Montreal, Quebec--(Newsfile Corp. - August 31, 2026) - Scandium Canada Ltd. (TSXV: SCD) (the "Company") announces that its wholly owned subsidiary Scalium+ is advancing the adaptation of the Scalium® aluminum-scandium alloy for space applications, notably next-generation Canadian satellites, under an existing contribution agreement with the Canadian Space Agency ("CSA"). The agreement provides a non-repayable contribution of $348,750 supporting a project that extends to May 31, 2028.

Alloy to Reduce Mass of Components in Space Applications

The funded project, titled "Proof of Concept of Innovative High-Strength Aluminum Alloy to Reduce Mass of Components in Space Applications," aims to adapt Scalium®, an ultra-strong aluminum-scandium alloy currently produced in thin sheets, into thick plates suitable for aerospace needs.

Following successful initial laboratory tests, the work program focuses on scaling up manufacturing, validating the alloy's performance, and demonstrating its use for next-generation Canadian satellites. Scalium® could help reduce launch costs, lower carbon emissions, and allow spacecraft to carry more valuable equipment.

The project is conducted under the CSA's Space Technology Development Program (STDP), Announcement of Opportunity 9.2, Space Research and Development, Small Businesses. This project is undertaken with the financial support of the Canadian Space Agency.

The Agreement

The contribution agreement was originally signed on August 29, 2025, between the CSA and Ferreol Technologies, prior to its acquisition by Scandium Canada, completed on June 29, 2026. On August 17, 2026, the CSA signed an amendment, formally confirming Scalium+ as beneficiary of the agreement and noting that the management team, mission, technologies and business relationships of the beneficiary remain unchanged. The project continues under the agreement's existing terms.

"The CSA's confirmation of Scalium+ as beneficiary reflects the continuity we committed to when we first signed this agreement, and work continues without interruption," said Félix Lapointe, Chief Executive Officer (CEO) of Scalium+. "Adapting Scalium® from thin sheet to thick plate is a defined technical program with clear milestones through 2028, carried out by our team in Québec, and it advances Scandium Canada's mine-to-alloys strategy."

"Space is one of the main application areas we are targeting for our aluminum-scandium alloys, alongside aeronautics, defence, transportation and sporting goods, and it is one of the sectors where every kilogram saved carries the most value for OEMs. Canada's space industry has a world-class reputation, and Québec is home to some of its most innovative players. Our ambition is for the Canadian and Québec OEMs designing the next generation of satellites and space systems to have access to a high-performance aluminum-scandium alloy sourced from a local supply chain. We thank the Canadian Space Agency for its support and the professionalism of its team on this project," said Simon Thibault, President & Chief Executive Officer of Scandium Canada and President of Scalium+.

About Scalium+

Scalium+, formerly Ferreol Technologies, is Scandium Canada's wholly owned commercialization subsidiary for aluminum-scandium (Al-Sc) alloys. It unites the alloys developed by the Company's Scandium+ division with the Scalium® line of alloys and surface treatment created by the Ferreol Technologies team. Scalium® alloys add value on multiple fronts: significantly higher mechanical strength than conventional alloys in rolled products, better weldability in wire form, faster print speeds in powder form, and much higher corrosion resistance. For manufacturers, this translates into lighter parts, shorter build times in additive manufacturing and better lifetime value for primary and secondary components. Scalium+ brings these specialized materials to market today, across multiple sectors.

About Scandium Canada Ltd.

Scandium Canada (TSXV: SCD) is a critical advanced materials company developing North America's only vertically integrated primary source of scandium, from its Crater Lake project in Nunavik, Québec, to aluminum-scandium (Al-Sc) alloy products. Through Scalium+, its wholly owned commercialization subsidiary, the Company brings proprietary, patent-pending Al-Sc alloys and the Scalium® line of alloys and technologies to market today, while advancing the Crater Lake mining project for the future. This dual-engine strategy positions Scandium Canada to anchor a secure, resilient North American scandium supply chain and to shape the future of lighter, stronger and longer-lasting materials for advanced manufacturing end users, while committing itself to building a more responsible economy through innovation and agility.

Forward-Looking Statements

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements in this press release include, without limitation, statements relating to: the continuation and expected completion of the project funded under the contribution agreement with the Canadian Space Agency, including its milestones through May 31, 2028; the adaptation of the Scalium® alloy from thin sheets into thick plates suitable for aerospace needs; the scale-up of the related manufacturing process; the validation of the alloy's performance and the demonstration of its use for next-generation Canadian satellites; the potential benefits of the alloy for space applications, including reduced launch costs, lower carbon emissions and increased capacity for spacecraft to carry equipment; the potential application of the Company's alloys to other sectors, including aeronautics, defence, transportation and sporting goods; the Company's ambition to supply Canadian and Québec original equipment manufacturers; the advancement of the Company's mine-to-alloys strategy, including the development of the Crater Lake project; and other statements regarding the Company's strategy, plans and objectives. Forward-looking statements are based on the current expectations, estimates and assumptions of management and are subject to known and unknown risks and uncertainties that could cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, and no assurance can be given that any of the events anticipated will occur or, if they do occur, what benefits the Company will derive from them.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These estimates and assumptions may prove to be incorrect. Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements and future events, could differ materially from those anticipated in such statements. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR+ website at www.sedarplus.ca.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. Forward-looking statements are provided for the purpose of providing information about management's endeavors to develop the Crater Lake project, and, more generally, its expectations and plans relating to the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important risk factors and future events could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada. The Company disclaims any intention or obligation to update or revise any forward-looking statement or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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