LEADING EDGE MATERIALS CLOSES C$6,000,000 PRIVATE PLACEMENT
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER, OR A SOLICITATION OF ANY OFFER, TO BUY OR SUBSCRIBE FOR ANY SECURITIES IN LEADING EDGE MATERIALS IN ANY JURISDICTION.
Vancouver, September 28, 2026, Leading Edge Materials Corp. (“Leading Edge Materials” or the “Company”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) (FRA: 7FL) announces that the Company has closed the third and final tranche of the private placement announced previously on July 12, 2026, issuing 6,868,000 common shares at a price of C$0.25/share for gross proceeds of CAD1,717,000.
The common shares were issued as part of a unit (“Unit”) private placement. Each Unit will consist of one (1) common share (each, a “Common Share”) in the capital of the Company and one (1) Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share (a “Warrant Share”) at a price of C$0.40 per Warrant Share until the date which is two (2) years from the closing date of the Private Placement (the “Closing Date”).
Together with the first and second tranches of the Private Placement, the Company has issued an aggregate of 24,000,000 Units for aggregate gross proceeds of C$6,000,000.
Leading Edge Materials intends to use the net proceeds to advance the Company’s projects, as well as for general working capital and corporate purposes. In particular, following the award of a 25-year mining lease for the Norra Kärr Heavy Rare Earth Elements Project, proceeds will support Pre-Feasibility Study workstreams and environmental permitting for that project, alongside studies related to a possible restart of the Woxna Graphite mine and processing plant. The Company continues to seek alternative capital for its Romanian exploration activities.
A finder’s fee of 6% was paid to arm’s length third parties on a portion of the Private Placement. The Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
The securities issued pursuant to the third tranche of the Private Placement are subject to applicable statutory resale restrictions, including a hold period expiring on January 29, 2027, pursuant to applicable Canadian securities laws.
Insider of the Company purchased a total of 5,468,000 Units under the Private Placement which constitutes a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 based on the fact that neither the fair market value of the Units subscribed for by the insiders, nor the consideration for the Units paid by such insiders, exceeded 25% of the Company’s market capitalization as determined in accordance with MI 61-101.
Mr. Eric Krafft, a director of the Company, has subscribed for and acquired 5,468,000 Common Shares under the Private Placement. Prior to the Private Placement, Mr. Krafft beneficially owned and controlled 101,616,577 Common Shares and 32,268,173 warrants of the Company. Mr. Krafft is a Control Person (as defined by the policies of the Exchange), beneficially holding 107,084,574 common shares and 37,736,173 warrants of the Company, representing approximately 40.52% of the issued and outstanding Common Shares on a non-diluted basis, and 41.73% on a partially diluted basis, assuming the exercise of warrants held by Mr. Krafft only. The Company obtained disinterested shareholder approval at the Annual General Meeting held on July 24, 2020 for Mr. Krafft to become a Control Person of the Company.
Eric Krafft has acquired the Units for investment purposes and has a long-term view of his investment. In the future, Mr. Krafft may take such actions in respect of his investment in the Company as he may deem appropriate, depending on the market conditions and circumstances at that time. The foregoing disclosure regarding Mr. Krafft’s holdings is being disseminated pursuant to National Instrument 62-103 The Early Warning System and Related Take-Over Bid and Insider Reporting Issues (NI 62-103). A copy of Mr. Krafft’s early warning report will appear on the Company’s profile on SEDAR Plus. The information herein with respect to the number of Mr. Krafft’s securities and his intention relating thereto are not within the knowledge of the Company and are provided by Mr. Krafft.
The securities have not been, and will not be, registered under the U.S. Securities Act, or any United States state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable United States state securities laws. 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.
This news release is not a prospectus under Regulation (EU) 2017/1129 (the “EU Prospectus Regulation”). The Company has not authorized any offer of securities to the public (as defined in the EU Prospectus Regulation) in any EEA member state and no such prospectus has been or will be prepared in connection with the Private Placement.
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Kurt Budge, CEO
For further information, please contact the Company at:
info@leadingedgematerials.com
www.leadingedgematerials.com
Corporate Head Office (Vancouver, Canada): 778-686-5357
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About Leading Edge Materials
Leading Edge Materials Corp. is a Canadian-listed company focused on developing critical raw material assets across the European Union. Its primary focus is the wholly owned Norra Kärr Heavy Rare Earth Element project in Sweden — one of the world’s most strategically significant heavy rare earth deposits and among the few advanced-stage projects within the EU capable of producing dysprosium, terbium, and yttrium at meaningful scale.
Situated in one of the globe’s most politically and regulatory stable mining environments, Norra Kärr is well-positioned to contribute directly to the objectives of the EU’s Critical Raw Materials Act, including the bloc’s target of sourcing 10% of its critical raw material consumption domestically by 2030. Beyond rare earths, the Company also holds the Woxna Graphite mine in Sweden — a fully constructed and permitted facility — as well as a 90% stake in the Bihor Sud Nickel-Cobalt exploration alliance in Romania.
Additional Information
The information was submitted for publication through the agency of the contact person set out above, on September 28, at 00:00 pm Vancouver time.
Leading Edge Materials is listed on the TSXV under the symbol “LEM”, OTCQB under the symbol “LEMIF” and Nasdaq First North Stockholm under the symbol “LEMSE”. Svensk Kapitalmarknadsgranskning (“SKMG”) is the Company’s Certified Adviser for the Nasdaq First North Growth Market (Stockholm) and may be contacted via email ca@skmg.se or by phone +46 (0)8 913 008.
Reader Advisory
This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in Leading Edge Materials in any jurisdiction.
This news release may include forward-looking information that is subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward-looking, including statements with respect to the closing of the Private Placement, the receipt of regulatory approvals, and the use of proceeds from the Private Placement. Although the Company believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such information is not a guarantee of future performance and actual results or developments may differ materially from those contained in forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking information include, but are not limited to, fluctuations in market prices, successes of the operations of the Company, the Company’s ability to close the Private Placement, the Company’s ability to obtain the required regulatory approvals, continued availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Important information for EEA Investors
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in Leading Edge Materials in any jurisdiction.
Any investment decision in connection with the Private Placement must be made on the basis of all publicly available information relating to the Company and the Company’s shares/Units. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. This announcement does not purport to identify or suggest the risks (direct or indirect) which may be associated with an investment in the Company or the new shares/Units.
This press release is not a prospectus for the purposes of the EU Prospectus Regulation. Leading Edge Materials has not authorized any offer to the public of Units, shares or rights in any member state of the EEA and no prospectus has been or will be prepared in connection with the Private Placement.
In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this document and should not act or rely on it.
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