LETTER TO THE SHAREHOLDERS

July 6, 2026

Napoleonville, LA IFUS:OTCID

In a Shareholder Update on 27Apr26, Impact Fusion International shared that to meet growing market demand for both SGP+™ and SupremeAG™, as well as enhance production efficiency, further define our processing Footprint, and improve our cost structures, IFUS had purchased a Selco/Mosley Badger Double Ram Press. Delivery and installation were planned for the 1st Week of June 2026.

Following a thorough inspection of the external and internal components of the machine, it was discovered that the “shaft” (which is part of the “ram”) was scored. Hence, this triggered a retrofit of the existing “shaft” with a new one…and at the cost to the supplier. In the process of replacing the “shaft”, other components associated with the repair needed to be replaced as well (albeit in working order, yet necessary to match the new shaft). This retrofit and added improvements will provide us with a machine at a fraction of the cost of a new machine.

This work, which is on-going with this update, has resulted in a delivery delay. At this time, best estimates are on or before 30Jul26.

Where we are disappointed by the arrival delay, the long-term benefits of the delay are significant. For all intents and purposes, a significant portion of the “guts” of the machine are being replaced and upgraded. A newer and more thoroughly refreshed machine with significantly improved functions, capabilities, and critical part replacement should have your company well-positioned to meet the expanding market demand for both SGP+™ and SAG™.

Furthermore, we continue with plant preparations for the new machine. The intent is to ensure orderly receipt, commissioning, and steady-state production as efficiently as possible.

Lastly, we continue with significant efforts on the Intact Digest™ Line as well as on-going trials, where SAG™ has been applied. We will update you as progress warrants.

“The delay in machine delivery has impacted the application of SAG™ during a normal peak demand season. However, the production of SGP+™ is falling into alignment with the end of natural grass and feed cycles. Based on any number of agricultural reports, we would expect that grass and feed additive replacements will be in greater demand than ever-before. Reports of weather impacts on grass and cattle feed can be found in various news sources, trade magazines, government agencies, and more. We remain ever-confident that this strategic investment will strengthen our market position and generate long-term value for all shareholders. Global shifting weather conditions, environmental concerns driven by the application of synthetic fertilizers, pesticides, and herbicides, water shortages, increased prices in all-aspects in ranching and dairy operations domestically and internationally, and more are driving governments across the globe to create new policies and laws. These evolving policies and laws demand alternatives to many present agricultural practices. As mentioned, one need only listen to the news for a moment or speak to a rancher or dairymen to substantiate this emerging reality. Hence, ensuring that your company produces products supported by technology that are eco-friendly, cost-effective, and sustainable is paramount. Our goal remains ever-more important, that being to IMPACT our stakeholders in a positive manner…for soil, plant, animal, and human health. This remains our most fundamental outcome. And, we believe that this investment into updated technology and an enhanced production design will benefit you, our stockholders, as we consider solutions that provide safe and healthy outcomes to the global population,” said Marc Walther, CEO of Impact Fusion International.

Once more, we are “Back to work!”