Electric Metals Launches Preliminary Economic Assessment for North Star Manganese Project Downstream HPMSM and EMM Processing Facili?es
1
Electric Metals Launches Preliminary Economic Assessment for North Star Manganese Project
Downstream HPMSM and EMM Processing Facili?es
Wilmington, Delaware, May 12, 2026 – Electric Metals (USA) Limited (TSXV: EML| OTCQB: EMUS)
(“Electric Metals” or the “Company”) is pleased to announce the formal kickoff of the Preliminary
Economic Assessment engineering study (“PEA”) for the planned HPMSM and EMM processing faciliRes
(the “Processing Plant PEA”) that form the downstream processing plaSorm of the Company’s North Star
Manganese Project, a strategy focused on establishing a fully domesRc U.S. manganese supply chain and
building foundaRonal industrial infrastructure for America’s criRcal minerals and advanced manufacturing
sectors.
The Processing Plant PEA is being led by Hargrove Engineers & Constructors, a leading U.S. Engineering
and EPC firm ranked the #1 firm in the Chemicals sector by Engineering News-Record (ENR) in 2025 and
among the leading firms in industrial process engineering.
High-Purity Manganese Sulfate Monohydrate (“HPMSM”) is a critical raw material used in lithium -ion
battery cathodes for electric vehicles, energy storage systems, and other advanced battery applications,
while Electrolytic Manganese Metal (“EMM”) is used in specialty steel, aluminum alloys, defense systems,
and advanced technologies. Manganese is increasingly important in next-generation battery chemistries
due to its ability to improve performance, safety, and cost competitiveness.
The United States currently has no domestic production of manganese ore, HPMSM, or EMM and remains
heavily dependent on foreign-controlled supply chains, particularly China, which controls approximately
96% of global HPMSM production and 98% of global EMM production. As a result, establishing a domestic
manganese supply chain is increasingly viewed as a strategic national priority critical to defense readiness,
industrial resiliency, advanced manufacturing, and the electrification of everything.
The North Star Manganese Project is designed to reduce U.S. dependence on foreign entities of concern
for manganese refining and chemical processing while supporting the reshoring of critical mineral
processing capacity to the United States.
Electric Metals believes the North Star Manganese Project represents more than a mining project – it is
strategic industrial infrastructure designed to support long -term U.S. critical mineral independence
through an integrated domestic mine-to-processing platform.
The Processing Plant PEA will evaluate a processing flowsheet developed by Kemetco Research Inc. that
includes manganese ore concentraRon at the Company’s Emily Manganese Deposit in Minnesota,
transportaRon logisRcs, and downstream refining into bahery-grade HPMSM and EMM at a proposed U.S.
Gulf Coast processing facility. The Gulf Coast locaRon was intenRonally selected because it represents the
longest potenRal transportaRon route from the Emily deposit, providing a conservaRve assessment of
logisRcs and transportaRon economics for the project, an assumpRon used in the North Star Manganese
Project.
2
The Processing Plant PEA leverages off the North Star Manganese Project PEA, filed on SEDAR+ on October
6, 2026, highlighRng a post-tax NPV10% of US$1.390 billion, an amer-tax IRR of 43.5%, and a rapid payback
of only 23 months from the start of producRon operaRons. The Processing Plant PEA is a more detailed
engineering analysis of the HPMSM processing plant and adds an EMM processing facility to the North
Star Manganese Project.
The Processing Plant initial design basis contemplates a production capacity of:
• 100,000 tonnes per year of HPMSM
• 10,000 tonnes per year of EMM
The study will also evaluate infrastructure and design considerations to support a future expansion to
200,000 tonnes per year of HPMSM production capacity.
The PEA scope includes:
• Preliminary basis of design
• Heat and material balances
• Process flow diagrams
• Utilities and process equipment summaries
• Preliminary site layouts
• Capital cost estimating
• A ±50% Total Installed Cost (“TIC”) estimate for the processing facilities
Brian Savage, Chief ExecuAve Officer of Electric Metals, commented: “The kickoff of the PEA represents
another major milestone in advancing the North Star Manganese Project and our strategy to establish a
fully domesRc U.S. supply chain for high-purity manganese chemical and metal products. We are extremely
pleased to be working with Hargrove, one of the leading chemical and process engineering firms in the
United States, on this important study. The United States currently has no domesRc producRon of HPMSM
or EMM, while China controls approximately 96% of global HPMSM producRon and 98% of global EMM
producRon. We believe the North Star Manganese Project has the potenRal to become foundaRonal U.S.
industrial infrastructure supporRng the electrificaRon of everything, naRonal security, and advanced
manufacturing, while helping reduce America’s dependence on foreign-controlled criRcal mineral supply
chains.”
