Mr. Trent Mell reports

ELECTRA SIGNS TERM SHEET FOR STRATEGIC PARTNERSHIP WITH GLOBAL COMMODITIES TRADER WMC

Electra Battery Materials Corp. has signed a term sheet with WMC Group AG for a five-year working-capital and commercial partnership supporting its Canadian critical minerals refinery. The arrangement will finance cobalt feedstock purchases and corresponding battery grade cobalt sales, strengthening the efficiency of the refinery's operating cash cycle.

The partnership provides logistics management, cobalt market expertise, marketing support and access to WMC's global commercial network as Electra transitions from construction and commissioning into operations. In connection with the partnership, WMC has also committed to making an investment in Electra upon execution of definitive agreements.

"As Electra gets closer to production, the relationship provides the inventory working capital and provides our commercial team with broader access to cobalt buyers around the world," said Trent Mell, chief executive officer of Electra. "This agreement addresses our priorities around working capital, logistics and product qualification. WMC markets physical commodities worldwide, combining market intelligence and long-standing customer relationships. Those capabilities complement our existing commercial relationships and can help us optimize the refinery as we ramp toward full production."

"WMC is expanding its activity across battery materials, and this partnership shows the value we can add for a producer at Electra's stage," said Joe Micotto, head of battery materials for WMC. "Electra is developing an important new source of refined cobalt for the North American market. Combining its refining capability with our financial and logistical resources and global customer relationships gives Electra a strong route to market as it moves into production."

WMC is a leading global physical commodity trader focused on battery materials and nuclear fuel, providing long-term supply, offtake, marketing, logistics and financing solutions. Its battery materials trading team brings deep cobalt market expertise and established relationships across the global supply chain.

The parties intend to negotiate definitive agreements based on the term sheet. Completion of the proposed arrangements remains subject to due diligence, negotiation and execution of definitive documentation, receipt of required regulatory and creditor approvals, and satisfaction of other customary conditions.

In addition to providing finance and logistics services for volumes up to the refinery's nameplate capacity, WMC will act as buyer and exclusive marketing agent for corresponding cobalt sulphate production. The partnership is intended to complement Electra's existing customer relationships, including its supply arrangement with LG Energy Solution.

The term sheet is non-binding, other than with respect to certain provisions including confidentiality, exclusivity, costs, assignment, governing law and jurisdiction.

About Electra Battery Materials Corp.

Electra is a leader in advancing North America's critical minerals supply chain for lithium-ion batteries. The company's primary focus is constructing North America's only cobalt sulphate refinery, as part of a phased strategy to onshore critical minerals refining and reduce reliance on foreign supply chains. In addition to the refinery, Electra holds a significant land package in Idaho's Cobalt belt, including its Iron Creek project and surrounding properties, positioning the company as a potential cornerstone for North American cobalt and copper production.

Electra is also advancing black mass recycling opportunities to recover critical materials from end-of-life batteries, while continuing to evaluate growth opportunities in nickel refining and other downstream battery materials.

We seek Safe Harbor.