KAP MINERALS AND CYMAT TECHNOLOGIES ANNOUNCE STRATEGIC PARTNERSHIP TO DEVELOP CANADIAN SCANDIUM-ALUMINUM MASTER ALLOY PRODUCTION

Proposed joint venture to establish a Made-in-Canada supply chain for advanced materials serving aerospace, defense and allied industrial markets.

MISSISSAUGA, ON and KAPUSKASING, ON, Oct. 28, 2026 /PRNewswire/ -- KAP Minerals Inc. ("KAP") and Cymat Technologies Ltd. (TSXV: CYM) (OTCQB: CYMHF) ("Cymat") are pleased to announce the signing of a Memorandum of Understanding ("MOU") to advance a proposed joint venture for the production and commercialization of scandium-aluminum ("Sc-Al") master alloy in Canada.

The partnership would combine scandium oxide expected to be recovered from KAP's Kapuskasing critical minerals project in Northern Ontario with Cymat's unique aluminum-processing technology and manufacturing expertise.

Scandium-aluminum master alloy is a high-value material used to produce specialized aluminum alloys with enhanced strength, weldability, and performance. Cymat's proprietary flux-free alloying process will be employed to produce a Sc-Al master alloy with superior purity. These properties make it particularly attractive for aerospace, defence and advanced-manufacturing applications.

The proposed joint venture aims to establish a domestic manufacturing capability that converts Canadian scandium into a commercially usable advanced material, strengthening Canada's industrial base and providing a potential new source of supply for allied markets.

"Canada has a significant opportunity to move beyond critical mineral extraction and become a producer of the advanced materials that global industries depend on," said Geoff Hampson, CEO of KAP Minerals. "Our partnership with Cymat brings together Canadian resources and Canadian manufacturing technology to develop a strategically important product for aerospace and defence. We see this as an opportunity to establish a competitive Canadian business while strengthening our country's role in allied industrial supply chains."

"This partnership creates an important opportunity for Cymat to apply our proprietary aluminum-processing technology to a new generation of high-performance materials," said Michael Liik, CEO of Cymat Technologies. "By combining our manufacturing expertise with KAP's scandium resource, we intend to establish a Canadian source of scandium-aluminum master alloy capable of serving demanding aerospace, defence and industrial markets."

Advancing Canada's Defence and Critical Minerals Priorities

The announcement aligns with Canada's Defence Industrial Strategy and the growing emphasis among G7 and NATO economies on strengthening domestic manufacturing, securing critical minerals, and reducing dependence on concentrated global supply chains.

While Canada possesses significant critical-mineral resources, developing domestic capacity to convert those resources into advanced industrial products remains an important strategic priority.

The KAP–Cymat initiative seeks to address this opportunity by establishing an integrated Canadian supply chain, from scandium recovery in Northern Ontario to master alloy manufacturing in Ontario.

The partnership also complements Canada's established aluminum and aerospace industries, creating opportunities for domestic innovation, skilled employment, and stronger commercial relationships with allied defence and manufacturing customers.

For major aerospace and defence manufacturers, the availability of a reliable, commercially scalable supply of scandium-aluminum master alloy is essential to incorporating these advanced materials into future production programs. By establishing a credible domestic supply chain, the KAP–Cymat partnership aims to give industry the confidence to qualify new materials, make long-term manufacturing investments and accelerate the development of next-generation aerospace and defence capabilities.

"The partnership between KAP Minerals Inc. and Cymat Technologies Ltd. is great news for innovation and industry in this province. Northern Ontario has long supplied the resources that help power our economy, and today we're seeing more opportunities to create value from those resources here at home. As we pivot away from our dependency on U.S markets, it is imperative that we capitalise on securing the value-added supply chains associated with northern Ontario; critical minerals and rare earths like scandium," said George Pirie, Ontario Minister of Northern Economic Development and Growth.

Stephen Lecce, Ontario Minister of Energy and Mines, said, "For too long, governments ripped and shipped Ontario's critical mineral advantage, leaving Canada's number one mineral-producing province dependent on foreign suppliers when we have the resources, supply chains and capacity to process here at home. This joint venture is another step forward in building end-to-end made-in-Ontario supply chains, leveraging Northern Ontario's critical minerals to support defense capabilities and national security across Canada and around the world."

"This milestone between KAP Minerals and Cymat Technologies shows how Canada is creating a resilient and sustainable critical minerals sector that will drive Canada's economic security and environmental leadership," noted Iqwinder Gaheer, Federal Member of Parliament for Mississauga-Malton. "Partnerships like these build the foundation for a stronger and more competitive resource sector that also strengthens our resilient and secure supply chains, diversifies our export opportunities, expands our development capabilities, and creates good jobs Canadian workers deserve right here in Canada."

Joint Venture Development

Under the MOU, KAP and Cymat will work toward a definitive joint venture agreement covering scandium oxide supply, master alloy production, intellectual property, financing, and commercialization.

KAP will lead the development of scandium oxide supply from its Kapuskasing project, where feasibility and metallurgical work are advancing. Cymat will contribute its proprietary processing technology and manufacturing capabilities to develop commercial-grade Sc-Al master alloy.

The companies intend to pursue commercial agreements with aerospace, defence and advanced-manufacturing customers in Canada and allied markets, while exploring relevant federal and provincial funding opportunities.

"Canada's critical minerals strategy will be measured by what we manufacture with our resources, not simply what we extract," stated Flavio Volpe, President Automotive Parts Manufacturers' Association (APMA). "By combining Northern Ontario scandium with Canadian manufacturing technology, KAP and Cymat are taking an important step toward building the sovereign industrial capacity that our automotive, aerospace, defence and advanced manufacturing sectors need."

The JV targets demonstration of commercial-grade master alloy production by the end of 2027, subject to technical development and agreed specifications.

"The strategic value of this initiative is that we intend to manufacture the material industry needs, not simply supply the underlying mineral," added Hampson. "That is where we believe Canada can create lasting industrial value, and where KAP and Cymat have an opportunity to build a differentiated business."

About KAP Minerals

KAP Minerals Inc. is a Canadian critical-minerals development company advancing the Kapuskasing Project in Northern Ontario. The company is focused on recovering phosphate, rare earth elements, scandium and other strategic materials from previously mined material and developing downstream processing opportunities for Canadian and allied markets.

For further information, please contact Jeff Ivan, telephone: +1-403-835-0994.

About Cymat Technologies Ltd.

Cymat Technologies Ltd. holds the global rights, through patents and established know-how, to manufacture and sell Stabilized Aluminum Foam ("SAF"), a unique, ultra-light, cellular metallic material. The proprietary production process entails the injection of gases through a molten bath of alloyed aluminum infused with ceramic particles. The result is an advanced, lightweight, recyclable material that exhibits unique characteristics including customizable density and dimensions; mechanical energy absorption; thermal and acoustic insulation; and time, temperature and strain-rate insensitivity. A key benefit of this continuous foam production process is its scalability and resultant low cost of production. SAF is used in such industries as architectural design, military and automotive. Cymat markets its architectural SAF under the Alusion^TM brand and its automotive and military SAF under the SmartMetal^TM brand. For further information, please visit our website at www.cymat.com. 

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Certain material assumptions regarding such forward-looking statements may be discussed in this news release and the Company's annual and quarterly management's discussion and analysis filed at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.

SOURCE Cymat Technologies Ltd.