Electro Metals Announces Financing

Toronto, Ontario--(Newsfile Corp. - June 14, 2023) - Electro Metals and Mining Inc ("Electro Metals", or the "Company") is pleased to announce a non-brokered private placement offering. The purpose of the financing is to advance the exploration of the Fabie - Magusi copper - zinc - silver - gold deposits near Rouyn - Noranda, Québec, to continue seeking advanced stage projects for development, and to satisfy conditions of the Letter of Intent signed with Shine Box Capital Inc. (TSXV: RENT) ("Shine Box") as part of the proposed reverse takeover ("RTO") transaction of Shine Box by Electro Metals.

Electro Metals plans to raise a minimum of $1,500,00 up to $3,500,000 (the "Offering"). Under the terms of the Offering, Electro Metals offers investors three choices by way of Subscription Receipts: (i) "Hard Dollar" units ("HD Units") priced at $0.30 (ii) "Flow through" units ("FT Units") priced at C$0.35 per unit, and (iii) "Critical Minerals flow-through" units ("CMFT Units") priced at C$0.40 per unit (collectively, the "Units"). Each of the Units will include one half of one common share purchase warrant. Each full purchase warrant will be exercisable, for three years from the date the shares start to trade on a recognized stock exchange, at an exercise price of $0.40. Electro Metals plans to raise gross proceeds of up to $3.5 million in any combination of Units, but including a minimum of $500,000 Hard Dollars. Electro will issue a minimum of 4,166,667 up to a maximum of 11,666,667 Units. Electro Metals will commence closings upon reaching the minimum and will continue closings while working through the RTO and listing process. The intent is to have the funds released to the Company as soon as is reasonably possible.

The funds of the Offering are to be held in escrow (the "Escrowed Funds") by the Escrow Agent until the receipt of approval and the listing of Electro Metals' Common Shares on a Canadian stock exchange (the "Escrow Release Condition"). In the event that the Escrow Release Condition is satisfied prior to 5:00 p.m. (Toronto time) on December 31, 2023 (the "Escrow Deadline"), the Subscription Receipts will automatically convert into the applicable number of Units with no further action required by the Subscriber. If the Escrow Release Condition is not satisfied by the Escrow Deadline, the Subscriber will be entitled to receive from the Escrow Agent a refund of the Escrowed Funds.

The proceeds of the Offering will be used for confirmation and expansion drilling of the Magusi and Fabie deposits, with the intent of advancing these toward a development decision, drill testing other targets, continued due diligence and negotiation on other advanced base metals projects, marketing, and for general working capital. The gross proceeds raised from the CMFT Units will be used to incur eligible "Canadian exploration expenses" ("CEE") that qualify as "flow-through critical mineral mining expenditures", and the proceeds from the FT Units will be used to incur CEE that qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada). Electro Metals will pay a finder's fee of 7% cash commission and 7% finders' warrants. Each finders' warrant is exercisable into one common share at $0.40 for a period of 36 months from the date the Electro Metals shares are listed for trading on a Canadian public stock exchange.

"We are very pleased to be raising funds to commence the drilling programs at Fabie Magusi. This project has all the makings for a substantial mine development: Known resources that can be expanded and potentially put into production, nearby discovery potential along the 'favourable horizon', and untested targets for 'blue sky' drilling. This marks a first step in our plans to build Electro Metals into the next Canadian base metals producer, as we also continue to evaluate other near - term production opportunities. Electro Metals is pleased the Canadian government is taking bold steps to encourage investment in Canadian mining exploration through its Critical Minerals tax incentives," stated Chairman and CEO Daryl Hodges.

NEAR TERM MILESTONES

• Complete the go - public transaction with Shine Box
• Infill and step out drilling of the copper - zinc - silver deposits near Rouyn-Noranda;
• Complete updated resources and preliminary estimates of mining potential
• Advance the metallurgical test work and negotiate off take agreements;
• Continue to investigate other advanced opportunities;

This Press Release Is Available on the Company's website www.electrometalsandmining.com.

About Electro Metals

Electro Metals and Mining Inc. is a Canadian federally registered private company focused on becoming a publicly-listed growth company in the production of critical metals (Cu-Ni-Zn) to feed into the current and future demand for these metals.

The plan is to develop low cost production and extraction near existing infrastructure and take advantage of low capital costs.

Disclaimers:

This press release may contain certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the Offering, completion of the Offering, satisfaction of the Escrow Release Provisions, expenditure of gross proceeds, completion of proposed transaction with Shine Box . Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks which may be detailed from time-to-time in the Company's on-going filings with the securities regulatory authorities, when applicable, which filings would be found at www.sedar.com upon such time the company becomes a reporting issuer. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.

This document has not been filed with any Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) or other authority that has verified the adequacy or accuracy of this release.

For further information contact
Daryl Hodges, Chairman and CEO
Tel (647) 271-3817
Email: dhodges@rogers.com
OR VISIT
www.electrometalsandmining.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/170005