Mr. Sean Peasgood reports

ELECTROVAYA ANNOUNCES CLOSING OF THE SECOND TRANCHE OF A BROKERED PRIVATE PLACEMENT AS PART OF A FINANCING TO RAISE UP TO CDN $3.0-MILLION

Electrovaya Inc. has closed the second tranche of a best efforts brokered private placement to accredited investors of units of the company, sold by Euro Pacific Canada Inc. and Jacob Securities Inc. as co-lead agents. The company raised combined gross proceeds of aproximately $2-million from this tranche and the first tranche that closed on Dec. 24, 2014. If a third tranche of the financing is completed, it is expected to be completed on or before Jan. 9, 2015.

Each unit was sold for 70 cents and comprises one common share of the company and one common share purchase warrant of the company. Each common share purchase warrant is exercisable to acquire one common share of the company at a price of $1.05 for a period of up to 36 months from the date of issue.

The co-lead agents received a cash commission equal to 6.0 per cent of the gross proceeds and broker warrants in an amount equal to 7.0 per cent of the number of units sold. Each broker warrant is exercisable to acquire one common share of the company at a price of $1.05 for a period of up to 36 months from the date of issue.

The new funds will be used for general corporate purposes.

We seek Safe Harbor.