U.S. STRATEGIC METALS RECEIVES LOI FOR POTENTIAL $400M FUNDING PACKAGE FROM USEXIM

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Aug 08, 2024, 11:43 ET

ST. LOUIS, Aug. 8, 2024 /PRNewswire/ -- U.S. Strategic Metals ("USSM" or the "Company") is pleased to announce it has received a non-binding Letter of Interest ("LOI") from the Export-Import Bank of the United States ("EXIM Bank"), for a potential debt funding package of $400,000,000, with a loan term of up to 15 years. The funding will enable further development of USSM`s Missouri-based mining and metallurgical project (the "Project").

This transaction may be eligible for special consideration under EXIM Bank's China and Transformational Export Program ("CTEP"), a congressional mandate for EXIM Bank to help American companies facing competition from the People's Republic of China ("PRC") in sectors including Renewable Energy, Energy Storage, & Energy Efficiency.

Given the PRC's dominant market position in critical minerals used in lithium-ion battery and advanced superalloy applications, EXIM Bank's potential funding for USSM supports an America's-focused critical minerals supply chain and helps advance the Company's strategic partnerships for domestic US processing.

The EXIM loan, in combination with existing equity and credit facilities, would provide funding for substantially all of the anticipated construction and development capital required to complete the Project.

Following USSM's formal application for debt funding, EXIM Bank will begin their formal due diligence process and conduct the required comprehensive underwriting to determine the appropriate terms and conditions of the loan.

This press release does not constitute an offer or sale of, or the solicitation of an offer to buy, securities of the Company nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About US Strategic Metals.

USSM is a St Louis, Missouri, US-based critical minerals company; its' state-of-the-art metallurgical plant will process third party concentrates and recycle metals from lithium-ion batteries. USSM will also mine and process the largest cobalt reserve in North America.

The Project will produce cobalt, nickel, lithium and copper. Its fleixble flow sheet will enable it to supply the associated metals, intermediate products and salts which are required for the energy transition and other US strategic needs.

USSM is focused on building a dynamic and sustainable business with an emphasis on applying leading environmental stewardship, social engagement, and corporate governance practices to its strategy.

Safe Harbor Statement

This news release contains statements that involve expectations, plans, or intentions (such as those relating to the Company's ability to enter into a definitive agreement with EXIM Bank for the debt financing as provided for in the LOI) and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. These forward-looking statements can be identified by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan," and other similar expressions. Examples of forward-looking statements include, among others, statements the Company makes regarding its ability to enter into a definitive agreement with EXIM Bank for debt funding as provided for in the LOI, approval for special consideration under Qualification under Section 402 of EXIM Bank's 2019 reauthorization (P.L. 116-94), ability to establish "Proven" or "Probable" Reserves, as defined by the SEC under Industry Guide 7, through the completion of a Feasibility Study for the minerals that the Company seeks to produce and the inherent risks of mining exploration, development, and processing operations that may negatively impact the business. Consequently, the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the Company. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

SOURCE US Strategic Metals