The North Star Manganese Project is centered ar ound the Company’s Emily Manganese Deposit in
Minnesota, the highest-grade manganese deposit in North America.
The Company believes the project aligns with growing U.S. government and industry initiatives to reshore
critical mineral processing capacity and strengthen domestic supply chains for battery materials and
advanced industrial applications.
The Company believes rebuilding domestic critical mineral supply chains requires long development
timelines and that strategic materials infrastructure must be advanced before future supply disruptions
occur.
3
About Electric Metals USA Limited
Electric Metals (USA) Limited (TSXV: EML; OTCQB: EMUS) is a U.S. -domiciled critical minerals and
advanced materials company developing the North Star Manganese Project to support the electrification
of everything. The Company’s principal asset is the Emily manganese deposit in Minnesota, the highest-
grade manganese deposit in North America. The North Star Manganese Project is a 100% U.S. domestic
project, comprising a manganese mine in Emily, Minnesota, and a high-purity manganese sulfate
monohydrate (HPMSM) and electrolytic manganese metal (EMM) plant in the U.S. It has been the subject
of extensive technical work, including a Preliminary Economic Assessment prepared in accordance with
National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Electric Metals’ mission is to establish a fully domestic U.S. supply of high-purity manganese chemical and
metal products for the North American electric vehicle and energy storage battery, defense, technology,
and industrial markets. With manganese playing an increasingly important role in lithium-ion battery
formulations, and with no current domesRc U.S. producRon of manganese ore, HPMSM, or EMM, the
development of the North Star Manganese Project represents a strategic opportunity to strengthen
America’s criRcal mineral independence and domesRc supply chain security.
The Company believes manganese should be viewed as a strategic industrial mineral essenRal to bahery
manufacturing, defense applicaRons, infrastructure, specialty alloys, and advanced industrial
technologies.
For further informaAon, please contact:
Electric Metals (USA) Limited
Brian Savage
Chief ExecuRve Officer & Director
(303) 656-9197
Forward-Looking InformaAon
This news release contains “forward-looking information” and “forward-looking statements” (collectively,
“forward-looking information”) within the meaning of applicable securities laws. Forward -looking
information is generally identifiable by the use of words such as “believes,” “expects,” “plans,” “intends,”
“anticipates,” “estimates,” “projects,” “may,” “will,” “could,” “would,” and similar expressions.
Forward-looking information in this news release includes, without limitation: statements regarding the
planned PEA engineering study for the HPMSM and EMM processing facilities comprising the downstream
processing component of the North Star Manganese Pro ject; the anticipated scope, timing, and
completion of the study; the proposed production capacities of the planned processing facilities; potential
future expansion to 200,000 tonnes per year of HPMSM production capacity; the proposed development
of a fully domestic U.S. manganese supply chain; the strategic importance of the North Star Manganese
Project; anticipated market demand for HPMSM and EMM; the potential benefits of the project to the
United States and its critical mineral supply chain; and the Co mpany’s future plans, objectives, and
development strategy.
Forward-looking information is based on management’s current expectations, estimates, assumptions,
and beliefs as of the date of this news release. Such forward-looking information involves known and
unknown risks, uncertainties, and other factors that may cause actual results, performance, or
achievements to differ materially from those expressed or implied by such forward-looking information.
4
Such risks and uncertainties include, without limitation: risks relating to the completion of engineering
and economic studies; changes in project parameters as plans continue to be refined; the results of future
technical and economic studies; the ability to obtain required permits, approvals, financing, and
regulatory authorizations; risks related to construction, development, transportation logistics, and
operating costs; fluctuations in manganese and other commodity prices; changes in market conditions
and demand for manganese products; and general economic, market, and business conditions.
Although the Company believes the assumptions and expectations reflected in the forward -looking
information are reasonable, there can be no assurance that such information will prove to be accurate.
Readers should not place undue reliance on forward-looking information, as actual results and future
events may differ materially from those anticipated. Except as required by applicable law, the Company
undertakes no obligation to update or revise any forward-looking information to reflect new events or
circumstances.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.