VRB:CC - Vanadiumcorp Initiates Corporate Restructuring

(TheNewswire)

Vancouver, British Columbia – 25July 2024 – TheNewswire – VanadiumCorp Resource Inc.(TSX-V: VRB) (FSE: NWNA) (OTC: VRBFF) ("VanadiumCorp" or the"Company") announces a corporaterestructuring initiative to best position the Company to meetimmediate and future business opportunities.

The new management team at VanadiumCorp that was put inplace at the Annual General and Special Meeting of Shareholders heldon 2 July 2024 has completed its expedited review of the currentstrategy, operational results and financial condition of the Company.The results of this review are as follows:

1. Strategy : The Company affirms that its dual-track strategy of: a)producing and selling vanadium electrolyte to manufacturers ofvanadium flow batteries (VFB); while b) advancing the Company’s vanadium-titanium-iron mineral resources inQuébec as the best path forward to enhancing shareholder value at theCompany.

The international deployment of VFBs is growing rapidlyto provide the longer-duration energy storage required to decarbonizeelectrical energy grids. Manufacturers of VFBs in many countries willrequire an expanding supply of the high-quality vanadium-electrolytethat the Company is producing.

To help underpin the long-term viability of vanadiumelectrolyte production, the Company has planned on enjoying futureaccess to its significant deposits of vanadium at its flagshipresource at Lac Doré, Québec, on the assumption that the resourceproperty can be developed and financed. To accelerate the progress ofand to unlock value at the resource property, the Company will nowexplore strategic alternatives for the resource, including potentialjoint ventures with other mineral companies.

2. Operations: The Company’s first plant,located in Val-des-Sources, Québec (the “First Plant”), beganoperations in April 2024 and has been producing a stream of highpurity vanadium electrolyte. Due to a technical issue encountered oncommissioning, however, the output from the First Plant has been 6,000litres/month instead of its expected 25,000 litres/month. Thetechnical issue can be readily fixed and the First Plant returned toits full operating capacity once funds for required replacement partshave been allocated by the Company and the parts delivered andinstalled.  The Company aims to have the First Plant in fulloperation by the end of October 2024.

The Company is also now investigating the optimalproduction methods and locations for additional volumes of electrolytebeyond those produced by the First Plant, with a view to ensuring bothproduct quality and competitive cost.

Interest in the Company’s product from prospectivecustomers has been positive, with discussions on sales continuing withvarious leading international manufacturers of VFB.

3. FinancialCondition: The financial condition of theCompany has deteriorated significantly in the first half of 2024.Debt, including accounts payable, is now higher and receipt ofrevenues has been delayed by the temporary production issue referredto above. This situation will be reflected in the upcoming financialstatements (unaudited) for the fiscal quarter ending 31 July 2024 thatwill be reported by the Company in due course.

Given these existing financial constraints, the currentoperational structure of the Company is not sustainable. Corporatecosts will be immediately rationalized. Discussions with creditorswill be initiated to ensure operational flexibility. Additional equityfinancing in 2024 will also be required to help the Company continueto move forward.

Ian Mallory, Chairman and CEO, stated “The financialsituation of the Company that was inherited on 2 July 2024 fromprevious management is very disappointing and concerning. Nonetheless,new management believes that the fundamentals of the Company’sbusiness remain attractive. With vanadium electrolyte, we have the right product at the righttime as it is a key ingredient for longer-duration battery storage. We need to redouble our efforts to streamline the operations of theCompany, enhance the brand of our product among our target customerbase, and generate the expected revenues. To launch the new period ofcost discipline at VanadiumCorp, I have informed the Company’s Boardthat I will not receive any cash compensation for my role as Chairmanand CEO for 2024 as the turnaround of the Company takes effect.Despite the many challenges, I am positive about the future and amgrateful to our shareholders, suppliers and our team for theircontinued support.”

About VanadiumCorp ResourceInc.

VanadiumCorp Resource Inc. produces a stream ofhigh-quality vanadium electrolytes for the expanding internationalmarket for long-duration Vanadium Flow Batteries (VFB). The Company'sinitial manufacturing facility is based in Val-des-Sources, Québec.Stable, long-term access to vanadium feedstock for the production of electrolytes is assured, success-contingenton developing our wholly-owned vanadium-titanium-iron mineraldeposits, including our flagship Lac Doré deposit near Chibougamau,Québec.

VanadiumCorp is pleased to announce the launch of ournew website at www.vanadiumcorp.com. The new website featuresuser-friendly navigation and includes the latest investor tools withupdated information about the Company. We invite you to explore ournew site and subscribe to receive updates, so you can stay informedabout the latest news.

On behalf of the Board ofVanadiumCorp Resource Inc.

Ian Mallory
Chairman and CEO
ianm@vanadiumcorp.com

Phone: +1.514.416.1749

Company contact information:

Neither the TSX Venture Exchange nor its RegulationServices Provider (as defined in the policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of thisrelease.

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S.PERSONS OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES. THIS PRESSRELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR AN INVITATION TOPURCHASE ANY SECURITIES DESCRIBED IN IT.

Forward-Looking Statements

This document may contain forward-looking statements(including "forward-looking information" within the meaningof applicable Canadian securities laws and "forward-lookingstatements" within the meaning of the US Private SecuritiesLitigation Reform Act of 1995) regarding, among other things,VanadiumCorp's business. and the environment in which it operates. Ingeneral, forward-looking statements can be identified by the use ofwords such as "anticipates", "expects" or"does not expect", "is expected","budget", "forecast", "estimates","forecasts", "intends", "anticipates" or"does not anticipate", or "believes", orvariations of such words and phrases or statements that certainactions, events or results "may", "could","would", "could" or "will be taken",  "occur" or "will beachieved". VanadiumCorp relies on a number of assumptions andestimates to make these forward-looking statements, including, withoutlimitation, the ability to acquire the necessary permits andauthorizations to advance the Lac Doré property to the productionstage, the ability to add to existing resources at Lac Doré throughdrilling, the costs associated with the development and operation ofits properties. These assumptions and estimates are made in light offorecasts and conditions that are considered relevant and reasonablebased on available information and current circumstances. A number ofrisk factors may cause actual results, level of activity, performanceor results of such exploration and/or mine development to differmaterially from those expressed or implied by such forward-lookingstatements, including, without limitation, whether such discoverieswill result in commercially viable quantities of such mineralizedmaterials, the ability to modify project parameters as plans continueto be refined, the ability to execute planned future exploration anddrilling programs, the need for additional financing to continueexploration and development efforts, changes in general economic,market and business conditions, and other risks outlined inVanadiumCorp's latest Annual Information Form under the heading"Risk Factors" and in its other public documents.Forward-looking statements are not guarantees of future performanceand such information is inherently subject to known and unknown risks,uncertainties and other factors that are difficult to predict and thatmay be beyond VanadiumCorp's control. Although VanadiumCorp hasattempted to identify important risks and factors that could causeactual actions, events or results to differ materially from thosedescribed in the forward-looking statements, there may be otherfactors and risks that cause actions, events or results not to be asanticipated, estimated or intended. Accordingly, undue reliance shouldnot be placed on these forward-looking statements. In addition, allforward-looking statements in this press release are made as of thedate of this press release. VanadiumCorp disclaims any intention orobligation to update or revise any forward-looking statements, whetheras a result of new information, future events or otherwise, except asrequired by applicable securities laws.

The forward-looking statements contained herein areexpressly qualified by this disclaimer.

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