Mr. Gary Lewis reports

ELECTRIC METALS ANNOUNCES CONTINUITY OF MANGANESE MINERALIZATION AND FURTHER HIGH-GRADE INTERCEPTS UP TO 48.6% MN (62.7% MNO) FROM DRILLING AT THE EMILY MANGANESE PROJECT, MINNESOTA, USA

Electric Metals (USA) Ltd. has released recent assay results of the current drill program at the high-grade Emily manganese (Mn) project, Minnesota, United States. The Emily project is located in the Cuyuna iron range of central Minnesota, U.S., an area with a rich mining history and support from established local infrastructure, a skilled mining work force, and abundant power and gas.

Results reported from the first two drill holes (refer to announcement dated June 27, 2023) included substantial thicknesses of more than 40 per cent manganese. Data from the next four drill holes, which are summarized in this news release, confirm that similar high-grade manganese extends both along trend and to depth.

Electric Metals is currently drill testing the deposit to provide high-grade manganese feedstock as part of an effort to determine the viability of a potential, future mine operation and to produce chemicals for the lithium-ion battery market. The United States is 100-per-cent reliant on imported manganese, including manganese chemicals used for standard and lithium-ion batteries. Electric Metals' goal is to be able to secure approvals to process Emily manganese, and provide manganese chemicals to support future growth of electric vehicle production and energy storage infrastructure.

Assay results of samples from four diamond drill holes -- NSM 23003, NSM 23004, NSM 23005 and NSM 23006 -- have been received. Each drill hole intersected intervals of high-grade manganese oxide mineralization (manganite and pyrolusite, plus iron mineralization) with manganese contents of more than 17 per cent Mn in many of the averaged intervals. High-grade zones with more than 40 per cent Mn are conspicuous. Data are summarized in the table entitled "Average assay data for drill holes 23003, 23004, 23005 and 23006 at the Emily manganese project."

At the east portion of the deposit, high-grade zones of 40-plus per cent manganese extend for at least 150 metres down dip with well-mineralized rock extending to at least 250 metres. Importantly, the high-grade manganese zones correlate well with high-grade manganese grades intersected in drill holes NSM 23001A and NSM 23002A, which returned 32.1 metres of 17.67 per cent Mn from 106 m, including 5.3 m of 43.18 per cent Mn from 109.6 m in NSM 23001A, and 34.9 m of 21.05 per cent Mn from 59.9 m, including 5.3 m of 44.66 per cent Mn from 66.8 m in NSM 23002A. A review of these results is provided in the company's news release dated June 27, 2023.

Representative high-grade drill core is dominated by the dark-grey-to-black manganese oxide minerals manganite (MnO(OH)) and pyrolusite (MnO2). The results continue to show that sulphides are not present in the high-grade manganese rock and, importantly, sulphur, copper, nickel, zinc, lead and arsenic contents are negligible.

Drill core samples from additional, recently completed drill holes located along trend to the west of this reported drilling have been forwarded for assaying and results from these are expected during coming weeks. Drilling is continuing to step westward at approximately 100-metre collar spacing and Electric Metals expects that this stage of drill work will be completed in late July.

Electric Metals, operating under its wholly owned Minnesotan subsidiary, North Star Manganese Inc., plans to drill approximately 30 holes in the current drill program and is anticipating completion of this stage of work in late summer 2023.

Forte Dynamics Inc., Lakewood, Colo., has commenced evaluation of sampling procedures, drilling and assay data, and will complete a resource estimate for an expanded Emily manganese deposit when final drill results have been received. A National Instrument 43-101 technical report resource estimate is expected to be completed in 2023.

Gary Lewis, group chief executive officer of Electric Metals, commented on the progress at Emily: "Exploration at Emily continues to go from strength to strength as the extent of the deposit appears to grow with each drill hole completed. Our technical team continues to be impressed by the exceptional manganese grade and continuity of this unique deposit.

"And, with unprecedented growth and investment in downstream battery applications, particularly in EVs [electric vehicles], markets are finally taking notice of the importance of manganese-based cathode chemistries.

"The location and apparent continuity of the very high manganese grades at Emily, along trend and at depth, are important to help EML complete the process to assess the viability of this deposit and the opportunity to supply the domestic U.S. market with battery-grade manganese products."

Electric Metals is also pleased to announce the launch of its new website.

Qualified person

The scientific and technical data contained in this news release was reviewed and approved by Ian James Pringle, PhD, who is a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

About Electric Metals (USA) Ltd.

Electric Metals is a United States-based mineral development company with manganese and silver projects geared to supporting the transition to clean energy. The company's principal asset is the Emily manganese project in Minnesota, which has been the subject of considerable technical studies, including a National Instrument 43-101 technical report resource estimate, with $26-million (U.S.) invested to date. The company's mission in Minnesota is to become a domestic U.S. producer of high-purity, high-value manganese metal and chemical products for supply to U.S. energy, technology and industrial markets. With manganese playing a critical and prominent role in lithium-ion battery formulations and with no current domestic supply or active mines for manganese in North America, the exploration and development of the Emily manganese project represent a significant opportunity for the company's shareholders. In addition, the company owns and operates the Corcoran silver-gold project and the Belmont silver project in Nevada, with the former also having been the subject of an NI 43-101 technical report resource estimate.

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