TALGA GROUP LTD — Capital/Financing Update 2025

Dec 2, 2025

ASX:TLG

ASX Release 3 December 2025

Talga accelerates towards commercial-scale anode production with grant funding strategy

Highlights

• Talga has applied for a transformative 1.1 billion SEK (~A$180 million) ‘Industrial Leap’ grant from the Swedish Energy Agency (“Industriklivet 2”), with the outcome expected in Q1 CY2026

• If approved, this grant complements the existing €70 million (~A$120 million) EU Innovation Fund grant and €150 million (~A$260 million) pre-approved EIB loan for the integrated Vittangi Anode Project, potentially providing funding required for an initial commercial 5,000 tpa plant to produce both sustainable Talnode[®] -C and Talnode[®] -R

• Request for Proposal (RFP) process with customers validates strong demand, securing expressions of interest for over 80% of initial capacity in 2028, with growth supporting phased scaling to 24,500 tpa total

Battery materials and technology company Talga Group Ltd (“ Talga ” or “ the Company ”) is pleased to announce significant progress in its funding initiatives towards commercial-scale production from its proposed Luleå Anode plant in Sweden, a designated EU Strategic Project.

‘Industrial Leap’ Grant Application

Talga has applied for a 1.1 billion SEK (~A$180 million) grant under the Swedish Energy Agency’s Industrial Leap (“Industriklivet 2”) program, as part of a 3.1 billion SEK (~A$500 million) project to construct a 5,000 tonnes per annum (tpa) anode production facility at the Company's fully permitted site in Luleå, Sweden.

The project represents Talga's "Industrial Leap" from its existing Electric Vehicle Anode (EVA) demonstration plant to commercial scale production of Talnode[®] -C and Talnode[®] -R sustainable graphite anode products. The ‘Industriklivet 2’ funding, if granted, is anticipated to be confirmed in the first quarter of CY2026 and follows Talga being awarded the ‘Industriklivet 1’ program grant in October 2025 (ASX:TLG 17/10/2025 and ASX:TLG 20/11/2025).

Integration with Existing Funding Stack

Talga’s aim is that the Industriklivet 2 funding, upon granting, could complement Talga's established funding sources, including a €150 million (~A$260 million) loan from the European Investment Bank (EIB) (currently undrawn) and a €70 million (~A$120 million) grant from the EU Innovation Fund. This combined funding stack positions Talga with a substantial amount of the capital required for the initial 5,000 tpa commercial-scale anode production line, including associated plant and infrastructure for the larger Luleå anode plant.

Negotiations are underway with funding providers to refine and finalise the packages, with completion targeting the end of the second quarter of CY2026 to align with completion of final engineering and design on the anode plant partly funded under Industriklivet 1.

info@talgagroup.com www.talgagroup.com +61 8 9481 6667 Talga Group @Talga_Ltd

Talga Group Ltd ABN 32 138 405 419 ASX: TLG

Suite 3.03, Level 3, 46 Colin Street West Perth 6005 Australia

This non-dilutive funding stack underscores the Company's focus and progress in de-risking its Vittangi Anode Project and advancing towards commercial production.

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Customer RFP process

Talga has reached key milestones in the customer validation and sales pipeline, as outlined in the recent Quarterly Activities Report (ASX: TLG 30/10/2025). Successful qualification and technical validations with five battery manufacturers across sectors for battery energy storage (BESS), defence, highpowered EVs, robotics and consumer electronics have confirmed product fit.

Customer pricing indications support the business case for near-term execution with initial anode quantities supplied from the EVA plant in 2026, before commencement of the 5,000 tpa commercial output. Expressions of interest now cover more than 80% of the initial 5,000 tpa capacity, with ongoing programs and negotiations underway to secure contracts on full production.

Scaled Commercialisation to 24,500 tpa

Talga’s modular design strategy enables a phased ramp-up following the 5,000 tpa line, which has an expected 18-month construction timeline from Final Investment Decision (FID). The Company intends to ramp-up to its 19,500 tpa ‘Stage 1’ Talnode[®] -C capacity at Luleå, taking total anode production capacity to 24,500 tpa.

The key elements of the 5,000 tpa stage commercialisation includes:

• Site preparation works, buildings, HVAC and utilities to support full Stage 1 production capacity.

• • Installation of the first purification and coating line (of four planned), with ancillary equipment capable of treating Talga’s existing Vittangi graphite stockpiles and recycled anode feedstock

Talga expects that the majority of initial construction and site establishment costs being met in Industriklivet 2 will reduce future capital needs for full ramp-up. This staged commercialisation approach delivers potentially significant strategic and material advantages including:

• Minimises upfront equity requirements and overall capital intensity

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• Mitigates execution risks on path to full Stage 1 development

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• Establishes Talga as Europe’s sole integrated anode supplier, with both natural and recycled (synthetic) anode products

• Enhances efficiencies through increased Stage 1 Refinery capacity to 24,500 tpa (previously 19,500 tpa) from existing 4-line equipment design.

• Initiates platform for further customer demand and industry grant funding

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Talga's CEO, MP, commented: " We are delighted to be on the cusp of securing funding for the first commercial scale anode production line with this grant application combined with our existing financial commitments from the EU and EIB. The Industriklivet 2 grant, if received, is pivotal in the advancement of our go-to-market strategy to commercialise the anode products that our customers have successfully qualified. This 'Industrial Leap' not only scales our operations but also positions Talga as a key player in Europe's battery supply chain, delivering innovative, low-emission anode solutions.”

The Company will provide further updates as the grant application progresses and upon any material developments.

Authorised for release by the Board of Directors of Talga Group Ltd.

For further information please contact:

Mark Thompson Candice Sgroi Managing Director Group Investor Relations Manager Talga Group Ltd Talga Group Ltd +61 (0) 8 9481 6667 +61 (0) 400 492 285

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About Talga

Talga Group Ltd (ASX:TLG / OTCQX:TLGRF) is a global leader in producing high-power, sustainable battery anode and advanced graphitic materials. Our capabilities include proprietary graphite purification, shaping and coating technologies, ensuring secure and low-emission Li-ion battery anode supply chains and new-energy materials. Talga’s products and technologies solve battery manufacturing challenges such as supply vulnerabilities, performance limitations and recyclability, thereby accelerating the shift to more secure critical mineral product manufacturing.

Website: www.talgagroup.com

About Industriklivet

Sweden's Industriklivet (Industrial Leap) is a flagship initiative administered by the Swedish Energy Agency to accelerate Sweden's industrial green transition by providing grants for innovative projects that reduce greenhouse gas emissions. Industriklivet has been active in funding a range of sustainable projects across Sweden, including in green hydrogen, eFuels, solar cells, and fossil-free steel production, demonstrating Sweden's commitment to leading in climate-neutral industrial technologies.

Forward-Looking Statements & Disclaimer

Statements in this document regarding the Company's business or proposed business, which are not historical facts, are forward-looking statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Those risks and uncertainties include factors and risks specific to the industries in which the Company operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements.

No forward-looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside the Company’s control. There can be no assurance that the plans of the directors and management of Talga will proceed as currently expected or will ultimately be successful.

The Company does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of the Company’s directors, employees, advisors, or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement.

This announcement may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This document does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular persons.

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