Mr. Peter Rawlins reports

ELECTRA REPORTS THIRD QUARTER 2026 RESULTS AS IT BUILDS NORTH AMERICA'S BATTERY-GRADE COBALT REFINERY

Electra Battery Materials Corp. has released its financial results for the three and nine months ended Sept. 30, 2026, and provided an update on construction of its battery-grade cobalt sulphate refinery in Temiskaming Shores in Ontario.

Third quarter and recent highlights:

• Construction: approximately $46-million (Canadian) construction contracts committed against the approximately $100-million (Canadian) ($73-million (U.S.)) construction budget; project tracking to budget;
• Liquidity: ended the quarter with approximately $82.8-million (Canadian) in cash and undrawn government funding on Sept. 30, 2026;
• Commissioning readiness: operating and commissioning team in place, with specialist vendor support secured across all process areas; early commissioning of select utilities and circuits targeted to begin in Q4 (fourth quarter) 2026;
• Feedstock: secured 100 per cent of feedstock required for commissioning and initial ramp-up, backed by a cobalt hydroxide agreement with Glencore extended through 2031.

"Electra is building a missing link in North America's critical minerals midstream: a refinery that transforms cobalt feedstock into battery-grade cobalt sulfate that powers energy storage systems, industrial and consumer batteries, and defence technologies," said Peter Rawlins, chief financial officer. "With the vast majority of the world's cobalt refining taking place in China and no current production in North America, construction advanced across all process areas during the third quarter and we secured a long-term feedstock agreement through 2031 while strengthening the team that will take the refinery into operation. Backed by $83-million (Canadian) in cash and undrawn government funding to construction, we are well positioned to bring North America's first battery-grade cobalt sulfate refinery into commercial production in 2027."

As detailed in the company's October, 2026, construction update, site development is advancing rapidly across all process areas:

• Crystallizer enclosure: Mechanical equipment is installed, process ductwork is staged for installation, off-site pipe fabrication is well under way and the structure's exterior is nearing completion.
• Solvent extraction (SX) building: Structural steel installation and module alignment are complete. Electrical cable tray installation is in its final stages and fibre-reinforced plastic (FRP) equipment lamination has commenced. Bidding for SX FRP process piping and valves is complete; any potential schedule adjustments arising from FRP piping are expected to be modest.
• Effluent treatment plant and civil work: Installation of the effluent treatment plant, which processes waste streams from leaching and solvent extraction via three reactors, a clarifier and lime/flocculant doing systems, is complete
• Analytical laboratory: Method development for battery-grade cobalt sulphate testing is complete, with instrument validation currently under way.

Commissioning readiness activities are advancing in parallel with construction, supported by an on-site workforce of 130 personnel. The operating team, led by general manager and commissioning leader Garzon Duenas, PEng, alongside commissioning lead Renee Barrette, PEng, is developing the commissioning execution plan and operational readiness program.

To support mechanical completion and circuit start-up, Metso, designer of the solvent extraction circuit, has been retained as an adviser for the SX plant. Specialist providers are being engaged to oversee the crystallization plant and process control systems. A tender for third party commissioning services is currently being prepared.

The company is targeting early commissioning of select utilities and circuits in Q4 2026, paving the way for commercial production in the second half of 2027.

Feedstock and commercial partnerships

Electra has fully secured its commissioning and ramp-up feedstock through 2027 via its extended agreement with Glencore AG. Furthermore, approximately 60 per cent of planned cobalt sulfate production is already committed to LG Energy Solutions.

Electra continues to advance toward definitive agreements under the non-binding term sheet announced Oct. 13, 2026, with WMC Group AG for a five-year working capital facility and commercial partnership. Under the proposed arrangement, WMC will:

1. Finance cobalt feedstock purchases;
2. Provide logistics and product qualification support;
3. Act as exclusive buyer and marketing agent for corresponding cobalt sulfate output;
4. Make a direct equity investment in Electra upon execution of final documentation.

Execution of definitive agreements remains subject to continuing due diligence, formal documentation and customary approvals.

"Safety remains our highest priority. Our team has advanced construction without a lost-time incident even as our site work force has more than doubled," said Trent Mell, chief executive officer. "The cobalt refinery is the first step in building Electra into a trusted allied refiner for North America's battery mid-stream. Once operating, it gives us a platform to expand into nickel and black mass processing, keeping critical minerals within an allied supply chain."

Financial and liquidity update

Electra ended the third quarter with approximately $82.8-million (Canadian) in total available liquidity, consisting of:

• $23.5-million (Canadian) in cash and cash equivalents;
• $59.3-million (Canadian) in government non-dilutive contributions, which are drawn down progressively as eligible construction costs are incurred.

Following successful execution of three government funding packages, the minimum liquidity requirement under the company's term loan facility has stepped down significantly from $15-million (U.S.) to $2-million (U.S.), providing enhanced financial flexibility through construction completion.

Electra's third quarter 2026 financial statements and management discussion and analysis are available on SEDAR+, on EDGAR and on the company's website.

Electra's refinery is a fully permitted brownfield facility designed to process approximately 18,000 tonnes of cobalt hydroxide feed per year to produce 5,120 tonnes per year of contained cobalt in battery-grade cobalt sulphate for North American lithium-ion battery, energy storage, defence and industrial markets.

About Electra Battery Materials Corp.

Electra is a leader in advancing North America's critical minerals supply chain for lithium-ion batteries. The company's primary focus is constructing North America's first battery-grade cobalt sulphate refinery, as part of a phased strategy to onshore critical minerals 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.

We seek Safe Harbor.