Summary

Falcon Energy Materials plc has formally commenced international arbitration proceedings over the illegal expropriation of the Lola Graphite Project (the "Project") by the Republic of Guinea ("Guinea") and other breaches of the bilateral investment treaty between the Governments of the United Arab Emirates and Guinea ("UAE-Guinea BIT").

The Company lodged a Request for Arbitration ("RfA") under the UAE-Guinea BIT with the International Centre for Settlement of Investment Disputes ("ICSID"), part of the World Bank. The RfA is filed in accordance with the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the "ICSID Convention"). The RfA contains a description of the background to the dispute, a summary of the Company's claims and an initial estimate of compensation for the damages sustained by the Company resulting from the actions of the Government of Guinea, currently estimated at US$100 million.

Background to the Request for Arbitration

On May 14, 2025, by virtue of a decree signed by its President, Guinea unilaterally revoked the exploitation license of the Project. The Company subsequently approached the Ministry of Mines in an effort to resolve the situation amicably. In the absence of any response, Falcon notified Guinea of a dispute under the UAE-Guinea BIT, which triggered a 6-month period to seek an amicable resolution to the dispute. The Company agreed to continue negotiating beyond the six months in an attempt to resolve the dispute amicably. However, it became clear that Guinea will not offer any compensation to Falcon for its losses.

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