Mr. Trent Mell reports

ELECTRA BEGINS TESTING NORTH AMERICAN FEEDSTOCK FOR COBALT REFINERY

Electra Battery Materials Corp. has started metallurgical testing on cobalt feedstock from two strategic North American sources: the historic Cobalt mining camp in Ontario and home to Electra's refinery and the company's Iron Creek cobalt and copper project in Idaho.

The objective of this initiative is to strengthen and diversify Electra's cobalt refinery feedstock pipeline by integrating domestic sources alongside existing global supply partners. This program supports the development of a robust, flexible and resilient North American critical minerals supply chain while maintaining strategic relationships with partners such as Glencore and ERG. These domestic sources are intended to supplement Electra's existing international feedstock agreements, enhancing long-term security and operational flexibility.

Preliminary results from Electra's North American feedstock program are expected by the end of 2025 and will inform potential front-end flow sheet modifications, such as the proposed addition of a pressure oxidation (POX) circuit to enable processing of a broader range of complex concentrates. Electra's in-house laboratory is in the process of installing equipment required to evaluate these new feedstocks. Backed by a highly experienced technical team, the lab will conduct bench-scale testing and analytical work to validate and refine proposed flow sheet enhancements to the leach circuit designed to process North American materials at the company's hydrometallurgical refinery, including arsenic-bearing polymetallic sulphide materials.

"These tests will give us a clearer picture of how North American cobalt-bearing concentrates can be processed using Electra's hydrometallurgical technology," said Dr. George Puvvada, Electra's vice-president, metallurgy and technology. "North American concentrates often contain elevated levels of arsenic and other impurities, which have made them difficult to process using conventional methods. Building on the successful completion of the company's black mass recycling test program, I believe we can responsibly recover critical metals from North American feeds and significantly expand the range of materials our refinery can process."

"Many North American cobalt-bearing mineral resources have remained undeveloped due to mineralogy that is incompatible with conventional smelting and refining," said Trent Mell, chief executive officer of Electra. "Our hydrometallurgical process offers a potential domestic solution to that challenge, aligned with the battery market and geopolitical imperatives.

"With critical minerals independence now a clear policy priority, we are focused on developing localized mid-stream solutions that support both the U.S. and Canadian supply chains. Our facility is designed to evolve alongside market needs, and this initiative positions Electra to play a leading role in that transformation."

Initial test work includes feed from legacy deposits in the historic Cobalt mining camp near the refinery as well as cobalt-bearing material from the Iron Creek project in the Idaho cobalt belt, one of the few known primary cobalt resources in the United States.

Test results will guide potential front-end modifications to Electra's leach circuit that would allow for broader acceptance of arsenic-bearing polymetallic sulphide concentrates. While the current focus is on cobalt-copper and cobalt-silver feedstocks, Electra believes its proposed flow sheet enhancements may also be applied to custom treatment of gold concentrates with elevated arsenic levels, an area of growing interest among North American miners at a time of record-high gold prices.

This initiative comes at a pivotal time as the U.S. and Canadian governments continue to accelerate efforts to localize critical mineral supply chains and reduce reliance on foreign processing, particularly from China. Electra's refinery represents a foundational element of the North American battery ecosystem, with the flexibility to evolve as regional feedstock and market needs change.

Electra's refinery project is backed by a long-term offtake agreement with LG Energy Solution for up to 80 per cent of output over the first five years. The facility is designed to process cobalt hydroxide feedstock from the Democratic Republic of the Congo and convert it into battery-grade cobalt sulphate for use in lithium-ion batteries and energy storage.

Early site work is currently under way to prepare for a resumption of full-scale construction, with future growth phases targeting battery recycling and expanded feedstock sourcing opportunities.

Electra's Iron Creek project is located in the Idaho cobalt belt, a prolific mineral district with a long history of cobalt and copper production. The region includes the historic Blackbird mine, once the only significant domestic source of cobalt in the United States, which operated intermittently through much of the 20th century. Iron Creek is a partially developed underground project, situated on patented property south of the Blackbird mine with year-round road access. In addition to Iron Creek, Electra holds nearby exploration prospects known as Ruby and CAS, which are considered prospective for additional cobalt resources based on geological work and historic drilling.

To date, Electra has completed over 30,000 metres of drilling at Iron Creek, outlining an indicated mineral resource of 4.4 million tonnes grading 0.19 per cent cobalt and 0.73 per cent copper and an inferred resource of 2.2 million tonnes grading 0.08 per cent cobalt and 1.34 per cent copper. The deposit remains open along strike and at depth, with additional exploration targets identified nearby.

The current mineral resource estimate is based on an updated technical report titled "NI 43-101 Technical Report and Mineral Resource Estimate for the Iron Creek Cobalt-Copper Property, Lemhi County, Idaho, USA," prepared by Martin Perron, PEng, Marc R. Beauvais, PEng, and Eric Kinnan, PGeo. The report is dated effective Jan. 27, 2023, and was filed on March 10, 2023. A copy is available under the company's profile on SEDAR+.

Iron Creek is a key component of Electra's strategy to establish a fully integrated North American supply chain for battery-grade cobalt, from resource development through to refining.

Company update

Electra also announces that it has entered into an at-the-market (ATM) offering agreement with H.C. Wainwright & Co. LLC, pursuant to which the company, at its discretion, may offer and sell, from time to time, through Wainwright, common shares in the capital of the company having an aggregate offering price of up to $5.5-million (U.S.). A cash commission of up to 3.0 per cent on the aggregate gross proceeds raised under the ATM offering will be paid to Wainwright in connection with its services.

The ATM offering is being made in the United States pursuant to a registration statement on Form F-3 (file No. 333-288364) filed under the Securities Act of 1933, as amended, with the U.S. Securities and Exchange Commission and the related prospectus and prospectus supplement. Sales under the prospectus, if any, will be made in transactions that are deemed to be pursuant to an at-the-market offering as defined in Rule 415(a)(4) under the securities act, and prices may vary as between purchasers and during the period of distribution. No common shares in the ATM offering will be sold on the TSX Venture Exchange or any other trading market in Canada. The ATM offering remains subject to final approval of the TSX-V and U.S. Securities Exchange Commission.

Qualified person statement

The scientific technical content of this press release that relates to mineral exploration has been reviewed and approved by Dr. Frank Santaguida, PGeo, who is a qualified person as defined by National Instrument 43-101. Dr. Santaguida is employed as lead geoscientist by Electra.

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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