# EDGAR Filing Document

**Accession Number:** 0001907184
**File Stem:** 0001171843-25-005956
**Filing Date:** 2025-9
**Character Count:** 50102
**Document Hash:** ace0f8acdf0538a5e9f510c958fddd09
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171843-25-005956.hdr.sgml**: 20250918

**ACCESSION NUMBER**: 0001171843-25-005956

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20250917

**FILED AS OF DATE**: 20250918

**DATE AS OF CHANGE**: 20250918

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Electra Battery Materials Corp
- **CENTRAL INDEX KEY:** 0001907184
- **STANDARD INDUSTRIAL CLASSIFICATION:** MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A6
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41356
- **FILM NUMBER:** 251321792

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** SUITE 3200, BAY ADELAIDE CENTRE
- **STREET 2:** 40 TEMPERANCE ST.
- **CITY:** TORONTO
- **PROVINCE COUNTRY:** A6
- **ZIP:** M5H 0B4
- **BUSINESS PHONE:** 416-900-3891

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** ELECTRA HEAD OFFICE
- **STREET 2:** 133 RICHMOND STREET W, SUITE 602
- **CITY:** TORONTO
- **PROVINCE COUNTRY:** A6
- **ZIP:** M5H 2L3

**UNITED STATES**<br>**SECURITIES AND EXCHANGE COMMISSION**<br>**Washington, D.C. 20549**

**Form 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of September 2025**

Commission File Number: **001-41356**

**Electra Battery Materials Corporation**<br>(Translation of registrant's name into English)

**133 Richmond St W, Suite 602<br>Toronto, Ontario, Canada<br>M5H 2L3<br>(416) 900-3891**<br>(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.<br>Form 20-F [ X ] &nbsp;&nbsp;&nbsp;&nbsp; Form 40-F [ ]

**DOCUMENTS INCLUDED AS PART OF THIS REPORT**

---

| | |
|:---|:---|
| <u>**Exhibit Number**</u> | <u>**Description**</u> |
| [99.1](exh_991.htm) | [Material Change Report](exh_991.htm) |
| [99.2](exh_992.htm) | [Amendment No. 1 to Transaction Support Agreement](exh_992.htm) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
|  | <u>**&nbsp;&nbsp;&nbsp;&nbsp;Electra Battery Materials Corporation&nbsp;&nbsp;&nbsp;&nbsp;**</u> |
|  | (Registrant) |
| Date: September 17, 2025 | <u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Trent Mell&nbsp;&nbsp;&nbsp;&nbsp;</u> |
|  | Trent Mell |
|  | Chief Executive Officer and Director |

---

## Exhibit 99.1

**Exhibit 99.1**

**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

---

| | |
|:---|:---|
| **ITEM 1** | **NAME AND ADDRESS** |

---

Electra Battery Materials Corporation. ("**Electra**" or the "**Company**")

133 Richmond Street W, Suite 602

Toronto, Ontario

M5H 2L3

---

| | |
|:---|:---|
| **ITEM 2** | **DATE OF MATERIAL CHANGES** |

---

September 16 and 17, 2025

---

| | |
|:---|:---|
| **ITEM 3** | **NEWS RELEASE** |

---

The Company issued a news release on September 16, 2025 relating to the material change, which was disseminated through Business Wire and subsequently filed on SEDAR+.

---

| | |
|:---|:---|
| **ITEM 4** | **SUMMARY OF MATERIAL CHANGES** |

---

On September 16, 2025, the Company announced amendments to its previously disclosed recapitalization and restructuring initiative (the "**Restructuring**"). On September 17, 2025, the Company and the holders (the "**Lenders**") of the Company's outstanding secured convertible notes (the "**Notes**") entered into a definitive amendment No. 1 to the transaction support agreement dated August 21, 2025 (the "**Amending Agreement**") to effect the amendments.

---

| | |
|:---|:---|
| **ITEM 5** | **FULL DESCRIPTION OF MATERIAL CHANGES** |

---

On September 16, 2025, the Company announced amendments to its previously disclosed Restructuring. On September 17, 2025, the Company and the Lenders entered into the Amending Agreement to effect the amendments.

The Company and the Lenders agreed to amend the Restructuring such that Electra will convert approximately US$41.3 million of outstanding Notes, plus accrued and unpaid interest, into approximately 55 million units of the Company ("**Units**"), to be issued on the same terms as the Company's previously announced brokered private placement offering for gross proceeds of up to US$30 million (the "**Offering**"). Pursuant to the Restructuring, the Lenders will exchange 60% of the Company's convertible debt for equity, reducing total debt under the Notes to approximately US$27.5 million.

