Ms. Heather Smiles reports

ELECTRA REPORTS QUARTERLY UPDATE ON CAPITAL MARKETS ACTIVITY

Electra Battery Materials Corp. has provided an update on its capital market activity for the previous quarter, including activity under its at-the-market equity program and equity participation by employees and directors.

The company's equity participation programs support alignment between employees, directors and shareholders through market-based equity ownership. Under the company's employee share purchase program, a total of 37,341 common shares were purchased by employees during the third quarter, with a corresponding 37,341 common shares acquired by the company in accordance with the program. Employee participation included meaningful purchases by company management. Approved by shareholders at the company's annual general meeting on June 23, 2026, the ESP enables employees to acquire common shares. Purchases were made at the five-day volume-weighted average price as of Sept. 30, 2026.

On Sept. 30, 2026, Electra also granted 112,676 deferred share units to its non-employee directors under the company's deferred share unit plan. The grants further align the interests of the board of directors with those of shareholders. The DSUs were granted based on the market price as of Sept. 30, 2026, and will be settled in common shares when a director ceases to serve on the board, subject to the terms of the plan.

The ATM program, initiated in late 2025, provides the company with flexibility to issue and sell, from time to time, up to $25-million (U.S.) of its common shares from treasury at the company's discretion, pursuant to an agreement with H.C. Wainwright & Co. LLC. During the quarter ended Sept. 30, 2026, the company generated gross proceeds of approximately $92,000 (U.S.) through the issuance of 150,003 common shares under the ATM on the Nasdaq Stock Market LLC at a weighted-average price of 61.52 U.S. cents per common share. The most recent transaction under the ATM was on Aug. 28, 2026. Since inception, the company's average issuance price under the ATM is 87 U.S. cents per common share. Commissions of approximately $7,000 (U.S.) were paid in connection with these distributions during the quarter.

About Electra Battery Materials Corp.

Electra is a leader in advancing North America's critical mineral supply chain for lithium-ion batteries. The company's primary focus is constructing North America's only cobalt sulphate refinery, as part of a phased strategy to onshore critical mineral refining and reduce reliance on foreign supply chains. In addition to the refinery, Electra holds a significant land package in Idaho's Cobalt belt, including its Iron Creek project and surrounding properties, positioning the company as a potential cornerstone for North American cobalt and copper production.

Electra is also advancing black mass recycling opportunities to recover critical materials from end-of-life batteries while continuing to evaluate growth opportunities in nickel refining and other downstream battery materials.