Mr. Trent Mell reports

ELECTRA ADVANCES PHASED NICKEL REFINING AND BATTERY RECYCLING STRATEGY FOR NORTH AMERICA

Electra Battery Materials Corp. has released preliminary engineering results for the initial phase of a proposed two-phase nickel refinery to process mine-derived feedstock and recycled battery black mass into nickel metal and battery-grade nickel sulphate. The proposed facility would strengthen North American supply chains by supplying nickel for industrial, military and battery applications, helping reduce reliance on foreign processing.

The preliminary engineering study (FEL-1) evaluates the first-phase conversion of mine-derived feedstock into battery-grade nickel sulphate at a production capacity of approximately 20,000 tonnes per year of contained nickel. Preliminary process modelling indicates nickel and cobalt recoveries of 97 per cent or higher, with recovered cobalt hydroxide providing a potential feedstock for Electra's cobalt refinery.

"We need the capacity to refine nickel for industrial, military and battery applications," said Trent Mell, chief executive officer. "Electra is applying the expertise developed through our Ontario cobalt sulphate refinery and battery recycling work to advance a new source of nickel sulphate and nickel metal. Our goal is to strengthen critical mineral supply chains in the United States and Canada and reduce reliance on Chinese processing."

The proposed facility would address a gap in North America's capacity to convert nickel feedstock into products for domestic customers. Its intended product flexibility would serve both battery manufacturers requiring battery-grade nickel sulphate and industrial and military customers requiring nickel metal, including for aerospace applications.

The project is designed to establish capacity to process nickel intermediates that might otherwise be refined in China. By processing nickel closer to customers, the facility could help reduce exposure to geopolitical risk and strengthen the security and traceability of Western critical minerals supply chains.

Electra is advancing the financing and commercial strategy for this project in parallel with engineering. The company continues to engage with governments on funding programs and with upstream and downstream partners on feedstock supply and offtake arrangements. These discussions are intended to align government support and private financing with the supply and customer commitments needed to develop competitive critical minerals processing capacity.

The proposed refinery would use conventional hydrometallurgical processes to refine feedstock from existing mining operations, drawing on Electra's cobalt refining and battery recycling expertise. This approach would use available feedstock while creating a processing option for future domestic mine supply. The project relies primarily on established processing methods rather than the commercialization of new technology.

Preliminary capital estimates for the first-phase nickel sulphate refinery range from approximately $530-million (U.S.) to $675-million (U.S.) across the feedstock configurations evaluated, based on annual production of approximately 20,000 tonnes of contained nickel. Nickel metal production and the second-phase recycling expansion will require separate capital estimates.

A second phase could expand the facility to process battery black mass, with the potential to add an additional 20,000 tonnes per year of contained nickel capacity, along with cobalt, lithium and graphite byproducts. This expansion would build on Electra's black-mass demonstration work to recover critical minerals using hydrometallurgical processes. Recent U.S. restrictions on black-mass exports underscore the need to limit critical minerals exports to support investment in domestic processing capacity.

Work completed to date includes preliminary process design, equipment sizing, site layout, infrastructure and logistics assessment, and capital and operating cost estimates. Further engineering is planned for nickel metal production to confirm product specifications, process scope and capital requirements.

The study uses a preferred location in the southeastern United States as its site basis. Final site selection remains subject to further assessment as well as commercial and financing arrangements. Electra will continue to consider alternative locations in North America as it evaluates access to feedstock and customers, utilities, permitting requirements, and the ability to accommodate the second-phase recycling expansion.

The next stage of work will focus on advancing site assessment and permitting planning alongside continuing financing, feedstock and offtake discussions. As these parallel workstreams progress, Electra intends to refine equipment and utility requirements, effluent and tailings management plans, product specifications, and capital and operating cost estimates. Together, this work is expected to establish the site, feedstock and commercial basis required to advance the project toward further engineering (FEL-3) and a potential development decision.

"Our focus is on securing the feedstock, customer commitments and financing needed to support a development decision," said Mr. Mell. "We are working with governments and potential commercial partners to establish the conditions for a competitive North American nickel refinery serving industrial, military and battery customers."

Electra's immediate priority remains the completion and commissioning of its Ontario cobalt sulphate refinery. The proposed nickel refinery and recycling expansion remain longer-term opportunities.

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.

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