Dear Sir/Madam,

I am pleased to update you on a period of strong commercial and technical progress for Sparc Technologies. The first half of 2026 has seen:

• ecosparc® adopted by two global protective coatings manufacturers;
• our graphene additive portfolio expand with the launch of SparcES™ into a significant and high growth new market segment;
• Sparc Hydrogen validate its technology at Roseworthy while building relationships across the world's most active hydrogen markets; and
• Sparc Technologies achieve secondary listings on the Frankfurt Stock Exchange and OTCQB Venture Exchange in the US.

Before covering these highlights, I will reiterate Sparc's value proposition and point of difference. Sparc holds globally leading technology positions within two multibillion-dollar industry verticals:

1. The commercialisation of graphene additives in a growing number of high performance coatings segments valued at US$59bn; and
2. The development of next-generation green hydrogen production technology via our investment in Sparc Hydrogen.

Graphene Additives

The first half of 2026 has been transformational for our graphene additives division, with ecosparc® moving from first commercial sale to genuine product adoption. In April, tier 1 global coatings manufacturer AkzoNobel confirmed it would commercially offer ecosparc® enhanced Interzone® 954 in Australia — a heavy duty protective coating with a 25 year track record. This product release represents the first widely used protective coatings product to incorporate ecosparc® globally, with product availability commencing in May 2026. Importantly, this is a major validation of our technology and product platform and provides a direct route to a market for millions of litres of protective coatings. The recent appointment of Peter Wenzke as Business Development Manager will support the ecosparc® enhanced Interzone® 954 product rollout with a focus on driving specification, market awareness and adoption of ecosparc® enhanced coatings.

This momentum extended internationally in June, when Petro Vietnam Paint (PV PAINT), a member of the PetroVietnam energy group, committed to incorporating ecosparc® within its PERAPHENE range of protective coatings. PV PAINT’s decision to commercialise coatings incorporating ecosparc® follows internal and external testing programs which showed relative performance improvements through utilising ecosparc® compared to other graphene materials.

Commercial availability of the PERAPHENE products is expected in late Q3 2026, and this represents the first international coatings product range to incorporate ecosparc®.

To diversify and strengthen our graphene supply chain, in March we entered into a Letter of Intent with HydroGraph Clean Power Inc. (CSE: HG), a leading North American producer of high quality turbostratic graphene, to evaluate the use of HydroGraph's Fractal Graphene within ecosparc® additives. Following encouraging results in water-based coating systems, Sparc is now undertaking cyclic corrosion testing in solvent-based coatings, with a commercial supply and collaboration agreement to be negotiated subject to successful testing outcomes.

Finally, in June we launched SparcES™, a new graphene additive range targeting the electrostatic (ESD) and conductive coatings market. This mission-critical coatings segment protects sensitive equipment in data centres, semiconductor fabrication and EV battery manufacturing facilities, and the market size is estimated by independent analysis to grow from US$1.2 billion in 2026 to ~US$1.65 billion by 2030. The release of SparcES™ follows ~24 months of in-house conductivity testing and leverages the same relationships that underpin ecosparc®'s commercial success, with two customer-led product development programs already underway.

Our commercial momentum is being driven by an expanding pipeline of projects across five coatings segments (Figure 1). ecosparc® now has two commercial customers in protective coatings, while strong testing results in water-based systems are opening up new opportunities in general industrial and OEM coatings. SparcES™ is progressing two customer development programs in ESD and conductive coatings, and we have recently entered into a customer-led program in powder coatings. Together, these markets represent an addressable opportunity approaching US$60 billion and multiple pathways to future growth for our graphene additives business.

Figure 1. Expanding commercial opportunity across five coatings segments

Sparc Hydrogen

Sparc Hydrogen's SHARP pilot facility at Roseworthy has now completed six months of continuous operation, building on years of laboratory and prototype testing. Over this period the plant has achieved fully autonomous operation including safe remote start-up and shut-down, sustained hydrogen production at maximum reactor design pressure and elevated temperatures, and stable performance throughout a harsh South Australian summer with ambient temperatures reaching 46°C. Photocatalyst material performance and durability have been maintained over more than six months of continuous testing — critical work in validating photocatalytic water splitting under real-world conditions.

