Mr. Brian Savage reports

ELECTRIC METALS ANNOUNCES MUTUAL TERMINATION OF ALTAIR RESOURCES OPTION AND ACQUISITION AGREEMENT, STRATEGIC PARTNERSHIP OPPORTUNITIES ON NEVADA SILVER ASSETS, AND BOARD DSU GRANTS

Electric Metals (USA) Ltd. has noted the mutual termination of the previously announced option and acquisition agreement with Altair Resources Inc., the company has discussed its intention to pursue strategic partnership opportunities on its Nevada silver assets and has granted 3,939,740 deferred share units (DSUs) to members of its board of directors.

Mutual termination of Altair agreement

The company and Altair have mutually agreed to terminate the agreement, originally announced on Nov. 22, 2023, which contemplated Altair earning up to 100-per-cent interest in the Corcoran Canyon silver-gold project, the Belmont silver project and the Belmont North gold-silver project through the acquisition of EML subsidiary, North American Silver Corp. (NAS), by making payments to EML and its subsidiary of cash and common shares of Altair, and the expenditure of funds on the project. The termination took effect on July 25, 2025. No termination fees or penalties were incurred by either party.

Strategic partnership opportunities -- Nevada Silver assets

Following the termination of the agreement, the company is actively seeking partners to earn-in or acquire its Nevada-based precious metal assets: the Corcoran Canyon silver-gold project, the Belmont silver project and the Belmont north gold-silver project. These projects are located north of Tonopah and east of Round Mountain in Nye county, within the Toquima caldera complex -- one of the most highly endowed Au-Ag (gold-silver) districts in the United States. This 30-kilometre-wide zone of nested calderas includes five ore deposits hosting 24 million ounces gold and 89-plus Moz silver.

Corcoran Canyon silver-gold project

Corcoran hosts near-surface mineralization that remains open in all directions and carries a National Instrument 43-101 mineral resource estimate of 33.5 million silver-equivalent ounces (effective Aug. 12, 2021), prepared by Gregory Z. Mosher, PGeo, MSc, and David S. Smith, PGeo, MS. The estimate assumes an open-pit cut-off grade of 15 grams per tonne AgEq and underground cut-off of 100 grams per tonne AgEq, calculated with recoveries of 77 per cent silver and 45 per cent gold, based on testwork commissioned by Centennial Mining (an Electric Metals subsidiary), and metal prices of $21.09 (U.S.)/oz silver and $1,657 (U.S.)/oz gold.

For context, as of July 25, 2025, the London PM fix price for silver was $38.18 (U.S.)/oz (plus 81 per cent) and the London PM fix price for gold was $3,343.50 (U.S.)/ounce (plus 101 per cent) compared with the assumptions used in the 2021 resource estimate, highlighting the upside potential. Corcoran also features high-priority exploration targets and significant depth potential for high-grade silver-gold feeder zones.

Belmont silver project and Belmont North gold-silver project

Located 15 km south of Corcoran, Belmont was among the earliest and richest silver mining camps in the Tonopah district, historically averaging 25 oz/t (775 g/t) Ag. Despite negligible exploration since the 1880s, USGS sampling has confirmed grades up to 0.5 per cent Ag from remnant mine dumps. Its proximity to Corcoran allows for shared technical resources and strong development synergies.

"Both the Corcoran Canyon and Belmont projects represent attractive targets for silver and gold discovery and expansion in an excellent location in central Nevada. We are actively evaluating opportunities to enhance work on these projects and monetize the Nevada assets for the benefit of our shareholders," said Brian Savage, chief executive officer, Electric. "At the same time, our primary focus remains on advancing our high-grade Emily manganese deposit in Minnesota, with the results of the Emily manganese PEA to be announced soon."

Parties interested in partnership or acquisition discussions are invited to contact the company for further information.

Grant of deferred share units

The company granted an aggregate of 3,939,740 deferred share units (DSUs) to non-executive members of its board of directors on July 24, 2025, under the company's omnibus equity incentive plan that shareholders approved on June 26, 2024. The board sets DSU vesting terms, subject to TSX Venture Exchange rules that require a one-year minimum vesting period while the company is TSX-V listed, with limited exceptions (for example, death or a change of control). DSUs are redeemable for common shares upon a director's departure, aligning interests with those of shareholders. The DSUs are being issued in lieu of cash-based board fees.

About Electric Metals (USA) Ltd.

Electric Metals (USA) 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, the highest-grade manganese deposit in North America, which has been the subject of considerable technical studies, including National Instrument 43-101 technical reports -- resource estimates. The company's mission in Minnesota is to become a domestic U.S. producer of high-value, high-purity manganese metal and chemical products to supply the North American electric vehicle battery, 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.

We seek Safe Harbor.