Electra Confirms Cobalt Mineralization at New Target in Idaho

TORONTO, Oct. 5, 2022 /PRNewswire/ - Electra Battery Materials Corporation (TSX-V: ELBM) (OTCQX: ELBMF) ("Electra") confirmed today the existence of a new cobalt zone in the Idaho Cobalt Belt, following the receipt of assay results from drilling at its Ruby prospect. The new drill intercepts are located in close proximity to the Company's flagship Iron Creek cobalt-copper deposit. Results from Electra's summer exploration program support a more extensive drill campaign to determine the full extent of Ruby's mineralization.

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"Significant investments are being made in North America to onshore the electric vehicle supply chain, and the State of Idaho has an important role to play in developing a domestic supply of critical metals such as cobalt," said Trent Mell, Electra's CEO. "We are very excited that drilling of our Ruby prospect supports our thesis that there are new cobalt targets in the Idaho Cobalt Belt."

Mr. Mell added, "The assay results pave the way for additional drilling and underscore the potential for Idaho to become and important source of cobalt in the U.S. and reduce North America's reliance on foreign supply."

HIGHLIGHTS

The Ruby target is a new zone of cobalt mineralization located approximately 1.5 km southeast of Electra's flagship Iron Creek deposit.

Cobalt mineralization intercepted in the first two holes drilled at Ruby include:

• 6.4 metres @ 0.21% cobalt in IC22-02 from 307.5 to 313.9 metres

• 0.64 metres @ 0.87% cobalt in IC22-03A from 364.3 to 364.9 metres

The drillholes are Electra's first in the Ruby target, testing the eastern portion of a geophysics anomaly that appears to thicken to the west as it approaches a fault system.

"Drill results confirmed the presence of significant cobalt mineralization identified in the chargeability anomaly imaged in this year's 3D-induced polarization survey," said Dan Pace, Electra's Principal Geologist. "Additional drilling is warranted to evaluate the extent of the mineralization, which has a similar geophysical footprint to the Iron Creek deposit."

Electra's Idaho Property

The Iron Creek Project is located within Electra's Idaho property, which consists of mining patents and exploration claims over an area of 2,300 hectares covering the strike extent of strata hosting mineralization. Historic underground development at Iron Creek includes 600 metres of drifting from three adits. An all-weather road connects the property to a state highway and nearby towns, Challis and Salmon.

Iron Creek is one of several cobalt-copper resources and prospects within the Idaho Cobalt Belt, a prospective mineralized system that contains the largest primary resources of cobalt in the United States, according to the U.S. Geological Survey. Within Electra's own property boundaries, numerous satellite targets have been identified, including the Ruby Zone cobalt prospect located 1.5 km southeast of Iron Creek which is the focus of the 2022 program.

2022 Drilling Summary

Electra completed 1,674 meters of drilling in the 2022 exploration program. One hole was drilled targeting the eastern extension of the Iron Creek resource with results pending. Three holes and two wedge offset holes were completed on the Ruby target approximately 1.5 km southeast of Iron Creek targeting geophysical anomalies and surface outcropping cobalt mineralization. Wedges were used to recover mineralization in zones of poor recovery (IC22-03/03A) and to extend drilling to depth where the original hole was lost above target (IC22-04/04A). All drillholes were collared with HQ diameter core and IC22-03/3A and IC22-04A were completed with NQ core. All drillholes encountered significant pyrite mineralization and results have been finalized for two holes and one wedge offset which are reported in this release. The first reported intercepts confirm the presence of significant cobalt mineralization associated with the pyrite zones intercepted in drilling at Ruby.

Permitting Update

Electra is aggressively advancing permitting on a new Plan of Operations in collaboration with the Salmon-Challis National Forest to conduct additional drilling programs in 2023. The plan will allow for a multi-year exploration program to systematically evaluate the Ruby zone, complete step-out drilling on the Iron Creek resource, and evaluate additional high-priority targets within the claim block. Electra has also been awarded a 217 acre feet water right from the State of Idaho Department of Water Resources to support exploration and mining activities on the Iron Creek property. The water right is contingent on showing beneficial use on or before September 1, 2027.

Quality Assurance and Quality Control

Blanks, duplicates, and standards were inserted into the sample chain at the core processing site as part of the QA/QC program. All samples were submitted to ALS laboratories in Twin Falls, Idaho by Company staff. Drill core samples are dried, weighed, crushed to 70% passing -2mm, split to 250g pulps crushed to 85% passing minus 75 microns. Samples were dissolved with a four acid digestion and analyzed by ICP-AES and ICP-MS.

Qualified Person Statement

Dan Pace is a Registered Member of the Society for Mining, Metallurgy & Exploration and is the Qualified Person as defined by National Instrument 43-101 who has reviewed and approved the contents of this news release. Mr. Pace is employed as Principal Geologist for Electra Battery Materials Corporation.

About Electra Battery Materials

Electra is a processor of low-carbon, ethically-sourced battery materials. Currently commissioning North America's only cobalt sulfate refinery, Electra is executing a multipronged strategy focused on onshoring the electric vehicle supply chain. Keys to its strategy are integrating black mass recycling and nickel sulfate production at Electra's refinery located north of Toronto, advancing Iron Creek, its cobalt-copper exploration-stage project in the Idaho Cobalt Belt, and expanding cobalt sulfate processing into Bécancour, Quebec.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Electra Battery Materials Corporation