Mr. Brian Savage reports

ELECTRIC METALS (USA) LIMITED CLOSES $4 MILLION NON-BROKERED PRIVATE PLACEMENT

Electric Metals (USA) Ltd. has closed its previously announced non-brokered private placement, raising gross proceeds of approximately $4-million. The financing, led by Eric Sprott and Crescat Capital, will advance the company's North Star manganese project in Minnesota, supporting a critical U.S. domestic supply of high-purity manganese products, including high-purity manganese sulphate monohydrate, for the U.S. electric vehicle battery and energy sector.

Under the offering, the company issued 13.33 million units at a price of 30 cents per unit. Each unit consists of one common share of the company and one-half of one non-transferable common share purchase warrant. Each warrant entitles the holder to acquire one additional share at an exercise price of 45 cents for a period of 18 months. The shares and any shares issued upon exercise of the warrants are subject to applicable hold periods in accordance with securities laws and exchange policies.

Mr. Sprott and Crescat Capital, which also led the company's previous financing, again participated as cornerstone investors, demonstrating their continued support for the company's long-term strategy and reinforcing the strength of its shareholder base. Certain company directors and other existing shareholders also participated, reflecting broad confidence in the company's growth prospects.

As a result of his participation in the offering, Mr. Sprott is considered an insider of the company, holding approximately 11.4 per cent on a partially diluted basis assuming the exercise of convertible securities.

Kevin Smith, CFA, founder and chief executive officer of Crescat Capital, commented: "The positive PEA confirms the strong economics and strategic importance of the North Star manganese project as a potential domestic source of high-purity manganese. With 96 per cent of HPMSM still produced in China, Electric Metals is well positioned to advance this critical U.S. supply chain opportunity, and we're pleased to continue our support as cornerstone investors."

Brian Savage, chief executive officer, Electric Metals, commented: "Completion of the positive PEA marks a major milestone for Electric Metals, confirming the strong potential of the North Star manganese project. This financing strengthens our ability to advance key technical, environmental and permitting initiatives as we move the project toward development. We greatly appreciate the continued support of Eric Sprott, Crescat Capital, and other institutional and accredited investors who share our vision of building a secure U.S. supply of high-purity manganese products."

Net proceeds will be used to advance key initiatives, including additional ore characterization, metallurgical and process testwork, an HPMSM scoping study, environmental baseline studies, initiation of permitting for the Emily mine, community outreach, other critical research at the North Star manganese project, and general corporate purposes.

This financing aligns with recent U.S. policy initiatives aimed at strengthening domestic critical mineral supply chains. The Emily manganese project is uniquely positioned to support these national objectives by reducing reliance on foreign sources of manganese and reinforcing U.S. economic and energy security.

Under the offering, directors of the corporation have subscribed for a total of 426,666 units for total consideration of $127,999.80, which constitutes a related-party transaction within the meaning of Regulation 61-101 respecting protection of minority security holders in special transactions and TSX Venture Exchange Policy 5.9 (Protection of Minority Security Holders in Special Transactions). However, the directors of the corporation who voted in favour of the offering have determined that the exemptions from formal valuation and minority approval requirements provided for respectively under subsections 5.5(a) and 5.7(1)(a) of Regulation 61-101 can be relied on as neither the fair market value of the shares issued to this insider, nor the fair market value of the consideration paid exceeded 25 per cent of the corporation's market capitalization. None of the corporation's directors have expressed any contrary views or disagreements with respect to the foregoing. A material change report in respect of this related-party transaction will be filed by the corporation but could not be filed earlier than 21 days prior to the closing of the offering, due to the fact that the terms of the participation of each of the non-related parties and the related parties of the offering were not confirmed.

About Electric Metals (USA) Ltd.

Electric Metals is a United States-based critical mineral company advancing manganese and silver projects that support the electrification of everything. The company's principal asset is the Emily manganese deposit in Minnesota, the highest-grade manganese deposit in North America. The North Star manganese project, a 100-per-cent domestic U.S. project composed of a manganese mine in Emily, Minn., and a high-purity manganese sulphate monohydrate chemical plant in the United States, has been the subject of extensive technical work, including a preliminary economic assessment prepared in accordance with National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

Electric Metals' mission is to establish a fully domestic U.S. supply of high-purity manganese chemical and metal products for the North American electric vehicle battery, energy storage, technology and industrial markets. With manganese playing an increasingly important role in lithium-ion battery formulations and with no current domestic production in North America, the development of the North Star manganese project represents a strategic opportunity for the United States, the State of Minnesota and the company's shareholders.

We seek Safe Harbor.