Engebø Rutile and Garnet AS : First cargo of rutile is delayed, and tap issue of existing bond

The Engebø Project is past the construction phase and is in the productionramp-up phase. After the planned maintenance and modifications downtime in July, theprocessingplant is ramping up the throughput and mineral recoveries. Major parts of theplant are currently operated at design capacity, including the crushing andmilling circuits, whereas the last stage, the dry plant which produces thefinalrutile and garnet products, have lower throughput and uptime due to someoperational and technical difficulties experienced in the latter part of thethird quarter. Both rutile and garnet are produced in accordance withcustomerspecifications but at low volumes and insufficient for a full cargo of rutilebefore year end. Consequently, revenues remain limited.To address the operational and technical issues, Engebø Rutile and Garnet (ERG) will carry out an operational review and bring on site relevant rutile andgarnet processing experience from two of our customers: Iwatani and The BartonGroup will second personnel that will be available through the end of the yearto provide expertise in ramping up the volumes of final products. Action isalsotaken to redesign a segment of the material transfer equipment within the dryplant to enable higher volume throughput. Garnet shipments continue whereasthefirst cargo of rutile is expected to be available in the first quarter of2026.Our stated goal is reaching design capacity in late second quarter 2026.To address the financial impact of the delay, ERG has today called for abondholder meeting by way of written resolution for proposed tap issue of USD22.5 million under the Engebø Rutile and Garnet AS 12.5% Senior Secured Bonds2022/2027 with ISIN NO0012734112 priced at 98.00% of par. Existing holders of bonds representing more than 80% of the total outstandingprincipal amount of the bonds have granted their support of the proposal.Subject to the approval of the written resolution, the total outstandingamountunder the Bonds following the tap issue is USD 155.5 million. About half oftheproceeds from the bond issue will be used to cover additional costs related tothe ramp-up delay with the remainder as a financial buffer.Further information on ERG's contemplated tap issue is given in the enclosednotice of written resolution.Clarksons Securities acts as Manager and Bookrunner for the tap issue.Oslo, 25 September 2025This stock exchange notice contains inside information pursuant to the EUMarketAbuse Regulation and is subject to the disclosure requirements pursuant toSection 5-12 the Norwegian Securities Trading Act.https://newsweb.oslobors.no/message/656171