Mr. Joe Racanelli reports

ELECTRA ANNOUNCES PROPOSED AMENDMENTS TO OUTSTANDING WARRANTS

Electra Battery Materials Corp. intends to amend the terms of an aggregate of 10,796,054 outstanding common share purchase warrants due to expire on Feb. 13, 2028.

The warrants were issued in connection with a private placement transaction that closed on Feb. 13, 2023. They are currently exercisable at $2.48 (U.S.) per common share.

Under the proposed amendments to the warrants, the exercise price will be reduced to $1 (Canadian) per common share. In addition, the warrants will be amended to include an acceleration clause such that the term of the warrants will be reduced to 30 days in the event the closing price of the common shares on the TSX Venture Exchange exceeds $1 (Canadian) by 20 per cent or more for 10 consecutive trading dates, with the reduced term beginning seven calendar days after such 10-consecutive-trading-day period. Upon the occurrence of an acceleration event, holders of the warrants may exercise the warrants on a cashless basis, based on the value of the warrants at the time of exercise, subject to compliance with the policies of the TSX-V.

The proposed amendments were agreed upon with the holders of such warrants following constructive negotiations and more closely align the terms of the warrants with current market conditions. As partial consideration for the proposed amendments, the holders of the warrants have agreed not to exercise certain adjustment provisions they hold in connection with the $51-million (U.S.) principal amount of 8.99 per cent senior secured convertible notes due February, 2028. As a result, the notes have not been repriced at a lower exchange rate, and no amendments have been made in respect of the debt conversion ratio. The proposed amendments also serve to reduce potential dilution in company capitalization in the event the notes are converted into equity, while the cashless exercise feature will serve to concurrently reduce the dilutive effect of future exercises of warrants upon the occurrence of an acceleration event.

The proposed amendments remain subject to the approval of the TSX-V.

About Electra Battery Materials Corp.

Electra Battery is a processor of low-carbon ethically sourced battery materials. Currently constructing North America's only cobalt sulphate refinery, Electra Battery is executing a multipronged strategy focused on on-shoring the electric vehicle supply chain. Keys to its strategy are integrating black mass recycling and nickel sulphate production at Electra Battery's refinery located north of Toronto, advancing Iron Creek, its cobalt-copper exploration-stage project in the Idaho cobalt belt, and expanding cobalt sulphate processing into Becancour, Que.

We seek Safe Harbor.