Power Metallic Contracts SGS Canada for Lion Deposit Metallurgical Testing

• Power Metallic awarded SGS Canada Inc. the Phase 1 metallurgical testing contract following a competitive bid process focused on flotation experience.
• Testing will assess recovery rates for six metals (copper, palladium, platinum, gold, silver and nickel) using 300 kg of drill core samples from two distinct zones.
• The programme uses a three-composite approach combining high-grade massive sulphides with lower-grade hanging wall material in a 50/50 ratio based on modelled volumes.
• Results are expected within 14 weeks, with final reporting anticipated before January 2026.
• CEO Terry Lynch stated the study will enable independent analysts to develop economic valuations on the Nisk project using appropriate recovery numbers.

Power Metallic Mines Inc. (TSXV: PNPN) is a Canadian exploration company focused on the Nisk Project Area, which comprises the Nisk, Lion and Tiger zones containing copper, platinum group elements, nickel, gold and silver. The company secured an option to earn up to 80% of the Nisk project from Critical Elements Lithium Corp. in February 2021. Following the June 2025 purchase of 313 adjoining claims from Li-FT Power, the company now controls approximately 212.86 square kilometres.

Beyond the Nisk Project Area, the company holds a 50% stake in Chilean Metals Inc. and owns 100% of Power Metallic Arabia, which operates the Jabul Baudan exploration licence in Saudi Arabia's Jabal Said Belt.

SGS Canada Contract Award and Testing Methodology

Power Metallic selected SGS Canada Inc. through a competitive bidding process based on the firm's experience with flotation metallurgical testing. Work will be divided between two SGS facilities: compositing and flotation studies will be conducted in Quebec City, whilst analyses and environmental testing will occur at Lakefield, Ontario. The testing programme is scheduled to take approximately 14 weeks to complete.

CEO Terry Lynch commented:

"Metallurgical Testing is one of the key steps mining companies take to derisk development of mining projects. It is also a necessary step for NI 43-101 reporting on the resource and its economic potential. While we have no immediate plans to produce a NI-43-101 resource report the results of this study will enable independent bank, company and industry analysts to utilize the appropriate resource recovery numbers while developing economic valuations on the Nisk project. In this respect we are following the path well established by projects like Filo and Great Bear, who both posted assays and azimuths for their exploration results and allowed the analysts to speak to the economic potential of these projects."

Work to date has shown that copper mineralisation is contained within coarse-grained chalcopyrite and cubanite. According to the company, the character of the mineralisation suggests these minerals should respond well to conventional sulphide concentration methods. The initial metallurgical tests will determine recovery potential for platinum group elements, gold, silver and nickel, which are expected to report within a conventional sulphide concentrate.

Sample Composite Preparation and Multi-Zone Testing

The Lion deposit contains two zones identified through drilling: a high-grade zone with semi-massive to massive copper sulphide mineralisation, and a lower-grade hanging wall zone with disseminated and veined structural mineralisation. Power Metallic compiled drill core reject material from 15 drill holes (103 samples) for the high-grade zone and 10 drill holes (99 samples) for the lower-grade zone. Samples were selected to be spatially representative of known mineralisation across strike and down plunge within the deposit.

Each zone provided approximately 300 kg of sample material, which was delivered to the SGS laboratory in Quebec City. SGS will generate a 75 kg composite of test material for each zone, with each reject sample length-weighted by sample interval to represent total mineralised drill intervals. The high-grade and low-grade material will be homogenised to ensure consistent sub-sampling.

SGS will extract 25 kg from each 75 kg composite to form a blended composite, resulting in three separate 50 kg composites for initial analyses and flotation testing. The 50/50 ratio of high-grade to low-grade weighting for the blended composite is based on current estimates of modelled volumes for the two deposit types. Each composite will undergo complete metallurgical testing to determine recovery variability for the six principal metals. Additional testing may be conducted for rare earth minerals (osmium, iridium, rhodium, ruthenium) if initial mineralogy suggests potential economic concentration.

Metallurgical Recovery Expectations

The copper mineralisation at Lion consists of coarse-grained chalcopyrite and cubanite. According to the company, both minerals should respond well to conventional sulphide concentration methods. The company states that the overall character of the mineralisation suggests favourable recoveries of copper sulphides.

The initial metallurgical tests will determine recovery potential for platinum group elements (palladium and platinum), gold, silver and nickel. These metals are expected to report within a conventional sulphide concentrate. The testing programme will assess recovery rates for each of the six principal metals across the high-grade zone, low-grade zone and blended composite.

Current understanding, as stated in the release, is that the majority of metal value in the deposit is contained within the high-grade zone. The three-composite testing approach will provide recovery data for each zone individually and in combination. SGS Canada will conduct the flotation studies to determine actual recovery rates, with results expected before January 2026.

Next Steps

The metallurgical testing programme is expected to be completed within approximately 14 weeks. Power Metallic stated it will release results as soon as practical, with final reporting not expected before January 2026. The company noted these results will provide data for independent analysts to develop economic valuations on the Nisk project.

Power Metallic continues to expand mineralisation at the Nisk and Lion discovery zones, evaluate the Tiger target, and explore the enlarged land package through successive drilling programmes.

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