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Electric Metals (USA) Limited Closes $4 Million Non-Brokered Private Placement Led by Eric Sprott and Crescat Capital

Financings

Electric Metals (USA) Limited Closes $4 Million Non-Brokered Private Placement

Led by Eric Sprott and Crescat Capital

Vancouver, BriEsh Columbia, October 24, 2025: Electric Metals (USA) Limited ("EML" or the "Company")

(TSXV: EML) (OTCQB: EMUSF) is pleased to announce the closing of its previously announced non -

brokered private placement, raising gross proceeds of approximately C$4 million. The financing, led by Eric

SproJ and Crescat Capital, will advance the Company’s North Star Manganese Project in Minnesota,

supporPng a criPcal U.S. domesPc supply of high-purity manganese products, including high-purity

manganese sulfate monohydrate (HPMSM), for the U.S. electric vehicle baJery and energy sector .

Under the Offering, the Company issued 13,330,000 units (the “Units”) at a price of C$0.30 per Unit. Each

Unit consists of one common share of the Company (a “Share”) and one-half of one non-transferable

common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to

acquire one additional Share at an exercise price of C$0.45 for a period of 18 months. The Shares and any

Shares issued upon exercise of the Warrants are subject to applicable hold periods in accordance with

securities laws and exchange policies.

Eric SproJ and Crescat Capital, who also led the Company’s previous financing, again parPcipated as

cornerstone investors, demonstraPng their conPnued support for the Company’s long-term strategy and

reinforcing the strength of its shareholder base. Certain Company Directors and other exisPng

shareholders also parPcipated, reflecPng broad confidence in the Company’s growth prospects.

As a result of his parPcipaPon in the Offering, Eric SproJ is now considered an insider of the Company,

holding approximately 11.4% on a parPally-diluted basis assuming the exercise of converPble securiPes.

Kevin Smith, CFA, Founder and CEO of Crescat Capital, commented: “The posiPve PEA confirms the strong

economics and strategic importance of the North Star Manganese Project as a potenPal domesPc source

of high-purity manganese. With 96% of HPMSM sPll produced in China, Electric Metals is well-posiPoned

to advance this criPcal U.S. supply chain opportunity, and we’re pleased to conPnue our support as

cornerstone investors.”

Brian Savage, CEO, Electric Metals, commented: "ComplePon of the posiPve PEA marks a major milestone

for Electric Metals, confirming the strong potenPal of the North Star Manganese Project. This financing

strengthens our ability to advance key technical, environmental, and permieng iniPaPves as we move the

project toward development. We greatly appreciate the conPnued support of Eric SproJ, Crescat Capital,

and other insPtuPonal and accredited investors who share our vision of building a secure, U.S. supply of

high-purity manganese products."

Net proceeds will be used to advance key initiatives, including addiPonal ore characterizaPon,

metallurgical and process test work, an HPMSM scoping study, environmental baseline studies, iniPaPon

of permieng for the Emily Mine, community outreach, other criPcal research at the North Star Manganese

Project, and general corporate purposes.

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This financing aligns with recent U.S. policy initiatives aimed at strengthening domestic critical mineral

supply chains. The Emily Manganese Project is uniquely positioned to support these national objectives

by reducing reliance on foreign sources of manganese and reinforcing U.S. economic and energy security.

Under the Offering, directors of the CorporaPon have subscribed for a total of 426,666 Units for a total

consideraPon of C$127,999.80, which consPtutes a "related party transac/on" within the meaning

of Regula/on 61-101 respec/ng Protec/on of Minority Security Holders in Special

Transac/ons ("RegulaEon 61-101") and TSXV Policy 5.9 – Protec/on of Minority Security Holders in Special

Transac/ons. However, the directors of the CorporaPon who voted in favor of the Offering have

determined that the exempPons from formal valuaPon and minority approval requirements provided for

respecPvely under subsecPons 5.5(a) and 5.7(1)(a) of RegulaPon 61-101 can be relied on as neither the

fair market value of the Shares issued to this insider, nor the fair market value of the consideraPon paid

exceeded 25% of the CorporaPon’s market capitalizaPon. None of the CorporaPon’s directors have

expressed any contrary views or disagreements with respect to the foregoing. A material change report in

respect of this related party transacPon will be filed by the CorporaPon but could not be filed earlier than

21 days prior to the closing of the Offering, due to the fact that the terms of the parPcipaPon of each of

the non-related parPes and the related parPes of the Offering were not confirmed.

About Electric Metals (USA) Limited

Electric Metals (USA) Limited (TSXV: EML; OTCQB: EMUSF) is a U.S. -based critical minerals company

advancing manganese and silver projects that 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, a 100% domestic U.S. project comprised of a

manganese mine in Emily, Minnesota, and a high -purity manganese sulfate monohydrate (HPMSM)

chemical plant in the U.S., 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 battery, energy storage, technology, and industrial

markets. With manganese playing an increasingly important role in lithium-ion battery formulations, and

with no current domestic production in North America, the development of the North Star Manganese

Project represents a strategic opportunity for the United States, the State of Minnesota, and for the

Company’s shareholders.

For further informaEon, please contact:

Electric Metals (USA) Limited

Brian Savage

CEO & Director

(303) 656-9197

[email protected]

Forward-Looking InformaEon

This news release contains “forward-looking informaPon” and “forward-looking statements” (collecPvely,

“forward-looking informaPon”) within the meaning of applicable securiPes laws. Forward -looking

informaPon is generally idenPfiable by words such as “believes,” “may,” “plans,” “will,” “anPcipates,”

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“intends,” “could,” “esPmates,” “expects,” “forecasts,” “projects,” and similar expressions, and the negaPve

of such expressions.

Forward-looking informaPon in this news release includes, but is not limited to: statements regarding the

expected use of proceeds from the Offering; the advancement of technical, environmental, and economic

studies related to the Emily Manganese Project; the Company’s plans to develop a U.S. supply of high-

purity manganese chemical and metal products; and other statements regarding the Company’s strategy,

objecPves, and potenPal future developments. Forward-looking informaPon may also include statements

concerning the role of manganese in lithium-ion baJery formulaPons, the importance of developing

domesPc supply chains, and the anPcipated contribuPon of the Emily Manganese Project to U.S. criPcal

mineral independence.

Forward-looking informaPon is based on the reasonable assumpPons, esPmates, analyses, and opinions

of management at the Pme such statements are made, including, among other things, assumpPons

regarding general business and economic condiPons; the availability of financing; the Pming and results

of technical and environmental studies; future demand for high -purity manganese products; and

regulatory and permieng processes. Forward-looking informaPon is subject to known and unknown risks,

uncertainPes, and other factors that may cause actual results to differ materially from those anPcipated

or implied, including but not limited to: changes in market condiPons; volaPlity in capital markets; the

results of exploraPon, metallurgical, and engineering work; permieng delays; cost overruns; and other

risks described in the Company’s public filings available under its profile on SEDAR+ (www.sedarplus.ca).

Readers are cauPoned that forward-looking informaPon is not a guarantee of future performance and that

actual results may differ materially from those expressed or implied. Except as required by law, the

Company undertakes no obligaPon to update or revise any forward-looking informaPon as a result of new

informaPon, future events, or otherwise.

Neither the TSX Venture Exchange nor its RegulaPon 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.