The remaining 40% of the Notes, plus interest, will be exchanged into a new three-year term loan. Under the proposed new loan agreement, the Company has agreed to issue a one-time bonus of 3,822,341 common shares (each a "**Common Share**") of the Company to the Lenders at a deemed issue price of US$0.90 per Common Share.

The Units to be issued as part of the amendments to the Restructuring are to be issued at a

deemed exchange price of US$0.75 and consist of one Common Share and one common share purchase warrant (a "**Warrant**"). Each Warrant entitles the holder to purchase one additional Common Share at a price of US$1.25 per share for a period of 36 months, commencing 60 days following closing of the Offering.

The Company had previously applied to the TSX Venture Exchange (the "**TSXV**") for a waiver in connection with the Restructuring to permit an equitization price of US$0.60 for the Notes, which was below the minimum pricing requirements under TSXV Policy 4.3 – *Shares for Debt*. The TSXV did not grant the waiver and, as a result, the Restructuring will now proceed at US$0.75 per Unit in compliance with Policy 4.3.

Completion of the Restructuring remains subject to the satisfaction of certain conditions which include the entering into of definitive documentation and receipt of shareholder approval, as well as the approval of the TSXV and notification to the Nasdaq Stock Market.

---

| | |
|:---|:---|
| **ITEM 6** | **RELIANCE ON SUBSECTION 7.1(2) of national instrument 51-102** |

---

Not applicable.

---

| | |
|:---|:---|
| **ITEM 7** | **OMITTED INFORMATION** |

---

Not applicable

---

| | |
|:---|:---|
| **ITEM 8** | **EXECUTIVE OFFICER** |

---

The following executive officer of the Company is knowledgeable about the material change and this report:

Heather Smiles

Vice President, Investor Relations & Corporate Development

Telephone: 416 900-3891

---

| | |
|:---|:---|
| **ITEM 9** | **DATE OF REPORT** |

---

September **18**, 2025

**Cautionary Note Regarding Forward-Looking Statements**

 

*This material change report may contain forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements and include, but are not limited to, statements regarding the closing of the Restructuring and anticipated timing thereof, the entering into of definitive documentation regarding the Restructuring, the expected reduction in the Company's outstanding debt and the impact on its capital structure, and receipt of required regulator and shareholder approvals, the expected ramp-up and commissioning of the cobalt sulfate refinery, Electra's strategic role in reshoring North America's battery materials supply chain, and the Company's future growth plans, including nickel refining and battery recycling. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects", "will," "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "will," "might", "occur" or "be achieved". Forward-looking statements are based on certain assumptions, and involve risks, uncertainties and other factors that could cause actual results, performance, and opportunities to differ materially from those implied by such forward-looking statements. Among the bases for assumptions with respect to the potential for additional government funding are discussions and indications of support from government actors based on certain milestones being achieved. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in the management discussion and analysis and other disclosures of risk factors for Electra Battery Materials Corporation, filed on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov. Other factors that could lead actual results to differ materially include failure to obtain required approvals or satisfy closing conditions, changes in government policy or funding commitments, delays in construction or commissioning of the refinery, inability to complete the Restructuring or Offering on the proposed terms and general economic, market, and geopolitical conditions. Although the Company believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this report, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.*

## Exhibit 99.2

**Exhibit 99.2**

#### AMENDMENT NO. 1 TO TRANSACTION SUPPORT AGREEMENT
This amendment, dated as of September 17, 2025 (this "***Amendment***"), to that certain Transaction Support Agreement, dated as of August 21, 2025 (together with all exhibits, schedules, and attachments thereto, and as may be further amended, supplemented, amended and restated, or otherwise modified from time to time in accordance with the terms thereof, the "***Transaction Support Agreement***"), is entered into by and among (i) the Company and (ii) the undersigned Consenting Convertible Noteholders. The Company and the undersigned Consenting Convertible Noteholders are each, a "***Party***" and, collectively, are the "***Parties***". Capitalized terms used herein and not defined herein shall have the meanings ascribed to them in the Transaction Support Agreement.

**WHEREAS**, pursuant to Section 12(b) of the Transaction Support Agreement, except as otherwise expressly provided for therein, the Transaction Support Agreement may be modified, amended, or supplemented in a writing signed by the Company and the Required Consenting Convertible Noteholders;

**WHEREAS**, the undersigned Consenting Convertible Noteholders constitute the Required Consenting Convertible Noteholders for purposes of the Transaction Support Agreement and to effect the amendments set forth herein; and

**WHEREAS**, the Parties desire to amend the Transaction Support Agreement (including the exhibits attached thereto) as set forth herein.

