Mr. Ian Mallory reports

VANADIUMCORP INITIATES CORPORATE RESTRUCTURING

Vanadiumcorp Resource Inc. has provided a corporate restructuring initiative to best position the company to meet immediate and future business opportunities.

The new management team at Vanadiumcorp that was put in place at the annual general and special meeting of shareholders held on July 2, 2024, has completed its expedited review of the current strategy, operational results and financial condition of the company. The results of this review are as follows:

1. Strategy: The company affirms that its dual-track strategy of: a) producing and selling vanadium electrolyte to manufacturers of vanadium flow batteries (VFB); while b) advancing the company's vanadium-titanium-iron mineral resources in Quebec as the best path forward to enhancing shareholder value at the company.

The international deployment of VFBs is growing rapidly to provide the longer-duration energy storage required to decarbonize electrical energy grids. Manufacturers of VFBs in many countries will require an expanding supply of the high-quality vanadium-electrolyte that the company is producing.

To help underpin the long-term viability of vanadium electrolyte production, the company has planned on enjoying future access to its significant deposits of vanadium at its flagship resource at Lac Dore, Que., on the assumption that the resource property can be developed and financed. To accelerate the progress of and to unlock value at the resource property, the company will now explore strategic alternatives for the resource, including potential joint ventures with other mineral companies.

2. Operations: The company's first plant, located in Val-des-Sources, Que. (the first plant), began operations in April, 2024, and has been producing a stream of high-purity vanadium electrolyte. Due to a technical issue encountered on commissioning, however, the output from the first plant has been 6,000 litres/month instead of its expected 25,000 litres/month. The technical issue can be readily fixed and the first plant returned to its full operating capacity once funds for required replacement parts have been allocated by the company and the parts delivered and installed. The company aims to have the first plant in full operation by the end of October, 2024.

The company is also now investigating the optimal production methods and locations for additional volumes of electrolyte beyond those produced by the first plant, with a view to ensuring both product quality and competitive cost.

Interest in the company's product from prospective customers has been positive, with discussions on sales continuing with various leading international manufacturers of VFB.

3. Financial condition: The financial condition of the company has deteriorated significantly in the first half of 2024. Debt, including accounts payable, is now higher and receipt of revenues has been delayed by the temporary production issue referred to herein. This situation will be reflected in the upcoming financial statements (unaudited) for the fiscal quarter ending July 31, 2024, that will be reported by the company in due course.

Given these existing financial constraints, the current operational structure of the company is not sustainable. Corporate costs will be immediately rationalized. Discussions with creditors will be initiated to ensure operational flexibility. Additional equity financing in 2024 will also be required to help the company continue to move forward.

Ian Mallory, chairman and chief executive officer, stated: "The financial situation of the company that was inherited on July 2, 2024, from previous management is very disappointing and concerning. Nonetheless, new management believes that the fundamentals of the company's business remain attractive. With vanadium electrolyte, we have the right product at the right time as it is a key ingredient for longer-duration battery storage. We need to redouble our efforts to streamline the operations of the company, enhance the brand of our product among our target customer base, and generate the expected revenues. To launch the new period of cost discipline at Vanadiumcorp, I have informed the company's board that I will not receive any cash compensation for my role as chairman and CEO for 2024 as the turnaround of the company takes effect. Despite the many challenges, I am positive about the future and am grateful to our shareholders, suppliers and our team for their continued support."

About Vanadiumcorp Resource Inc.

Vanadiumcorp Resource produces a stream of high-quality vanadium electrolytes for the expanding international market for long-duration vanadium redox flow batteries (VRFB). The company's initial manufacturing facility is based in Val-des-Sources, Que. Stable, long-term access to vanadium feedstock for the production of electrolytes is assured, success-contingent on developing the company's wholly owned vanadium-titanium-iron mineral deposits, including its flagship Lac Dore deposit near Chibougamau, Que.

Vanadiumcorp is pleased to announce the launch of its new website. The new website features user-friendly navigation and includes the latest investor tools with updated information about the company. The company invites you to explore its new site and subscribe to receive updates, so you can stay informed about the latest news.

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