5E Advanced Materials (FEAM) Provides Shareholder Update

5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) (“5E” or the “Company”), a boron and lithium company with U.S. government Critical Infrastructure designation for its 5E Boron Americas (Fort Cady) Complex, today provided a shareholder update and review of the period ended June 30, 2024.

HIGHLIGHTS

• The Small-Scale Boron Facility has been producing boric acid, gathering data to further optimize the production process, and refining production efficiency, quality, and economics
• The Company’s recent capital raise provides 5E with the runway to complete FEL-2 engineering, upgrade the current technical report to a Pre-Feasibility Study (PFS), continue ongoing operation and process optimization of the small-scale facility, facilitate commercial agreements, and progress various government funding initiatives
• 5E is executing on optimization work to drive a cost-effective production rate, while evaluating other opportunities to reduce operating costs and expenditures, including chilled crystallization methods and horizontal drilling techniques
• 5E has assessed various operational processes to maximize the grade of boric acid produced; the Company is evaluating an alternative commercial design packages relating to byproducts production that carry significant potential value and upside to the project’s economics
• Dialogue with prospective offtake partners has advanced, with existing discussions focused on product specifications and production volumes, with new inquiries continuing to be fielded

“Fiscal 2024 was a pivotal year for 5E as our team made significant progress towards production of boric acid at commercial scale, while advancing our production capabilities, as well as ongoing discussions with government and commercial partners,” said Paul Weibel, Chief Executive Officer of 5E Advanced Materials. “Following our recent capital raise, we will remain diligent as an organization with a keen focus on further operational and cost optimization as we advance our the first phase of our commercial engineering program, which we expect to conclude near year-end. Our successful initial production at our small-scale facility has helped progress our discussions with potential customers and commercial partners, which will position 5E to continue its pursuit of various government funding and project finance initiatives. We are proud to say that in 2024 we became the first new domestic producer of boron in the United States, and as we move forward into fiscal 2025, we remain dedicated to executing our vision of becoming a global leader and supplier of boric acid and boron specialty materials.”

Corporate Strategy Update

• 5E has commissioned its small-scale facility, achieved first production and has begun shipping product to prospective customers
• The recent capital raise resulted in $10 million of additional capital, including $4 million of common equity from a new U.S.-based investor, to advance project goals and facilitate project optimization
• Byproduct opportunities are being evaluated by weighing process technologies and partnerships that maximize economics

5E Boron Americas Complex - Production Update

• Head grades of 5.5% to 6% boric acid in solution (10,000 ppm of boron in sample)
• Producing one short ton per day on specification, a production rate to optimize cost and produce for customer qualification
• Further optimization of wellfield and processing operations underway, with byproduct optionality creating opportunity for significant value

Commercial Update

• Customer qualification program underway since late June when first samples were delivered to prospective customers with positive initial feedback
• Recent new inquiries have continued, with potential customers in the consumer electronics, fiber optics, pharmaceutical glass, energy transition and military-defense industries focused on procurement of this critical mineral
• Communications with customers inform the Company’s work to improve processes, benefiting product quality and quantity at the small-scale facility

Government Affairs Update

• 5E maintains contact with U.S. representatives, helping convey the important of boron to a myriad of U.S. industries
• Received acceptance into a federal program called Cornerstone which administers Defense Production Act investments
• Continually monitoring submitted applications for funding, including Department of Defense and Department of Energy funding applications, with some winners of these applications expected to be announced this fall
• 5E continues to seek and apply for federal funding, with short- and long-term financing opportunities viewed as coveted

Conference Call Information

Interested parties can access the live webcast of the conference call at 5:00pm EST today on the Company’s website at https://investors.5eadvancedmaterials.com/events-presentations, or for participants that prefer to dial in by phone, dial in using toll-free number 888-506-0062 with Participant Access Code 516663. International call participants are instructed to use toll-free number 973-528-0011. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection. An archived version of the webcast will be accessible for 1 year following the call at https://investors.5eadvancedmaterials.com/ in the Investor Relations – Events and Presentations section of the website.

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