Early-Stage Study, Supported by Independent Advisor, Will Evaluate Demand, Capabilities, Capacity, and Capital Needs for Precision Components Serving AI and Robotics Markets

TULSA, OK - October 12, 2026 (NEWMEDIAWIRE) - Ladybug Resource Group, Inc. (OTC: LBRG) (“Ladybug” or the “Company”) today provided additional detail on the feasibility study described in its strategic roadmap release of September 30, 2026, which is intended to evaluate whether the Company should expand its precision manufacturing into components for AI infrastructure and robotics, and whether doing so would require additional manufacturing capacity beyond its existing automotive-focused operations.

The study is an evaluation, not a decision. The information below reflects current management intentions as of the date of this release. Scope, timing, and outcomes are subject to change, and nothing in this release should be construed as a commitment to build, acquire, or lease any facility.

Why the Company Is Evaluating AI Infrastructure and Robotics

The Company’s manufacturing operations are conducted through its subsidiary, Guangzhou Jingdiao Automotive Equipment Manufacturing Co., Ltd. (“Jingdiao”), which has built its capabilities around automotive applications, including precision laser cutting, large-format CNC machining, Body-in-White integration, and a proprietary manufacturing execution system (MES). As outlined in the September 30 roadmap, management’s priorities include diversifying revenue across end markets and geographies and evaluating precision manufacturing applications beyond EV production, including components for AI data center infrastructure and for robotics and automation.

The feasibility study is intended to help management determine whether those capabilities can be applied to AI infrastructure and robotics components in a way that meets customer requirements, whether serving those markets would call for new capacity in addition to Jingdiao’s existing facilities, and if so, where, when, and at what cost.

What the Study Is Intended to Evaluate

Management expects the study to address the following areas:

• Market and customer requirements, including the nature and level of demand for precision components in AI data center infrastructure and robotics, the qualification standards customers apply, and the volumes and lead times involved.
• Technical fit, including whether Jingdiao’s existing equipment, processes, and quality systems can meet the tolerances and specifications these markets require, and what additional capability, if any, would be needed.
• Capacity, including whether demand could be served from existing Jingdiao capacity or would require new capacity, and the regional economics of potential locations in North America and Southeast Asia, such as labor, utilities, logistics, and real estate or leasing costs.
• Trade, tariff, export control, and regulatory considerations that could affect the cost and feasibility of serving customers from each location.
• Capital requirements, including equipment, construction or leasehold improvement costs, and working capital, and the funding alternatives that could be available.
• Digital integration, including the extent to which new product lines and any new capacity could be managed through Jingdiao’s MES and Smart Supply Chain Hub.
• Permitting, construction, and qualification timelines, and the resulting earliest point at which any new product line could serve customers.

Process and Decision Points

The study is in its early stages. Management is conducting it with the support of the independent third-party advisory firm the Company previously engaged in connection with its M&A program, as announced on September 23, 2026. The Company intends to proceed in the following sequence:

• Management, with the support of its advisor, completes the study and prepares findings and recommendations, as contemplated in the Company’s roadmap for the period of October 2026 through March 2027.
• Findings are presented to the Board of Directors, which will determine whether to proceed, modify the scope, or not proceed.
• Only if the Board determines to proceed would the Company move to site selection and detailed planning. Any construction or leasehold improvement would remain subject to permitting and financing availability.

If the study does not support moving forward, the Company may choose not to pursue these markets or not to add capacity.

The Company intends to provide an update on the outcome of the study when management has completed its review and the Board has considered the findings. The Company does not intend to comment on individual locations or counter-parties while the evaluation is under way.

Relationship to Capital Planning

As disclosed on September 23, 2026, the Company has engaged in preliminary, non-binding discussions with private investment firms regarding potential long-term financing to support its growth strategy. Any new manufacturing capacity or equipment would require capital, and the outcome of the feasibility study will inform how much, if any, the Company may seek to raise. No financing has been agreed, and there can be no assurance that any financing will be completed on favorable terms or at all. Management intends to evaluate any proposal carefully, with consideration for the interests of existing shareholders.

Management Commentary

“Mr. Shicai Li, CEO of the manufacturing division, stated, "At JingDiao, we have purposefully developed our roadmap with the full intention of responding to global market conditions and demands to create changes meaningful to our customers, investors, and shareholders."

About Ladybug Resource Group, Inc.

Ladybug Resource Group, Inc. is a US-listed company focused on the intersection of advanced manufacturing and industrial AI. Through its Guangzhou Jingdiao Automotive Equipment Manufacturing Co., Ltd. division, the Company provides digitally managed supply chain solutions for the global automotive and precision engineering industries, led by management with deep roots in world-class manufacturing excellence.

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Media & Investor Relations Contact
Warren Booth
Ladybug Resource Group, Inc.
1408 S. Denver Avenue, Tulsa, OK 74119
info@ladybuglbrg.com
+1 918-727-7137
Website: www.ladybuglbrg.com  |  X (formerly Twitter): @LadybugResource  |  LinkedIn  |  Instagram

Safe Harbor Statement

This news release contains forward-looking statements which are not statements of historical fact. Forward-looking statements include estimates and statements describing the Company's future plans, objectives, or goals, including the feasibility study and the evaluation of expansion into AI infrastructure and robotics components described above, and statements using words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by terms such as “believes,” “anticipates,” “expects,” “estimates,” “may,” “could,” “would,” “will,” “plan,” “intend,” or “evaluate.”

Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although based on currently available information, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties, and other factors could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied, including the outcome of the feasibility study, the Board's determination whether to proceed with any new manufacturing capacity, the Company's ability to identify a suitable location, obtain permits, and develop capacity on the timeline or in the manner described or at all, the Company's ability to complete any financing transaction on favorable terms or at all, the Company's ability to qualify with customers and compete in AI infrastructure and robotics, the level and duration of demand in those markets, technological change, export control and trade restrictions, trade and tariff conditions, the performance of the Company's existing manufacturing operations, and general economic and market conditions.

Although the Company believes the assumptions and factors used in preparing forward-looking information are reasonable, undue reliance should not be placed on such information, which speaks only as of the date of this news release. Nothing in this release should be construed as a commitment or a guarantee of future results. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, other than as required by law.