Scandium Canada Reports Promising Preliminary Results for SC7075 Welding Wire, Strengthens Balance Sheet

Montréal, Québec — July 16, 2026 — Leads & Copy — Scandium Canada Ltée (TSX-V: SCD) provided an operational update detailing progress on its exclusive aluminum-scandium (Al-Sc) alloys, the 2026 field program at its Crater Lake scandium project in Nunavik, Quebec, and the filing of its third-quarter financial report for the period ending May 31, 2026. The company reported that preliminary results for its SC7075 Al-Sc welding wire are promising, and commercial discussions are advancing. Scandium Canada also announced a working capital of $15.2 million, marking the company's strongest balance sheet to date.

This quarter, the company's alloy strategy advanced on four fronts: promising preliminary results for its SC7075 Al-Sc welding wire, expanding commercial opportunities with Gränges Powder Metallurgy, progressing commercialization discussions with Alpomet for welding wire applications, and the successful acquisition of its new subsidiary, Scalium+ (formerly Ferreol Technologies).

Samples of the company's modified, patent-pending SC7075 alloy wire were sent to a collaborator for Wire Arc Additive Manufacturing (WAAM) trials. Preliminary results indicate the wire can produce structures comparable to non-scandium commercial wire, with current efforts focused on optimizing deposition parameters. This single application could generate demand for up to 30 tons of scandium oxide annually, creating a new market segment.

The company's SC535 alloy rods also show promising potential in high-temperature applications. Work under the memorandum of understanding with Gränges Powder Metallurgy has expanded to include powders and plates, with several commercial opportunities identified, particularly in energy and defense sectors with European original equipment manufacturers (OEMs).

Discussions with Alpomet regarding welding wire applications are actively progressing, with clear interest from industrial users for qualified, weldable, high-strength aluminum wire, although no binding agreement is yet in place.

On June 29, 2026, Scandium Canada closed the acquisition of Ferreol Technologies, now Scalium+ Inc., its wholly-owned alloy commercialization subsidiary. Scalium+ brings an established sales team in Quebec, active alloy customers, and a proven production process. It consolidates the commercialization of Scandium Canada's Al-Sc alloys and the Scalium® product line. Internal trials indicate certain Scalium® alloys exhibit up to 45% higher strength compared to typical aerospace-grade AA7075 aluminum. Integration is underway across commercial, production, and administrative functions.

Luc Duchesne, Ph.D., Chief Scientific Officer of Scalium+, commented on the preliminary WAAM results and ongoing work with Gränges and Alpomet. He highlighted that the consolidation with Scalium+ allows for an expanded offering of series 7000 aluminum-scandium materials, including sheets, plates, and billets, in addition to existing products like powders, wires, and rods.

Félix Lapointe, CEO of Scalium+, stated that the priority is serving current clients while expanding the order book for Scandium Canada's alloys, leveraging the combined sales team, production process, and alloy portfolio to shorten the time from lab to order.

Scandium Canada also announced the filing of its interim financial statements and management discussion and analysis for the three and nine-month periods ended May 31, 2026. As of May 31, 2026, the company reported cash of $11.6 million, a significant increase from $0.4 million on August 31, 2025. Working capital stood at $15.2 million, a $16.6 million improvement from negative working capital at the end of August 2025. Total assets were $31.9 million and equity was $30.2 million, more than doubling since August 31, 2025. Total liabilities were reduced to $1.6 million, with the full repayment of unsecured loans.

The company's expansion was equity-financed while debt was repaid. Financing activities generated $18.6 million over nine months, net of issuance costs, including a $17.25 million bought-deal placement in March 2026. Between September 1, 2025, and July 14, 2026, holders exercised 46.7 million warrants and 1.5 million stock options, raising $2.96 million in gross proceeds. An additional $1.5 million in government grants was expected at the end of the quarter. Management believes current funds are sufficient for at least the next twelve months.

Guy Bourassa, CEO of Scandium Canada, expressed confidence in the company's progress, noting that the Crater Lake drill rig is operating, the SC7075 wire shows promising WAAM results, and Scalium+ provides an immediate sales team. With $11.6 million in cash and the strongest balance sheet in its history, the company is financed for upcoming catalysts.

The 2026 diamond drilling campaign at Crater Lake, managed by Laurentia Exploration, is progressing as planned. As of July 14, 2026, 1,593 meters have been drilled across eight holes, representing approximately 40% of the planned 4,000-meter program. The primary goal is to collect a representative 8-10 ton bulk metallurgical sample from the defined resource to support a future feasibility study. An update on the campaign, including the bulk sampling, will be released in the coming weeks. Environmental evaluation work by WSP is also on track, with field teams conducting wildlife and vegetation inventories, fish habitat surveys, and hydrogeological and geochemical studies.

Field operations have been conducted without reported injuries or operational incidents. Scientific and technical information in this release was reviewed and approved by Eric Kinnan, geo. (OGQ No. 00788), an independent consulting geologist and qualified person.

Scandium Canada Ltée is a critical mineral and advanced materials mining company developing North America's only primary scandium source at its Crater Lake project. Through its subsidiary Scalium+, the company commercializes its Al-Sc alloys and Scalium® products while advancing the Crater Lake mining project. Scalium+, formerly Ferreol Technologies, consolidates the commercialization of Al-Sc alloys developed by Scandium Canada and the Scalium® product line and surface treatment technologies. Certain Scalium® alloys have shown up to 45% higher strength than conventional 7075 aerospace aluminum in internal trials and may have the potential to replace high-strength aluminum alloys or titanium in demanding applications.

Source: Scandium Canada Ltée