Capital Markets Access and Global Partnerships Position Power Metallic for Multi-District Growth in Critical Minerals

• Power Metallic achieved recognition as Canada's top-performing mining stock over the past year, with shares tripling in value while developing the NISK polymetallic project in Quebec, which contains nickel, copper, platinum group elements, gold, and silver.
• The company expanded its land package by 60% through strategic acquisition from Li-FT, now controlling seven of eight primary targets in a geological setting that management believes could support multiple world-class deposits comparable to Sudbury's 33-mine district.
• Power Metallic operates one of the most aggressive drilling campaigns in the junior mining sector with four rigs currently active and plans to add up to six rigs, having completed over 20,000 meters with expectations to reach 24,000 meters by September 15th.
• The company has achieved 100% success rate with borehole electromagnetic surveys in identifying sulfide bodies within 150-meter radius of drill holes, providing significant cost savings and drilling efficiency through advanced exploration technology.
• Management plans to list on New York exchanges in October while pursuing international expansion through Power Metallic Arabia subsidiary, partnering with Saudi Arabia family offices managing $50-110 billion in assets on exploration projects with 50% government grant support.

Power Metallic has demonstrated remarkable execution capability, achieving recognition as Canada's top-performing mining stock over the past year. The company's shares more than tripled in value during this period, reflecting both successful exploration results and strategic positioning in the critical minerals sector. This performance occurred during a challenging market environment, highlighting management's ability to create value even when broader mining sector sentiment remained subdued.

The company's flagship NISK project in Quebec represents a world-class polymetallic discovery containing nickel, copper, platinum group elements (PGEs), gold, and silver. The project's exceptional grades position it among the elite orthomagmatic deposits globally, a category that includes only 20 such discoveries in world history. These deposits are characterised by their exceptional profitability and long mine-life, with examples like Norilsk representing some of the world's most valuable mining operations.

Strategic Land Acquisition

Power Metallic recently completed a significant strategic move by acquiring additional land claims from Li-FT, expanding its land package by 350%. This acquisition was executed during a market downturn, allowing the company to secure valuable exploration ground at attractive terms. The expanded land position now encompasses seven of eight primary targets identified through the company's systematic exploration approach.

CEO Terry Lynch emphasised the strategic importance of this expansion:

"We realised that well this is not just going to be about NISK and Lion. Sudbury has 33 mines. This area is going to have a lot of mines."

This vision reflects management's understanding that the geological setting supports multiple world-class deposits, potentially creating a mining district comparable to historic precedents. The acquisition strategy demonstrates sophisticated market timing and capital allocation, utilising the market volatility following political developments to focus on long-term value creation rather than short-term promotional activities. This patient, strategic approach has positioned the company to capture maximum value from its expanded land position as market conditions improve.

Advanced Technology Implementation

Power Metallic has distinguished itself through the implementation of cutting-edge exploration technologies. The company's systematic approach combines geophysical, geological, and geochemical analysis to identify high-probability targets. Most notably, the company has achieved remarkable success with borehole electromagnetic (EM) surveys, reporting zero false positives in identifying sulfide bodies within a 150-meter radius of drill holes.

This technological advantage provides significant cost savings and drilling efficiency. The borehole EM technology allows the company to identify additional sulfide bodies after completing initial drill holes, effectively multiplying the value derived from each drilling program. While the technology cannot determine thickness, it provides crucial directional guidance for follow-up drilling campaigns.

The company's technical team, led by thought leader Dr. Steve Beresford working with Joe Campbell, has developed a proprietary methodology that integrates multiple data sources. This systematic approach has enabled Power Metallic to identify eight primary targets - 7 of which Power Metallic now own across its expanded land package, with drilling programs designed to test each target methodically.

Robust Capital Position and Drilling Campaign

Power Metallic's financial position enables accelerated development of its resource base. The company is currently operating four drill rigs with plans to add a 5th rig and potentially a 6th after October. This represents one of the most aggressive drilling campaigns in the junior mining sector, with over 20,000 meters completed and expectations to reach 24,000 meters by September 15th.

The scale of the drilling program reflects management's confidence in the geological setting and the quality of targets identified through advanced exploration techniques.

Lynch noted: "We got the money because I really felt like we were 20-30% valued on what we'd already found - and I think that the investors felt that too...But they also gave us the money because they felt we have a lot of asymmetric upside on the exploration"

The company's approach to resource expansion focuses on connecting the existing NISK and Lion zones, which are separated by approximately 5.5 kilometers. Management believes these zones are connected at depth, and the current drilling program includes 17 holes designed to test this hypothesis comprehensively. Success in connecting these zones would significantly enhance the project's economics and mining efficiency.

Interview with CEO Terry Lynch

Capital Markets Strategy

Power Metallic is implementing a sophisticated capital markets strategy designed to access broader investor bases and reduce capital costs. The company plans to list on New York exchanges in October, providing access to generalist capital and institutional investors focused on critical minerals exposure. This move reflects management's recognition that North American capital markets offer superior liquidity and valuation multiples for high-quality mining assets.

The company is also pursuing international diversification through its Power Metallic Arabia subsidiary. This initiative involves partnerships with Saudi family offices managing $50-110 billion in assets, focusing on exploration projects that benefit from government grant programs covering 50% of initial exploration costs. The Saudi expansion provides access to untapped geological terrain while building relationships with ultra-high-net worth capital sources.

The international strategy demonstrates management's long-term vision and recognition that successful mining companies require multiple projects and diverse capital sources. While NISK remains the primary focus, the Saudi opportunity provides a potential pipeline for future growth as the NISK project advances toward production decisions.

