Mr. Gary Lewis reports

ELECTRIC METALS ANNOUNCES CONTINUITY OF HIGH-GRADE MANGANESE MINERALIZATION FROM STEP-OUT DRILLING WITH GRADES UP TO 49.20% MN (63.53% MNO) AT THE EMILY MANGANESE PROJECT, MINNESOTA

Electric Metals (USA) Ltd. has released assay results from core drilling at the high-grade Emily manganese project, Minnesota, United States.

Previously reported results from the first six drill holes of the current program (refer to announcements dated June 27, 2023, and July 13, 2023) included substantial thicknesses of more than 40 per cent manganese. Data from the nine drill holes summarized in this news release confirm that similar high manganese grades extend along trend toward the west, are of comparable thickness and are open at depth.

Drilling has intersected intervals of high-grade manganese oxide mineralization (manganite) with manganese contents of more than 35 per cent Mn in five holes and widespread intersections with more than 40 per cent manganese.

This drill program has shown that the high-grade manganese extends to at least 100 metres west of previous company drilling and has yet to be closed at depth or along trend (refer to drill holes 23042 and 23043). Stepout drilling at approximately 100-metre drill collar spacing for approximately 800 metres has been completed to the west of holes 23042 and 23043 and assays from these 13 holes are expected in coming weeks.

High-grade manganese in the eastern portion of the deposit is thinner (refer to holes 23007, 23008 and 23013). This appears to be close to the eastern extent of significant manganese mineralization and drilling in the last stages of the current program has focused along the western strike of the mineralized horizons.

Five holes to the east of the deposit (23009, 23011, 23012, 23017 and 23018) did not intersect significant mineralization and these have defined the eastern extent of the deposit.

Representative high-grade drill core is dominated by the dark grey to black manganese oxide mineral manganite (MnO(OH)). Intervals with manganese over 30 per cent Mn are typically lower in SiO2 (silicon dioxide) than mineralization with less manganese. For example, typical high-grade manganese drill core (drill hole 23042) has 41.9 per cent Mn and 6.74 per cent SiO2 (sample H798558) whereas the sample immediately above this contains 27.8 per cent Mn and 28.2 per cent SiO2 (sample H798557). Notably, and typical of the deposit, both of these samples have negligible sulphur, lead, zinc or copper (all less than 0.01 per cent).

Drill core samples from recently completed drill holes located along trend to the west of the reported results have been forwarded for assaying and data from these are expected during coming weeks.

The current drilling program has finished, and the drill rig demobilized in early August, with a total of 4,160 metres of drilling completed. Drill core logging and sampling are continuing on site and the last drill samples are expected to be forwarded to the laboratory in early September.

Gary Lewis, group chief executive officer of Electric Metals, commented on the progress at Emily: "We are excited to learn that the thickness and grades of manganese appears to extend, and possibly increase, as assays are reported from holes to the west of the deposit. Drilling has targeted the shallow end of the north-dipping mineralization and if the new stepout holes continue to contain high grades like these then EML may have a substantially larger and higher-grade deposit than previously reported. We look forward to reporting on new assays as they are received from the lab.

"Although drilling of the current program has been completed and the drill rig demobilized, geologists remain on site finalizing logging and sampling and preparing an updated geology model. Resource estimation has commenced and will be completed in late 2023 when all assay results are at hand.

"With operational equipment removed, site reclamation work has commenced, with drill pads and temporary roads being reclaimed, and hydroseeding being applied in areas requiring regrowth. A substantial portion of the area already shows substantial regrowth without any assistance. During the reclamation period, environmental consultants Barr Engineering will continue to monitor the site activities, with periodic on-site reviews by the Minnesota Department of Natural Resources."

Qualified person

The scientific and technical data contained in this news release were reviewed and approved by Dr. 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 U.S.-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 over $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 development of the Emily manganese project represents a significant opportunity for America, the state of Minnesota and 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 a National Instrument 43-101 technical report resource estimate.

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