**NOW, THEREFORE**, in consideration of the promises and the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amendments</u>. Each of the Parties hereby agrees that, effective upon the Amendment Effective Date (as defined below), the Transaction Term Sheet included as Exhibit A to the Transaction Support Agreement is hereby amended and restated in its entirety by **<u>Exhibit A</u>** hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Agreement to be Bound</u>. Each of the Parties hereby agrees to be bound by all of the terms of the Transaction Support Agreement as amended or modified by the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parties, severally and not jointly, represents and warrants to each other Party, as of the Amendment Effective Date (as defined below): (i) it is validly existing and in good standing under the laws of the state or province of its organization, and this Amendment is a legal, valid, and binding obligation of such Party, enforceable against it in accordance with its terms, except as enforcement may be limited by law or equity; and (ii) it has all requisite corporate or other power and authority to enter into, execute, and deliver this Amendment and to perform its respective obligations under this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Consenting Convertible Noteholder party hereto, severally and not jointly, represents and warrants to the Company that, as of the date hereof, such Consenting Convertible Noteholder is (i) the beneficial or record owner (or is the nominee, investment manager, or advisor for beneficial holders) of the principal amount or number of the Company Claims set forth below its name on its signature page hereto, and (ii) has full power and authority to vote on and consent to matters concerning such Company Claims, or to exchange, assign, and Transfer such Company Claims, and to bind the beneficial owners of such Company Claims to any such vote, consent, exchange, assignment, or Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Effectiveness</u>. This Amendment shall become effective and binding upon the Parties and the other Consenting Convertible Noteholders when counterpart signature pages to this Amendment have been executed and delivered by the Company and the Required Consenting Convertible Noteholders (the date and time this Amendment becomes effective, the "***Amendment Effective Date***"). Signature pages executed by the undersigned Consenting Convertible Noteholders shall be delivered to (i) each of the other Consenting Convertible Noteholders party hereto and (ii) the Company. As set forth in the Transaction Support Agreement, the Company shall not make public the identity of any Consenting Convertible Noteholders, unless such disclosure is required by applicable law or legal process (in which case the Company shall, to the extent permitted by law, provide each applicable Consenting Convertible Noteholder with notice of such disclosure a reasonable period of time in advance of such disclosure so that each such Consenting Convertible Noteholder may seek protective measures, if desired).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as expressly provided herein, this Amendment shall not, by implication or otherwise, alter, modify, amend, or in any way affect any of the obligations, covenants or rights contained in the Transaction Support Agreement, all of which are ratified and confirmed in all respects by the Parties and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each reference to the Transaction Support Agreement hereafter made in any document, agreement, instrument, notice, or communication shall mean and be a reference to the Transaction Support Agreement as amended and modified hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) THIS AMENDMENT AND ANY CLAIMS, CONTROVERSIES, DISPUTES, OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT ARE TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE APPLICABLE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION, OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT, TORT, OR OTHERWISE, IN ANY WAY RELATING TO THIS AMENDMENT, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION, OR PROCEEDING MAY BE HEARD AND DETERMINED IN NEW YORK STATE COURT, OR, TO THE EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Amendment, together with the Transaction Support Agreement, constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings among the Parties with respect to such subject matter. Each reference to the Transaction Support Agreement hereafter made in any document, agreement, instrument, filing, pleading, notice, or communication shall mean and be a reference to the Transaction Support Agreement as amended and modified hereby (unless otherwise specified).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Section captions herein are for convenience of reference only, do not constitute part of this Amendment and shall not be deemed to limit or otherwise affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event the terms and conditions as set forth in the Transaction Support Agreement and this Amendment are inconsistent, the terms and conditions of this Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) For the convenience of the Parties, this Amendment may be executed and delivered (by facsimile or PDF signature) in any number of counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts shall together constitute the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If any term, condition or other provision of this Amendment is invalid, illegal, or incapable of being enforced by any rule of Law or public policy, all other terms, conditions, and provisions of this Amendment shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in a manner adverse to any Party. Upon such determination that any term, condition, or other provision is invalid, illegal, or incapable of being enforced, the Parties shall negotiate in good faith to modify this Amendment so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

[*Remainder of Page Intentionally Left Blank*.]

**IN WITNESS WHEREOF**, each Party has caused this Amendment to be duly executed and delivered as of the date first written above.

**ELECTRA BATTERY MATERIALS CORPORATION**

By: <u>(signed) "*Trent Mell*"</u> 

Name: Trent Mell

Title: President and Chief Executive Officer

[*Signature Page to Amendment No. 1 to Transaction Support Agreement*]

CONSENTING CONVERTIBLE NOTEHOLDER:

**Whitebox Relative Value Partners, LP**

By: <u>(signed) "*Andrew Thau*"</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Andrew Thau

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Managing Director

---

| | |
|:---|:---|
| ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** | ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** |
| 2027 Notes Claims | [*redacted – commercially sensitive*] |
| 2028 Notes Claims | [*redacted – commercially sensitive*] |

---

[*Signature Page to Amendment No. 1 to Transaction Support Agreement*]

CONSENTING CONVERTIBLE NOTEHOLDER:

**Whitebox GT Fund, LP**

By: <u>(signed) "*Andrew Thau*"</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Andrew Thau

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Managing Director

---

| | |
|:---|:---|
| ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** | ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** |
| 2027 Notes Claims | [*redacted – commercially sensitive*] |
| 2028 Notes Claims | [*redacted – commercially sensitive*] |

---

[*Signature Page to Amendment No. 1 to Transaction Support Agreement*]

CONSENTING CONVERTIBLE NOTEHOLDER:

**Whitebox Multi-Strategy Partners, LP**

By: <u>(signed) "*Andrew Thau*"</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Andrew Thau

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Managing Director

---

| | |
|:---|:---|
| ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** | ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** |
| 2027 Notes Claims | [*redacted – commercially sensitive*] |
| 2028 Notes Claims | [*redacted – commercially sensitive*] |

---

[*Signature Page to Amendment No. 1 to Transaction Support Agreement*]

CONSENTING CONVERTIBLE NOTEHOLDER:

**Pandora Select Partners, LP**

By: <u>(signed) "*Andrew Thau*"</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Andrew Thau

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Managing Director

---

| | |
|:---|:---|
| ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** | ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** |
| 2027 Notes Claims | [*redacted – commercially sensitive*] |
| 2028 Notes Claims | [*redacted – commercially sensitive*] |

---

[*Signature Page to Amendment No. 1 to Transaction Support Agreement*]

CONSENTING CONVERTIBLE NOTEHOLDER:

**Nineteen77 Global Multi Strategy Alpha Master Limited**

By: UBS Asset Management (Americas), LLC,

its investment manager

By: <u>(signed) "*Doyle Horn*"</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Doyle Horn

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Director

By: <u>(signed) "*Jennifer Edelheit*"</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Jennifer Edelheit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Executive Director

---

| | |
|:---|:---|
| ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** | ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** |
| 2027 Notes Claims | [*redacted – commercially sensitive*] |
| 2028 Notes Claims | [*redacted – commercially sensitive*] |

---

[*Signature Page to Amendment No. 1 to Transaction Support Agreement*]

CONSENTING CONVERTIBLE NOTEHOLDER:

**Highbridge Tactical Credit Master Fund, L.P.**

By: Highbridge Capital Management, LLC,

as Trading Manager and not in its individual capacity

By: <u>(signed) "*Steven Ardovini*"</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Steve Ardovini

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Managing Director

---

| | |
|:---|:---|
| ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** | ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** |
| 2027 Notes Claims | [*redacted – commercially sensitive*] |
| 2028 Notes Claims | [*redacted – commercially sensitive*] |

---

[*Signature Page to Amendment No. 1 to Transaction Support Agreement*]

CONSENTING CONVERTIBLE NOTEHOLDER:

**Highbridge Tactical Credit Institutional Fund, Ltd.**

By: Highbridge Capital Management, LLC,

as Trading Manager and not in its individual capacity

By: <u>(signed) "*Steven Ardovini*"</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Steven Ardovini

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Managing Director

---

| | |
|:---|:---|
| ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** | ***Aggregate Principal Amounts Beneficially Owned or Managed on Account of:*** |
| 2027 Notes Claims | [*redacted – commercially sensitive*] |
| 2028 Notes Claims | [*redacted – commercially sensitive*] |

---

[*Signature Page to Amendment No. 1 to Transaction Support Agreement*]

#### Exhibit A

#### Transaction Term Sheet
**<u>Transaction Term Sheet</u>**

This term sheet (including all exhibits, annexes, appendices and schedules to this term sheet, as amended, supplemented or otherwise modified from time to time, this "**<u>Term Sheet</u>**") summarizes the material terms and conditions of certain proposed deleveraging and recapitalization transactions involving Electra Battery Materials Corporation and its subsidiaries. The Transactions (as defined below) will be consummated on the terms and subject to the conditions set forth in the Transaction Support Agreement, dated as of August 21, 2025, as amended, supplemented, amended and restated or otherwise modified from time to time (the "**<u>Agreement</u>**"), to which this Term Sheet is attached as **<u>Exhibit A</u>**. Capitalized terms used but not defined in this Term Sheet that are defined in the Agreement shall have the meanings assigned to such terms in the Agreement.

