PPY signs Biodegradable Boards Offtake Agreement with AQN

Papyrus Australia Limited (ASX: PPY) (“Papyrus”) is pleased to announce that it has entered a binding term sheet with TBS Mining Solutions Pty Ltd (“TBS”), a wholly owned subsidiary of Aquirian Limited (ASX: AQN), to manufacture a biodegradable version of their Collar Keeper® product. Papyrus is excited to be working with TBS to on the next iteration of their Collar Keeper®.

Using Papyrus’s patented technology for the conversion of plantation waste into paper and board products, coupled with the technical specification and knowledge from TBS, the parties have completed the required laboratory and field-testing trials to progress to commercialisation of the Biodegradable Collar Keeper®.

The Biodegradable Collar Keeper® will be manufactured in Adelaide Australia at the Papyrus commercial production facility that is currently under development. It is expected that the site will be commissioning in Q4 of FY26.

Key Highlights

• Total Contract Revenue: $4.2 million (circa)
• Term: 3 years with a 3-year option to extend
• Product: Biodegradable Collar Keeper® Products

Executive Chair – Al Jawhari commented:

This milestone marks a transformative moment for Papyrus with the commercialisation of our revised technology platform through this flagship agreement with TBS Mining Solutions.

Over the past 8 months, our teams have worked tirelessly to refine the process, validate the product, and align technical capabilities with market needs. The result is a Biodegradable Collar Keeper® that meets the demands of the mining sector while advancing our mission to provide sustainable alternatives for the industry.

I want to acknowledge the exceptional collaboration between Aquirian and Papyrus - this is Australian ingenuity at its best. Together, we’re proving that environmental responsibility and commercial performance can go hand in hand.

Next Steps

The parties have committed to negotiate in good faith and use reasonable endeavours to enter a definitive agreement on terms materially consistent with the term sheet by no later than 31 October 2025.

Papyrus is now fully committed to establishing the first commercial production site for its revised technology platform as outlined in the commercialisation roadmap shared last year.

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