Leading Edge Materials Closes First Tranche of C$ 6,000,000 Private Placement with Binding Standby Subscription and Commitment of Cornerstone Shareholder Not FOR Distribution to U.s. Newswire Services or FOR Dissemination in the United States or Any
NEWS RELEASE August 18, 2026
LEADING EDGE MATERIALS CORP.
14th Floor 1040 West Georgia Street, Vancouver, BC, V6E 4H1
[email protected] | www.leadingedgematerials.com
TSX.V: LEM | Nasdaq First North: LEMSE | OTCQB: LEMIF | FRA: 7FL
TSX.V: LEM | Nasdaq First North: LEMSE | OTCQB: LEMIF
LEADING EDGE MATERIALS CLOSES FIRST TRANCHE OF C$ 6,000,000 PRIVATE PLACEMENT WITH BINDING
STANDBY SUBSCRIPTION AND COMMITMENT OF CORNERSTONE SHAREHOLDER
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, August 18, 2026, Leading Edge Materials Corp. (“Leading Edge Materials” or the “Company”)
(TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) announces that the Company has closed a first
tranche of the private placement announced previously on July 12, 2026, issuing 16,032,000 common shares at
a price of $0.25/share for gross proceeds of CAD$4,008,000. The Company's cornerstone shareholder, Mr Eric
Krafft, has agreed to subscribe for any Units not otherwise purchased by investors under the private placement
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”).
Leading Edge Materials intends to use the net proceeds to advance the Company's projects in Sweden and
Romania, as well as for general working capital and corporate purposes. In particular, following the recent
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, with on-the-groundwork focused on further definition of the
most promising polymetallic targets.
A finder’s fee of 6% was paid to arm’s length third party 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 Private Placement are subject to applicable statutory resale restrictions,
including a hold period expiring on December 19, 2026, pursuant to applicable Canadian securities laws.
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.
The Company expects certain insiders of the Company to participate in the Private Placement. Any participation
by insiders in the Private Placement constitutes a “related party transaction” as defined under Multilateral
Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). However, the
Company expects to rely 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
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the insiders, nor the consideration for the Units paid by such insiders, would exceed 25% of the Company’s
market capitalization.
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Kurt Budge, CEO
For further information, please contact the Company at:
www.leadingedgematerials.com
Corporate Head Office (Vancouver, Canada): 778-686-5357
Follow us
X: https://x.com/LeadingEdgeMtls
LinkedIn: https://www.linkedin.com/company/leading-edge-materials-corp/
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
August 18, 2026, at 11:30 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 [email protected] 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
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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.