US Project

The Company continues to advance development of its proposed southern US pattern solar glass manufacturing facility (the “US Project”) anticipated to produce 4GW equivalent pattern solar glass annually.

The Company has executed a Letter of Intent proposal for a 12-year lease of a property where a glass manufacturing facility operated prior to it shutting down in 2020. With existing infrastructure for logistics, material handling on-site and an 850,000 square foot building, the site provides an opportunity for capital efficient market entry for a pattern solar glass manufacturing operation. Under the lease terms, the Company will have an option to purchase the site at a pre-determined price during the lease period.

The selected site for the US Project supports our customers’ efforts to develop a transparent and domestic US manufacturing supply chain and aligns with the stated goal of the US federal administration to reshore manufacturing. The Company has executed memorandums of understanding (“MOUs”) with customers for offtakes representing approximately 50% of production capacity. In addition to the executed MOUs, the Company is advancing negotiations with key customers to secure binding take-or-pay offtake agreements.

The Company continues to progress engineering and design efforts for the US Project and has completed a Front-End Engineering and Design study that indicates a capital cost of approximately US$350 million. The process for selecting engineering, procurement and construction contractors and equipment suppliers for the pre-construction process has been completed. The Company has selected Toledo Engineering Co., Inc. and Bottero S.p.A. to advance pre-construction engineering, working with Green City Glass as the Owner’s Engineer. The pre-construction engineering effort will result in a refined capital cost and construction schedule to support the Company’s construction financing efforts.

While the Company continues to pursue strategic partners for development of its US Project, no definitive or binding agreements are in place at this time.

Selkirk Project

With annual domestic solar panel manufacturing capacity in the US at 52GW, demand for solar glass has reached a new high. While the Company continues to pursue financing options for its proposed vertically integrated Canadian pattern solar glass manufacturing facility in Selkirk, Manitoba (the “Selkirk Project”), the uncertainty related to announced US import tariffs on Canadian goods as well as the potential for Canadian counter tariffs has resulted in a challenging financing environment for a Canadian project. Stability in the Canada-US trade relationship will be key for the Company to advance the Selkirk Project. As such, the Company’s near-term focus is on advancing the US Project to prepare for construction financing.

Changes to Policy Impacting the North American Solar Market

In addition to the US and Canadian tariff uncertainty impacting the Selkirk Project, legislative amendments proposed to the previously enacted Inflation Reduction Act (the “IRA”) passed by the US House of Representatives on May 21, 2025 creates uncertainty related to the sustainability of the IRA and associated incentives for domestic production. The recent amendments eliminate the domestic content bonus provision from 2028 onwards that would otherwise be available to end-users of solar panels that utilize a higher portion of components manufactured in the US. If the amendments as currently proposed are enacted into law, there will be an adverse effect on the Company’s ability to secure premium pricing for US made pattern solar glass over Asia-Pacific import glass prices.

The policy amendments in the US also propose rigorous regulations targeting Prohibited Foreign Entity (“PFE”). Companies with their principal place of business in China would be categorized as a PFEs in the proposed legislation. The majority of global production of pattern solar glass is currently supplied by companies based in China. Enacting this policy could have significant negative impacts on the import of pattern solar glass from Asia-Pacific, a scenario that would enhance the value proposition and commercial viability of North American pattern solar glass supply for solar panel components, particularly glass.

The Company continues to advance both the US and Selkirk Projects and is closely monitoring legislative actions in the US, the impact of proposed legislation to IRA incentives and ongoing trade matters, particularly between Canada and the US. Further, the Company awaits clarity on Canadian domestic economic policy following the April 28, 2025 Canadian federal election. The outcome of these actions and policies will influence the Company’s strategy and timeline of securing financing for its projects.