THIS TERM SHEET IS NOT AN OFFER, SOLICITATION OR ACCEPTANCE WITH RESPECT TO ANY SECURITIES. ANY SUCH OFFER, SOLICITATION OR ACCEPTANCE WILL COMPLY WITH ALL APPLICABLE SECURITIES LAWS. NOTHING CONTAINED IN THIS TERM SHEET SHALL BE AN ADMISSION OF FACT OR LIABILITY. THIS TERM SHEET DOES NOT ADDRESS ALL TERMS THAT WOULD BE REQUIRED IN CONNECTION WITH THE TRANSACTIONS, WHICH TRANSACTIONS WILL BE SUBJECT TO DEFINITIVE DOCUMENTS, AND THE CLOSING OF ANY TRANSACTIONS SHALL BE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN SUCH DEFINITIVE DOCUMENTS.

Without limiting the generality of the foregoing, this Term Sheet and the undertakings contemplated herein are subject in all respects to the negotiation, execution, and delivery of definitive documents acceptable to the Company and the Consenting Convertible Noteholders in accordance with the Agreement. The regulatory, tax, accounting, and other legal and financial matters and effects related to the Transactions and any related or similar transaction have not been fully evaluated, and any such evaluation may affect the terms and structure of any Transaction or any related transactions.

This Term Sheet and the information contained herein are entitled to protection from any use or disclosure to any party or person pursuant to Rule 408 of the Federal Rules of Evidence and any other similar applicable rule, statute, or doctrine protecting the use or disclosure of confidential settlement discussions.

---

| | |
|:---|:---|
| **Overview** | The "**<u>Transactions</u>**" means the following transactions (including to avoid doubt, the New Equity Offering (as defined below)), as set forth in the Agreement, this Term Sheet and the associated Definitive Documentation: |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Each Consenting Convertible Noteholder will exchange 60% of the aggregate principal amount of Convertible
Notes beneficially owned or held by such Consenting Convertible Noteholder (such Convertible Notes, the "  **<u>Equitized Notes</u>** ")
for New Equity Offering Units (as defined below) as described below (such exchange, the "  **<u>Equity Exchange</u>** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Each Consenting Convertible Noteholder will exchange the remaining 40% of the aggregate principal amount
of Convertible Notes beneficially owned or held by such Consenting Convertible Noteholder (such Convertible Notes, the "  **<u>Rolled Notes</u>**") for a combination of a new term loan having the terms set forth below (the "  **<u>New Term Loan</u>** ")
and Common Shares as described below (such exchange, the "  **<u>Debt Exchange</u>**" and, together with the Equity Exchange,
the "  **<u>Exchanges</u>** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Consenting Convertible Noteholders will agree to backstop a portion of the New Equity Offering.

On or about the initial Agreement Effective Date, the Company will issue and sell to the Consenting Convertible Noteholders as of such date, and each Consenting Convertible Noteholder as of such date shall severally and not jointly purchase, an aggregate principal amount of new bridge notes (the "**<u>Bridge Notes</u>**") as set forth on the signature page of such Consenting Convertible Noteholder to the Agreement.

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| | |
|:---|:---|
| **Equity Exchange** | The Equity Exchange will be completed concurrently with the Debt Exchange and the New Equity Offering on the Transaction Effective Date, on the terms and conditions set forth in the Agreement, this Term Sheet and the Definitive Documentation for the Transactions. |

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Each Equitized Note will be exchanged for a number of New Equity Offering Units equal to (i) the aggregate principal amount of such Equitized Note *plus* the aggregate amount of all accrued and unpaid interest (including any deferred interest amounts) on such Equitized Note to but excluding October 9, 2025 *divided by* (ii) US$0.75.

