Ms. Heather Smiles reports

ELECTRA PROVIDES UPDATE ON RESTRUCTURING TERMS TO ADVANCE COMPLETION OF COBALT REFINERY

Electra Battery Materials Corp. has amended its previously disclosed recapitalization and restructuring initiative, a key step toward strengthening its balance sheet and completing construction of North America's first battery-grade cobalt sulphate refinery.

The company and the holders of the company's outstanding secured convertible notes have agreed to amend the restructuring such that Electra will convert approximately $41.3-million (U.S.) of outstanding notes, plus accrued and unpaid interest, into approximately 55 million units of the company, to be issued on the same terms as the company's previously announced brokered private placement offering for gross proceeds of up to $30-million (U.S.). Pursuant to the restructuring, the lenders will exchange 60 per cent of the company's convertible debt for equity, reducing total debt under the notes to approximately $27.5-million (U.S.).

The remaining 40 per cent of the notes, plus interest, will be exchanged into a new three-year term loan. Under the proposed new loan agreement, the company has agreed to issue a one-time bonus of 3,822,341 common shares of the company to the lenders at a deemed issue price of 90 U.S. cents per common share.

The units to be issued as part of the amendments to the restructuring are to be issued at a deemed exchange price of 75 U.S. cents and consist of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $1.25 (U.S.) per share for a period of 36 months, commencing 60 days following closing of the offering.

The company had previously applied to the TSX Venture Exchange for a waiver in connection with the restructuring to permit an equitization price of 60 U.S. cents for the notes, which was below the minimum pricing requirements under TSX-V Policy 4.3 (Shares for Debt). The TSX-V did not grant the waiver, and, as a result, the restructuring will proceed at 75 U.S. cents per unit in compliance with Policy 4.3.

These transactions represent a decisive step toward restoring Electra's financial flexibility and unlocking the full value of its strategically located assets. The restructuring substantially reduces near-term debt obligations and aligns the company's capital structure with a sustainable path to production.

Completion of the restructuring remains subject to the satisfaction of certain conditions, which include the entering into of definitive documentation and receipt of shareholder approval, as well as the approval of the TSX Venture Exchange and notification to Nasdaq Stock Market. For further information concerning the restructuring and the offering, readers should review the news releases issued by the company on Aug. 21, 2025, and Sept. 12, 2025.

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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