HydroGraph Highlights Progress on 2026 Milestones as It Advances Toward First Commercial Orders, New Defense Programs and U.S. Redomicile; Completes Equity Incentive Grant

Recently completed C$70.4 million financing has strengthened balance sheet; permitting advancing for Bellville, Texas production facility; securityholder vote on Delaware redomicile set for October 29; lead commercial opportunities move into negotiation with closings expected within months; defense division advancing multiple U.S. opportunities

AUSTIN, Texas, Oct. 21, 2026 (GLOBE NEWSWIRE) — HydroGraph Clean Power Inc. (CSE: HG) (OTCQB: HGRAF) (“HydroGraph” or the “Company”) today provided a corporate progress update on its 2026 objectives, including a strengthened balance sheet following its upsized C$70.4 million bought deal financing, advancement of its planned Texas large-scale graphene manufacturing facility and the upcoming special meeting of securityholders to approve its proposed redomicile to the United States.

“We are executing on our plan to move HydroGraph from technology development to commercial production,” said Kjirstin Breure, President and Chief Executive Officer of HydroGraph. “At the start of 2026, we set a clear series of goals for this transition, and we have now achieved most of them, including securing U.S. EPA and UK and EU REACH regulatory clearances, opening our new Austin headquarters with three Hyperion Reactors on site, launching our high-concentration Fractal Graphene Paste™, and securing both the site for our large-scale manufacturing facility in Bellville, Texas and a long-term acetylene supply agreement with Western International.

“With these milestones in place, we believe that HydroGraph is increasingly positioned to supply high volumes of pristine graphene for industrial-scale applications. Our two remaining 2026 goals are securing our first commercial purchase orders and advancing our work with the U.S. federal government. Both are on moving forward.

“On the commercial side, multiple of our most advanced customer engagements have moved from evaluation to commercial negotiation, and we expect to enter into the first of those agreements within the coming months. In parallel, we are advancing a dedicated defense division focused on highly engineered graphene solutions for the U.S. military and other federal interests. These initiatives have the potential to provide both near-term revenue opportunities upon commencement of a program and larger longer-term opportunities as solutions progress toward qualification and deployment.”

Key 2026 milestones to date include:

• Closing of an upsized bought deal offering on August 25, 2026, for gross proceeds of C$70.4 million, including full exercise of the over-allotment option, at C$6.80 per unit, the highest offering price in the Company’s history.
• Appointment of Grant Thornton as the Company’s auditor beginning with fiscal year 2026, as part of the Company’s redomiciling to the United States.
• Filing and mailing of the management information circular for a Special Meeting of Securityholders to be held October 29, 2026, to approve the redomicile of HydroGraph to the United States as a Delaware corporation.
• Receipt of a certificate of occupancy for the Austin headquarters, bringing both the administrative and development/production areas of the facility to full operational status. With three on-site Hyperion Reactors, the facility has capacity of up to 30 tons of graphene per year. The Company celebrated the opening with a visit from U.S. Representative John Carter (TX-31).
• Initial steps with government, industry and research partners to create a dedicated U.S. graphene innovation consortium comparable to the Graphene Engineering Innovation Centre (GEIC) at the University of Manchester in the United Kingdom. HydroGraph is taking a leadership role in steering its development. The innovation center is being structured to serve aerospace, defense and national security interests; the Company’s defense research partnerships are expected to accelerate its development.
• Advancement of permitting for the Bellville, Texas manufacturing facility, which is expected to open in the first half of 2027 with initial capacity of approximately 60 tons per year, then anticipated to scale to approximately 360 tons per year in the first phase and more than 750 tons per year in the second phase. The facility will receive acetylene feedstock by dedicated pipeline under a 10-year supply agreement with Western International.
• Commercial launch of Fractal Graphene Paste™, a water-based dispersion containing 20% graphene by weight, compared with approximately 1% to 5% for typical commercial graphene dispersions, and a shelf life of more than two years. More than 30 customers have received samples for evaluation in applications including coatings, concrete and construction materials, thermal management and elastomers.
• Advancement of the Company’s commercial pipeline, with multiple of the most advanced customer evaluations now moving from technical qualification and scale up into commercial negotiation. These discussions cover pricing, volumes and supply terms, and the Company expects the first of these opportunities to convert into purchase orders or supply agreements within the coming months.
• Advancement of the Company’s defense division, which is focused on highly engineered graphene solutions for U.S. national security interests. The Company is in active negotiations for multiple research partnerships that include funding for the work to be performed. Some programs require specialized research and development and carry longer development cycles than the Company’s commercial applications, with defined milestones that the Company expects to announce as they are achieved. The Company sees revenue opportunities from these initiatives that are both immediate upon commencement of a program and longer term as solutions progress toward qualification and deployment.
• Expansion of the Company’s intellectual property portfolio across multiple jurisdictions, with new patent applications filed or in preparation covering recent HydroGraph innovations and products.
• Continued expansion of the HydroGraph team, particularly in research and production roles, to support increasing commercial activity and the ramp to full production at the Bellville facility.