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| | |
|:---|:---|
| **Debt Exchange** | The Debt Exchange will be completed concurrently with the Equity Exchange and the New Equity Offering on the Transaction Effective Date, on the terms and conditions set forth in the Agreement, this Term Sheet and the Definitive Documentation for the Transactions. |

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The Rolled Notes held by each Consenting Convertible Noteholder will be exchanged for the following: (i) an aggregate principal amount of New Term Loan equal to the sum of (x) the aggregate principal amount of Rolled Notes held by such Consenting Convertible Noteholder, (y) the aggregate amount of all accrued and unpaid interest (including any deferred interest amounts) on such Rolled Notes to but excluding the Transaction Effective Date and (z) the aggregate amount of all accrued and unpaid interest (including any deferred interest amounts) on the Equitized Notes beneficially owned or held by such Consenting Convertible Noteholder from and including October 9, 2025 to but excluding the Transaction Effective Date, and (ii) a number of Common Shares equal to 12.5% of the sum of (x) the aggregate principal amount of Rolled Notes held by such Consenting Convertible Noteholder and (y) the aggregate amount of all accrued and unpaid interest (including any deferred interest amounts) on such Rolled Notes to but excluding October 9, 2025 *divided by* US$0.90 (which is the closing price in U.S. dollars of the Common Shares on the TSX Venture Exchange ("**<u>TSX-V</u>**") on September 15, 2025). Based on the number of Rolled Notes held by all Consenting Convertible Noteholders, a total of 3,822,341 Common Shares will be issuable in the Debt Exchange.

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| | |
|:---|:---|
| **New Equity Offering** | The Company will use its reasonable best efforts to complete an offering of units consisting of one Common Share together with one full warrant, each such full warrant to purchase one Common Share at a strike price US$1.25 and having a term of 3 years (each such unit, a "**<u>New Equity Offering Unit</u>**"), raising at least US$30,000,000 in gross cash proceeds on terms reasonably acceptable to the Consenting Convertible Noteholders (the "**<u>New Equity Offering</u>**"). All warrants issued in the New Equity Offering will be exercisable for cash and will not be exercisable on a "cashless," "net share settle" or similar basis. The New Equity Offering will be completed concurrently with the Exchanges. The proceeds from the New Equity Offering will be used to (i) redeem or repay all amounts owing under the Bridge Notes, (ii) pay transaction expenses incurred in connection with the Transactions (including, without limitation, the Transaction Expenses (as defined below)), (iii) in the event the Company raises more than US$34,500,000 in the New Equity Offering, all amounts in excess of US$34,500,000 will be used to repurchase Convertible Notes (at a purchase price of par plus accrued and unpaid interest (including any deferred interest amounts)) otherwise subject to exchange in the Equity Exchange, (iv) refinery construction, and (v) other general corporate purposes. |

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The Consenting Convertible Noteholders will agree to backstop (the "**<u>Backstop Commitment</u>**") an aggregate US$10,000,000 of New Equity Offering Units to be sold in the New Equity Offering at a price per New Equity Offering Unit of US$0.75. All units sold pursuant to the Backstop Commitment shall be sold at the same price per New Equity Offering Unit as all other investors participating in the New Equity Offering. Each Consenting Convertible Noteholder will, severally and not jointly, be responsible to fund that portion of the Backstop Commitment equal to its pro rata ownership of Convertible Notes, calculated based on the aggregate principal amount of Convertible Notes held by all Consenting Convertible Noteholders. The Consenting Convertible Noteholders' respective obligations to purchase securities pursuant to the Backstop Commitment will be reduced to the extent third party investors purchase more than US$20,000,000 in the New Equity Offering.

