Battery Mineral Resources Provides ESI Performance and Manufacturing Expansion Update

Battery Mineral Resources Corp. (TSXV: BMR,OTC:BTRMF) (OTCQB: BTRMF) (the "Company" or "BMR") provides an update on its wholly owned subsidiary, ESI Energy Services Inc. ("ESI"), including its performance for the six months ended June 30, 2026 and the proposed expansion of its manufacturing operations in Phoenix, Arizona.

ESI Performance and Manufacturing Expansion Update

As previously reported, for the six months ended June 30, 2026, ESI generated revenue of approximately C$16.4 million, representing a 51% increase from approximately C$10.9 million in the corresponding period of 2025. Income from continuing operations was approximately C$4.8 million, compared with approximately C$1.5 million in the corresponding period of 2025.

To provide additional information regarding ESI's operating performance, the Company is also reporting Adjusted EBITDA for ESI. Adjusted EBITDA for the six months ended June 30, 2026, was approximately C$6.6 million, compared with approximately C$3.2 million in the corresponding period of 2025.^*

^*Adjusted EBITDA is a non-IFRS financial measure. This measure does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. See "Non-IFRS Financial Measure" below for additional information and a reconciliation of Adjusted EBITDA to income from continuing operations.

Laz Nikeas, CEO of BMR, commented:

"ESI continues to see increased demand for its products and services. In 6M 2026, ESI generated revenue growth of approximately 51% compared with 6M 2025. Adjusted EBITDA for the six months ended June 30, 2026 was approximately C$6.6 million, representing an approximately 108% increase compared with the same period in 2025. With continued investment in energy infrastructure in the United States and abroad to support both industrial demand and artificial intelligence ("AI") data center growth, ESI is well positioned to capitalize on these opportunities. Supported by our new commercial banking partner, we are advancing plans to expand ESI's manufacturing footprint to support continued growth, increased manufacturing capacity and improved operating efficiencies."

ESI continues to advance its manufacturing expansion plans and is in the process of finalizing arrangements for a proposed new facility in Phoenix. Subject to completion of the lease and related arrangements, equipment installation and relocation activities are expected to begin in December 2026, with the facility expected to become fully operational in early Q2 2027. The proposed facility would approximately triple ESI's current manufacturing footprint, providing greater manufacturing capacity, improved production flow and additional space to support its expanding portfolio of specialized energy equipment.

If completed as planned, the expanded facility is expected to provide ESI with the infrastructure and flexibility to scale production, increase vertical integration and improve operating efficiencies, accelerate new product development and pursue growth opportunities across its existing and emerging markets.

Non-IFRS Financial Measure

This news release includes Adjusted EBITDA, a non-IFRS financial measure that has not been prepared in accordance with International Financial Reporting Standards ("IFRS"). Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. It is provided as supplemental information to assist investors in understanding ESI's operating performance and should not be considered in isolation or as a substitute for financial information prepared in accordance with IFRS.

Adjusted EBITDA: Adjusted EBITDA is defined as income from continuing operations before foreign exchange gains and losses, net interest expense, income taxes, depreciation and amortization and intercompany transactions. Management believes Adjusted EBITDA provides supplemental information for assessing the operating performance of ESI's underlying operations.

Reconciliation of Income from Continuing Operations to Adjusted EBITDA

Note: Amounts may not sum due to rounding.

Adjusted EBITDA has been calculated using ESI financial information prepared on a basis consistent with the ESI segment information previously disclosed in the Company's consolidated financial statements.

About ESI Energy Services Inc.

ESI Energy Services Inc., operating under the brand Ozzies, Inc., is a designer and manufacturer of specialized equipment serving the renewable and conventional energy sectors. Headquartered in Phoenix, Arizona, ESI provides equipment leasing, sales and manufacturing solutions supporting large-scale solar, wind, oil and gas, and utility infrastructure projects. ESI is a wholly owned subsidiary of Battery Mineral Resources Corp.

About Battery Mineral Resources Corp.

Battery Mineral Resources operates the Punitaqui Mining Complex, a historic copper, gold, and silver-producing mine in the Coquimbo region of Chile. The Company's portfolio also includes 100%-owned ESI Energy Services Inc. and North American mineral exploration assets. The Company is focused on providing shareholders with accretive exposure to copper and the global trend of electrification while targeting growth through cash flow, exploration, and acquisitions in favorable mining jurisdictions. Further information about BMR and its projects can be found on www.bmrcorp.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information contained in this news release includes, but is not limited to, statements regarding ESI's ability to finalize arrangements for and enter into a lease for the proposed Phoenix facility; the anticipated timing of equipment installation and relocation activities and the proposed facility becoming fully operational; the anticipated size of the proposed facility relative to ESI's existing manufacturing footprint; the anticipated manufacturing footprint, manufacturing capacity, production flow, vertical integration, operating efficiencies and product development benefits of the proposed facility; and ESI's ability to pursue growth opportunities across its existing and emerging markets.

Forward-looking information is based on management's reasonable expectations and assumptions as of the date of this news release, including assumptions regarding ESI's ability to successfully negotiate and enter into a lease and related arrangements for the proposed Phoenix facility on acceptable terms and within the anticipated timeframe; completion of equipment installation and relocation activities substantially as planned and without material disruption to ESI's operations; the availability of sufficient capital, equipment, contractors, labour and other resources to complete the proposed facility expansion and relocation; the proposed facility providing the anticipated manufacturing footprint, manufacturing capacity, production flow, vertical integration, operating efficiencies and product development benefits; and continued customer demand in the markets served by ESI.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Such risks and uncertainties include, among others, the possibility that ESI may not enter into a lease for the proposed Phoenix facility on acceptable terms or within the anticipated timeframe; changes to the proposed facility, relocation plan or anticipated schedule; delays, cost increases or operational disruptions associated with the facility expansion, equipment installation or relocation activities; ESI's ability to realize the anticipated manufacturing footprint, manufacturing capacity, production flow, vertical integration, operating efficiencies and product development benefits of the proposed facility; and changes in customer demand and market conditions in the industries served by ESI. Additional risks are described in the Company's continuous disclosure filings available under its profile on SEDAR+.

The foregoing list of risks and uncertainties is not exhaustive. Although the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable as of the date of this news release, there can be no assurance that such information will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. The forward-looking information contained in this news release is made as of the date of this news release. Except as required by applicable securities laws, the Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/316705