Mr. Troy Grant reports

ELCORA CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT

Elcora Advanced Materials Corp. has closed a second tranche of its private placement pursuant to a price reservation Form 4A filed with the TSX Venture Exchange on Dec. 29, 2025 (see news release dated Jan. 23, 2026). The company issued 10,591,666 units at a price of 12 cents per unit for gross proceeds of approximately $1,271,000 for the second tranche.

As announced on Jan. 23, 2026, the company issued 8,158,333 units at a price of 12 cents per unit for gross proceeds of approximately $979,000 for the first tranche. Accordingly, upon completion of the second tranche, the company has issued a combined total of 18,749,999 units at 12 cents and raised combined total gross proceeds of approximately $2.25-million.

Pursuant to the Form 4A, the company may issue up to 25 million units at 12 cents per unit to raise total gross proceeds of up to $3-million. Each unit will consist of one common share and one share purchase warrant. Each warrant will be exercisable for an additional share at a price of 16 cents for a period of 24 months from issuance.

One of the company's directors participated in the offering and acquired 1,183,334 units in the first tranche and an additional 816,667 units in the second tranche, for total gross proceeds of approximately $240,000. The participation by insiders in the offering is considered to be a related party transaction as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued nor the consideration being paid exceeds 25 per cent of the company's market capitalization.

No finders' fees were paid and no new insider or control person was created. The company intends to use the net proceeds for general working capital purposes. All securities issued pursuant to the offering will be subject to a statutory hold period of four months plus a day from issuance in accordance with applicable securities laws. Closing of the offering is subject to receipt of all necessary regulatory approvals and final acceptance by the TSX Venture Exchange.

About Elcora Advanced Materials Corp.

Elcora was founded in 2011 and has been structured to become a vertically integrated battery material company. Elcora can process, refine, and produce battery-related minerals and metals. As part of the vertical integration strategy Elcora has developed a cost-effective process to purify high-quality battery metals and minerals that are commercially scalable. This combination means that Elcora has the tools and resources for vertical integration of the battery minerals and metals industry.

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