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| | |
|:---|:---|
| **Conditions Precedent **to**<br> **the Exchanges and**<br> **Purchase under the**<br> **Backstop Commitment** | Among other customary conditions precedent for transactions of this kind and complexity, including transaction documents being in form and substance acceptable to the Consenting Convertible Noteholders, customary certificates, KYC, bring down of representations, no default, and no material adverse effect, the following are also conditions precedent to the Transaction Effective Date: |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Agreement shall not have been terminated and shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The concurrent closing of the New Equity Offering raising aggregate gross cash proceeds of at least US$30,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Company's continued eligibility to receive funds under the Company's existing grants from
the U.S. Department of Defense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Company, its board of directors and its shareholders shall have taken all necessary actions and given
all approvals necessary under applicable laws, rules and regulations or the rules and regulations of the TSX-V or the Nasdaq Stock Market
to implement and effectuate the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The execution and delivery by the Company of Definitive Documents implementing the governance terms specified
in this Term Sheet, and such Definitive Documents shall be in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Company shall each have obtained all authorizations, consents, approvals, rulings, or documents that
are necessary to implement and effectuate the Transactions, and all applicable regulatory or government-imposed waiting periods shall
have expired or been terminated without any action being taken or threatened by any competent authority that would restrain, prevent,
or otherwise impose materially adverse conditions on such Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Each document or agreement constituting the applicable Definitive Documents shall have been executed or
effectuated, shall be in form and substance acceptable to the Consenting Convertible Noteholders and otherwise consistent with the Agreement
and this Term Sheet, and any conditions precedent related thereto or contained therein shall have been satisfied and not be subject to
any unfulfilled conditions prior to or contemporaneously with the occurrence of the Transaction Effective Date or otherwise waived in
accordance with such Definitive Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· There shall not have been instituted or be pending any action, proceeding, application, claim, counterclaim,
or investigation (whether formal or informal) (or there shall not have been any material adverse development to any action, application,
claim, counterclaim, or proceeding currently instituted, threatened, or pending) before or by any court, governmental, regulatory, or
administrative agency or instrumentality, domestic or foreign, or by any other person, domestic or foreign, in connection with the Transactions
that would prohibit, prevent, or restrict consummation of the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Transaction Effective Date shall occur prior to October 21, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· There shall not be any default or event of default that has occurred and is continuing under any of the
Convertible Notes, the Bridge Notes or any other indebtedness of the Company or any of its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Transaction Expenses shall have been contemporaneously paid in full in cash.

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| | |
|:---|:---|
| **Governance** | Concurrently with the funding of the Bridge Notes, the Consenting Convertible Noteholders will have the right to appoint 1 member of the Company's board of directors (the "**<u>Board</u>**"). From and after the Transaction Effective Date, (i) the Board shall consist of no more than 7 directors and (ii) the Consenting Convertible Noteholders shall have the right to appoint members of the Board as follows: |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Three (3) members of the Board in total, with one of the directors appointed by the Consenting Convertible
Noteholders to be the chairperson of the Board, until such time as no Consenting Convertible Noteholder owns at least 20% of the outstanding
Common Shares owned by it as of the Transaction Effective Date (after giving effect to the Transactions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Two (2) members of the Board in total, until such time as no Consenting Convertible Noteholder owns at
least 15% of the outstanding Common Shares owned by it as of the Transaction Effective Date (after giving effect to the Transactions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· One (1) member of the Board, until such time as no Consenting Convertible Noteholder owns at least 10%
of the outstanding Common Shares owned by it as of the Transaction Effective Date (after giving effect to the Transactions).

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| | |
|:---|:---|
| **Amendment to**<br> **Royalty Agreement:** | The Company will amend each of the Royalty Agreements, dated as of February 13, 2023, with the Consenting Convertible Noteholders on the Transaction Effective Date to (i) extend the length of the royalty on revenues from five years following the commencement of commercial production to seven years following the commencement of commercial production and (ii) raise the aggregate cap under all Royalty Agreements from US$6,000,000 to US$10,000,000. |

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| | |
|:---|:---|
| **Amendment to**<br> **Existing Warrants** | Each Consenting Convertible Noteholder agrees, on the Transaction Effective Date, to cancel all outstanding warrants previously issued by the Company pursuant to that certain warrant indenture, dated February 13, 2023, as amended, between the Company and TSX Trust Company, or that certain warrant indenture, dated November 27, 2024, between the Company and TSX Trust Company. |

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**New Term Loan**

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| | |
|:---|:---|
| ***Borrower*** | The Company |

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---

| | |
|:---|:---|
| ***Collateral; Guarantors*** | Same as the Convertible Notes |

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---

| | |
|:---|:---|
| ***Administrative Agent*** | To be selected by the Consenting Convertible Noteholders |

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---

| | |
|:---|:---|
| ***Amount*** | Limited to the aggregate principal amount of to be issued in the Debt Exchange. The loans will be term loans. |

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---

| | |
|:---|:---|
| ***Closing Date*** | Transaction Effective Date |

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---

| | |
|:---|:---|
| ***Interest*** | Payable in cash or in kind at the Company's election at a rate per annum of 8.99% if paid in cash / 11.125% if paid in kind |

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---

| | |
|:---|:---|
| ***Maturity*** | Three years from the Transaction Effective Date |

---

---

| | |
|:---|:---|
| ***Mandatory Prepayments*** | Consistent with first lien term loan facilities for similarly situated borrowers. To avoid doubt, this will not include any mandatory prepayment as a result of equity issuances or permitted debt issuances. |

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---

| | |
|:---|:---|
| ***Covenants / Reps and***<br> ***Warranties / Events of***<br> ***Default*** | Substantially the same as the Convertible Notes to the extent applicable, with such changes as shall be agreed by the Consenting Convertible Noteholders, and otherwise consistent with first lien term loan facilities for similarly situated borrowers |

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The New Term Loan will require cash and cash equivalents in accounts subject to control agreements to be at least US$15.0 million at all times, which amount will reduce to US$2.0 million on the later of (i) April 1, 2026 and (ii) such date as the Company has provided to the new term loan lenders signed binding commitments on terms and conditions acceptable to the new term loan lenders pursuant to which (x) the Government of Canada will fund to the Company at least CAD20 million and (y) the Government of Ontario will fund to the Company at least CAD 17.5 million.

