NYSE: WWR

The acquisition of Alabama Graphite in 2018, which added the Coosa Graphite Deposit to the Company’s asset base, provides the Company with the opportunity to pursue a domestic supply of battery-grade natural graphite products for U.S. and allied markets by combining an upstream resource position at Coosa Graphite Deposit with downstream processing at the Kellyton Graphite Plant. Our target markets for our products include electric vehicles, trucks and buses, consumer electronics, defense and aerospace applications, and battery energy storage system (“BESS”) batteries for grid and data center applications. Our goal is to develop a domestic supply of low-cost, high-quality battery-grade natural graphite products for battery manufacturers and other customers. For additional information regarding the Kellyton Graphite Plant see Item 2, Properties.

A key element of our strategy is advancing the Coosa Graphite Deposit as a prioritized upstream asset supporting our mine-to-market plan. The Company holds mineral rights to 41,965 acres for future mining development. We expect the Coosa Graphite Deposit to serve as future feedstock for the Kellyton Graphite Plant and provide in-house QA/QC for raw-material inputs. Advancing the Coosa Graphite Deposit is also intended to improve long-term supply assurance and reduce exposure to external supply chain disruptions and price volatility for raw materials. To date we have explored less than 10% of the Coosa Graphite Deposit acreage, providing the potential for additional tonnage of feedstock for the Kellyton Graphite Plant or third-party consumers.

In addition to graphite, the Coosa Graphite Deposit contains vanadium, which the Company plans to explore and evaluate for potential technical feasibility of extraction and processing in the future. Vanadium is used as an alloying element in certain titanium alloys and specialty steels used in performance-driven applications, including aerospace applications and vanadium redox flow batteries (“VRFBs”). For example, Ti-6Al-4V titanium alloy, which contains vanadium, is used in various aircraft, aerospace and defense components. U.S. defense procurement rules include domestic or qualifying-country sourcing requirements for certain “specialty metals” including steels and alloys that may contain vanadium and are incorporated into some defense items, subject to specified exceptions. While the Company has not completed technical or economic work to determine whether the Coosa Graphite Deposit’s vanadium resources could be recoverable or marketable, and vanadium is not currently included in the Company’s economic models or resource

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estimates, the presence of vanadium may represent potential long-term optionality as supply chains increasingly prioritize secure and compliant domestic sources of critical mineral inputs.

We prioritize our project pipeline with the objective of achieving sustainable battery-grade graphite production over time. We may adjust near-term and long-term business priorities based on market conditions, customer requirements, permitting timelines, and available capital, including sequencing decisions related to the development of the Kellyton Graphite Plant and advancement of the Coosa Graphite Deposit.

We believe our combined experience in mining, mineral processing, and project execution, together with battery-materials and energy storage knowledge and capital markets expertise, supports our strategy and is a key competitive advantage. We intend to advance the Company’s business plan towards development and production while prudently managing our cash and liquidity position to maintain financial flexibility.

OVERVIEW OF THE BATTERY GRAPHITE INDUSTRY

Graphite is a common crystalline form of carbon. Found in mineral deposits around the world, graphite is widely used in numerous industrial applications. These applications take advantage of graphite’s unique natural properties, including high lubricity, excellent resistance to corrosion, the ability to withstand elevated temperatures while remaining structurally stable, and outstanding thermal and electrical conductivity. Through a series of sophisticated and carefully controlled processing steps, flake graphite concentrates are transformed into high-value products primarily for the battery industry.

Presently, the U.S. is almost 100% dependent on foreign imports for battery-grade graphite, which is currently the primary anode material in the lithium-ion batteries that power electric vehicles, smartphones, and laptops, and storage of power generated from intermittent renewable energy sources. Westwater intends to process natural flake graphite into battery-grade graphite, primarily for lithium-ion batteries. Graphite’s role is expected to remain important as lithium-ion battery demand expands across BESS supporting grid and data center infrastructure, along with electric vehicle applications.

Natural battery-grade graphite products are derived from flake graphite that has been transformed through a series of specialty downstream processes into various battery graphite products. These processes include, but are not limited to:

●Micronization (sizing)

●Spheroidization (shaping)

●Classification (sorting)

●Purification

●Surface treatment (carbon coating)

CSPG is used as a graphite anode, or AAM, in lithium-ion batteries. Although it may seem that synthetic and natural AAMs are competing products, synthetic and natural graphite are typically blended together into anode material for electric vehicle applications to optimize performance and cost by taking advantage of each graphite attribute, such as cycle life, energy density, and cost.

Overall battery consumption has risen due to developments in electric-automobile markets, consumer electronic devices, defense contracting demand, and growth in BESS used to support grid reliability, data center applications, and to integrate renewable generation. The long-term shift towards low- and zero-emissions transportation and the increased use

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of batteries in stationary energy storage are expected to support demand for battery materials, including graphite, for the foreseeable future.

According to the International Energy Agency (“IEA”), global demand for lithium-ion batteries continues to expand as electric vehicle adoption grows and BESS scale to support grid infrastructure, data centers, and electrification. Battery demand surpassed 1 TWh in 2024 and is expected to increase substantially over the coming decade.

Recent developments, supported by various publications, in this sector include:

●Acceleration of energy storage as an energy-security and grid reliability priority. In the U.S., the regulatory environment contributed to heightened uncertainty through 2025, including tariffs affecting BESS. BESS has increasingly shifted from being framed primarily as a renewable energy enabler to being viewed as a core component of energy security and grid reliability, including for data center uses. Independent market observers also expect sustained growth in global energy storage installations through the next decade, with increasing deployments beyond the U.S. and China.

