Ms. Heather Smiles reports

ELECTRA ANNOUNCES TERMS OF US$30 MILLION BROKERED PRIVATE PLACEMENT FOR COMPLETION OF REFINERY CONSTRUCTION

Electra Battery Materials Corp. has released the detailed terms of its previously announced $30-million (U.S.) financing in connection with its continuing financial restructuring with the holders of senior secured convertible notes.

The company has entered into an engagement letter with Cantor Fitzgerald Canada Corp. and ECM Capital Advisors Ltd. as co-lead agents, each on its own behalf, and on behalf of a syndicate of agents which includes Independent Trading Group Inc. and Kernaghan & Partners Ltd., in connection with a best effort private placement for the sale of a minimum of 40 million units of the company at a price of 75 U.S. cents per unit for aggregate gross proceeds of a minimum of $30-million (U.S.).

As previously announced on Aug. 21, 2025, the offering forms a key part of Electra's comprehensive plan to strengthen its capital structure and secure financing to advance the commissioning of North America's first battery-grade cobalt sulphate refinery, located in Temiskaming Shores, Ont.

Each unit consists of one common share and one common share purchase warrant, with each warrant entitling the holder thereof to purchase one common share at a price of $1.25 (U.S.) for a period commencing on the date that is 60 days following the completion of the offering until the date that is 36 months following the completion of the offering. The company has also agreed to grant the agents an option to sell up to an additional 15 per cent of the offering in units at the issue price.

The offering is supported by a $10-million (U.S.) conditional commitment from the lenders.

Existing shareholders have the preferential opportunity to participate in the offering on the same terms as new investors. Existing shareholders wishing to subscribe may contact Heather Smiles at info@ElectraBMC.com or 1-416-900-3891. All indications of interest must be received by 5 p.m. ET on Sept. 26, 2025.

Net proceeds from the offering are intended to be used to advance the completion and ramp-up of Electra's cobalt refinery, advance the company's black mass recycling program, repay the $2-million (U.S.) aggregate principal amount of unsecured 90-day promissory notes issued to the lenders on Aug. 22, 2025, pay expenses in connection with the restructuring, and support general working capital and corporate purposes. In the event that the aggregate gross proceeds from the offering exceed $34.5-million (U.S.), all such excess amounts will be used to repurchase senior secured convertible notes from the lenders.

The offering is scheduled to close on or around Oct. 15, 2025, concurrently with the closing of the restructuring, and is subject to shareholder approval at the special meeting of the company's shareholders to approve the restructuring, which is currently anticipated to take place on or around Oct. 9, 2025, as well as other customary conditions, including the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange and notification to Nasdaq Stock Market. There can be no assurance as to whether or when the offering may be completed.

As consideration for their services, at the closing date, the company shall pay to the agents a cash commission equal to 6 per cent of the gross proceeds of the offering, and will issue to the agents the number of non-transferable warrants of the company equal to 6 per cent of the number of units sold under the offering, other than in respect of units sold to purchasers on a president's list as agreed to between the company and the agents, and in respect of the units sold under the lender commitment, in which case the cash commission will each be reduced to 3 per cent and for which no broker warrants shall be issued. Each broker warrant will entitle the holder to acquire one common share at the issue price, at any time on or before the date that is 36 months following the closing date.

The units are being offered on a private placement basis to purchasers resident in each of the provinces and territories of Canada, except Quebec, pursuant to the listed issuer financing exemption as set out under Part 5A of National Instrument 45-106 (Prospectus Exemptions), as amended by co-ordinated blanket order 45-935 (Exemptions from Certain Conditions of the Listed Issuer Financing Exemption), as well as to purchasers resident outside of Canada pursuant to Ontario Securities Commission Rule 72-503 (Distributions Outside Canada). A portion of the units to be issued under the offering may be offered on a private placement basis to purchasers in each of the Canadian selling jurisdictions pursuant to the accredited investor exemption outlined in Part 2 of NI 45-106. There is an offering document related to the portion of the offering conducted under the listed issuer financing exemption accessible under the company's profile on SEDAR+ and at the Electra website. Prospective investors should read this offering document before making an investment decision.

The common shares issuable from the sale of up to 6.4 million units and the common shares issuable upon the exercise of the warrants at least 60 days from the completion of the offering from these units, issued under the listed issuer financing exemption, will not be subject to a hold period in accordance with Canadian securities laws and are expected to be immediately freely tradable. All other securities issued in the offering to purchasers in Canada will be subject to a statutory hold period of four months and one day following issuance to the extent required by applicable securities laws. Any securities sold outside of Canada to non-residents of Canada will be free of any hold period under applicable Canadian securities legislation.

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 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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