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| | |
|:---|:---|
| ***Lien Priority*** | First-priority liens consistent with the Convertible Notes |

---

---

| | |
|:---|:---|
| ***Redemption*** | Callable prior to maturity, in part or in full, at a percentage of par (105% during first year, 103% during the second year and 101% during the third year) plus accrued and unpaid interest through the redemption date. |

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---

| | |
|:---|:---|
| ***Conditions Precedent*** | Consistent with first lien term loan facilities for similarly situated borrowers |

---

**Bridge Notes**

---

| | |
|:---|:---|
| ***Amount*** | US$2,000,000 aggregate principal amount |

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---

| | |
|:---|:---|
| ***Issuer*** | The Company |

---

---

| | |
|:---|:---|
| ***Collateral; Guarantors*** | Unsecured; same guarantors as the Convertible Notes |

---

---

| | |
|:---|:---|
| ***Purchase Price*** | Par (no original issue discount) |

---

---

| | |
|:---|:---|
| ***Maturity Date*** | 90 days following issuance |

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---

| | |
|:---|:---|
| ***Interest*** | 12.00% per annum, payable in arrears on the maturity date |

---

---

| | |
|:---|:---|
| ***Ranking*** | Pari passu with the Convertible Notes and the Royalty Agreements dated February 13, 2023 |

---

---

| | |
|:---|:---|
| ***Redemption*** | The Company will be required to redeem the Bridge Notes concurrently with the completion of the Transactions at a redemption price equal to 100% of the aggregate principal amount of Bridge Notes redeemed plus all accrued and unpaid interest thereon. |

---

The Company may redeem the Bridge Notes at any time at a redemption price equal to 100% of the aggregate principal amount of Bridge Notes redeemed plus all accrued and unpaid interest thereon.

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| | |
|:---|:---|
| ***Events of Default*** | Customary for transactions of this kind and complexity, provided that any event of default under the Convertible Notes shall constitute an event of default under the Bridge Notes. The Company shall enter into one or more supplemental indentures with regard to the Convertible Notes providing that an event of default under the Bridge Notes shall constitute an event of default under the Convertible Notes. |

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---

| | |
|:---|:---|
| ***Certain Conditions***<br> ***Precedent*** | Among other customary conditions precedent for transactions of this kind and complexity, the funding of the Bridge Notes will also be subject to the Company's continued eligibility to receive funds under the Company's existing grants from the U.S. Department of Defense. |

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---

| | |
|:---|:---|
| **Definitive Documents** | This Term Sheet does not set forth all of the terms of the Transactions or the Bridge Notes, and any definitive or binding agreement shall be subject to the Definitive Documents, which Definitive Documents shall be consistent with the terms of this Term Sheet and the Agreement and shall be in form and substance acceptable to the Consenting Convertible Noteholders. |

---

Any documents contemplated by this Term Sheet, including any Definitive Documents, that remain the subject of negotiation as of the Agreement Effective Date shall be subject to the rights and obligations set forth in the Transaction Support Agreement. Failure to reference such rights and obligations as it relates to any document referenced in this Term Sheet shall not impair such rights and obligations.

---

| | |
|:---|:---|
| **Tax Structure** | The terms of the Transactions will be structured to maximize tax efficiencies for the Company and the Consenting Convertible Noteholders. |

---

Definitive Documents for the Transactions and the Bridge Notes will include tax gross-ups for any withholding tax due on payments made to any of the Consenting Convertible Noteholders in connection with any of the securities or loans acquired in the Transactions or the Bridge Notes.

---

| | |
|:---|:---|
| **Expenses** | The Company will pay all reasonable fees and expenses incurred by the Consenting Convertible Noteholders in connection with the Transactions and the purchase of the Bridge Notes (such fees and expenses, the "**Transaction Expenses**"). |

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| | |
|:---|:---|
| **Governing Law** | New York |

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