The Company has granted (the “Grant”), as part of the compensation committee’s review of long-term incentive awards, an aggregate of 1,268,133 restricted share units (the “RSUs”) and 218,691 stock options (the “Options”) to certain directors, officers, employees and consultants of the Company under its Share Compensation Plan. All of the RSUs and Options vest as to one-third every year from the date of Grant, other than 143,291 RSUs granted on October 13, 2026 to certain directors, which vest as to one-third on each of October 13, 2027, October 13, 2028 and October 13, 2029, provided that 45,867 of such RSUs granted to a certain director vest as to one-third on each of October 13, 2027, September 17, 2028 and September 17, 2029. Each vested RSU entitles the holder to receive one common share in the capital of the Company (each, a “Share”), or the equivalent cash value thereof, in accordance with the terms of the Company’s Share Compensation Plan. Each Option can be exercised for one Share at a price of $2.78 per Share for a period of five years from the date of Grant. All RSUs and Options, including any Shares issued upon the exercise or settlement thereof, are subject to a hold period of four months and one day from the date of Grant.

The Company has also granted (the “CEO Grant”), as part of the compensation committee’s annual review of executive compensation and long term incentive awards, 625,000 restricted share units (the “CEO RSUs”) and 625,000 options (“CEO Options”) to Kjirstin Breure, the President and Chief Executive Officer of the Company. The Company also granted 3,600,000 CEO Options based on the achievement of previously established CEO performance milestones. All of the CEO RSUs and CEO Options, including the CEO Options granted based on the achievement of previously established CEO performance milestones, vest as to one-third every year from the date of the CEO Grant. Each vested CEO RSU entitles the holder to receive one Share, or the equivalent cash value thereof, in accordance with the terms of the Company’s Share Compensation Plan. Each CEO Option can be exercised for one Share at a price of $2.78 per Share for a period of five years from the date of the CEO Grant. All CEO RSUs and CEO Options, including any Shares issued upon the exercise or settlement thereof, are subject to a hold period of four months and one day from the date of CEO Grant.

About HydroGraph
HydroGraph is a leading producer of pristine synthetic graphene using its proprietary Hyperion Reactor technology, which allows for exceptional purity, low energy use, and identical batches. The quality, performance, and consistency of HydroGraph’s graphene follow the Graphene Council’s Verified Graphene Producer® standards, which very few graphene producers are able to meet. For more information or to learn about the HydroGraph story, visit: https://hydrograph.com/. For company updates, please follow HydroGraph on LinkedIn at https://www.linkedin.com/company/hydrograph/ and X at https://x.com/HydroGraphInc.

Trademarks: HydroGraph™, Fractal Graphene™ and Fractal Graphene Paste™

Forward-Looking Statements

This release contains certain “forward-looking statements” and certain “forward-looking information” as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “upon”, “anticipate”, “believe”, “continue”, “plans”, “could”, “would”, “should”, “suggests”, “target”, “has the potential to”, “goal”, “on track” or similar terminology. Forward-looking statements in this release include, but are not limited to, statements regarding the timing of first commercial purchase orders; the progress, timing and outcome of commercial negotiations and the Company’s expectation that initial agreements will close within months; the establishment, scope and activities of the Company’s defense division; the negotiation, funding, timing, milestones and revenue potential of defense-related research partnerships; the establishment, development, scope and activities of a U.S.-based graphene innovation organization; the Company’s work with the U.S. federal government; the completion and timing of the proposed redomicile; the receipt of required securityholder, court and other approvals in connection therewith; the Company’s cash position and ability to fund its growth strategy; the operation and production capacity of the Austin headquarters facility and its Hyperion Reactors; the permitting, construction, timing, opening, feedstock supply arrangements and production capacity of the Bellville facility; customer evaluation, qualification and adoption of the Company’s products, including Fractal Graphene Paste™; the anticipated performance, commercial acceptance and market opportunities for the Company’s products; patent filings and intellectual property development; and the Company’s hiring and expansion plans.

Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable, and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of HydroGraph to control or predict, that may cause HydroGraph’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: HydroGraph’s ability to implement its business strategies; the ability to obtain securityholder, court and other approvals required for the redomicile; delays in permitting, construction, commissioning or operation of production facilities; the availability and reliability of feedstock supply; the pace of customer qualification and adoption of graphene products; the risk that commercial negotiations do not result in binding agreements or do not close within the expected timeframe; the risk that anticipated purchase orders, supply agreements or commercial relationships are not obtained on the expected timeline or at all; the Company’s dependence on U.S. government funding, procurement cycles, appropriations and security and export control requirements in connection with its defense initiatives; the extended development cycles associated with defense research programs; risks relating to the establishment and development of a U.S.-based graphene innovation organization; risks associated with general economic conditions; adverse industry events; stakeholder engagement; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks. HydroGraph does not undertake any obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available.

The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

CONTACTS:
Matt Kreps
Senior Vice President of Capital Markets and Investor Relations
+1-214-597-8200
matt.kreps@hydrograph.com

Len Fernandes
Firecracker PR for HydroGraph
len@firecrackerpr.com