Combined After-Tax NPV8% of US$1,321 Million and IRR of 43% over 25 years

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Initial Capital Costs of US$185 Million for Lola Graphite Project and US$73 Million for Morocco Anode Plant

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Preliminary Economic Assessment for Integrated Development Plan Replaces November 12, 2024 Press Release

Abu Dhabi, United Arab Emirates, December 23, 2024 – Falcon Energy Materials plc (TSX-V: FLCN ) (“Falcon” or the “Company”) today announces the positive results of the Preliminary Economic Assessment (“PEA”) for the integrated development plan (“IDP”), consisting of the Lola Graphite Project (the “Mine”) in the Republic of Guinea (“Guinea”) and a natural graphite spheroidization, purification and coating plant (the “Anode Plant”, view the video HERE) in the Kingdom of Morocco (“Morocco ”). The PEA, prepared by Dorfner Anzaplan UK Limited (“Anzaplan”), showcases the financial and operational potential of Falcon’s vision to become a vertically integrated producer of coated, spheroidized and purified graphite (“CSPG”) anode material at industry leading operating costs.

Falcon issued a press release on November 12, 2024 (the “November 12 Release”) which announced positive results from a preliminary economic assessment for the Anode Plant. Following a review by the Autorité des marchés financiers, the Company clarifies that the terms “preliminary economic assessment” and “feasibility study” referred to in the November 12 Release are not the same as those associated with mineral projects as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101 ”) because the Anode Plant, considered on  a stand-alone basis, is not a mineral project but rather an industrial project and thus not governed by NI 43-101. As a result, the Company retracts the November 12 Release, which related exclusively to the assessment of the Anode Plant, and replaces it with this press release which discloses the PEA for an integrated mineral project consisting of the Mine (Phase I) and the Anode Plant (Phase II).

Highlights and Key Assumptions of the Integrated Development Plan Preliminary Economic Assessment include:

• After-tax net present value (“NPV”) at a real 8% discount rate of US$1,321 million;

• After-tax internal rate of return (“IRR”) of 43%;

• Phase I Mine pre-production initial capital costs, including contingency, estimated at US$185 million;

• Phase II Anode Plant pre-production initial capital costs, including contingency, estimated at US$73 million1;

• Anode Plant average operating costs of US$3,193 per tonne of CSPG;

• Mine average direct operating costs of US$616 per tonne of concentrate; and

• Average saleable production of 26,000 tonnes CSPG per annum (“tpa”) and 18,000tpa fines from the Anode Plant alongside 42,000tpa of coarse flakes from the Mine.

Matthieu Bos, Chief Executive Officer of Falcon, commented “The robust PEA results affirm Falcon’s strategic vision and dedication to closing critical gaps in the battery materials supply chain. We’re poised to advance as a key, vertically integrated, CSPG supplier to Western markets, ensuring a reliable source of high-quality, sustainable battery materials.’’