Mr. Guy Bourassa reports

THE NASKAPI NATION OF KAWAWACHIKAMACH INVESTS IN SCANDIUM CANADA

Scandium Canada Ltd. has closed its previously announced non-brokered private placement of $334,000 subscribed by Taasipitaakin Trust, a trust controlled by the Naskapi Nation of Kawawachikamach. The Taasipitaakin Trust has subscribed to 16.7 million units of the corporation at a price of two cents per unit. Each unit consists of one common share of the corporation and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at an exercise price of five cents per common share for a period of 24 months from the date of issuance thereof.

This investment is part of the strategic growth dynamic and of the continuing sustainable and mutually beneficial relationship with the Naskapi Nation. The investment will contribute to the continuing development of the Crater Lake project, the only primary source of scandium currently under development in the world. The net proceeds from the offering will be mainly used by the corporation for general and corporate working capital purposes, with no specific use representing 10 per cent or more of the gross proceeds. No proceeds from the offering will be used for investor relations purposes nor any payments will be made to non-arm's-length persons or to persons conducting investor relations activities. No commission or other form of compensation was paid in connection with the offering.

"This investment from the Naskapi Nation represents a significant step in our strategy for responsible and inclusive development. It allows us to strengthen our relationships with the community to jointly envision the development and important steps for the Crater Lake project," said Guy Bourassa, chief executive officer of Scandium Canada.

"After consulting with community members and the elders, meeting with Scandium Canada's management, and better understanding the potential of scandium and the mine development process, the Taasipitaakin Trust's board of trustees decided to invest in Scandium Canada and acquire 5 per cent of the company. We acknowledge that there is risk, but believe that the international context and fight on climate change require us to be strategic about our role in the mining sector," commented Mike Sandy, trustee of Taasipitaakin Trust.

Chief Louise Nattawappio added: "The Naskapi Nation has a long and often rocky relationship with mining given the richness of our territory. We are taking a diversified approach to participation in the industry and exploring additional ways, allowing us to fully benefit from the mining sector. Such an investment does not imply consent to a future mine or replace the need for consultation and to negotiate an impact and benefit agreement, but it does demonstrate a desire to be involved from the outset to help design a project that would be acceptable to the Naskapi."

It is worth noting that the Naskapi Nation and Scandium Canada reached an important milestone in their collaboration by signing a predevelopment agreement on April 22, 2024. This agreement reflects the mutual commitment to establish a relationship based on trust, respect and continuing dialogue. It lays the groundwork for a long-term relationship aimed at ensuring that the development of the project benefits the Naskapi Nation while respecting its values, rights and territory.

The securities issued under the offering, including the common shares underlying the warrants are subject to a hold period of four months and one day under applicable Canadian securities laws and the concurrent TSX Venture Exchange hold period pursuant to the policies of the exchange. The offering remains subject to the final approval of the exchange.

About Scandium Canada Ltd.

Scandium Canada is a public company whose ultimate goal is to bring the world's leading primary source of scandium into production, enabling the development and commercialization of aluminum-scandium alloys. The corporation is leveraging its Al-Sc alloy development division and the development of its Crater Lake mining project to meet the growing need for lighter, greener, longer-lasting, high performance materials. The corporation aims to become a market leader in scandium, while committing itself to building a more responsible economy through innovation and agility.

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