Mr. Jason Roy reports

ELECTROVAYA COMMENCES DRAWDOWN ON EXPORT-IMPORT BANK OF THE UNITED STATES ("EXIM") LOAN FACILITY AND PROVIDES A BUSINESS UPDATE

Electrovaya Inc. has commenced drawdowns on its $50.8-million EXIM debt facility which is tied to capital and engineering expenses at its Jamestown, N.Y., facility. Further drawdowns are expected to occur regularly over the next 12 months. Some high level details of the facility are provided below:

• Interest rate: fixed 4.90 per cent;
• Term: 6.5 years;
• Repayments: following initial draw: six months of no payments; 12 months of interest only payments; 60 months of interest and principal payments.

Jamestown battery manufacturing site construction update

The company continues to make progress with its Jamestown battery manufacturing site construction. Some recent progress includes the following:

• The EXIM facility drawdowns will be utilized to pay suppliers as construction and equipment manufacturing milestones are achieved.
• Electrovaya in collaboration with its lead equipment providers have completed the design reviews of assembly processes and equipment. These are customized to the requirements of Electrovaya's Infinity lithium-ion technology.
• The company has collaborated closely with key equipment vendors and third party consulting firms, and has successfully completed the initial engineering, site and building planning stages.

Personnel updates

The company recently added a senior engineering lead, Marvin Lee, to support efforts to manufacturing setup in Jamestown, N.Y., as well as supporting overall operations. Mr. Lee is an accomplished executive with more than 25 years of professional experience. His background includes over a decade in engineering and development at leading global automotive companies including GM and Renault, as well as more than 10 years specializing in the design, development and process engineering of gigawatt-hour-scale battery manufacturing at LG Energy Solution (LGES). He holds a bachelor's degree in materials engineering and offers extensive expertise and practical knowledge in delivering high-quality engineering solutions.

The company is also hiring additional engineering staff in Jamestown to support manufacturing and equipment set-up. This includes a recent hire of an automation engineer.

Prof. Donald Sadoway has stepped down from the company's board of directors stemming from a potential conflict of interest with one of his other affiliations. While Prof. Sadoway recently joined the board, subsequent events presented the conflict for him in continuing in the role.

About Electrovaya Inc.

Electrovaya is a pioneering leader in the global energy transformation, focused on contributing to the prevention of climate change by supplying safe and long-lasting lithium-ion batteries. The company has extensive IP, and designs, develops and manufactures proprietary lithium-ion batteries and battery systems for energy storage and heavy duty electric vehicles based on its Infinity battery technology platform. This technology offers enhanced safety and industry leading battery longevity. The company is also developing next-generation solid-state battery technology at its labs division. Headquartered in Ontario, Canada, Electrovaya has two operating sites in Canada and has acquired a 52-acre site with a 135,000-square-foot manufacturing facility in New York state for its planned gigafactory.

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