JX Advanced Metals : Notice Regarding Capital Investment for Expanding Production of Sputtering Targets for Semiconductors at New Hitachinaka Factory(Acquisition of Fixed Assets)

[Translation]

March 10, 2026

To whom it may concern:

Company Name: JX Advanced Metals Corporation Representative: Hayashi Yoichi

President & Representative Director

(Code number: 5016, TSE Prime Market) Contact Person: Yoneyama Manabu

Manager (Disclosure)

Corporate Communication Department (Telephone: +81-3-6433-6088)

Notice Regarding Capital Investment for Expanding Production of Sputtering Targets for Semiconductors at New Hitachinaka Factory

JX Advanced Metals Corporation (President: Hayashi Yoichi; hereinafter "the Company") hereby announces that it has decided to implement an investment project at New Hitachinaka Factory (Hitachinaka City, Ibaraki Prefecture) to expand production of sputtering targets for semiconductors, a product experiencing a rapid increase in demand-particularly for AI and data-center applications. The planned investment amount is approximately 23 billion yen.

1. Reason

   In 2022, the Company acquired a large site in Hitachinaka City, Ibaraki Prefecture, and has since been constructing New Hitachinaka Factory as a new core base for advanced materials essential to the progress of the digital society, including the semiconductor field. The recycling logistics center began operations ahead of schedule in July last year, and trial operations of some semiconductor sputtering-target production facilities are scheduled to begin at the end of March this year with the opening of the plant.

   Regarding semiconductor-material manufacturing equipment, the Company had planned to expand capacity flexibly based on market trends. Currently, demand for advanced logic semiconductors and advanced memory semiconductors (such as HBM) used in AI and data-center applications is expanding. Since rapid growth is expected for the Company's sputtering targets required for these advanced semiconductors, the Company has determined that now is the appropriate time to expand production capacity.

   Through this capacity expansion, the Company will build a stable supply system to meet future demand growth and further strengthen its presence in the global advanced-semiconductor supply chain. In introducing the new facilities, the Company also plans to utilize the technologies and know-how cultivated at its core production site for sputtering targets for semiconductors-the Isohara Works-to establish more efficient production lines.

2. Overview of Capital Investment

   1. Details

      At the Hitachinaka Thin-Film Materials Plant (Hitachinaka City, Ibaraki Prefecture), the Company will add major production facilities for sputtering targets for semiconductors.

   2. Investment amount

      Approximately 23 billion yen

      Note: This amount is included within the "150 billion yen" investment value for New Hitachinaka Factory announced in the "Partial Change in Investment Plan for New Hitachinaka Factory" press release (March 6, 2024) and includes the 6.6 billion yen investment announced in the "Certification of the Supply Assurance

      Plan for Sputtering Targets for Semiconductors by the Ministry of Economy, Trade and Industry" Disclosure document (July 18, 2025).

   3. Production capacity

      1.6 times the FY2023 level

   4. Start of operation

   Operations to begin sequentially from the second half of FY2027 (planned)

3. Future Outlook

The impact on the Company's consolidated financial results for the fiscal year ending March 2026 is expected to be minimal.