Electric Metals (USA) Limited Announces Agreement to Sell Non-Core Nevada Silver Assets

• On 2026-03-16 Electric Metals (USA) Limited announced a definitive agreement to sell its non-core Nevada silver assets (North American Silver Corporation and Centennial Mining) to Ameerex Corporation for $3.5 million. The sale includes the Corcoran silver-gold and Belmont silver properties; Electric Metals will retain a 2.5% NSR on production from each property, capped at 3.0% total royalty.
• The deal contemplates staged payments: $300,000 received upfront, $1.1 million in 90 days, and $2.1 million in 180 days after execution. Ameerex also has a repurchase option for the NSR royalties at $500,000 (or $1,000,000 per 0.5% NSR after final payment).
• The transaction is described as a disposition of non-core assets aligned with Electric Metals’ strategy to focus on advancing its manganese strategy, thereby strengthening the balance sheet and simplifying the business. Completion is subject to customary regulatory and administrative conditions.
• The March 13 release (definitive deal announced earlier) outlined the same structure and reinforces that the sale is part of a broader refocus on manganese projects, notably the North Star Manganese Project.
• Contextually, this follows a sequence of strategic actions: ongoing Mn-centric financing and development activity (PEA for North Star in 2025 with strong economics), active discussions around strategic collaborations (e.g., MOU with Lucid Group in 2025), and ongoing corporate restructuring moves (continuance to British Columbia, with possible Delaware option).
• In related corporate actions, Electric Metals has pursued private placements led by notable investors (Eric Sprott and Crescat Capital) to fund Mn-focused work, and has engaged service providers (e.g., Computershare as transfer agent) to streamline operations in the U.S. and Canada.

Material impact assessment - Fundamental impact: The sale of non-core Nevada silver assets for $3.5 million, with a 2.5% NSR on the properties and a repurchase option, is a meaningful balance-sheet and strategic maneuver. It monetizes legacy assets that are not central to the company’s current growth thesis while preserving upside through royalties. The cash inflow improves liquidity and reduces exposure to non-core exposures, enabling increased capital allocation toward the flagship North Star Manganese Project and related HPMSM development. - Alignment with strategy: The deal directly reinforces Electric Metals’ pivot toward domestic manganese production (HPMSM) and a U.S.-centric supply chain. It complements recent Mn-focused milestones (e.g., the 2025 PEA and ensuing financing activity) and reinforces management’s narrative of a domestically anchored manganese platform. - Risks and caveats: The NSR royalties persist on the two Nevada assets and are capped, but they impose continuing, albeit modest, revenue tail risk. The repurchase option creates a potential future cash outlay if exercised. The deal is subject to regulatory/TSX-V acceptance and customary conditions, so closing risk remains until completion. Additionally, the sale does not eliminate all asset-level risk; it merely reallocates capital to the flagship Mn project and related processing initiatives. - Contextual read across history: The March 13/16 asset-disposal announcements followed earlier Mn-focused progress (PEA on NSM with favorable economics, large private placements with Sprott and Crescat, and North Star development planning). The latest news is consistent with a material reallocation of resources toward the Mn program rather than a growth-by-acquisition approach in Nevada.

What to watch next (immediate, 3-6 Months) - Immediate: Closing of the Nevada asset sale to Ameerex; receipt of staged payments; update on the NSR repurchase option timing and any regulatory/regulatory approvals. - 3-6 months: Progress updates on the North Star Manganese Project development plan, including any new prefeasibility/feasibility milestones, metallurgical/test-work outcomes for HPMSM, and any new offtake or strategic collaboration developments (e.g., corporate partnerships tied to domestic Mn supply). - Financing and capital structure: Further financings to support North Star/Mn-related activities, potential dilutive events from warrants/options outstanding, and ongoing review of working capital needs in light of Mn-focused capex timelines. - Strategic evolution: Any material repositioning of corporate structure or potential additional non-core asset reviews, as the company continues to streamline toward US Mn production.

Conclusion on Materiality - Rating: Routine - Positive - Rationale: The asset sale is a routine but strategically positive action that follows prior announcements and fits the company’s stated pivot to domestic Mn production. It is not a game-changing event in isolation, but it materially improves liquidity and reduces non-core exposure, supporting the North Star Mn project’s development trajectory. The transaction is consistent with expectations set by prior Mn-focused milestones and financing activities, though closing remains contingent on standard regulatory approvals and conditions.

Technical Analysis and Price Support Resistance Breakout levels - Price data: Not provided - Technical analysis note: Without time-series price data, we cannot compute trend, support/resistance, or breakout levels. If you supply price series, I can deliver a structured technical view with explicit levels, breakout traps, and news-aligned interpretation.

Company overview and flagship project - Company focus: Electric Metals is transitioning toward a domestic U.S. manganese strategy, emphasizing HPMSM production and secure Mn supply chains for EVs, tech, and defense. - Flagship project: North Star Manganese Project (formerly the Emily Manganese Project), Minnesota, USA - Project status: Resource development and processing integration with a U.S.-based HPMSM facility; strong economics in the PEA (post-tax NPV ~ US$1.39B, IRR ~43.5%, payback ~23 months) per August 2025 release; plan to advance to Pre-Feasibility and permitting thereafter.

