New Agreement Worth US$4.0 million

Haydale signs landmark agreement with China-based partner worth US$4 million over 5 years to expand the reach of its high-quality Silicon Carbide (SiC) whisker reinforced cutting tool business

Haydale (AIM: HAYD), the global Advanced Materials company, is delighted to announce that it has signed an agreement with a Chinese tooling manufacturing company (with whom it has been trading for over 12 months generating over US$250,000 in sales for Haydale) to facilitate the distribution of Haydale's world leading Silicon Carbide (SiC) whisker reinforced cutting tool parts to new markets in Asia. This agreement specifies a progressive minimum annual financial commitment for the partner to place US$4.0m of orders with Haydale over the duration of the five year deal. The size of the Chinese Silicon Carbide cutting tool market has been estimated at c. US$214 million by 2024 with a compound annual growth rate of 6.2 % (Source: Global Silicon Carbide Fibres Market Report 2021 - 2028, Market Insight Reports).

Under the terms of the agreement the Chinese tooling manufacturing company will be the exclusive distributor of Haydale's unique and high-quality silicon carbide tooling into the Chinese market. This partnership is set to enhance the availability and accessibility of these premium materials to a broader range of industries in China, including the aerospace, automotive, and industrial manufacturing sectors.

Importantly, the agreement will also provide Haydale with exclusive access to their new partner's range of proprietary Carbide and Cermet products for the US and UK markets (although there is no minimum financial commitment set for this element) which, together with another agreement signed earlier this year with a China based Cubic Boron Nitride (CBN) tooling manufacturer, will allow Haydale to provide a one stop shop offering to its customers across a wide range of tooling requirements.

This landmark deal for Haydale, valued at US$4.0 million over the five years, marks a major milestone in the Company's global expansion strategy, increasing their portfolio of tooling offerings, and promises to bolster the commercial scope and reach of its US-based tooling operation.

Haydale's CEO, Keith Broadbent, commented:

"We are excited to sign this agreement with our Chinese partner to help to bring our innovative silicon carbide cutting tool materials to China and the Asia area. It represents a significant opportunity for us to expand our international footprint and to support the growth of our manufacturing operations in the United States. We look forward to a successful collaboration that will drive value for both companies and our customers.

"Haydale's silicon carbide cutting tool materials are renowned for their superior quality and performance, offering enhanced durability, efficiency, and precision for a wide range of applications. The Company's commitment to excellence has positioned it as a trusted supplier in the cutting tool materials market. This new distribution agreement is part of Haydale's strategic plan to increase its presence in key global markets and to leverage new opportunities for growth and development."

Caution regarding forward looking statements