REACH

5 March 2026

Atlas Metals Group plc

("Atlas Metals" or the "Company")

UPSA Update

Atlas Metals (LON: AMG), the natural resources and energy company is pleased to note the press release issued by Universal Pozzolanic Silica Alumina Ltd ("UPSA") earlier today, which is copied below, and provides an update on UPSA. As previously announced the Company is working to complete the acquisition of UPSA (the "Proposed Acquisition") and the Proposed Acquisition continues to progress in line with the Board's expectations. Further announcements on the progress of the Proposed Acquisition will be made when appropriate.

The UPSA Press Release:

The board of directors of Universal Pozzolanic Silica Alumina Limited ("UPSA") has been developing the business of UPSA over the period since the announcement of the proposed reverse takeover ("RTO") of UPSA by Atlas Metals Group plc ("Atlas Metals") on 17 June 2025. Significant progress has been made, including:

·     Atlas Metals instructed SLR Consulting Australia Pty Ltd ("SLR") to carry out an independent assessment of the pozzolanic silica alumina ("PSA") resources (JORC compliant) at Warialda, New South Wales, Australia. These are spread over a number of Lots over which Claystone International Pty Ltd has extraction rights and where UPSA has licensed the commerciality of such resource over 99 years. Among these, the freehold of Lots 7 and 8 are held by Claystone. SLR reported in November 2025, on a net present value basis, using a discount rate of 15% and a 25 years earnings period, a valuation of AUS$3.4 billion, which equates to approximately £1.7 billion of inferred resource.

·    As reported by Atlas Metals in its announcement dated 16 February 2026, SLR, after carrying out further review and drilling on lots 7 & 8, is now updating the resources to the category of "Measured', which UPSA believes is 86.5 million tonnes of PSA. The JORC report valuation was based on sales of 75 million tonnes of PSA over 25 years. The Measured reserves in Lots 7 & 8 alone are well above the 75 million tonnes required over 25 years. There are additional resources in the other lots and work on these will be carried out in future drilling campaigns to ascertain further Measured resources.

·    As is common with local authority licensing in Australia, there is an annual limit imposed on 'mining' and 'extraction of aggregates' of 35,000 metric tonnes. SLR have been engaged to obtain a permit under the State Significant Development legislation ("SSD") which, would lift the 35,000 metric tonnes annual extraction limit and provide for unlimited extraction and transportation to port. In its analysis, SLR have put a cap of 3 million tonnes per annum of sales based on transportation of 'raw PSA' by road to Brisbane. There are plans to construct a railway spur which will shift the transportation from road to rail. This will result in both significantly higher quantities of sales, above 3 million metric tonnes per annum, and a reduction in transportation costs to Brisbane from around AUS$70 to AUS$20 per metric tonne. Once the SSD has been granted, this will significantly boost the gross margin of the project.

·     In the short term, UPSA has identified a local aggregate quarry operator, and has engaged it to extract and deliver the PSA to Brisbane port. The cost of this, albeit higher than that expected under UPSA's own operations, would still leave a significant margin for UPSA on its planned selling price. UPSA intends to establish its own operations and logistics following completion of the RTO and the associated proposed fund raise.

·      In early 2025, UPSA engaged a large multinational strategy and management consulting firm over a three-month period during which such firm assisted the UPSA board of directors (the "UPSA Board") in resource evaluation and establishing a long term strategic and operating business plan covering all aspects of the business cycle. This has resulted in a very targeted and detailed operating plan and business financial models spanning the initial ten years of operations. It identified a significant opportunity for UPSA in the global concrete sector.

·      UPSA is targeting global markets for the sale of PSA, with a particular focus on the United Kingdom, North America and Europe. It is planned that customers will buy PSA in raw format, to be then crushed at the sites of concrete production. UPSA is planning to deliver the PSA FOB at Brisbane port to their nominated freight forwarder, with the customer  assuming responsibility for shipping insurance and associated costs. UPSA has planned this procedure to mitigate risk and simplify its operating model.

·    PSA is used in concrete as a part substitute for cement (c. 40% replacement) which results in carbon emission reductions and other benefits, including making the greener UPSA concrete stronger, thus reducing long term maintenance costs. The direct reduction of carbon emissions results in deliverance of 'carbon credits'. UPSA has engaged with Verra, a non-profit, global agency which assesses and verifies the carbon emission savings, thus attributing a value to such carbon credits. UPSA has been requested by Verra to engage CTL Labs of Chicago to carry out independent tests on the PSA, which testing is currently underway. Once the results are published, the UPSA Board believes that Verra will be able to attribute 'accreditation' to the carbon credits associated with the use of PSA in producing 'green concrete'. The plan is that the benefits of these credits will be passed on to the customers. In a number of Western countries, carbon emission taxes have been, or are being, planned which will result in higher cost of concrete. In addition, the supply of fly ash and ground granulated blast-furnace slag (GGBS), typically used by concrete manufacturers in Western countries, is shrinking. So overall the prospects for the sale of PSA are considered by the UPSA Board to be good.

·    Global production of concrete is around 30 billion cubic meters per annum which equates to around 75 billion metric tonnes of concrete, projected to increase annually by 3%. Cement is responsible for 8% of global carbon emissions^[1], which provides UPSA with a significant global opportunity given that the UPSA Board believes that 40% of cement can be replaced by PSA in concrete production. This equates to a potential annual 1.6 billion metric tonne market for PSA.

·     UPSA is presently pursuing a number of off-take opportunities and is in dialogue with potential customers in the United Kingdom and elsewhere. The UPSA Board considers that it has a strong team with relevant experience to launch in the North American market once the CTL Labs tests are concluded. UPSA will look to establish teams in Europe to promote the sale of PSA.

·     The UPSA Board is looking forward to concluding the reverse takeover of Atlas and a listing on the London Stock Exchange which would enable it to access global capital markets and provide the appropriate presence for a corporate like UPSA, which the UPSA Board plans will become one of the leading players in the global concrete and aggregate sector.

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