Falcon Upsizes Private Placement for Growth and Investment

Falcon Energy Materials plc (TSX-V: FLCN) ("Falcon" or the "Company") is pleased to announce that due to investor demand, it is increasing the size of its previously announced private placement (the "Private Placement") from 30,000,000 units of Falcon (the "Units") to 34,240,000 Units at a price of C$1.00 per Unit for aggregate gross proceeds of approximately C$34,240,000.

Each Unit will be comprised of one ordinary share of the Company (a "Share") and one-half of a non-transferable share purchase warrant (each full share purchase warrant, a "Warrant"). Each full Warrant grants the holder the right to purchase, for a period of 24 months from the date of closing, one additional Share (a "Warrant Share") at a price of C$1.29 per Warrant Share.

The Private Placement will be subject to standard regulatory approvals and conditions, including but not limited to, the receipt of all necessary approvals of the TSX Venture Exchange ("TSXV"). All securities issued under the Private Placement will be subject to a statutory four-month hold period in accordance with applicable Canadian securities laws. No commissions will be payable in connection with the Private Placement.

The proceeds from the Private Placement will be used to finance (i) the previously announced potential acquisition of a strategic minority interest in an existing, arm’s-length anode material producer in China, on the basis of a term sheet entered into between the parties on August 6, 2026 (the "Potential Acquisition"); (ii) the Company's growth plan in Morocco and internationally; and (iii) general working capital requirements.

The Company anticipates that insiders of the Company will participate in the Private Placement. The extent of insider participation has not been determined at this time. Any insider participation will be disclosed in accordance with the policies of the TSXV and applicable securities laws.

Closing of the Private Placement is expected on or about September 23, 2026, or such other day as the Company may choose and remains subject to customary conditions, including the receipt of all necessary regulatory approvals.

Neither the Units, the Shares, the Warrants, nor the Warrant Shares have been, nor will be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state security laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act and all applicable state securities laws or compliance with requirements of an applicable exemption therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Falcon Energy Materials plc (TSX-V: FLCN, OTCQB: FLCNF) is aiming to be the premier provider of natural Coated Spheronized Purified Graphite, a critical component for energy storage solutions. As a dedicated chemical refiner of natural graphite concentrate, Falcon is working diligently towards the development of a state-of-the-art 25 ktpa CSPG production facility in Morocco.

Strategically partnered with leading Chinese technology firms and Tier One Moroccan partners, Falcon benefits from advanced technological expertise, access to high-quality raw materials and chemicals, and a prime geographical location, factors that will enable it to deliver consistent, high-quality supply to global markets.

With a clear focus on sustainable growth and innovation, Falcon aims to become the go-to producer of natural CSPG, supporting widespread adoption in energy storage and other emerging industries.

For additional information, please visit Falcon’s website at www.falconem.net.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.