●Shifts in electric vehicle policy and incentives across major markets. Market growth rates diverged during 2025, with Europe accelerating while North America lagged amid changes to consumer incentive programs, which weighed on demand. In Canada, federal purchase incentives were ended in 2025 and subsequently reinstated in 2026 under a revised framework.

●Policy recalibration in Europe, alongside continued emissions-driven pressure. Europe has been in the process of making changes to its emissions policy, and while internal combustion engine development may continue under new rules, electric vehicle technology is expected to remain overwhelmingly dominant. There is also renewed support for subsidies in Europe to encourage continued electric vehicle uptake in the near term.

●Growth and repositioning of battery manufacturing capacity, including chemistry shifts. Benchmark Minerals reports that the U.S. has responded to evolving demand with a growing pipeline of lithium iron phosphate (“LFP”) gigafactories, achieved through both new facilities and the retooling of existing capacity, and that Benchmark’s assessed U.S. LFP pipeline increased from 178.9 GWh to 287.7 GWh between January and November 2025. Although LFP refers to cathode chemistry, these batteries typically rely on graphite anodes, meaning growth in LFP battery manufacturing is expected to increase demand for graphite anode materials.

●Increased activity by international battery manufacturers in North America. South Korean battery manufacturers have been active in developing the U.S. LFP pipeline, including plans by LG Energy Solution to install 50 GWh of LFP capacity by the end of 2026 across four sites, and noted production shifts and retooling plans by other manufacturers.

●Ongoing concentration of battery and critical mineral supply chains, and related export restrictions. China has restricted exports of certain minerals, battery components, and related technologies in response to increasing trade tensions, highlighting supply chain concentration and related geopolitical risk considerations. More broadly, third-party reporting continues to describe China’s large role across electric vehicle and clean-technology supply chain related components.

The global graphite supply chain remains highly concentrated. In Benchmark’s 2025 Year in Review, they reported that in 2024, China accounted for approximately 76% of global flake graphite output, supported by a low-cost production base. In addition, downstream conversion capacity is also concentrated, and industry sources commonly cite China’s dominant position in graphite anode production. For example, Benchmark notes that China currently produces around 90% of graphite anodes globally. This concentration creates supply-chain and geopolitical risk for markets such as the U.S. and has contributed to increased policy focus on developing domestic production and processing capability.

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Trade and tariff policy have also affected the U.S. anode market. Following U.S. Department of Commerce (“DOC”) investigations initiated in 2025, Chinese AAM imports into the U.S. faced antidumping and countervailing duties. The DOC issued an initial affirmative countervailing duty determination on February 11, 2026; however, the ITC unexpectedly rescinded that determination, as announced on March 12, 2026. The non-DOC portion of the total tariffs have been subject to frequent changes by the Presidential administration and subject to judicial review and restraint; however these trade measures have the potential to materially increase the cost of imported Chinese AAM, which could strengthen the competitive position of U.S.-based anode material developers, such as Westwater.

The U.S. currently relies on imports of at least 15 critical minerals, including graphite, which is currently supplied almost entirely by companies located in China. The U.S. has historically been highly import-reliant for graphite; the U.S. Geological Survey has reported the U.S. was 100% net import reliant for graphite in prior years. On March 20, 2025, the President issued an executive order focused on increasing domestic mineral production and processing capacity, including through authorities such as the Defense Production Act and the U.S. International Development Finance Corporation financing mechanisms.

Westwater has developed patented graphite-purification technologies and advanced product-development processes designed to meet the demands of potential customers for battery-grade graphite materials. The Company is developing methodologies and constructing facilities intended to produce high-purity, battery-grade graphite products at its Kellyton Graphite Plant. These products are being designed to serve major battery end markets. In addition, the Company believes the processes it intends to use are environmentally sustainable and permittable in the U.S., where a robust regulatory environment supports the Company’s approach to safe operations and product quality.

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Westwater has supported, and intends to continue supporting, the efforts of relevant U.S. governmental agencies, the State of Alabama and local municipalities to ensure that they remain aware of the importance of natural battery-grade graphite, its relevance to domestic supply chains and national security considerations, and how the Kellyton Graphite Plant and the Coosa Graphite Deposit align with broader critical minerals objectives.

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COMPETITION

In the production and marketing of graphite, there are a number of producing entities globally, some of which are government controlled and several of which have significant capitalization. The global graphite supply chain remains highly concentrated, including in downstream processing. The U.S. Energy Information Administration (“EIA”) reports that China processes and refines more than 90% of the world’s graphite into material used in battery anodes. This concentration has historically supported China’s scale and cost advantages and has contributed to increased efforts in the U.S. and other jurisdictions to expand non-Chinese supply and processing capacity.

With respect to sales of graphite, the Company expects to compete primarily based on product quality and consistency, performance, price, qualification timelines, reliability of supply, and the ability to meet customer specifications. The Company believes that providing a domestic, non-FEOC (Foreign Entity of Concern) source of battery-grade graphite and anode material may be a differentiator for certain customers as they evaluate supply-chain resiliency, traceability, and compliance considerations. The Company intends to market its products directly to end users and expects to compete with global producers and processors with established operations and significant scale, as well as graphite exploration, development, and production companies that are seeking to develop new sources of natural graphite feedstock and/or downstream processing capacity.

Competitive conditions may also be influenced by broader market and regulatory factors, including regulatory policy and enforcement, tariff policy and import/export restriction measures, and other policy developments affecting battery supply chains and anode materials. See the discussion above under “Overview of the Battery Graphite Industry” and