Dainen Materials Co., Ltd. is pleased to announce that we have signed a non-binding Letter of Intent (LOI)
with Talga Group Ltd (ASX:TLG), a Swedish battery anode and graphite materials company,
to work toward a Strategic Anode Offtake Agreement (SAOA) for Talga’s flagship Talnode®-C anode active material,
produced at the Vittangi Anode Project in northern Sweden.

Since our founding in 2017, Dainen has grown into one of Japan’s leading anode material suppliers,
with an integrated value chain spanning anode material manufacturing, black mass trading, and battery recycling.

Dainen has built its reputation on an uncompromising approach to material quality, process consistency,
and supply chain integrity. Our customers — Japan’s leading automotive battery manufacturers — operate at
the frontier of lithium-ion performance, and the materials we produce must meet standards that leave no margin for error.
It is from that position of manufacturing expertise and customer accountability that we approach
every upstream material partnership.

This LOI builds on more than five years of close technical collaboration between our two companies,
during which Dainen has worked with Talga’s anode materials to meet the exacting quality requirements
of Japan’s battery manufacturers. Under the LOI, the parties will continue to qualify Talnode®-C against
the specifications of Dainen’s Japanese customers, with Talga providing full transparency on FEOC-free status,
supply-chain traceability, ESG performance and CO₂ footprint.

Dainen will also support further site visits and audits, and will assist Talga on a best-endeavours basis
in engaging Japanese investors to help finance the Vittangi Anode Project.

The parties are targeting a binding term sheet by September 2026, with the goal of finalising a long-term
SAOA by December 2026.

Dainen Vice President Daisuke Hayabara commented: “Dainen has partnered with Talga for over five years,
and we have great confidence in Talnode®-C’s quality and consistency for Japan’s most demanding battery applications.

As our customers place growing importance on transparent, traceable, and diversified supply chains,
we see this LOI as a natural next step in our relationship, and look forward to working toward a long-term
offtake agreement that supports both Talga’s growth and Japan’s critical materials strategy.”

This LOI is non-binding, and any binding commitments will only arise upon execution of definitive agreements
between the parties.

For full details, please see Talga Group Ltd’s official ASX announcement.