Mr. Brian Savage reports

ELECTRIC METALS (USA) LIMITED ANNOUNCES AGREEMENT TO SELL NON-CORE NEVADA SILVER ASSETS

Electric Metals (USA) Ltd. has entered into a definitive purchase and sale agreement, effective as of Jan. 30, 2026, and received the initial purchase payment of $300,000 (U.S.) from Ameerex Corp., an arm's-length energy and mineral company, based in Georgia, United States, pursuant to which the company has agreed to sell its wholly owned subsidiaries North American Silver Corp. and Centennial Mining, together with their respective assets located in Nye county, Nevada.

The assets being sold include the Corcoran silver-gold and Belmont silver properties, comprising unpatented federal lode mining claims and certain lease purchase options on patented mining claims. The transaction represents a disposition of non-core assets and is consistent with the company's strategic focus on advancing its core manganese projects.

The Corcoran silver-gold project is located approximately 92 kilometres (57 miles) by road north-northeast of Tonopah, Nev., and is an advanced-exploration-stage silver-gold property with a National Instrument 43-101 technical report. Mineralization occurs near surface and remains open in multiple directions, and the project hosts several identified exploration targets.

The Belmont silver project is located approximately 15 km (nine miles) south of Corcoran within the broader Tonopah silver district. The property is a historically significant silver mining area that has seen minimal modern exploration, offering prospective ground for systematic evaluation using contemporary exploration techniques.

Transaction terms

Under the terms of the agreement, Ameerex has agreed to acquire 100 per cent of the issued and outstanding shares of North American Silver and Centennial Mining for total consideration of $3.5-million (U.S.), payable in staged cash payments as follows:

• $300,000 (U.S.) upon execution of the agreement (received);
• $1.1-million (U.S.) payable 90 days after execution; and
• $2.1-million (U.S.) payable 180 days after execution.

The company will retain a 2.5-per-cent net smelter return royalty on production from each of the Corcoran and Belmont properties, subject to a 3.0-per-cent total royalty cap inclusive of existing third party royalties. Ameerex has the right to repurchase the combined NSR royalties for $500,000 (U.S.) on or before the final purchase payment, or thereafter at $1-million (U.S.) per each 0.5-per-cent royalty interest.

Completion of the transaction is subject to customary conditions, including receipt of the staged and final payment, and completion of certain regulatory and administrative matters. The company will retain ownership and operational control of the assets until the final payment is made.

In connection with the transaction, the company may pay a finder's fee equal to 3 per cent of the transaction value of $3.5-million, less $90,000, subject to TSX Venture Exchange acceptance.

Strategic rationale

"This transaction is a clear, disciplined capital allocation decision," said Brian Savage, Chief executive officer of Electric Metals. "The Nevada silver assets are non-core to where we are taking this company. By monetizing them now and taking advantage of the rise in precious metal prices, we are strengthening our balance sheet, simplifying the business, and directing capital and management focus toward advancing our manganese strategy. Importantly, we have structured the sale to retain meaningful royalty upside while transferring operational responsibility to a new owner."

Electric Metals filed a National Instrument 43-101 preliminary economic assessment on SEDAR+ for its North Star manganese project, a 100-per-cent domestic U.S. project, comprising a manganese mine in Emily, Minn., and a high-purity manganese sulphate monohydrate chemical plant in the United States. The PEA generated an after-tax net present value discounted at 10 per cent of $1.39-billion (U.S.) and an after-tax internal rate of return of 43.5 per cent, with an initial capital expenditure at $474.8-million (U.S.). The North Star manganese project PEA has an effective date of Aug. 15, 2025, and an issue date of Sept. 30, 2025.

Regulatory matters

The transaction constitutes a disposition of non-core assets under TSX Venture Exchange Policy 5.3 and does not constitute a fundamental change, a reviewable transaction or a change of control of the company. Shareholder approval is not required.

Qualified person

The preliminary economic assessment was prepared by Forte Dynamics Inc. Donald E. Hulse, PE, SME-RM, an independent qualified person as defined by National Instrument 43-101, is responsible for the PEA, and has reviewed and approved the scientific and technical information disclosed in this news release.

About Electric Metals (USA) Ltd.

Electric Metals is a U.S.-domiciled critical mineral and advanced material company developing the North Star manganese project, a 100-per-cent U.S. domestic manganese supply chain supporting the electrification of everything.

The company's principal asset is the Emily manganese deposit in Minnesota, the highest-grade manganese deposition in North America.

The North Star manganese project comprises a manganese mine in Emily, Minn., and a planned high-purity manganese sulphate monohydrate chemical processing facility in the United States.

The project has been the subject of extensive technical evaluation, including a preliminary economic assessment prepared in accordance with National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

Electric Metals' mission is to establish a secure, resilient and fully domestic U.S. supply of high-purity manganese chemical and metal products for electric vehicle and energy storage batteries, defence, technology, and industrial markets. With no current domestic production of manganese ore or battery-grade manganese in North America, the North Star manganese project represents a strategic opportunity to strengthen U.S. industrial capability, reduce foreign supply chain dependence, and support domestic manufacturing and national security objectives.

We seek Safe Harbor.