International Battery Metals Ltd. Concludes Significant Private Placement Financing for Future Operations

International Battery Metals Ltd. Completes Important Financing

Vancouver, BC and Plano, Texas, August 6, 2025 – International Battery Metals Ltd. (commonly known as "IBAT") is excited to announce the successful completion of its previously announced private placement financing. This strategic initiative has raised approximately $5 million, which will be allocated to operational enhancements and corporate necessities, particularly for the company’s modular direct lithium extraction plant (MDLE Plant).

The private placement, which was fully subscribed through a partnership with Encompass Capital Advisors, LLC, entails the issuance of 25,765,259 units of the company at a deemed price of around US$0.19406 per unit. These units significantly contribute to meeting the financial needs of IBAT, with total gross proceeds reported to be approximately US$5 million, or C$6,860,000 based on the exchange rate from July 18, 2025.

This financing involves unique terms where each unit consists of one common share and an attached warrant, allowing holders to purchase further shares at an exercise price of C$0.355 for a period extending until August 5, 2028. This associated warrant structure is designed to provide strategic investment flexibility while advancing the company’s operational objectives.

The raised funds will primarily enable the preparation and functionality of IBAT's MDLE Plant, a pivotal infrastructure aimed at streamlining lithium extraction processes. The company's proprietary technology is engineered for rapid deployment and minimal environmental impact, emphasizing efficiency in lithium chloride extraction from geothermal brine deposits.

Furthermore, IBAT has also announced amendments regarding certain warrants from prior private placements with both Encompass and EV Metals. These amendments include extending the expiration of several warrants from earlier placements and incorporating restrictions on share control that would limit Encompass from exceeding controlled share ownership as defined under Ontario's Securities Act.

The private placement and its associated amendments qualify as related party transactions under the Multilateral Instrument 61-101. The management assures stakeholders that these transactions were approved without the necessity for formal valuation, as their impact does not exceed 25% of the company's market capitalization, ensuring compliance with securities regulations.

Future Prospects

The successful closure of this financing represents a strategic advancement for IBAT amid the ongoing growth within the lithium sector. As demand for lithium continues to escalate due to the increasing need for batteries in electric vehicles and renewable energy systems, the company's innovative extraction methods position it favorably for rapid scale-up activities in this lucrative market.

CEO Joseph Mills expressed optimism regarding the funding, marking it as not only a financial milestone but also a gateway towards ensuring operational readiness of the MDLE Plant. He highlighted the importance of integrating sustainable practices into lithium extraction while underscoring IBAT’s commitment to contributing responsibly to the battery supply chain.

This press release serves not only as an announcement of financial activity but also reinforces IBAT’s position as a leader in environmentally sustainable lithium extraction technology. As the company navigates the complexities of the market, stakeholders can expect transparency and diligence in all forthcoming projects and financial dealings.

The securities issued under this private placement are subject to a statutory hold period of four months and one day as dictated by Canadian securities laws. Investors should be aware that these opportunities come with specific regulatory considerations, especially regarding future sales in U.S. markets.

In conclusion, International Battery Metals Ltd. is poised for future growth and operational success with the completion of this private placement financing, ensuring that it remains at the forefront of the lithium extraction industry while adhering to sustainable practices.

Contact Information: For further inquiries, please reach out to Joseph Mills, CEO, at (832) 683-8839.