Mr. Trent Mell reports

ELECTRA ADVANCES FINANCING FOR NORTH AMERICA'S ONLY COBALT SULFATE REFINERY

Electra Battery Materials Corp. has provided an update following a visit from Marc G. Serre, Parliamentary Secretary to the Minister of Energy and Natural Resources and member of Parliament for Nickel Belt, and Anthony Rota, member of Parliament for Nipissing-Timiskaming, to its cobalt sulphate refinery site in Ontario. The company welcomed the MPs following Electra's announcement on Friday of a conditional contribution from the government of Canada to support completion of North America's first and only cobalt sulphate refinery.

To date, Electra has arranged $54-million (U.S.) in non-dilutive financing, including $34-million (U.S.) in government support -- comprising both a binding contract and a non-binding letter of intent -- and a $20-million (U.S.) strategic investment proposal (Sept. 10, 2024, press release). In 2023, Electra estimated the capital cost to complete the cobalt refinery at approximately $60-million (U.S.), excluding first fills and commissioning costs (Oct. 23, 2023, press release). Additional non-dilutive financing options are in active development.

"Canada, with its abundance of critical mineral resources, is uniquely positioned to play an important role in the global energy transition," said Mr. Serre. "It is important that the government be there. Electra's project will provide Canada with a high-quality critical mineral input that will contribute to the net-zero economy and strengthen our mining industry."

"We are grateful for the government of Canada's continued support," said Trent Mell, chief executive officer of Electra. "This site visit demonstrates government engagement in building a domestic critical minerals supply chain. We are proud to be leading the way with a facility that will produce sustainable, battery-grade material for the EV market."

During the site tour, Electra's team shared updates on progress toward commissioning and discussed the critical role the refinery will play in strengthening North America's electric vehicle supply chain. With more than 90 per cent of cobalt sulphate production in China, Electra will be one of the few providers of cobalt in the industry without any foreign entity of concern involvement, and the only one of its kind on the continent.

"We are pleased with the commitments we have secured to date," said Marty Rendall, chief financial officer of Electra. "Our full financing solution is advancing as planned and we look forward to sharing additional updates with the market in the near future."

Once fully commissioned, Electra's facility is expected to produce 6,500 tonnes of cobalt per year, which would support the production of up to one million EVs annually. The refinery project is located north of Toronto, in the town of Temiskaming Shores, and is projected to have the lowest carbon footprint of any refinery of its kind in the world.

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 in North America.

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