Mr. Troy Grant reports

ELCORA CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT

Elcora Advanced Materials Corp. has closed a third and final tranche of its previously announced non-brokered private placement.

As announced on Jan. 23, 2026, and Jan. 30, 2026, the first and second tranches of the offering consisted of gross proceeds of approximately $2.25-million for the sale of 18,749,999 units at a price of 12 cents per unit.

Accordingly, upon completion of the third tranche, the company has raised a combined aggregate total gross proceeds of $2,999,040.48 for the sale of a combined 24,992,004 units at 12 cents per unit. Each unit will consist of one common share and one share purchase warrant. Each warrant will be exercisable for an additional share at a price of 16 cents for a period of 24 months from issuance.

No finders' fees were paid, and no control person was created. The company intends to use the net proceeds for general working capital purposes. All securities issued pursuant to the offering will be subject to a statutory hold period of four months plus a day from issuance in accordance with applicable securities laws. Closing of the offering is subject to receipt of all necessary regulatory approvals and final acceptance by the exchange.

One of the company's directors participated in the offering and acquired a total of 2,000,001 units for total gross proceeds of approximately $240,000.

Early warning disclosure

Pursuant to the offering, Skyline Resources Trading FZE has acquired 6,242,005 units under the offering. Prior to the offering, the subscriber held no shares or warrants of the company, which represented 0 per cent of the issued and outstanding shares of the company. After giving effect to the offering, the subscriber beneficially owns and controls a total of 6,242,005 shares and 6,242,005 warrants, which represent 14.85 per cent of the company's issued and outstanding shares on an undiluted basis and 18.63 per cent on a fully diluted basis. The subscriber acquired the units for investment purposes. The subscriber intends to evaluate its investment in the company and to increase or decrease its shareholdings from time to time as it may determine appropriate. A copy of the early warning report being filed by the subscriber may be obtained by contacting the company at 604-687-2038.

In accordance with exchange policies, the securities issued to the subscriber will be held in escrow by the company and will not be released to the subscriber until the exchange has provided final clearance of the subscriber's personal information form.

Multilateral Instrument 61-101 disclosure

The participation by insiders in the offering is considered to be a related-party transaction as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities being issued nor the consideration being paid exceeds 25 per cent of the company's market capitalization.

About Elcora Advanced Materials Corp.

Elcora was founded in 2011 and has been structured to become a vertically integrated battery material company. Elcora can process, refine and produce battery-related minerals and metals. As part of the vertical integration strategy, Elcora has developed a cost-effective process to purify high-quality battery metals and minerals that are commercially scalable. This combination means that Elcora has the tools and resources for vertical integration of the battery mineral and metal industry.

We seek Safe Harbor.