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– Marks essential milestone for North America’s EV battery provide chain –

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TORONTO — Electra Battery Supplies Company (NASDAQ: ELBM; TSX-V: ELBM) (“Electra”, or the “Firm”) introduced at present that it has efficiently accomplished the primary plant-scale recycling of black mass materials in North America and recovered vital metals, together with nickel, cobalt, and manganese, wanted for the electrical automobile (EV) battery provide chain utilizing its proprietary hydrometallurgical course of at its refinery north of Toronto.

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“Preliminary outcomes from our black mass trial are extraordinarily encouraging,” mentioned Trent Mell, CEO of Electra. “The outcomes validate that our proprietary hydrometallurgical course of is ready to recuperate high-value parts from shredded lithium-ion batteries successfully and ensure that the commissioning work we now have accomplished thus far has made our refinery operational once more after being idle for greater than a decade.”

Mr. Mell added, “These preliminary outcomes symbolize a major milestone for the Firm and the business as we imagine it marks the primary hydrometallurgical plant-scale recycling of black mass in North America and the primary restoration of a blended hydroxide nickel and cobalt product. These outcomes pave the way in which for us to increase our trial past the 75 tonnes we initially deliberate and maximize the cashflow alternatives generated by means of the sale of a number of merchandise vital to the EV battery provide chain in North America. We’ve established relations with black mass producers in North America and overseas to help our continued efforts.”

Black mass is the business time period used to explain the fabric remaining as soon as expired lithium-ion batteries are shredded and all casings eliminated. Black mass incorporates high-value parts, together with nickel, cobalt, manganese, copper, lithium, and graphite, that after recovered, could be recycled to supply new lithium-ion batteries.

Established North American battery recyclers have centered on accumulating and shredding of batteries with the ensuing black mass materials primarily handled by a pyrometallurgical smelting course of that has a better carbon footprint and decrease steel recoveries than hydrometallurgical processes. Electra’s recoveries are believed to be the primary profitable manufacturing in a plant-scale setting utilizing a hydrometallurgical course of.

Recycling black mass will more and more turn into a key function of the EV battery provide chain given the sturdy demand for vital minerals and the looming provide deficit of metals reminiscent of nickel and cobalt. In line with information from McKinsey & Firm, accessible battery materials for recycling is anticipated to develop by 20% per 12 months by means of 2040.

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Electra launched its black mass demonstration plant on the finish of December 2022, and has processed materials in a batch mode, efficiently extracting nickel, cobalt, manganese, copper, lithium, and graphite.

Because of preliminary outcomes achieved up to now and curiosity expressed by potential industrial companions, Electra has determined to increase its black mass processing and recovering actions by means of June 2023, past the Firm’s preliminary goal of 75 tonnes. Engineering research shall be accomplished to evaluate capital prices for everlasting recycling facility adjoining to Electra’s cobalt refinery, leveraging present infrastructure, buildings, tools, permits and personnel.

The entire quantity of fabric to be processed and recovered by means of June shall be decided within the coming weeks. The Firm has recognized a number of sources of provide, and is in discussions on phrases and circumstances with distributors.

All of Electra’s recovered materials shall be bought to third-party firms for added processing and re-use in a lot of purposes.

Refinery Venture Replace
Since its final replace launched in November, 2022, Electra has made continued progress on the commissioning and building of its cobalt refinery venture regardless of ongoing provide chain disruptions and supply delays to vital items of apparatus.

By way of February 10, 2023, Electra’s progress could be measured by a number of key developments, together with:

– Accomplished all testing of present brownfield tools.
– Accomplished 90 to 95 % of all procurement.
– Accomplished 90 to 95 % of detailed engineering.
– Accomplished roughly 90 % of the erection of the solvent extraction plant.
– Accomplished building of the cobalt sulfate loadout facility.
– Elevated the venture homeowners’ workforce to 31 personnel, which embody tradespeople, engineers, operators, lab technicians, and workplace help employees.

Whereas developing its crystallization circuit, the ultimate stage within the cobalt sulfate refining course of, Electra took supply of a falling movie evaporator vessel that was broken in transit. Customized-built for Electra, the vessel is used to vaporize water from the cobalt resolution earlier than it may be crystallized into cobalt sulfate. The evaporator vessel is valued at roughly US$600,000, and measures roughly 60 ft in size and 5 ft in diameter. Whereas the tools was deemed appropriate for set up, a third-party inspection has decided that onsite repairs shall be required earlier than it may be commissioned.