Capital structure including financings and levels - Issued shares (latest): 186,532,270 (as per late-2024/2025 period updates) - Outstanding warrants (selected, with expiry): - 6,464,113 warrants at exercise price 0.25 CAD, expiry April 4, 2025 - 10,744,680 warrants at exercise price 0.35 CAD, expiry June 19, 2025 - 1,702,128 warrants at exercise price 0.35 CAD, expiry August 28, 2025 - 14,255,319 warrants at exercise price 0.35 CAD, expiry October 10, 2025 - 12,500,166 warrants at exercise price 0.20 CAD, expiry October 29, 2026 - 4,550,000 warrants at exercise price 0.20 CAD, expiry November 20, 2026 - Outstanding stock options (sample): - Various 0.25–0.35 CAD options, expiries ranging 2025–2031 - Financing activity: Notable private placements driven by Eric Sprott and Crescat Capital (e.g., 2025-10-24 CAD private placement; 2025-10-24 press notes multiple investors). These financings support Emily/Mn work and HPMSM-related programs.

Strategic investors - Eric Sprott (via 2176423 Ontario Ltd.) – cornerstone investor in the 2025-10-24 private placement - Crescat Capital – cornerstone investor in the same financing - Ameerex Corporation – buyer of Nevada non-core assets (not an ongoing strategic investor, but a material counterparty in the latest asset sale)

Debt risk and capital needs - Current debt: No long-term debt disclosed in the provided statements; some related-party loan activity appears in MD&As (example: a small loan from related party around 50k in 2025) - Capital needs: The company relies on equity financing to fund exploration and Mn processing initiatives. The 2025 private placements lifted liquidity for NSM/Mn work; ongoing capex for NSM/HPMSM and related environmental and permitting work will require continued capital raises or partnerships. - Dilution risk: Outstanding warrants and options imply potential dilution upon exercise; the impact will depend on future share price and the timing of exercises.

Key and hidden risks - Regulatory/approval risk: The Nevada asset sale requires TSX-V acceptance and customary regulatory clearances; delays or failure to close could delay Mn program funding or reallocate capital away from Mn initiatives. - Execution risk on Mn thesis: PEA economics are favorable but depend on metal price, capex control, permitting timelines, and successful integration of HPMSM with domestic processing—risks include cost overruns, permitting delays, or schedule slippage. - Concentration risk in Mn strategy: The core value hinges on North Star Manganese Project development; any setbacks to this project would weigh heavily on the stock. - Dilution and governance: Ongoing equity financings could dilute existing holders; related-party transactions and approvals (e.g., 61-101 exemptions) require careful governance to avoid negative sentiment. - Market timing risk: HPMSM pricing, EV battery demand, and U.S. policy incentives will influence project economics and offtake viability; policy shifts could materially affect economics.

Final summary and takeaways - The latest news confirms Electric Metals’ continued pivot toward a domestic Mn strategy by monetizing non-core Nevada assets, strengthening liquidity, and de-risking the corporate profile to focus on North Star Manganese and HPMSM development. - The sale aligns with prior Mn-focused milestones (PEA, private placements with blue-chip investors) and supports a faster path to a domestic HPMSM supply chain, which is highly sensitive to U.S. policy and tariff dynamics. - Key near-term catalysts include closing the Nevada asset sale, receipts from staged payments, and updates on the North Star Manganese Project feasibility or pre-feasibility work, as well as potential offtake discussions with OEMs or battery producers in the U.S. - The company remains exposed to drilling/permitting risks, commodity price volatility, and dilution risk from outstanding warrants and options. A successful execution of the Mn strategy and timely financing will be critical to delivering material value.

Appendix and Sources - 2026-03-16 Electric Metals (USA) Limited Announces Agreement to Sell Non-Core Nevada Silver Assets (definitive agreement with Ameerex for $3.5M; 2.5% NSR; 3.0% cap; staged payments; closing conditions) - 2026-03-13 Electric Metals (USA) Limited Announces Agreement to Sell Non-Core Nevada Assets (three-stage payment structure; 2.5% NSR; royalty terms) - 2026-03-02 Electric Metals (USA) Limited Appoints Computershare as Transfer Agent and Registrar - 2026-02-05 Electric Metals (USA) Limited Announces Change of Auditor - 2026-01-21 Electric Metals (USA) Limited Announces Grant of Deferred Share Units - 2025-12-30 Electric Metals (USA) Limited Announces Continuance to the State of Delaware - 2025-12-08 SEDAR Interim Financial Statements - 2025-12-08/12-08 Electric Metals interims and annuals in 2025 updates - 2025-10-24 Electric Metals Closes $4 Million Non-Brokered Private Placement (cornerstone investors: Eric Sprott; Crescat Capital) - 2025-10-27 Eric Sprott Announces Changes to His Holdings in Electric Metals (USA) Limited - 2025-10-27 Electric Metals (USA) Limited Announces Changes/Private Placement details - 2025-10-23 Electric Metals Announces Private Placement Offering - 2025-10-06 Electric Metals Files NI 43-101 PEA for North Star Manganese Project - 2025-10-02 Electric Metals completes continuance to British Columbia - 2025-03-28 Electric Metals hires NAI for marketing services - 2025-03-27 Electric Metals cheers mineral production executive order - 2025-03-18 Electric Metals Presents High-Grade Emily sample to ROM - 2025-04-15 Electric Metals hires Terrella for consulting services - 2025-04-21 Electric Metals commends EO re critical minerals - 2025-07-23 Electric Metals signs MOU with Lucid Group (MINAC initiative) - 2025-08-26 Electric Metals Announces Positive PEA for NSM Project - 2025-10-23/10-24 Private placements and investor communications (Sprott, Crescat; Lucid MOU; Emily Mn focus) - 2025-11-27 SEDAR Interim MD&A (financial snapshot and liquidity) - 2025-04-30 SEDAR Audited Annual Financial Statements (Dec 31, 2024 vs 2023) - 2025-05-28 SEDAR Interim Financial Statements (Mar 31, 2025)

Note: Time Series Price Data (Past 2 Years) not provided in the supplied data; price data not available for technical analysis. If you provide the time series, I will perform the full price-based technical analysis with explicit support/resistance levels and breakouts aligned to the news timeline.