Mr. Trent Mell reports

ELECTRA ACHIEVES TECHNICAL GRADE LITHIUM CARBONATE IN RECYCLING PROGRAM

Electra Battery Materials Corp. has successfully achieved greater-than-99-per-cent-purity, or technical-grade, lithium carbonate product. These results further bolster the company's ability to produce high-quality, technical and battery-grade products from its black mass recycling project.

"Our proprietary hydrometallurgical process has demonstrated repeatedly that it can successfully produce high-quality, saleable products, now including lithium carbonate, along with nickel-cobalt MHP [mixed hydroxide precipitate] and graphite," said Electra chief executive officer Trent Mell. "This achievement of technical-grade lithium carbonate at a plant scale may be the first such achievement in North America. It is critical we not only continue to develop the onshore supply chain but also a closed-loop solution to battery recycling as EV [electric vehicle] adoption rates increase.

"This year, we have received a $5-million funding commitment from the government of Canada to develop this next phase of our business, and results such as this will help drive that program forward as we look to scale up," Mr. Mell continued. "Our new joint venture with the Three Fires Group, Aki Battery Recycling, is another critical component in solidifying the future for Electra's recycling program, as it will provide a steady source of black mass for future continuous operations."

"This is another solid achievement by our technical and operating teams at the Ontario refinery site, completed by leveraging our existing assets and minimizing cost. This achievement complements our prior production of nickel-cobalt MHP and graphite and further supports the business case for a larger, continuous recycling process," said Mark Trevisiol, vice-president of project development.

Black mass, the material remaining once expired lithium-ion batteries are shredded and all casings separated, contains high-value elements, including lithium, nickel, cobalt, manganese, copper and graphite, that, once recovered, can be recycled to produce new lithium-ion batteries. In 2023, Electra commenced the processing of 40 tonnes of black mass at its refining complex north of Toronto to trial its proprietary recycling process. The program is believed to have been the first plant-scale hydrometallurgical recycling of black mass material in North America as well as the first domestic production of nickel-cobalt mixed hydroxide precipitate product (MHP). Electra successfully recovered MHP, lithium carbonate, graphite and other commercial products.

Recycling of battery materials will become increasingly important to reducing the carbon footprint of the EV supply chain and decreasing reliance on foreign countries for critical minerals given the strong demand for critical minerals and the looming supply deficit of metals such as nickel and cobalt.

Aki Battery Recycling, a recently launched joint venture between Electra and the Three Fires Group (Sept. 18, 2024), will source and process end-of-life and off-spec lithium-ion batteries from manufacturers to produce black mass at a state-of-the-art facility to be established in Southern Ontario. The black mass will then be further treated using Electra's proprietary process at its Ontario hydrometallurgical refinery to recover critical minerals that can be reintroduced into the battery supply chain.

Electra's near-term priority is to recommission and expand its Ontario cobalt refinery. The company's longer-term vision includes battery recycling and nickel production, thereby onshoring additional critical mineral refining processes needed for the North American electric vehicle battery supply chain.

Company update

Electra also announces that, following receipt of notice from Nasdaq Stock Market LLC of non-compliance with the minimum bid price requirement of $1 (U.S.) per share under Nasdaq Listing Rule 5550(a)(2) on Sept. 17, 2024, it has successfully submitted a request for an appeal of Nasdaq's determination pursuant to the procedures set forth in the listing rules. The appeal hearing date has been set for Nov. 5, 2024, and the company's shares will continue to trade on Nasdaq until this date.

If at any time before Nov. 5, 2024, the bid price of the company's shares closes at or above $1 (U.S.) per share for a minimum of 10 consecutive business days, the company will regain compliance with the minimum bid requirement and the appeal hearing will be cancelled.

In the event the appeal is successful, the company expects to receive additional time in which to regain compliance with the minimum bid requirement. There can be no assurance that the appeal will be successful or that the company will be able to regain compliance. This matter does not impact the listing of the shares on the TSX Venture Exchange.

About Electra Battery Materials Corp.

Electra is a processor of low-carbon, ethically sourced battery materials. Currently focused on developing North America's only cobalt sulphate refinery, Electra is executing a phased strategy to onshore the electric vehicle supply chain and provide a North American solution for EV battery materials refining. In addition to building North America's only cobalt sulphate refinery, its strategy includes integrating black mass recycling, potential cobalt sulphate processing in Becancour, Que., and exploring nickel sulphate production potential within North America.

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