PROFIT WARNING – DECREASE IN EBITDA

14:15 London, 16:15 Helsinki, 24 February 2026 - Afarak Group SE ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)

PROFIT WARNING – DECREASE IN EBITDA

Stock Exchange Release

The Board of Directors of Afarak Group SE (“Company”) estimates that despite higher revenue of 141.3 million Euro, EBITDA for the full year 2025 is at approximately 0.7 million Euro, compared to 2.6 million Euro in 2024.

In the Interim financial release H1 2025 published on 15^th August 2025, the Company stated the following expectations. We wish to provide our shareholders with an update on these:

OUTLOOK FOR THE SECOND HALF OF 2025

The market for standard grade low carbon ferro-chrome is expected to be stable throughout the year with some modest upwards potential. The weak US$ could easily wipe out any price increases, and cheap imports especially from Kazakhstan, and in a lesser way from Turkey and India/China will continue to weigh on the market price development. The specialty segment may be seeing more substantial improvements in demand and prices.

The chrome ore business, on the other hand, is expected to produce better margins. We have been finalizing investment decisions that will enable us to swiftly increase the output of chrome ore concentrates in South Africa. A new wash plant is planned to be commissioned by end of September in our Vlaakport mine, together with a solar energy plant which will make us independent from the grid there and allow us to produce on steady and regular basis concentrates with high quality ratios. The Mecklenburg mine is also expected to increase output substantially. By selling Ilitha and Zeerust, our South African team is now able to focus fully on these two assets.

Update:

The expected recovery in the stainless steel market did not materialize in the second half of 2025. Continued pricing pressure and a weaker US dollar negatively impacted margins in the LC ferrochrome business despite ongoing cost-optimization measures.

Chrome ore prices decreased in the second half of the year, resulting also in lower margins due to subdued stainless steel demand. Minor issues in the Vlaakport wash plant and solar plant commissioning caused some delays, so that we expect the plant to be at full capacity utilization within Q1/2026 now.

Helsinki, February 24, 2026

AFARAK GROUP SE

Board of Directors

For additional information, please contact:

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com

Financial reports and other investor information are available on the Company's website: www.afarak.com.

Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).

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London Stock Exchange
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www.afarak.com