The following notice is issued pursuant to National Instrument 62-103 regarding early warning reporting obligations. On May 22, 2026, Elcora Advanced Materials Corp. released a correction to the disclosure first announced on April 10, 2026, to accurately reflect the security position of Skyline Resources Trading FZE (the “Subscriber”). This correction addresses an omission in the earlier filing that failed to account for restricted share units (RSUs) previously held by the Subscriber.
The corrected disclosure confirms that the Subscriber participated in a private placement and that the details below represent the Company’s current and corrected early warning position. The correction does not change the substance of the private placement itself but adjusts the numerical ownership and dilution calculations previously reported, ensuring compliance with applicable securities reporting standards.
Transaction details of the private placement
Under the private placement (the Offering), Skyline Resources Trading FZE acquired a total of 6,242,005 Units at a price of $0.12 per Unit. Each Unit comprises one common share and one share purchase warrant (a Warrant). Each Warrant grants the holder the right to purchase one additional common share at $0.16 per share for a period of 24 months from issuance. The Company involved is Elcora Advanced Materials Corp. (TSX.V: ERA | Frankfurt: ELM0 | OTCQB: ECORF), and the Offering was executed in connection with the previously announced financing.
Warrant terms and exercise window
The Warrants issued with each Unit provide a fixed exercise price of $0.16 and a two-year exercise period, giving the Subscriber potential incremental exposure to the Company’s equity if exercised. The exercise mechanics are standard: upon exercise the Subscriber would pay the stated exercise price to receive additional common shares, which impacts the Company’s share count for dilution calculations. These instruments are central to the partially diluted ownership math disclosed later in this corrected report.
Correction to prior holdings and updated ownership percentages
The earlier news release and associated early warning omitted the Subscriber’s prior holding of 88,000 restricted share units. Prior to the Offering, Skyline held no common shares or Warrants but did hold 88,000 RSUs, representing approximately 0.52% of the then-issued and outstanding common shares. Following the issuance of the Units, the Subscriber now beneficially owns and controls 6,242,005 common shares, 6,242,005 Warrants, and 88,000 RSUs.
Impact on undiluted and partially diluted ownership
On an undiluted basis (counting only issued common shares), the Subscriber’s position represents approximately 14.85% of Elcora’s issued and outstanding common shares. On a partially diluted basis—assuming the exercise of the Warrants and the conversion of the RSUs—the Subscriber’s ownership is approximately 18.76%, corrected from the previously reported 18.63%. These percentages are calculated using the standard approach of adding exercisable securities to the issued share count to illustrate potential dilution if conversion or exercise occurs.
Intent, future activity and availability of the corrected report
The Subscriber stated that the Units were acquired for investment purposes. Depending on market conditions and other influencing factors, Skyline may alter its beneficial ownership, control, direction, or economic exposure in Elcora by engaging in market transactions, private agreements, treasury issuances, exercising convertible securities, or by other means. Interested parties can obtain a copy of the corrected early warning report by contacting Elcora at 604-687-2038.
About Elcora Advanced Materials Corp. and contact details
Elcora Advanced Materials Corp. was founded in 2011 and is positioned as a vertically integrated battery materials company. Elcora’s operations include the ability to process, refine, and produce minerals and metals used in batteries. The Company has developed a cost-effective, commercially scalable process to purify high-quality battery metals and minerals, forming part of a strategy to capture value across the production chain for battery materials. For more information visit http://www.elcoracorp.com or contact Troy Grant, Director, President & CEO, at +1 902 802-8847.
Regulatory notice and forward-looking statements
This release is distributed in compliance with National Instrument 62-103, the Early Warning System and Take-over Bid and Insider Reporting provisions. Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news. No stock exchange, securities commission or other regulatory authority has approved or disapproved the contents. The release contains forward-looking statements within the meaning of applicable securities laws concerning possible future ownership changes and the exercise of Warrants. These statements involve risks and uncertainties as described in Elcora’s public filings available on SEDAR+ and readers should not place undue reliance on them. The Company has no obligation to update forward-looking statements except as required by law.
