Magna Mining - Test Mining to Inform Ni Development Plans

• Magna Mining is a Sudbury-focused nickel-copper PGM exploration development company with two significant assets in Sudbury.
• A recent PEA on Crean Hill showed a positive post-tax Net Present Value (NPV) with an Internal Rate of Return (IRR) of 23%. An alternative processing scenario presented an even higher NPV and IRR. The goal of the PEA was to determine how much of the 31 million ton resources is minable.
• Magna plans to conduct test mining from underground using an Advanced exploration program. The aim is to better understand the high-grade structure in the 109 area and reconcile it with existing block models.
• The initial capital expenditure for the project is approximately $80 million. The company is exploring various financing options, including tax credits for critical mineral projects, potential U.S. Department of Defense grants, and potential sale of an off-take to strategic partners. As of March 31st, the company may need to raise money, but they have various financing options available.

Magna Mining Poised for Growth with Ni-Cu-PGM Assets in Sudbury

Sudbury, Ontario-based Magna Mining is advancing two nickel-copper-PGM projects in the prolific Sudbury mining district. With an experienced management team, solid financial position, and significant exploration and development opportunities, Magna presents an attractive investment opportunity.

De-Risking Advanced Stage Assets

Magna's flagship project is the past-producing Crean Hill mine, acquired in late 2022. Crean Hill has an existing mineral resource of 31 million tonnes in the indicated category, with the potential to significantly expand.

A preliminary economic assessment (PEA) was recently completed on Crean Hill. The PEA evaluated an underground mining scenario and demonstrated robust economics, with an after-tax NPV of $230 million and 23% IRR at consensus long-term metal prices.

Importantly, the PEA highlighted an alternative processing scenario which increased the NPV to $516 million. This scenario utilizes lower processing costs from Magna's permitted Shakespeare open pit project located 40km away. An integrated study is now underway to optimize the development of both projects.

Magna also owns the permitted Shakespeare project, which has open pit reserves of 11.8 million tonnes defined in a feasibility study. The Shakespeare feasibility outlined a 14-year open pit mine life, with an average annual production of 23,000 tonnes Ni and 13,000 tonnes Cu over the first 10 years.

Exploration Upside with Ni-Cu-PGM Targets

In addition to the development upside, Magna controls highly prospective exploration grounds adjacent to Crean Hill and Shakespeare. Multiple exploration targets have been defined, providing significant potential to make new discoveries and grow resources.

At Crean Hill, several high-grade footwall zones have been identified including the 101, 105 and 109 Footwall Zones. Limited drilling to date has returned exceptional widths and grades, including 31m at 4% Ni from the 101 Zone. These zones will be a key focus for exploration.

Near-Term Catalysts and Milestones

Magna has laid out a clear path to advance both Crean Hill and Shakespeare over the next 12-18 months:

• Amend Crean Hill closure plan to allow 400,000 tonnes of bulk sample mining
• Complete 15,000 tonne surface bulk sample at Crean Hill 109 Footwall Zone
• Commence ramp development and underground exploration at Crean Hill
• Complete integrated PFS on optimized Crean Hill - Shakespeare development plan
• 20,000 metres of exploration drilling at Crean Hill and Shakespeare

The bulk sampling and underground development will significantly derisk Crean Hill, providing crucial geological, engineering and metallurgical data. This work will feed into the PFS, which will evaluate the optimal development approach.

Strong Financial Position

With over $20 million in cash as of March 2022, Magna is fully funded for planned work programs. Warrants if exercised could provide another $14 million.

The relatively low upfront capital requirements estimated for Crean Hill also provide flexibility for a scaled or phased development approach to manage capital needs.

Additionally, Shakespeare is eligible for up to 30% government funding as a critical minerals project. The potential for offtake contracts, project financing, and other funding sources further improves Magna's financial position.

Accomplished Leadership Team

Magna's board and management reads like a who's who of successful mine finders and builders. The team hasTrack record of exploration discovery, mine development, operations and company building.

CEO Jason Jessup and other key executives have decades of experience in the Sudbury Camp with major miners like Inco and Falconbridge. This provides crucial knowledge of the geology and local environment.

The technical team is bolstered by key additions like Senior VP Dave King, who will lead the bulk sample program. King and Jessup worked together for many years bringing mines into production at FNX Mining.

Supportive Institutional Shareholders

Institutional investors hold over 50% of Magna's shares, signalling confidence in the company's potential. Discussions with majors like Mitsui indicate interest in the projects should they be advanced to construction decisions.

Magna maintains regular engagement with supportive institutional shareholders. The investor base is aligned with plans to systematically derisk assets through exploration and engineering studies. They also see substantial upside potential from new exploration discoveries.

With advanced stage assets, exploration upside, strong financials and an accomplished team, Magna Mining offers an attractive investment opportunity. Near-term catalysts have potential to re-rate the stock as Crean Hill and Shakespeare are systematically derisked over the next 18 months. The company's experienced leadership and supportive institutional shareholder base provide a strong foundation. Investors with a 3-5 year timeline could see significant returns as Magna unlocks value through discovery and development of their strategic Sudbury assets.

The Investment Thesis for Magna Mining

Advanced assets with a clear path to production

Magna has two advanced-stage assets with clear potential pathways to production - Crean Hill and Shakespeare. The preliminary engineering and permitting work completed de-risks these projects substantially compared to early-stage exploration plays. The assets leverage existing infrastructure in a top mining jurisdiction. This reduces technical risk and makes the timeline to potential cash flow relatively short for a junior miner.

Significant exploration upside

In addition to the development upside, Magna has strong exploration potential at both projects. The known high-grade footwall zones at Crean Hill and large land packages provide an upside for new discoveries. Additional discoveries could significantly expand resources and extend potential mine life.

Strong financial position

With a healthy cash balance, no debt, and additional funds potentially available through warrants, Magna is well-positioned financially. The relatively low initial capital requirements estimated also allow flexibility for a scaled development approach. This reduces dilution and financing risk compared to projects requiring huge upfront capex.

Proven leadership team

Magna's executive team has an impressive track record of discovering, developing, and operating mines. Their experience in the Sudbury area provides valuable localized expertise. The board and management's credentials give credibility to their plans and ability to create shareholder value.

Takeout potential

Major miners have already shown interest in Magna's projects. With further derisking, the assets could warrant takeover bids, providing upside for investors. The projects offer scale and exploration upside that majors desire when looking for acquisitions.

Strong institutional support

Over 50% institutional shareholder base signals confidence in Magna's potential. Institutional investors aligned with management's strategic plan reduces the risk of shareholder activism. Institutions also often provide access to additional capital.

Magna Mining offers an attractive risk-reward balance for investors seeking junior mining exposure. The company checks many boxes that prudent investors look for in an early-stage investment.