Electra Battery Materials Corporation provided an update on the construction of its battery grade cobalt sulfate refinery, the only facility of its kind being built in North America designed to address the onshoring requirements of the electric vehicle battery supply chain. Electra has in recent weeks received USD 5 million in long-lead, critical equipment, including pressure vessels, tanks, and structural steel, needed for completion of the Corporation's solvent extraction plant and crystallizer circuit. The equipment, some of which had been ordered at the onset of the construction project in second quarter of 2021 and was expected for delivery by fourth quarter of 2022, had been delayed by global supply chain disruptions.

Installation of the equipment delivered at site will occur as Electra secures its capital funding requirements for the refinery project. Electra's owner's team continues to operate the refinery to complete its black mass recycling trial. In June 2021, Electra launched its project to expand and recommission an idled refinery capable of producing 5,000 tonnes of cobalt contained in cobalt sulfate per year.

Electra's refinery, which is located in Temiskaming Shores, Ontario, is a fully permitted facility. Once fully constructed, the refinery has the capacity to expand to 6,500 tonnes of cobalt contained in Cobalt sulfate per year. The cobalt refinery is the first stage of a multi-pronged effort to produce battery grade cobalt, nickel and manganese and refine black mass from battery scrap, all within an integrated complex.

The project has been de-risked through the delivery of long lead equipment and by commissioning the legacy vehicle battery operations for a black mass demonstration plant. Pending completion of all its multiprong stages, Electra's refinery complex could be the first in North America to integrate the production of critical minerals, including cobalt and nickel sulfate, needed for the electric vehicle battery supply chain and the processing of black mass material designed to recover high value elements found in recycled lithium-ion batteries, including lithium, nickel, cobalt, manganese, graphite, and copper. As disclosed previously, Electra completed a re-baseline engineering report to identify the refinery's updated project scope, scheduling, and capital expenditures.

This updated re-baseline engineering work was undertaken by the refinery project's engineering, procurement, and construction management (EPCM) contractor and reviewed by an independent, third-party estimator. The re-baseline engineering report determined that the total capital costs for completing the refinery project are now estimated at approximately USD 113 to $121.8 million, of which approximately USD 59.6 million has been capitalized as at the end of second quarter 2023. Discussions are underway with various commercial partners, government agencies and other parties to address the funding shortfall with a primary focus on securing non-dilutive funding.

Among the bases for assumptions with respect to the potential for additional government funding are discussions and indications of support from government actors based on certain milestones being achieved. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in the management discussion and analysis and other disclosures of risk factors for Electra. Other factors that could actually results to differ materially include changes with respect to government or investor expectations or actions as compared to communicated intentions, and general macroeconomic and other trends that can affect levels of government or private investment.

Although the Company believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to the Company disclaims any intention and obligation to the Company's commitment of a strategic investment in the Company.