Bri-Chem Corp. Letter to Shareholders

Edmonton, Alberta--(Newsfile Corp. - January 13, 2026) -

Dear Fellow Shareholders,

Fiscal 2026 marks a defining inflection point for Bri-Chem. Following the recent transition of our Board of Directors, the Company has embarked on a comprehensive strategic realignment designed to strengthen our competitive positioning, improve financial resilience, and restore disciplined operational execution across the organization.

Our reconstituted Board brings more than a century of combined technical, manufacturing, and operational experience in drilling chemicals and related technologies. This depth of expertise is already shaping a sharper strategic focus centered on internal manufacturing, commercial discipline, working capital efficiency, and improved returns on invested capital. The initiatives underway are deliberate, foundational, and aimed at building a stronger, more profitable, and more sustainable Bri-Chem.

A core pillar of our strategy is the optimization of our product portfolio and manufacturing platform. We are transitioning select third-party products to internal manufacturing, leveraging formulation expertise to recapture margin historically ceded to external suppliers while reducing supplier concentration risk. Private-label manufacturing will increasingly define our value proposition. While margin improvement will be gradual as customers qualify new products, this approach establishes a durable pathway to long-term profitability.

In parallel, we are undertaking a comprehensive product review to rationalize underperforming SKUs and introduce higher-performing chemistries, allowing us to capture greatly improved margin while expanding customer penetration and cross-selling opportunities.

Commercially, we are realigning our sales strategy to engage operators and service companies earlier in the well-planning process. This proven approach improves product pull-through and mitigates margin dilution associated with traditional selection practices. We are also pursuing disciplined expansion into adjacent markets such as cementing, frac chemicals, and selected industrial applications.

International market development is another strategic priority. We are laying the groundwork for expansion into the Middle East, Far East, Caribbean, and South America through targeted relationship building. These efforts represent modest near-term investment with the potential for significant long-term returns.