Kapuskasing, Ontario--(Newsfile Corp. - September 24, 2026) - KAP Minerals Inc. ("KAP" or the "Company") is pleased to announce that Hatch has commenced work on the Feasibility Study ("FS") for the development of the processing plant at the Company's Kapuskasing Project in Northern Ontario, marking a significant milestone in KAP's progression toward commercial development.

The FS will advance the engineering and development basis for the proposed Kapuskasing processing operation, building on the technical and metallurgical programs KAP completed earlier this year. The scope will address process design, metallurgical performance, environmental and permitting considerations, infrastructure requirements, capital and operating costs, and other key elements needed to move the project forward. This phase of KAP's development plan focuses on beneficiation and the production of phosphate concentrate, rare earth elements, scandium and other strategic mineral products from existing surface material.

The Kapuskasing Project is unique in that it is located on a previously producing site, where much of the required infrastructure, such as roads, rail, power, and natural gas, is already in place or readily available, and approximately 14.7 million tonnes of previously mined material are located at the surface. Having already been mined and milled, this material contains a higher grade of P2O5 and critical minerals than many known in-ground Canadian deposits. In addition to this surface material, a large deposit of similar or higher grade remains to be mined. Together, these advantages are expected to support a materially shorter development timeline than conventional greenfield critical-minerals projects.

"The initiation of the Feasibility Study with Hatch marks an important transition for KAP from technical development to project execution," said Geoff Hampson, Chief Executive Officer of KAP Minerals. "Our objective is to demonstrate that the Kapuskasing Project can be a capital-efficient, near-term Canadian source of critical materials for domestic and allied industrial supply chains. Hatch brings the engineering depth and major-project experience needed to help us translate that opportunity into an executable development plan."

The FS comes at a time when Canada and allied governments are placing greater strategic emphasis on secure, diversified critical-mineral supply chains and on increased domestic processing capacity. In that context, KAP is developing the Kapuskasing Project as a Canadian strategic-materials processing platform with potential applications across defence, aerospace, advanced manufacturing, battery materials, and other industrial markets.

In parallel with the FS, KAP continues to advance discussions with potential customers, downstream processors and technology partners across Canada, the United States, Europe and Asia. This commercial work aims to progressively align KAP's product specifications and development plans with downstream requirements as the project progresses through feasibility.

The Company is also pursuing a disciplined financing strategy that contemplates a combination of government and non-dilutive funding, Indigenous participation, strategic investment, private capital, and ultimately project financing. The FS is intended to establish the technical and economic foundation required to support those financing discussions.

"This is about more than completing an engineering study," added Mr. Hampson. "The Feasibility Study is a critical step toward converting an established Canadian resource and brownfield infrastructure into qualified products, commercial partnerships, and a financeable project. Our focus is now firmly on execution."

About KAP Minerals Inc.

KAP Minerals is advancing a critical-minerals processing project in Kapuskasing, Ontario, focused on unlocking value from previously mined material containing phosphate, rare earth elements, scandium, titanium and other strategic minerals. KAP's strategy is to leverage its brownfield advantages to establish a near-term Canadian processing platform serving domestic and allied industrial, defence and advanced-manufacturing supply chains.

About Hatch

Hatch is a global engineering, project delivery, and professional services firm. With seven decades of business and technical experience in the infrastructure, energy, and mining sectors, we understand that challenges are changing rapidly. We respond quickly with solutions that are smarter, more efficient, and more innovative. We draw upon our 11,000 staff with experience in over 150 countries to challenge the status quo and create positive change for our clients, our employees, and the communities we serve.

Find out more on www.hatch.com.

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Source: KAP Minerals Inc.