Scandium Canada Reports Promising Wire Trial Results, Strongest Balance Sheet, and Updates on Q3 Financials and Crater Lake Drilling

Montréal, Québec — July 16, 2026 — Leads & Copy — Scandium Canada Ltd. (TSX-V: SCD) has announced promising preliminary results from its SC7075 aluminum-scandium (Al-Sc) welding wire trials, advanced commercial discussions, and the successful acquisition of its subsidiary, Scalium+ Inc. The company also reported its financial results for the third quarter ended May 31, 2026, showcasing its strongest balance sheet to date with $15.2 million in working capital.

The Company's alloy strategy has progressed across four key areas: positive preliminary outcomes from SC7075 Al-Sc welding wire trials, expansion of commercial opportunities with Gränges Powder Metallurgy, progress in commercialization discussions with Alpomet for welding-wire applications, and the acquisition of its new subsidiary, Scalium+ (formerly Ferreol Technologies). Wire samples of Scandium Canada’s patent-pending modified SC7075 alloy have been sent to a collaborator for Wire Arc Additive Manufacturing (WAAM) trials. Initial findings indicate the wire can produce structures comparable to commercial wires without scandium, with current efforts focused on optimizing deposition parameters. This specific application has the potential to create a new market segment, generating demand for up to 30 tonnes of scandium oxide annually. Additionally, rods made from the Company’s SC535 alloy are showing potential for high-temperature applications.

Work under the Memorandum of Understanding with Gränges Powder Metallurgy is broadening to include powders and plates, with several commercial opportunities identified, particularly within the energy and defense sectors targeting European original equipment manufacturers (OEMs).

Discussions with Alpomet regarding welding-wire applications are moving forward, signaling a clear industrial demand for qualified, weldable, high-strength aluminum wire, although no binding agreement is currently in place.

On June 29, 2026, Scandium Canada finalized the acquisition of Ferreol Technologies, now operating as Scalium+ Inc., a wholly owned subsidiary dedicated to alloy commercialization. Scalium+ brings an established commercial team in Québec City, existing alloy clients, and a proven production workflow. This acquisition consolidates the commercialization efforts for both Scandium Canada’s Al-Sc alloys and the Scalium® product line. One Scalium® alloy is already commercialized, and internal testing suggests some Scalium® alloys exhibit strength results up to 45% higher than standard AA7075 aerospace aluminum. Integration across commercial, production, and administrative functions is currently in progress.

Luc Duchesne, Ph.D., Chief Science Officer of Scalium+, stated, “Our preliminary results are promising: we have demonstrated that we can produce structures by WAAM with our SC7075 wire. Next, we aim to optimize deposition parameters with our collaborator, while our work with Gränges and our discussions with Alpomet continue to identify prototyping opportunities. As well, our consolidation of alloys with Scalium+ permits a larger offering of 7000-series aluminum-scandium material (sheets, plates, billets) to our existing products (powders, wires and rods) to potential end users.”

Félix Lapointe, CEO of Scalium+, added, “Two weeks in, the priority is simple: keep serving our existing alloy clients while opening the order book to the alloys developed by Scandium Canada. A commercial team, a production workflow and a proprietary alloy portfolio shorten the distance between the laboratory and a purchase order.”

Scandium Canada also announced the filing of its interim financial statements and management’s discussion and analysis for the periods ended May 31, 2026. As of that date, the company reported cash reserves of $11.6 million, a significant increase from $0.4 million at August 31, 2025. Working capital stood at $15.2 million, marking a $16.6 million improvement from negative working capital in the prior year. Total assets reached $31.9 million and total equity was $30.2 million, more than doubling their August 31, 2025 figures. Liabilities were reduced to $1.6 million, with all unsecured loans fully repaid.

The company's financial expansion was primarily funded through equity, with debt being retired. Financing activities generated $18.6 million over nine months, net of issuance costs, largely driven by a $17.25 million bought deal financing in March 2026. Between September 1, 2025, and July 14, 2026, holders exercised approximately 46.7 million warrants and 1.5 million stock options, generating gross proceeds of $2.96 million. An additional $1.5 million in government grants was receivable at quarter-end.

Management believes the company's current funds are sufficient to cover its obligations, budgeted expenditures, and commitments for at least the next twelve months.

Guy Bourassa, CEO of Scandium Canada, commented, “At the midpoint of the field season, the Company is executing the plan presented to shareholders in April: the drill is turning at Crater Lake, our SC7075 wire is showing promising results for structures produced by WAAM, and our newly acquired Scalium+ subsidiary gives us a commercial team selling alloys today. With $11.6 million in cash and the strongest balance sheet in our history, we are funded for the catalysts ahead. The future is very exciting for Scandium Canada.”

The 2026 diamond drilling campaign at the Crater Lake project, announced on June 11, 2026, is proceeding on schedule. As of July 14, 2026, 1,593 meters have been completed across eight holes, representing approximately 40% of the planned ~4,000-meter program. The primary objective of this program is to collect a representative metallurgical bulk sample of 8 to 10 tonnes from the defined resource, which is crucial for the metallurgical testwork supporting the future feasibility study. A more detailed update on the campaign, including the bulk sample program, is expected in the coming weeks.

Concurrently, WSP’s environmental assessment work is progressing as planned, with field teams on-site conducting fauna and flora inventories, fish habitat surveys, and hydrogeological and geochemical studies to support the prefeasibility study. Field operations have been conducted without any reported injuries or operational incidents.

The scientific and technical information in this news release has been reviewed and approved by Eric Kinnan, P.Geo. (OGQ No. 00788), an independent consulting geologist and a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Source: Scandium Canada Ltd.