Level 7, Al Maryah Tower, Al Maryah Island, Abu Dhabi, United Arab Emirates falconem.net FALCON ENERGY MATERIALS INITIATES US$100 MILLION DAMAGES CLAIM AGAINST REPUBLIC OF GUINEA
Falcon Energy Materials plc
Level 7, Al Maryah Tower, Al Maryah Island, Abu Dhabi, United Arab Emirates
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FALCON ENERGY MATERIALS INITIATES US$100 MILLION DAMAGES
CLAIM AGAINST REPUBLIC OF GUINEA
PRESS RELEASE FOR IMMEDIATE RELEASE
Abu Dhabi, United Arab Emirates, March 16, 2026 – Falcon Energy Materials plc (TSX-V: FLCN)
(“Falcon” or the “ Company”) announces that it has formally commenced international arbitration
proceedings over the illegal expropriation of the Lola Graphite Project (the “Project”) by the Republic
of Guinea (“Guinea”) and other breaches of the bilateral investment treaty between the Governments
of the United Arab Emirates and Guinea (“UAE-Guinea BIT”).
The Company lodged a Request for Arbitration (“ RfA”) under the UAE-Guinea BIT with the
International Centre for Settlement of Investment Disputes (“ICSID”), part of the World Bank. The RfA
is filed in accordance with the Convention on the Settlement of Investment Disputes between States
and Nationals of Other States (the “ ICSID Convention ”). The RfA contains a description of the
background to the dispute, a summary of the Company’s claims and an initial estimate of
compensation for the damages sustained by the Company resulting from the actions of the
Government of Guinea, currently estimated at US$100 million.
Falcon’s Chief Executive Officer Matthieu Bos said: “While we regret that legal proceedings have
become necessary, we are fully prepared to present our claim for compensation in arbitration,
encompassing both the loss of the Company’s assets in Guinea and the additional damages arising
from the actions of the Government of Guinea. Following our recent capital raise, the Company has
secured full support from its shareholders to pursue this case as well as sufficient funding to cover all
legal costs, and we remain confident that shareholder s’ interests are protected. We will continue to
refine our claims as part of the arbitration process while we keep our focus firmly on the development
of our Anode Plant in Morocco.”
Background to the Request for Arbitration
On May 14, 2025, by virtue of a decree signed by its President , Guinea unilaterally revoked the
exploitation license of the Project. The Company subsequently approached the Ministry of Mines in
an effort to resolve the situation amicably. In the absence of any response, Falcon notified Guinea of
a dispute under the UAE-Guinea BIT, which triggered a 6-month period to seek an amicable resolution
to the dispute. The Company agreed to continue negotiating beyond the six months in an attempt to
resolve the dispute amicably. However, it became clear that Guinea will not offer any compensation
to Falcon for its losses.
The ICSID Convention has been ratified by 15 8 States, including Guinea. An award issued by an
ICSID tribunal is enforceable in any one of those 158 member States as if it were a judgment of one
of their own courts. Partly because of this, States have historically often complied voluntarily with the
payment terms of such awards.
The Company has engaged LALIVE, an international law firm, to act on its behalf. LALIVE has offices
in Geneva, Zurich and London, and specialises in international arbitration. The firm has extensive
Falcon Energy Materials plc
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experience in international investment arbitration concerning mining and other natural resources and
is representing investors and States as counsel worldwide.
About Falcon
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 26 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.
Contact:
Matthieu Bos Matt Johnston
President & CEO IR Advisor
Email: [email protected] Email: [email protected]
Telephone: +971 2307 4013
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.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking information" within the meaning of Canadian securities
legislation and other statements that are not historical facts. Forward-looking statements are included
to provide information about management’s current expectations and plans that allows investors and
others to have a better understanding of the Company’s business plans and financial performance
and condition.
All information contained herein that is not clearly historical in nature may constitute forward -looking
information. Generally, such forward -looking information can be identified by the use of forward -
looking terminology such as “aim”, “anticipate”, “assume”, “believe”, “estimate”, “expect”, “goal”,
“intend”, “objective”, “plan”, “potential”, “strategy”, “target”, or variations of such words and phrases or
state that certain actions, events or results "may", "could", “will”, "would" or "might". In particular and
without limitation, this news release contains forward-looking statements pertaining to the pursuit and
continuation of the legal proceeding, including the Company’s strategy to enforce its rights and seek
recovery; the expected outcome of any legal proceeding to be pursued by the Company to defend
the Company’s rights and investment in the Project; and the amount of damages that may ultimately
be awarded, if any, in connection with the legal proceeding initiated by the Company.
Forward-looking information is based upon certain assumptions and other important factors that, if
untrue, could cause the actual results, performance or achievements of the Company to be materially
different from future results, performance or achievements expressed or implied by such information
or statements. There can be no assurance that such information or statements will prove to be
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accurate. Key assumptions upon which the Company’s forward-looking information is based include,
without limitation, the availability and sufficiency of funds to cover the costs and expenses of the legal
proceeding, including legal cost s; the Company’s ability to enforce a final decision against the
Government of Guinea; and the shareholders’ support in pursuing the legal proceeding.
Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which
may have been used. Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, l evel of activity, performance or
achievements of the Company to be materially different from those expressed or implied by such
forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global
markets and economi c conditions; (iii) the possibility of write -downs and impairments; (iv) the risk
associated with exploration, development and operations of mineral deposits and mine plans for the
Company’s mining operations; (v) the risk associated with establishing title to mineral properties and
assets including permitting, development, operations and production from the Company’s operations
being consistent with expectations and projections; (vi) fluctuations in commodity prices, finding
offtake takers and potential clients or enforcing such agreements against same; (vii) prices for diesel,
process reagents, fuel oil, electricity and other key supplies being approximately consistent with
current levels; (viii) production and cost of sales forecasts meeting expectations; (ix) the accuracy of
the mineral reserve and mineral resource estimates of the Company; (x) labour and materials costs
increasing on a basis consistent with the Company's current expectations; (xi) there being no
significant disruptions affecting the oper ations of the Company whether due to artisanal miners,
access to water, extreme weather events and other or related natural disasters, labour disruptions,
supply disruptions, power disruptions, damage to equipment or otherwise; (xii) asset impairment (or
reversal) potential, being consistent with the Company's current expectations; (xiii) risks associated
to the accuracy of projections provided in a preliminary economic study which are preliminary in nature
and which include significant of uncertainties; an d (xiv) other risks and uncertainties described or
referred to in the section entitled “Risk and Uncertainties” in the Company’s management’s discussion
and analysis for the year ended December 31, 2024, as updated from time to time in the Company’s
interim management’s discussion and analysis for its quarterly financial periods, each of which is filed
on SEDAR+ at www.sedarplus.ca.
Although the Company believes its expectations are based upon reasonable assumptions and has
attempted to identify important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended. There can be no assurance
that such forward-looking information will prove to be accurate, as actual results and future events
could differ m aterially from those anticipated in such forward -looking information . Such forward -
looking information has been provided for the purpose of assisting investors in understanding the
Company's business, operations and exploration plans and may not be appropriate for other
purposes. Accordingly, readers should not place undue reliance on forward -looking information.
Forward-looking information is given as of the date of this press release, and the Company does not
undertake to update such forward-looking information except in accordance with applicable securities
laws. The Company qualifies all of its forward-looking statements by these cautionary statements.