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SCD.V ·

SCANDIUM ANNOUNCES ITS INTENTION TO COMPLETE A SHARES FOR DEBT TRANSACTION MONTREAL, QUEBEC – Scandium Canada Ltd. (TSX-V: SCD) (the “Company”) announces

Share Capital & Compensation

January 6, 2026

SCANDIUM ANNOUNCES ITS INTENTION TO COMPLETE A SHARES FOR

DEBT TRANSACTION

MONTREAL, QUEBEC – Scandium Canada Ltd. (TSX-V: SCD) (the “Company”) announces

that on January 6, 2026, it signed a debt settlement agreement with an arm’s length creditor for a

total amount of $84,800 representing a portion of the debt owed to the creditor for services

rendered for the Crater Lake project. The Company's board of directors believes that settling this

debt through the issuance of Shares is in the best interest of the Company, as it allows it to

preserve cash for its operations, improve its balance sheet, and support the overall need to

manage its financial resources prudently.

In accordance with the terms of the debt settlement agreement, the Company intends to settle this

debt by issuing 513,939 common shares (the “Shares”) at a price of $0.165 per Share. This debt

settlement has been formalized in a written agreement and remains subject to the approval of the

TSX Venture Exchange. The Shares issued will be subject to a mandatory hold period of four

months and one day from the date of issue, in accordance with applicable securities laws.

No insider of the Company is participating in this transaction. The Company has not entered into

any brokerage agreement in connection with this debt settlement.

ABOUT SCANDIUM CANADA LTD.

Scandium Canada (TSX-V: SCD) is a public company whose ultimate goal is to bring the world's

leading primary source of scandium into production, enabling the development and

commercialization of aluminum -scandium (Al-Sc) alloys. The Corporation is leveraging its Al -Sc

alloy development subsidiary and the development of its Crater Lake mining project to meet the

growing need for lighter, greener, longer -lasting, high -performance materials. The Corporation

aims to become a market leader in scandium, while committing itself to building a more

responsible economy through innovation and agility.

FORWARD-LOOKING STATEMENTS

All statements in this press release other than statements of historical fact, including, without

limitation, statements regarding the debt settlement, stock exchange approval in connection with

the issuance of the Shares in settlement of the debt, the development of the Crater Lake project,

and generally the paragraph “About Scandium Canada Ltd.” above, which essentially describes

the Company's prospects, constitute “forward-looking information” or “forward-looking statements”

within the meaning of applica ble securities laws and are based on expectations, estimates, and

projections made as of the date of this press release.

Forward-looking statements are necessarily based upon a number of estimates and assumption

that, while considered reasonable by the Corporation as of the time of such statements, are

inherently subject to significant business, economic and competitive unce rtainties, and

contingencies. These estimates and assumption may prove to be incorrect. Many of these

uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to

differ materially from those expressed or implied in any forward-looking statements and future

events, could differ materially from those anticipated in such statements. A description of

assumptions used to develop such forward -looking information and a description of risk factors

that may cause actual results to differ materially from forward-looking information can be found in

the Corporation’s disclosure documents on the SEDAR+ website at www.sedarplus.ca.

By their very nature, forward -looking statements involve inherent risks and uncertainties, both

general and specific, and risks exist that estimates, forecasts, projections and other forward -

looking statements will not be achieved or that assumptions do no t reflect future experience.

Forward-looking statements are provided for the purpose of providing information about

management’s endeavors to develop the Crater Lake project, and, more generally, its

expectations and plans relating to the future. Readers are cautioned not to place undue reliance

on these forward-looking statements as a number of important risk factors and future events could

cause the actual outcomes to differ materially from the beliefs, plans, o bjectives, expectations,

anticipations, estimates, assumptions and intentions expressed in such forward -looking

statements. All of the forward-looking statements made in this press release are qualified by these

cautionary statements and those made in our other filings with the securities regulators of Canada.

The Corporation disclaims any intention or obligation to update or revise any forward -looking

statement or to explain any material difference between subsequent actual events and such

forward-looking statements, except to the extent required by applicable law.

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.

For additional information, please contact :

Scandium Canada Ltd.

Guy Bourassa

Chief Executive Officer

Phone: +1 (418) 580-2320

Email: [email protected]

Website: www.scandium-canada.com

LinkedIn: Scandium Canada Ltd.

X: @ScandiumCanada

Facebook: Scandium Canada

Instagram: @scandiumcanada