5E Advanced Materials (FEAM) Investor update summary

Commercial progress and offtake agreements

• Signed first long-term offtake agreement for 7,500 tons/year of boric acid, expandable to 10,000 tons, with fixed pricing and annual escalation, supporting bankability for project financing.

• Six active offtake proposals in the pipeline, with three close to binding agreements; focus on building a diversified customer portfolio across industries and geographies.

• Roadshows in the US and Asia have expanded the customer base and product offerings, including new borate products.

• Market demand for a reliable domestic supplier is strong, driven by recent supply deficits and the exit of a major North American producer.

• Offtake structures are tailored for lender requirements, with fixed or collared pricing to underpin debt financing.

Market dynamics and product innovation

• The US boric acid market is in a significant supply deficit after a key domestic producer exited, tightening supply and raising prices.

• Boron was added to the US List of Critical Minerals, increasing strategic importance and government attention.

• New metaboric acid product (80% B2O3) with provisional patent offers higher margins and addresses customer demand for higher boron content.

• Customers pay a premium for higher B2O3 products; metaboric acid fills a market gap between boric acid and boron oxide.

• Samples of metaboric acid are being evaluated by customers, with potential for near-term cash flow.

Project development and financing

• Recent $36 million equity raise was 4x oversubscribed, strengthening the balance sheet and reducing near-term need for additional equity.

• Focus is on securing debt financing, particularly through EXIM, with offtake agreements as a cornerstone for lender confidence.

• Federal and state grant applications, including a major DOE grant, could materially reduce equity needs if awarded.

• Targeting a mix of debt, potential royalties, and non-dilutive funding to finance the Fort Cady project.

• Key milestones before final investment decision include commercial pipeline build-out and well-field de-risking.