Mr. Daryl Hodges reports

ELECTRO METALS ANNOUNCES FINANCING

Electro Metals and Mining Inc. has arranged a non-brokered private placement offering. The purpose of the financing is to advance the exploration of the Fabie-Magusi copper-zinc-silver-gold deposits near Rouyn-Noranda, Que., to continue seeking advanced stage projects for development, and to satisfy conditions of the letter of intent signed with Shine Box Capital Inc. as part of the proposed reverse takeover (RTO) transaction of Shine Box by Electro Metals.

Electro Metals plans to raise a minimum of $1.5-million up to $3.5-million. Under the terms of the offering, Electro Metals offers investors three choices by way of subscription receipts: (i) hard dollar units (HD units) priced at 30 cents (ii) flow-through units priced at 35 cents per unit, and (iii) critical minerals flow-through units (CMFT units) priced at 40 cents per unit. Each of the units will include one-half of one common share purchase warrant. Each full purchase warrant will be exercisable, for three years from the date the shares start to trade on a recognized stock exchange, at an exercise price of 40 cents. Electro Metals plans to raise gross proceeds of up to $3.5-million in any combination of units, but including a minimum of $500,000 hard dollars. Electro will issue a minimum of 4,166,667 up to a maximum of 11,666,667 units. Electro Metals will commence closings upon reaching the minimum and will continue closings while working through the RTO and listing process. The intent is to have the funds released to the company as soon as is reasonably possible.

The funds of the offering are to be held in escrow by the escrow agent until the receipt of approval and the listing of Electro Metals' common shares on a Canadian stock exchange. In the event that the escrow release condition is satisfied prior to 5 p.m. (Toronto time) on Dec. 31, 2023, the subscription receipts will automatically convert into the applicable number of units with no further action required by the subscriber. If the escrow release condition is not satisfied by the escrow deadline, the subscriber will be entitled to receive from the escrow agent a refund of the escrowed funds.

The proceeds of the offering will be used for confirmation and expansion drilling of the Magusi and Fabie deposits, with the intent of advancing these toward a development decision, drill testing other targets, continued due diligence and negotiation on other advanced base metals projects, marketing, and for general working capital. The gross proceeds raised from the CMFT units will be used to incur eligible Canadian exploration expenses (CEE) that qualify as flow-through critical mineral mining expenditures, and the proceeds from the FT units will be used to incur CEE that qualify as flow-through mining expenditures as such terms are defined in the Income Tax Act (Canada). Electro Metals will pay a finder's fee of 7 per cent cash commission and 7 per cent finders' warrants. Each finder's warrant is exercisable into one common share at 40 cents for a period of 36 months from the date the Electro Metals shares are listed for trading on a Canadian public stock exchange.

"We are very pleased to be raising funds to commence the drilling programs at Fabie Magusi. This project has all the makings for a substantial mine development: known resources that can be expanded and potentially put into production, nearby discovery potential along the 'favourable horizon,' and untested targets for 'blue sky' drilling. This marks a first step in our plans to build Electro Metals into the next Canadian base metals producer, as we also continue to evaluate other near-term production opportunities. Electro Metals is pleased the Canadian government is taking bold steps to encourage investment in Canadian mining exploration through its critical minerals tax incentives," stated chairman and chief executive officer Daryl Hodges.

Near-term milestones:

• Complete the go-public transaction with Shine Box;
• Infill and stepout drilling of the copper-zinc-silver deposits near Rouyn-Noranda;
• complete updated resources and preliminary estimates of mining potential;
• Advance the metallurgical test work and negotiate offtake agreements;
• Continue to investigate other advanced opportunities.

About Electro Metals and Mining Inc.

Electro Metals and Mining Inc. is a Canadian federally registered private company focused on becoming a publicly listed growth company in the production of critical metals (Cu-Ni-Zn) (copper-nickel-zinc) to feed into the current and future demand for these metals.

The plan is to develop low-cost production and extraction near existing infrastructure and take advantage of low capital costs.

We seek Safe Harbor.