Figure 2. Sparc Hydrogen's SHARP Pilot Facility at Roseworthy, South Australia

In May, Sparc Hydrogen CEO Alana Barlow undertook an extensive European business development trip across Spain, Germany, the United Kingdom and the Netherlands. In Valencia, the team spent time on-site with our concentrated solar infrastructure partner, working through engineering questions on mirror systems, reactor mounting and thermal management, and exploring how our technologies can continue to develop together. In the UK, the team met with a range of photocatalyst developers to assess how emerging high-performance materials could be brought to commercial application through Sparc Hydrogen's concentrated solar platform.

The trip culminated in attendance at the World Hydrogen Summit in Rotterdam — the largest gathering in the global hydrogen industry, with attendees from 120 countries — as part of the Australian trade delegation. The Summit, along with meetings organised by Austrade in Germany and with the Australian Ambassador to the Netherlands, confirmed that the European hydrogen industry has moved from ambition to implementation, with binding policy targets, dedicated funding instruments and a growing pipeline of industrial demand, including major offtake agreements.

Figure 3: Sparc Hydrogen CEO, Alana Barlow, and Project Manager, Vinodhan Gopalan, with Australian Ambassador to the Kingdom of the Netherlands, Dr. Greg French

This growing European demand for credible, scalable green hydrogen production technology reinforces the commercial opportunity for Sparc Hydrogen's photocatalytic water splitting reactor platform, and the relationships being built with photocatalyst developers, industrial offtakers and development finance institutions position Sparc Hydrogen to build out an end-to-end pathway from photocatalyst development through to commercial-scale hydrogen production. Furthermore, hydrogen as an alternative energy source, has attracted renewed interest resulting from the heightened energy supply risks arising from the wars is the Middle East and the Ukraine. We expect more updates from Sparc Hydrogen during H2 2026 on partnership development and performance at Roseworthy which will demonstrate an increasingly clear path to scale up and commercialisation of Sparc Hydrogen’s patented reactor technology.

Looking Ahead

The first half of 2026 has confirmed that Sparc's differentiated technology positions are translating into real commercial outcomes. In graphene additives, we now have two global manufacturers commercialising ecosparc® enhanced products, a strengthened supply chain, an expanded commercial team, and a broadening project pipeline across multiple coating segments. In green hydrogen, Sparc Hydrogen continues to validate its technology at Roseworthy while building the industry relationships needed to commercialise photocatalytic water splitting at scale.

This growing commercial momentum has been matched by an expanding international investor base. In March, Sparc obtained a secondary listing on the Frankfurt Stock Exchange (ticker:NLR), supporting our growing engagement with European corporates and providing access to EU-based retail and institutional investors. In June, we followed this with an uplisting to the OTCQB Venture Market in the United States (ticker: SPTCF), reflecting strong and growing interest from North American retail and high net worth investors. Both listings are secondary to our primary ASX listing and did not involve the issue of any new shares, but they meaningfully broaden Sparc's shareholder base and visibility as our commercial footprint extends into Europe and North America and have contributed to growing liquidity on the ASX.

Our focus remains clear: commercialising our graphene products within the coatings industry while maximising value from our investment in Sparc Hydrogen. First, we will continue the global rollout of ecosparc®, working with global coatings leaders targeting further product releases in H2 2026. Second, we will work to consolidate our market leadership in photocatalytic water splitting technology, including through partnering with leading photocatalyst developers. Third, we will deepen strategic partnerships with key industry players to support and accelerate commercial deployment across both of our technology streams. Fourth, we will continue to enhance our profile and liquidity in the US and European markets through targeted investor engagement and our new secondary listings.

I would like to thank shareholders for their continued support as we work through this important commercialisation phase and I look forward to updating you further as these priorities are progressed through the second half of 2026.

Yours sincerely

Nick O’Loughlin
Managing Director
Sparc Technologies Limited