Power Metallic Achieves Breakthrough Metallurgical Results at Lion Zone

• Lock Cycle Test demonstrates near-complete copper recovery at 98.9%, significantly exceeding previous company estimates of 80% recovery
• High-grade sulphide concentrate achieves 25.8% copper content with strong precious metal values including 41.4 g/t palladium and 23.4 g/t platinum
• Precious metals show exceptional extraction rates with palladium at 93.9%, platinum at 96.8%, gold at 85%, and silver at 88.9% recovery
• Enhanced copper equivalent recovery projections indicate 18.2% improvement over previous assumptions, strengthening project economics
• SGS Canada identifies potential for value-added product development across battery storage, electrification, and advanced manufacturing sectors

Power Metallic Mines Inc. (TSXV: PNPN) is a Canadian exploration company advancing the Nisk Project Area toward development as Canada's next polymetallic mine. The company controls approximately 313 square kilometres of prospective territory in Quebec and is focused on a high-grade copper-platinum group element system with associated nickel, gold, and silver mineralisation at its flagship Lion zone deposit.

Exceptional Metallurgical Recovery Rates From Lion Zone Lock Cycle Test

The Lock Cycle Test conducted by SGS Canada at its Quebec City and Lakefield laboratories has delivered results that substantially exceed Power Metallic's initial recovery assumptions. The testing programme utilised representative samples from both high-grade and low-grade zones within the Lion deposit, focusing on a blended composite that reflects anticipated run-of-mine feed conditions.

SGS Canada's testing demonstrated that the Lion zone mineralisation responds exceptionally well to conventional sulphide flotation methods. The copper rougher flotation achieved recoveries of 98% to 99%, with subsequent cleaner flotation upgrading the material to approximately 25% copper content. This validates earlier observations showing that the coarse-grained chalcopyrite and cubanite minerals present are highly amenable to standard processing techniques.

The testing drew from 103 samples across 15 drill holes for the high-grade zone and 99 samples from 10 drill holes for the low-grade zone.

SGS Canada stated:

"The test work demonstrates encouraging preliminary flotation performance and supports the potential suitability of the mineralisation for a conventional flotation flowsheet. These results suggest potential opportunities for the transformation of the concentrate into value-added products, including advanced materials for battery and energy storage, electrification, clean energy, and advanced manufacturing."

High-Grade Sulphide Concentrate Results with Multiple Precious Metals

The Lock Cycle Test produced a sulphide concentrate with a remarkably high copper grade of 25.8%, representing exceptional upgrading from the feed material which contained 3.42% copper. The concentrate demonstrates significant precious metal enrichment, reaching 4.83 g/t gold, 41.4 g/t palladium, 23.4 g/t platinum, and 159 g/t silver.

The concentrate also contains 1.2% nickel with a 77.1% recovery rate. The polymetallic nature positions Power Metallic to benefit from diversified commodity exposure, with precious metals contributing approximately 51% to the copper equivalent value and base metals accounting for 49%.

These results carry particular significance given current market conditions favouring both electrification metals and precious metals. The Lock Cycle Test represents a laboratory-scale flowsheet of a potential future mill circuit, providing reliable indicators of expected performance at commercial scale and giving investors confidence in achievable operational targets.

Improved Copper Equivalent Recovery Projections

The metallurgical results have prompted Power Metallic to revise its copper equivalent recovery calculations, leading to an 18.2% improvement over previous assumptions. The company had previously used an 80% recovery rate across all commodities. The new calculations incorporate actual recovery rates achieved: 98.9% for copper, 93.9% for palladium, 96.8% for platinum, 85% for gold, 88.9% for silver, and 77.1% for nickel.

This revision significantly enhances the economic potential of the Lion zone. The improved recoveries translate directly to higher recoverable value from each tonne of ore processed. The 18.2% improvement represents a substantial increase in potential economic returns without requiring any increase in mining rates or capital investment in processing infrastructure.

Power Metallic will apply these updated recovery rates to all future assay results and resource calculations, providing greater accuracy in communicating the true value of drilling intersections. The technical team views these results as validation of their geological model, confirming that the Lion zone mineralisation exhibits characteristics superior to initial conservative estimates.

Conclusion and Next Steps

Power Metallic has achieved a significant de-risking milestone with these exceptional metallurgical results. The company plans to complete the initial conventional concentration test work and provide a comprehensive final report. Management is now evaluating options for a Phase 2 study programme to investigate opportunities for creating value-added products, as recommended by SGS Canada. The metallurgical success positions the company to advance the Nisk Project Area with increased confidence, with ongoing exploration across the 313-square-kilometre land package potentially multiplying value creation opportunities for shareholders.

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