Mr. Marty Rendall reports

ELECTRA PROVIDES CORPORATE UPDATE

Electra Battery Materials Corp. has signed an agreement with the holders of its senior secured debt that enhances the company's financial flexibility. Under this agreement, lenders have agreed to defer all interest payments until Feb. 15, 2027, allowing Electra to invest its capital toward completing its cobalt refinery rather than debt servicing.

The agreement, entered into on March 5, 2025, covers all outstanding 8.99 per cent senior secured convertible notes and 12 per cent senior secured convertible notes, collectively referred to as the notes. As consideration for this deferral, Electra will pay additional interest of 2.25 per cent per annum on the 2028 notes and 2.5 per cent per annum on the 2027 notes, calculated on the principal amounts of the notes. All deferred interest, including deferred amounts of additional interest, will accrue interest at the applicable stated rate of interest borne by the applicable series of notes. All deferred interest (including all interest thereon) will become payable immediately if an event of default occurs under the applicable note indenture prior to Feb. 15, 2027.

"We appreciate the support and flexibility of our noteholders in this matter, which provides Electra with financial latitude, as we continue to focus on our strategic initiatives. This agreement reflects a constructive partnership with our stakeholders and reinforces our commitment to responsible capital management," said Marty Rendall, Electra's chief financial officer.

About Electra Battery Materials Corp.

Electra is a leader in advancing North America's critical mineral supply chain for lithium-ion batteries. Currently focused on developing North America's only cobalt sulphate refinery, Electra is executing a phased strategy to onshore critical mineral refining and reducing reliance on foreign supply chains. In addition to establishing the cobalt sulphate refinery, Electra's strategy includes nickel refining and battery recycling. Growth projects include integrating black mass recycling at its existing refining complex, evaluating opportunities for cobalt production in Becancour, Que., and exploring nickel sulphate production potential in North America.

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