Vanadiumcorp Initiates Corporate Restructuring

The new management team at VanadiumCorp that was put in place at the Annual General and Special Meeting of Shareholders held on 2 July 2024 has completed its expedited review of the current strategy, 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 of vanadium flow batteries (VFB); while b) advancing the Company's vanadium-titanium-iron mineral resources in Québec as the best path forward to enhancing shareholder value at the Company.

The international deployment of VFBs is growing rapidly to provide the longer-duration energy storage required to decarbonize electrical energy grids. Manufacturers of VFBs in many countries will require an expanding supply of the high-quality vanadium-electrolyte that the Company is producing.

To help underpin the long-term viability of vanadium electrolyte production, the Company has planned on enjoying future access to its significant deposits of vanadium at its flagship resource at Lac Doré, Québec, on the assumption that the resource property can be developed and financed. To accelerate the progress of and to unlock value at the resource property, the Company will now explore strategic alternatives for the resource, including potential joint ventures with other mineral companies.

2. Operations: The Company's first plant, located in Val-des-Sources, Québec (the "First Plant"), began operations in April 2024 and has been producing a stream of high purity vanadium electrolyte. Due to a technical issue encountered on commissioning, however, the output from the First Plant has been 6,000 litres/month instead of its expected 25,000 litres/month. The technical issue can be readily fixed and the First Plant returned to its full operating capacity once funds for required replacement parts have been allocated by the Company and the parts delivered and installed. The Company aims to have the First Plant in full operation by the end of October 2024.

The Company is also now investigating the optimal production methods and locations for additional volumes of electrolyte beyond those produced by the First Plant, with a view to ensuring both product quality and competitive cost.

Interest in the Company's product from prospective customers has been positive, with discussions on sales continuing with various leading international manufacturers of VFB.

3. Financial Condition: The financial condition of the Company has deteriorated significantly in the first half of 2024. Debt, including accounts payable, is now higher and receipt of revenues has been delayed by the temporary production issue referred to above. This situation will be reflected in the upcoming financial statements (unaudited) for the fiscal quarter ending 31 July 2024 that will be reported by the Company in due course.

Given these existing financial constraints, the current operational structure of the Company is not sustainable. Corporate costs will be immediately rationalized. Discussions with creditors will be initiated to ensure operational flexibility. Additional equity financing in 2024 will also be required to help the Company continue to move forward.

Ian Mallory, Chairman and CEO, stated "The financial situation of the Company that was inherited on 2 July 2024 from previous management is very disappointing and concerning. Nonetheless, new management believes that the fundamentals of the Company's business remain attractive. With vanadium electrolyte, we have the right product at the right time as it is a key ingredient for longer-duration battery storage. We need to redouble our efforts to streamline the operations of the Company, enhance the brand of our product among our target customer base, and generate the expected revenues. To launch the new period of cost discipline at VanadiumCorp, I have informed the Company's Board that I will not receive any cash compensation for my role as Chairman and CEO for 2024 as the turnaround of the Company takes effect. Despite the many challenges, I am positive about the future and am grateful to our shareholders, suppliers and our team for their continued support."

About VanadiumCorp Resource Inc.

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

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

On behalf of the Board of VanadiumCorp 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 Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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

Forward-Looking Statements

This document may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities laws and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) regarding, among other things, VanadiumCorp's business. and the environment in which it operates. In general, forward-looking statements can be identified by the use of words such as "anticipates", "expects" or "does not expect", "is expected", "budget", "forecast", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "could" or "will be taken", "occur" or "will be achieved". VanadiumCorp relies on a number of assumptions and estimates to make these forward-looking statements, including, without limitation, the ability to acquire the necessary permits and authorizations to advance the Lac Doré property to the production stage, the ability to add to existing resources at Lac Doré through drilling, the costs associated with the development and operation of its properties. These assumptions and estimates are made in light of forecasts and conditions that are considered relevant and reasonable based on available information and current circumstances. A number of risk factors may cause actual results, level of activity, performance or results of such exploration and/or mine development to differ materially from those expressed or implied by such forward-looking statements, including, without limitation, whether such discoveries will result in commercially viable quantities of such mineralized materials, the ability to modify project parameters as plans continue to be refined, the ability to execute planned future exploration and drilling programs, the need for additional financing to continue exploration and development efforts, changes in general economic, market and business conditions, and other risks outlined in VanadiumCorp's latest Annual Information Form under the heading "Risk Factors" and in its other public documents. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and that may be beyond VanadiumCorp's control. Although VanadiumCorp has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, undue reliance should not be placed on these forward-looking statements. In addition, all forward-looking statements in this press release are made as of the date of this press release. VanadiumCorp disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

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

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