Arizona Nominates EVelution Energy's Yuma Cobalt Site for Opportunity Zone 2.0 Rural Designation

EVelution Energy LLC ("EVelution Energy"), a U.S. critical minerals company developing America's first commercial-scale, solar-powered cobalt metal and cobalt sulfate processing facility, announced that Arizona Governor Katie Hobbs has nominated the Yuma County census tract encompassing the Company's planned $450 million facility for successor designation as a Rural Qualified Opportunity Zone under the federal Opportunity Zone 2.0 ("OZ 2.0") program.

Upon certification by the U.S. Department of the Treasury, the nomination is expected to make qualifying investments in the project eligible for enhanced Rural Opportunity Zone tax incentives beginning January 1, 2027, further strengthening the project's long-term investment framework as EVelution Energy advances permitting, financing and construction.

The nomination represents another significant milestone in the systematic de-risking of one of the more advanced domestic critical minerals processing projects currently under development in the United States.

“We are grateful to Governor Hobbs, the Arizona Commerce Authority, the Yuma County Economic Development Corporation, and Yuma County’s elected leadership for their continued support,” said Navaid Alam, President & CEO of EVelution Energy. “This nomination strengthens the long-term investment framework for America’s first commercial-scale, solar-powered cobalt processing facility and advances a project designed to support U.S. defense readiness, domestic manufacturing and critical minerals supply-chain resilience. It also demonstrates that nationally significant industrial development can proceed alongside responsible environmental stewardship.”

Supporting Long-Term Investment Through Opportunity Zone 2.0

The Opportunity Zone 2.0 program, which takes effect on January 1, 2027, builds on the original Opportunity Zone framework by introducing enhanced tax incentives designed to attract long-term private investment to economically disadvantaged communities, particularly in rural areas. For nationally significant industrial projects such as EVelution Energy's planned cobalt processing facility, these enhanced incentives are intended to encourage additional private capital, job creation and long-term economic development.

Investments made prior to January 1, 2027, will continue to qualify under the existing OZ 1.0 framework, which provides deferral of eligible capital gains and potential exclusion of post-investment appreciation for long-term holdings.

OZ 2.0 provides enhanced incentives intended to attract long-term private capital to qualifying rural Opportunity Zones. Subject to applicable federal tax requirements, qualifying investments in rural Qualified Opportunity Zones beginning January 1, 2027 may be eligible for:

• Rolling five-year capital gains deferral
• Potential permanent exclusion of appreciation on qualifying Opportunity Zone investments held for the required period
• A 30% increase in tax basis for eligible Rural Opportunity Zone investments
• Accelerated depreciation deductions
• Potential elimination of depreciation recapture upon disposition of qualifying investments

Together, these incentives strengthen the long-term investment framework supporting EVelution Energy's $450 million cobalt processing facility and other strategically important rural industrial projects.

Advancing Project Development and Economic Impact

EVelution Energy’s $450 million Yuma County project is expected to generate approximately $1.2 billion in annual economic activity across the State of Arizona and support the creation of more than 6,200 direct, indirect and induced jobs over the life of the project. Located in a rural Qualified Opportunity Zone, the project is designed to bring long-term industrial investment, skilled employment and supply-chain activity to a rural part of Arizona targeted for economic development and community revitalization.

Workforce Development and Community Investment

EVelution Energy is working with Arizona Western College (AWC) to develop the first Critical Minerals Hydrometallurgical Processing Training Program in the United States, expected to be offered at AWC’s Wellton Manufacturing Training Center in Yuma County. The program is intended to prepare local workers for skilled jobs in critical minerals processing and advanced manufacturing while supporting the facility’s long-term workforce requirements.

Best-in-Class Sustainable Processing Facility

EVelution Energy’s facility is being designed to minimize its environmental footprint through on-site solar generation and battery storage, closed-loop water management, no on-site tailings storage and off-site disposal of process residues at a licensed facility. The closed-loop system is designed to recycle approximately 70% of process water, positioning the project among the most water-efficient critical minerals processing facilities under development in North America.

Continued Project De-Risking and Strategic Alignment

The nomination for successor designation builds on a series of previously announced milestones that collectively continue to de-risk the development of EVelution Energy’s project, including:

• Receipt of zoning approvals and Special Use Permits for both the planned cobalt processing facility and the project's 28 MW solar and battery energy storage facilities
• Strategic feedstock supply frameworks, long-term commercial offtake arrangements and continued advancement of export credit agency financing initiatives supporting future project development
• Commencement of construction of the project’s 28 MW solar facility

Together, these developments reflect continued progress across permitting, construction, financing and commercial development, positioning the project as one of the most advanced efforts to establish secure domestic cobalt processing capacity in the United States, aligned with U.S. defense industrial base priorities and broader national supply chain security objectives.

Construction of the planned cobalt processing facility is expected to commence in early 2027, with completion targeted by the end of 2029.

EVelution Energy | www.evelutionenergy.com