Mr. Mark Smith reports

IBC ADVANCED ALLOYS SHIFTS FOCUS TO PROFITABLE COPPER ALLOYS DIVISION

IBC Advanced Alloys Corp. will focus on its profitable copper alloys division in Franklin, Ind., and cease production this summer at its Massachusetts beryllium-aluminum alloy plant because of insufficient long-term demand for cast beryllium-aluminum alloy products. IBC anticipates that the move will expand free cash flow, strengthen gross margins and position the company on a better path to sustained profitability. IBC's copper alloys division has operated profitably since the quarter ended Sept. 30, 2020, for a total of 14 quarters.

The copper alloys division operates a vertically integrated copper alloy production facility in Indiana, which takes raw material through foundry, forge, and rough and final machining. Since navigating the market disruptions of the COVID pandemic, consolidating three copper alloy plants into one facility in 2022, and completing construction of its modernized and expanded production facility in Franklin, Ind., in 2022, the division has significantly grown revenue, generated more robust free cash flow, improved its gross profit margins and operated profitably.

While the copper alloys division has operated profitably, there is no guarantee that IBC Advanced Alloys will achieve profitability on a consolidated basis.

The company's decision to close its engineered materials division (EMC) was driven primarily by insufficient long-term demand for cast beryllium-aluminum alloy products and the resulting continuing losses. EMC's net losses, which included a loss of $7.4-million in the 12 months ended June 30, 2023, and a loss of $5.2-million in the trailing 12 months ended Dec. 31, 2023, depleted available working capital for the copper alloys division at a time when demand for copper alloy products was growing.

"The IBC team worked very hard over a dozen years to expand markets for its innovative beryllium-aluminum cast alloy products," said Mark A. Smith, chairman and chief executive officer of IBC, "but sufficient steady, long-term market demand simply did not materialize at a level that allowed for consistently profitable operations. By focusing on growing our copper alloys business at our integrated and highly efficient foundry in Indiana, we see significant opportunity to expand the business to a whole new level and seek consistent profitability."

Prior to halting operations in Massachusetts, IBC intends to complete its existing production contracts for beryllium-aluminum alloy products, including components it manufactures for the F-35 aircraft and other defence systems. Alternative production of these alloy parts for the F-35 and other defence systems is expected to be available after IBC closes its Massachusetts facility, which employs 24 workers. The company expects to incur a charge to operations in respect of the plant closure, and is negotiating with suppliers and its landlord to minimize such costs.

IBC investor webcast scheduled for Monday, April 29, 2023

IBC will host an investor update webcast on Monday, April 29, 2024, starting at 12 p.m. Eastern Time. The webcast can be accessed on-line at the starting time. The meeting ID for the webcast is 823 6460 8744 and the passcode to use is 039018. Investors can find local numbers to use to listen in to the webcast on-line.

About IBC Advanced Alloys Corp.

IBC is a leading advanced copper alloys manufacturer serving a variety of industries such as defence, aerospace, automotive, telecommunications, precision manufacturing and others. At its vertically integrated production facility in Franklin, Ind., IBC manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper and aluminum bronze.

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