Mr. Mark Smith reports

ADVANCED ALLOYS REPORTS FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED JUNE 30, 2023

IBC Advanced Alloys Corp. has released its financial results for the quarter and year ended June 30, 2023.

(Unless otherwise noted, all financial amounts in this news release are expressed in U.S. dollars.)

Consolidated sales grew in the quarter and year compared with the comparative periods. The sales and profitability gains in the copper alloys division were offset by weaker performance in the engineered materials division.

"The copper alloys division continues to show strong revenue and performance growth, which helped to drive the division's higher gross margin and profitability for the year," said Mark A. Smith, chairman and chief executive officer of IBC Advanced. "While cost of materials has risen across our industry, copper alloys has been able to weather those headwinds largely as a result of the cost savings and greater production efficiencies gained from the consolidation and modernization of our vertical integrated foundry in Indiana.

"Demand for beryllium-aluminum products in defence markets remains robust as evidenced by IBC's recent purchase order from Lockheed Martin for $7.38-million for components for the F-35 aircraft," said Mr. Smith. "Commercial market demand for beryllium-aluminum components remains significantly softer as compared to earlier periods, and that impacts revenue at the engineered materials division. Also, while yields at the division have improved, they remain suboptimal, and that further impacts our profitability. We are exploring strategic options regarding the engineered materials division with potential partners, investors and others, including potential joint ventures, a restructuring, a sale or other options."

Copper alloys division

The copper alloy division revenue was driven primarily by increased demand from customers in the electronics sector that are manufacturing products related to the rapidly growing network connectivity of consumer goods and the transition to 5G networks. The division's gross margin also strengthened in the year to 23.1 per cent from 14.9 per cent in the prior year. Operating performance has remained strong as the division continues to take advantage of lower costs and greater efficiencies resulting from its consolidated foundry and forge operations.

Engineered materials division

Engineered materials has continued to experience lower demand for commercial beryllium-aluminum products, as well as less-than-optimal yields. This is reflected in lower sales and current-period operating losses.

Full results can be seen in the company's financial statements and management's discussion and analysis, available at SEDAR+ and on the company's website.

About IBC Advanced Alloys Corp.

IBC Advanced is a leading beryllium and copper advanced alloys company, serving a variety of industries such as defence, aerospace, automotive, telecommunications, precision manufacturing and others. IBC Advanced's copper alloys division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper and aluminum bronze. IBC Advanced's engineered materials division makes the Beralcast family of alloys, which can be precision cast and are used in an increasing number of defence, aerospace and other systems, including the F-35 Joint Strike Fighter. IBC Advanced has production facilities in Indiana and Massachusetts. The company's common shares are traded on the TSX Venture Exchange under the symbol IB and on the OTCQB under the symbol IAALF.

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