Development Timeline

Current analyst estimates suggest Power Metallic's resource base contains 300,000-500,000 tons of contained metals. However, management expresses confidence in reaching one million tons of contained metals, with potential for further expansion beyond that threshold. Lynch claims,

"Do we think we're going to get to a million? 100%. Do we think we're going to grow beyond that? Certainly looks likely. And so that combination of being undervalued and with high asymmetric exploration upside, I think is what made and enabled us to raise that money."

This confidence stems from the geological characteristics of orthomagmatic deposits and the company's understanding of metal ratios within its discoveries. The NISK project currently exhibits a copper-to-nickel ratio of 1.5:1, trending toward 2:1. Historical data from orthomagmatic deposits indicates an average ratio of 5:1 nickel-to-copper, suggesting significant potential for additional nickel discoveries.

Power Metallic's competitive position stems from several key factors that differentiate it from other junior mining companies. The exceptional grades at NISK place it among the world's highest-grade polymetallic discoveries, providing significant cost advantages and margin potential. The company's systematic exploration approach and technology implementation have consistently delivered results, building investor confidence and supporting premium valuations.

Management Positioning Towards Market Advantage

The polymetallic nature of the deposits provides natural diversification and reduces commodity price risk. The Lion zone currently consists of 45% copper and 55% precious metals, including significant platinum, gold, and silver content. This diverse metal suite provides multiple value drivers and positions the company to benefit from various commodity price cycles.

The company's management team combines technical expertise with capital markets experience, enabling effective communication with investors while maintaining focus on operational execution. This balance has proven crucial in accessing capital during challenging market conditions and building the institutional shareholder base necessary for major project development.

Management estimates the NISK project could achieve payback periods of approximately one year due to exceptional grades. This rapid payback potential makes the project attractive for joint venture partnerships with major mining companies seeking exposure to high-return development opportunities. The company has indicated openness to joint venture structures that would accelerate development while preserving significant upside for existing shareholders.

The Investment Thesis for Power Metallic

• Exceptional Resource Quality: Invest in one of the world's highest-grade polymetallic discoveries with grades that support rapid payback periods and superior economics compared to industry standards.
• Proven Management Execution: Management team delivered Canada's top mining stock performance in 2024 whilst systematically expanding the resource base through advanced exploration techniques.
• Strategic Market Timing: Capitalise on current undervaluation relative to resource potential, with management estimating 20-30% of fair value based on existing discoveries before accounting for exploration upside.
• Technology-Driven Exploration: Benefit from proprietary exploration methodology with 100% success rate in borehole EM surveys, providing cost-effective resource expansion and reduced exploration risk.
• Expanded Land Position: Gain exposure to multiple world-class targets across 350% larger land package in geological setting comparable to Sudbury's 33-mine district.
• Capital Markets Rerating: Position for potential revaluation through New York listing in October, providing access to broader institutional investor base and improved liquidity.
• Diversified Commodity Exposure: Access multiple critical minerals including nickel, copper, PGEs, gold, and silver, reducing single-commodity risk while maximising exposure to electrification trends.
• Joint Venture Potential: Benefit from likely partnership opportunities with major mining companies seeking high-return development projects, providing development capital while preserving upside.
• International Growth Pipeline: Participate in early-stage international expansion through Saudi Arabia partnerships, providing long-term growth potential beyond primary Canadian operations.
• Critical Minerals Positioning: Invest in essential battery metals during global supply shortage, benefiting from government support for domestic critical mineral production capabilities.

Power Metallic represents a compelling investment opportunity for investors seeking exposure to the critical minerals sector through a proven management team operating a world-class asset. The company's exceptional track record, advanced exploration techniques, and strategic positioning provide multiple pathways to value creation. The upcoming drilling results, New York listing, and potential joint venture partnerships create near-term catalysts for share price appreciation while the expanded land package offers long-term resource growth potential.

Macro Thematic Analysis: The Critical Minerals Revolution

The global economy is experiencing a fundamental shift toward electrification, renewable energy, and artificial intelligence infrastructure, creating unprecedented demand for critical minerals. Nickel, copper, and platinum group elements have emerged as essential components of this transition, with supply constraints driving long-term price appreciation prospects.

Government recognition of critical mineral importance has reached the highest political levels, with direct investment programs and strategic stockpiling initiatives supporting domestic production capabilities. The United States and Canada have implemented comprehensive critical minerals strategies, providing policy support and financial incentives for domestic mining operations.

As Terry Lynch noted about the broader opportunity:

"When's the last time a president or a prime minister talked about mining? Now they're talking about mining. So it starts at the top and you're now seeing the US invest directly in mining. Canada's going to do the same. So I think that's also going to bring more generalist capital in."

This government support represents a fundamental shift in policy priorities, recognizing critical minerals as essential to national security and economic competitiveness.

The artificial intelligence revolution is driving exponential increases in energy consumption and infrastructure requirements. Data centers, AI computing facilities, and electric vehicle adoption continues accelerating globally, with battery chemistries requiring substantial nickel content for energy density and performance. The transition from internal combustion engines to electric powertrains represents one of the largest industrial transformations in history, creating multi-decade demand growth for battery metals.

Supply-side constraints compound demand pressures as existing mines face declining grades, increased environmental scrutiny, and aging infrastructure. New discoveries of world-class deposits have become increasingly rare, while development timelines for major projects extend beyond a decade. This supply-demand imbalance creates favorable pricing dynamics for companies controlling high-grade, development-ready projects.