Magna Mining Initiates Pre-Feasibility Study for Crean Hill Project

• Technica Mining Inc. engaged to complete pre-feasibility study starting January 2026, with completion expected in Q3 2026
• Study will build on September 2024 Preliminary Economic Assessment and incorporate results from 20,000-tonne bulk sample programme completed in second half 2024
• 2024 PEA indicated 13-year mine life with after-tax net present value of $194.1 million and internal rate of return of 129% at specified metal prices
• Mineral Resource Estimate totals 7.6 million tonnes indicated resources and 1.9 million tonnes inferred resources at 1.10% nickel equivalent cut-off grade
• Permits for commencement of Advanced Exploration at Crean Hill are in hand

Magna Mining Inc. (TSXV:NICU) is a producing mining company with copper, nickel and platinum group metals assets in the Sudbury mining district of Ontario, Canada. The company's primary asset is the McCreedy West Mine, currently in production. The company also holds past-producing properties including Levack, Crean Hill, Podolsky and Shakespeare.

Pre-Feasibility Study Initiation

Magna Mining announced on December 16, 2025 that Technica Mining Inc. has been engaged to complete a pre-feasibility study on the 100% owned Crean Hill Project located in Sudbury, Ontario. A pre-feasibility study provides more detailed technical and economic analysis than a preliminary economic assessment, including refined engineering parameters and cost estimates. The study will build on the September 2024 PEA and incorporate results from the 20,000-tonne bulk sample programme executed in the second half of 2024.

The 2024 PEA outlined an underground mining operation where ore would be sold to an existing third-party mill in Sudbury. The plan includes a 15-month Advanced Exploration programme followed by a 12-month pre-production ramp-up period and 13 years of commercial production. Initial mining is planned via ramp access through a new surface portal, with eventual rehabilitation of the historic #2 shaft for personnel access and ore hoisting as mining progresses deeper.

CEO Jason Jessup stated:

"Our Crean Hill Project demonstrates an attractive combination of base and precious metals, and we have engaged Technica to complete a PFS on the Project, which will build on the Preliminary Economic Assessment that was completed in 2024."

2024 Preliminary Economic Assessment Results

The September 2024 PEA analysed a portion of the current Mineral Resource Inventory considered potentially mineable. Pre-production capital cost was estimated at $27.7 million following the Advanced Exploration period. The Advanced Exploration period itself projects capital costs of $48.5 million with revenues of $16.4 million from early ore sales. The assessment indicated payback of pre-production period capital within the first year of commercial production, and payback of all capital within the second year of commercial production.

The PEA projected an average underground production rate of 2,200 tonnes per day at an average operating cost of $158 per tonne over the mine life. Over the 13-year mine life, projected ore sales total 195.5 million pounds of nickel, 169.5 million pounds of copper, 313,000 ounces of platinum, 359,000 ounces of palladium and 117,000 ounces of gold.

The assessment calculated an after-tax net present value of $194.1 million, which represents the project's estimated worth in today's dollars after accounting for the time value of money at an 8% discount rate. The internal rate of return was calculated at 129%, representing the annualised return the project would generate. These financial metrics are based on metal price assumptions of US$8.50 per pound nickel, US$4.00 per pound copper, US$13.00 per pound cobalt, US$900 per ounce platinum, US$1,000 per ounce palladium, US$2,150 per ounce gold, and a Canadian to US dollar exchange rate of 1.35. The PEA was prepared by independent qualified persons from SGS Geological Services and Frago-Met Solution Ltd.

Mineral Resource Inventory and Exploration Potential

The 2024 PEA is based on the Crean Hill Mineral Resource Inventory completed by SGS Geological Services with an effective date of April 15, 2024. The resource estimate includes indicated resources of 7.6 million tonnes grading 0.94% nickel, 0.86% copper, 0.02% cobalt, 1.53 grams per tonne platinum, 1.67 grams per tonne palladium and 0.60 grams per tonne gold. Inferred resources total 1.9 million tonnes grading 0.84% nickel, 0.63% copper, 0.02% cobalt, 1.36 grams per tonne platinum, 1.54 grams per tonne palladium and 0.49 grams per tonne gold. Resources are reported at a 1.10% nickel equivalent cut-off grade, which represents the minimum grade considered potentially economic to mine.

The majority of mineral resources at Crean Hill are contact nickel-copper zones. The deposit also includes footwall copper-nickel-precious metals resources such as the 109 FW and 9400 Zones. The footwall systems consist of semi-massive vein to stringer and disseminated chalcopyrite-rich sulphides within Sudbury Breccia host rock. The footwall mineralisation contains higher copper and precious metals grades compared to the contact nickel-copper zones.

The resource estimate is based on data from 4,646 surface and underground diamond drill holes completed between 1951 and March 2024, totalling 739,448 metres. Both the 109 FW Zone and the 9400 FW Zone have been tested above approximately the 600-metre depth level and remain open for expansion at depth. The company notes that mineral resources are not mineral reserves and do not have demonstrated economic viability.

Next Steps

The pre-feasibility study commencing in January 2026 represents the next phase of technical work on the Crean Hill Project. During 2025, the company integrated the portfolio of properties acquired from KGHM in March 2025 while advancing engineering work at Crean Hill. The grid power connection and permanent dewatering system will be evaluated as part of the updated project economics during 2026. CEO Jessup stated that the decision to commence the PFS supports the company's vision of becoming a multi-mine producer in the Sudbury Basin.

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