J-Star Holding Issues Update On Planned U.S. Drone Frame Production Initiative, Including Ongoing Negotiations To Acquire A Commercial Manufacturing Facility Located In Greater Houston, Texas

The proposed facility would serve as the manufacturing base for YMA (TX) INC., an independent U.S. legal entity that J-Star is organizing as a platform for potential joint ventures for drone-frame production with North American commercial unmanned aerial vehicle ("UAV") developers, aerospace original equipment manufacturers ("OEMs"), and industrial partners.

J-Star's role in the initiative is focused on contributing its composite-materials expertise, proprietary technology and engineering capabilities, while supporting the early stages of facility development and production-line installation. The initiative is intended to extend the Company's existing capabilities in advanced composite manufacturing into the U.S. drone market while maintaining its core focus on composite engineering, material science and manufacturing.

J-Star’s Strategic Role as Organizer, Technology Provider, and Constructor

YMA (TX) INC. is intended to provide a foundation for collaborations through joint-venture frameworks with North American UAV developers, aerospace OEMs, and industrial partners. The scope and timing of production activities will depend on completion of the facility transaction, subsequent site preparation and equipment installation, and the development of commercial relationships.

Under this framework, J-Star serves as the primary organizer and key technology partner, contributing:

Proprietary technology and licensing: Carbon fiber composite technologies, including custom resin matrix formulations, composite-to-metal interlocking structural designs and automated carbon fiber skin-to-skeleton welding methodologies;
Engineering and material science: Structural design, material testing, and resin matrix optimization supplied by J-Star’s research laboratory, YMA Corporation, in Taichung, Taiwan;
Facility development and production set-up: Contribute technical and operational support for facility procurement, site preparation, cleanroom configuration, production-line installation, in Houston; and
Export control and data safeguards: Development of operational protocols at YMA (TX) INC. designed to address applicable U.S. export control requirements and safeguard access to controlled technical data and technology strictly to authorized U.S. Persons.
Building on Decades of Carbon Fiber Manufacturing Experience

The Houston facility will build directly upon J-Star’s over 50-year operational legacy in advanced carbon fiber composite manufacturing. Tracing its lineage back to 1970, the Company has steadily climbed the technological ladder—evolving from high-volume sports racquets and lifestyle bicycles to advanced robotic arm components, specialized healthcare equipment, automotive structures, and now precision drone frames. By combining decades of proven material science, specialized resin chemistry, and deep experience in massive high-precision production with automated U.S. assembly, YMA (TX) INC. will deliver high-reliability composite hardware to power and to support the growing U.S. drone industry.

Supporting U.S.-based Drone Manufacturing

The proposed Houston-area facility would provide a U.S. location for planned drone-frame manufacturing. Its location is within the Greater Houston aerospace region.

By combining J-Star’s composite materials capabilities with planned U.S. manufacturing operations, the Company seeks to establish a platform through which it can engage with North American UAV developers and industrial partners.