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Electra makes use of microchips all through its refinery complicated as a part of the method management system to control tools and combine varied circuits and methods collectively. International provide shortages of microchips have resulted in delays to supply of a number of course of management system parts. Though Electra has superior the development of its refinery venture, it has been unable to progress totally on some work tasks pending supply of the method management parts.

Because of the impression of vital tools being broken enroute to the Firm’s complicated north of Toronto and ongoing provide chain disruptions, Electra has withdrawn its steerage issued on August 11, 2022, and November 9, 2022, for its fourth quarter ending December 31, 2022 together with any forward-looking statements beforehand made on the timing of the commissioning, capital spend and manufacturing of its cobalt sulfate refinery. All forward-looking statements beforehand disclosed are now not relevant in consequence.

In gentle of latest developments, Electra is finishing a assessment of the refinery venture scope, scheduling, and capital expenditures and expects to supply leads to the approaching weeks.

“Ongoing international provide chain disruptions, notably with microchips wanted for monitoring tools efficiency and the move of cobalt resolution by means of varied vessels, coupled with the receipt of broken tools that’s vital to the buildout of the crystallization circuit have created sudden delays to the commissioning of our cobalt sulfate refinery timelines,” mentioned Mr. Mell. “Whereas we consider a lot of choices, together with the procurement of apparatus from various sources of provide, building has progressed forward of apparatus deliveries. Web site-level management is finishing a baseline assessment of the venture and the Firm anticipates offering an replace along side our year-end outcomes to be issued earlier than the tip of March.”

About Electra Battery Supplies
Electra is a processor of low-carbon, ethically-sourced battery supplies. Presently commissioning North America’s solely cobalt sulfate refinery, Electra is executing a multipronged technique centered on onshoring the electrical automobile provide chain. Keys to its technique are integrating black mass recycling and nickel sulfate manufacturing at Electra’s refinery situated north of Toronto, advancing Iron Creek, its cobalt-copper exploration-stage venture within the Idaho Cobalt Belt, and increasing cobalt sulfate processing into Bécancour, Quebec. For extra data go to www.ElectraBMC.com.

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Neither the TSX Enterprise Trade nor its Regulation Companies Supplier (as that time period is outlined in insurance policies of the TSX Enterprise Trade) accepts accountability for the adequacy or accuracy of this launch.

Cautionary Notice Concerning Ahead-Trying Statements

This information launch might include forward-looking statements and forward-looking data (collectively, “forward-looking statements”) inside the which means of relevant securities legal guidelines and america Non-public Securities Litigation Reform Act of 1995. All statements, apart from statements of historic information, are forward-looking statements. Typically, forward-looking statements could be recognized by way of terminology reminiscent of “plans”, “expects’, “estimates”, “intends”, “anticipates”, “believes” or variations of such phrases, or statements that sure actions, occasions or outcomes “might”, “may”, “would”, “may”, “happen” or “be achieved”. Such forward-looking statements embody, with out limitation, statements concerning the attributes of the Notes, the time limit of the Notice Providing, the itemizing of the underlying Frequent Shares and the anticipated use of proceeds of the Providing. Ahead-looking statements contain dangers, uncertainties and different components that might trigger precise outcomes, efficiency, and alternatives to vary materially from these implied by such forward-looking statements. Elements that might trigger precise outcomes to vary materially from these forward-looking statements are set forth within the administration dialogue and evaluation and different disclosures of danger components for Electra Battery Supplies Company, filed on SEDAR at www.sedar.com and with on EDGAR at www.sec.gov. Though Electra Battery Supplies Company believes that the data and assumptions utilized in making ready the forward-looking statements are cheap, undue reliance shouldn’t be positioned on these statements, which solely apply as of the date of this information launch, and no assurance could be provided that such occasions will happen within the disclosed instances frames or in any respect. Besides the place required by relevant regulation, Electra Battery Supplies Company disclaims any intention or obligation to replace or revise any forward-looking assertion, whether or not because of new data, future occasions or in any other case.

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Contacts

Joe Racanelli Vice President, Investor Relations
information@ElectraBMC.com 1.416.900.3891

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