Mr. Trent Mell reports

ELECTRA CLOSES FIRST TRANCHE OF OVERSUBSCRIBED PRIVATE PLACEMENT

Electra Battery Materials Corp. has closed the first tranche of its oversubscribed non-brokered private placement previously arranged on March 24, 2025, raising aggregate gross proceeds of approximately $3.08-million (U.S.).

"We are pleased with the strong investor support demonstrated for our vision of building a North American critical-minerals supply chain," said Electra chief executive officer Trent Mell. "The oversubscription of this private placement is a strong vote of confidence in our team, our progress and the path forward we have set."

Pursuant to the closing of the first tranche of the offering, 2,747,145 units of the company were issued at a price of $1.12 (U.S.) per unit. Each unit consists of one common share in the capital of the company and one transferable common share purchase warrant, with each warrant entitling the holder to purchase one common share of the company at a price of $1.40 (U.S.) at any time for a period of 18 months following the issue date. The net proceeds raised from the offering will be used to advance the company's refinery project site in Temiskaming Shores, Ont., and for general corporate purposes.

The company expects to close a second and final tranche of the offering on or about April 8, 2025.

Each of Mr. Mell, Marty Rendall, chief financial officer of the company, John Pollesel, a director, Alden Greenhouse, director, Heather Smiles, vice-president, investor relations and corporate development, Mark Trevisiol, vice-president, project development, and Michael Insulan, vice-president, commercial, is participating in the offering.

By virtue of their participation, the offering constitutes a related party transaction under applicable securities laws. The company did not file a material change report more than 21 days before closing the first tranche of the offering, as the details of the abovementioned insider participation were not settled until shortly prior to closing and the company wished to close the first tranche on an expedited basis. As neither the fair market value of the subject matter nor the fair market value of the consideration for the transaction, insofar as it involves related parties, will exceed 25 per cent of the company's market capitalization, neither a formal valuation nor minority shareholder approval will be required in connection with the offering.

The common shares and warrants underlying the units issued under the listed issuer financing exemption, as outlined in Part 5A of NI 45-106, will not be subject to a hold period, in accordance with Canadian securities laws and. All other securities were sold to purchasers outside of Canada and are therefore free of any hold period under applicable Canadian securities legislation. All securities issued under the first tranche of the offering to insiders of the company will be subject to a statutory hold period of four months and one day from the date of issuance, pursuant to the policies of the TSX Venture Exchange. The offering remains subject to final approval of the TSX-V.

Electra has engaged Independent Trading Group Inc. to provide certain market-making services to the company, effective April 1, 2025. In consideration of the services provided by ITG, the company will pay ITG a monthly cash fee of $5,000 for an initial term of one month, which will automatically extend for successive one-month terms unless terminated by either party on 30 days prior written notice. None of ITG nor its affiliates or associates has any interest, directly or indirectly, in the company or its securities, or any right or intent to acquire such an interest. ITG will not receive shares or other securities as compensation. ITG is at arm's length to the company and has no other relationship with the company.

ITG is an independent, privately held broker-dealer based in Toronto, Ont., that provides a wide range of financial and investment services. ITG is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF), and can access all Canadian stock exchanges and alternative trading systems.

The arrangement with ITG is subject to the company's filing requirements with the TSX-V as well as TSX-V approval.

About Electra Battery Materials Corp.

Electra is a leader in advancing North America's critical-minerals 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-minerals refining and reduce 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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