Electra Discovers New Copper Deposit in Idaho and Extends Redcastle Agreement

Electra Battery Materials Corporation ("Electra" or the "Company") announces the discovery of a new copper deposit near its Iron Creek Project and provides an update on its exploration efforts in Idaho.

“We are carefully advancing our exploration assets in Idaho, which continue to show promising potential for copper and cobalt at Iron Creek, Ruby, CAS, and now Malachite Hill,” said Electra CEO Trent Mell. “Led by Dr. William Stone, we have applied for a 10-year exploration permit, which will allow us to progress drilling activities at up to 91 designated locations without unexpected delays. While our primary focus remains on completing the cobalt refinery project in Ontario, the Idaho Cobalt Belt clearly holds potential to become a significant source of critical minerals for North America's battery supply chain. We look forward to resuming field exploration and drilling programs in the near future.”

Ryan McDermott, CEO of Phoenix Copper Ltd., stated, “We are excited to extend our partnership with Electra Battery Materials. We believe Electra is in a strong position to advance the potential of the Redcastle property, and we look forward to collaborating with their team as we unlock this potential.”

The Idaho properties include mining patents and exploration claims spanning 73.15 km², encompassing the Iron Creek Project and extending over the strata that host cobalt-copper sulfide mineralization. Iron Creek is part of the Idaho Cobalt Belt, a promising mineralized system recognized by the U.S. Geological Survey for its copper deposits and the largest primary cobalt resources in the United States.

Iron Creek has seen historical underground development with 600 meters of drifting from three adits. The site is accessible via a road that links it to a state highway and the nearby towns of Challis and Salmon. The Redcastle Property is situated directly to the east of Electra’s Iron Creek Property.

The Malachite Copper Showing (“MHS”), discovered in 2023 within the claims covered by the Redcastle Agreement, is situated to the south of the core claims in an area that had not been previously explored. Malachite is found in several outcrops of favorable, fine-grained meta-sedimentary rocks on a hillside. Assay results from grab samples of these outcrops show elevated copper levels (up to 2,660 parts per million) but low cobalt values. This finding indicates the presence of promising host rocks at the surface in this part of the Redcastle Property, although the full extent of surface mineralization has yet to be determined. Notably, the MHS is located approximately two kilometers southeast along strike from Electra's Ruby cobalt-copper target.

The Redcastle Property Agreement is an earn-in agreement initially signed in May 2021 with Borah Resources Inc./Phoenix Copper Limited and later amended to maintain future exploration flexibility.

The Redcastle Property comprises 30 core claims owned by Borah and Phoenix, along with an Area of Interest (“AOI”) where Electra has staked additional claims within a specified radius of the core claims. In 2022, Electra added more claims within the AOI, which are now included in the Agreement.

Under the Agreement, Electra was initially required to invest US$1.5M in exploration, development, and related activities by May 21, 2024, and an additional US$1.5M by May 21, 2026.

Recently, Electra has focused on completing the construction of North America’s first cobalt sulfate refinery at its Ontario property, leading to the postponement of major exploration programs on the Redcastle Property. Consequently, the Redcastle Agreement has been further amended, resetting the First Required Investment date to May 21, 2026, and the Second Required Investment date to May 21, 2028.