Elcora Advanced Materials Announces the Building and Advanced Testing of Industry Standard 18650 Lithium Ion Batteries

Halifax, Nova Scotia--(Newsfile Corp. - October 20, 2016) - ELCORA ADVANCED MATERIALS CORP. (TSXV: ERA) (FSE: ELM), (the "Company" or "Elcora"), is pleased to announce that it is starting full cell testing and qualification of its graphite material in industry standard 18650 lithium ion batteries (LIBs). After successfully demonstrating that Elcora thermally purified graphite could meet all of the standard requirements for LIBs using coin cells with lithium reference electrodes, Elcora has contracted with Coulometrics, LLC, to complete full cell assembly and final qualification of their graphite anode material. Coulometrics, LLC is a leading advanced energy consulting company with full LIB assembly and state-of-the-art testing capabilities.

''Elcora's graphite has performed well in half-cell testing, demonstrated good manufacturing characteristics with respect to electrode coating and adhesion, and has been successfully wound into high quality cylindrical 18650 LIBs, the same format used by automakers such as Tesla. We have now started full cell characterization testing and we are starting accelerated life testing on the finished cells. This will provide the necessary comprehensive information that will allow battery companies to use Elcora's graphite in the near future," says Dr. Edward Buiel, President and CEO of Coulometrics, LLC.

The battery assembly process to produce industry standard 18650s including, electrode coating, electrode calendaring, cell winding, and cell assembly are shown in Figure 1, 2, and 3 below. The properties of the individual Elcora graphite anode electrodes are shown in Table 1 below. These electrodes were used to assemble 10 18650 LIBs for testing and qualification purposes. The results show that Elcora graphite can be use to produce high quality electrodes with correct coating weight and with respectable densities of 1.5 g/cm³.

Table 1: Anode Characteristics

Figure 1: Elcoragraphite coating (left) and roll pressing (right) for electrode production prior to full 18650 lithium ion battery assembly.

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The appropriate sized Elcora graphite anodes were combined with a standard Coulometrics NMC cathode and wound into the cell winding (Figure 2) and the final battery (Figure 3).

The 18650 cells produced as a result of this process are being cycled between 3.0 and 4.2V. An example of one of these cells is shown below in Figure 4.

Figure 4: Lithium ion battery voltage vs capacity relationships over repeated cycles using Elcora graphite anodes.

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Initial cycle results show that the capacity and efficiency of the cells are within normal parameters for good quality LIBs (see Figures 5 and 6). Dr. Buiel further commented that "Although significantly more cycles need to be completed, this level of performance and ease of use of Elcora graphite in the cell assembly process is a very good indication that Elcora processed graphite is very well suited for LIB applications. We plan to continue to work with Elcora to ensure that any issue that may arise during upcoming customer evaluations is addressed quickly."

Figure 5: Capacity change with usage is essentially flat showing that Elcora anodes are stable with usage.

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Figure 6: Early cell efficiency results for Elcora cells that will later be measured precisely with high precision coulometry (HPC) and compared with high quality automotive cells.

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"This work is another positive step in Elcora's goal of producing top quality lithium ion battery anodes using ecological process at a competitive cost. It also confirms the anode performance for potential clients." said Troy Grant, Elcora's President and CEO."

Information about the Company can be found at http://www.elcoracorp.com.

For further information, please contact: Troy Grant, Director, President and CEO, Elcora Advanced Materials Corp., T: +1 902 802-8847 F: +1 902 446-2001.

CAUTIONARY STATEMENT:

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock Exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Elcora, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Elcora's expectations are exploration risks detailed herein and from time to time in the filings made by Elcora with securities regulators.

Investors are cautioned that, except as disclosed in the filing statement prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon.