial infrastructure, the location offers an ideal platform for developing a European battery materials ecosystem.

Figure 1: View of Keltakallio area looking to the north

Figure 2: View of the Easpring CAM development

About GAMP

Grafintec's planned GAMP represents an important opportunity to establish an independent European source of sustainable anode materials. The Company's proprietary purification process has been designed to produce anode materials meeting the tight specifications required by customers whilst minimising reagent consumption, maximising recycling and significantly reducing environmental impacts compared with conventional hydrofluoric acid-based processing routes.

Grafintec continues to engage with potential customers, strategic partners and funding institutions as it advances the project towards the next stage of engineering and permitting. The Company believes that the strategic rationale for establishing a European source of sustainable graphite anode materials is ever more critical in order to ensure that Europe develops its own resilient supply chains to support the lithium battery sector. The Kotka region represents an excellent location for such a production facility benefiting from the continued development of the Power Coast battery cluster.

The GAMP's robust economics were demonstrated in the Pre-Feasibility Study ("PFS"), completed in 2025, which delivered a post-tax NPV8 of €924 million and a post-tax IRR of 37% over a 25-year operational life for Phase 1 production of 25,000 tonnes per annum of Coated Spherical Graphite ("CSPG"). Phase 1 represents an estimated capital investment of approximately €225 million, and is expected to create around 85 direct jobs, with a subsequent Phase 2 expansion increasing total investment to approximately €675 million, and supporting around 250 permanent jobs.

The Company has applied for Strategic Project status under the EU's Critical Raw Materials Act ("CRMA"). Assessment of applications has taken longer than initially anticipated due to the large number of applicants, but should be completed and announced during Q3 2026.