Power Metallic's Lion Zone Drilling and Metallurgical Results Advance Resource Estimate Timeline

• Hole PML-26-067 returned 4.07 metres grading 8.73% copper equivalent at 50 metres below surface.
• Hole PML-26-097 intersected 10.30 metres grading 4.04% copper equivalent at roughly 75 metres below surface.
• Locked-cycle metallurgical testing on low-grade disseminated material returned copper recovery of 98.3% at a concentrate grade of 25.4%, comparable to results from higher-grade tests.
• Precious metals, including palladium, platinum, and gold, recovered in the mid-to-high 80% range from the low-grade test material.
• The Mineral Resource Estimate is targeted for delivery by end of July 2026, to be followed by a Preliminary Economic Assessment.

Power Metallic Mines Inc. (TSXV: PNPN | OTCBB: PNPNF | Frankfurt: IVV1) is a Canada-based mineral exploration company advancing the Nisk Project Area, a polymetallic system hosting copper, platinum group elements, nickel, gold, and silver across roughly 330 square kilometres in Canada. The project includes three key targets: the Nisk and Lion discovery zones and the Tiger target. The company acquired the Nisk project through an option agreement in 2021 and expanded its land position in 2025 through the purchase of adjoining claims. Power Metallic also holds indirect interests in mineral properties in British Columbia and Chile, and a wholly owned Saudi Arabian subsidiary with an exploration licence in a region prospective for copper-gold mineralisation.

Lion Zone MRE In-fill Drilling Results and High-Grade Copper Intercepts

Power Metallic's winter 2026 drilling programme at the Lion Zone returned results from in-fill holes drilled within the depth range of a potential open-pit mine. The programme was designed to increase data density within the known mineralised zones ahead of the upcoming Mineral Resource Estimate (MRE), the industry-standard report that defines how much mineral is in the ground at a given level of confidence. Hole PML-26-067 returned 4.07 metres grading 8.73% copper equivalent at 50 metres depth, and hole PML-26-097 returned 10.30 metres at 4.04% copper equivalent at roughly 75 metres depth.

Additional holes provided further detail on the deposit. PML-26-102 returned 10.45 metres at 3.24% copper equivalent, including narrower sub-intervals above 4.5%, while PML-26-109 intersected 22.71 metres at 1.45% copper equivalent. Copper equivalent is a single figure that converts all metals present, including gold, palladium, and nickel, into a copper value for comparison purposes.

All remaining assays from the winter programme are expected by mid-June 2026. Once received, the full dataset will be incorporated into the MRE modelling process. SGS Canada Inc. has been retained as the independent author of the MRE, with geological modelling already commenced on both the Lion and Nisk deposits.

Positive Metallurgy on Low-Grade Disseminated Mineralisation

Power Metallic reported results from a second round of locked-cycle metallurgical testing, referred to as LG2, on a low-grade composite sample of disseminated Lion Zone material. Locked-cycle testing simulates the repeated processing conditions used in an actual concentrator plant, providing a more realistic measure of how well metals can be extracted from ore. The test was conducted by SGS Canada Inc. at its Quebec City and Lakefield laboratories.

The LG2 test returned copper recovery of 98.3% into a concentrate grading 25.4% copper. For comparison, the first locked-cycle test on higher-grade material achieved 98.9% copper recovery at a 25.8% concentrate grade. Precious metal recoveries from the low-grade composite included palladium at 89.1%, platinum at 84.1%, gold at 83.1%, and silver at 75.9%.

These results are relevant to the MRE because they provide a technical basis for assigning a cut-off grade, which is the minimum grade of rock considered worth processing, to the disseminated lower-grade material in the deposit. As a supplementary step, SGS is also conducting hydrometallurgical testing to assess whether the copper concentrate could be further refined into metal solution, with results still pending.

MRE Preparation Progress and Preliminary Economic Assessment Planning

The MRE is currently underway, with SGS Canada Inc. commissioned as the independent qualified person authoring the report. Geological modelling has commenced on both the Lion and Nisk deposits, drawing on data from the winter 2026 in-fill drilling, prior Nisk ore metallurgical work completed by XPS in 2023, and the two rounds of Lion metallurgical testing completed by SGS. The MRE is targeted for completion by end of July 2026.

CEO Terry Lynch said:

"We are very pleased with the metallurgical results from the low-low grade composite sample, confirming the excellent metallurgical performance we have seen from the Lion deposit."

CEO Terry Lynch added:

"These results, along with the MRE, will be critical inputs to the PEA which we plan to commence immediately following the MRE."

A Preliminary Economic Assessment (PEA) is a high-level study that translates resource data into estimated project economics, including operating costs, capital requirements, and potential returns. The PEA will be initiated immediately upon completion of the MRE, using the resource model alongside the metallurgical data as primary inputs.

Conclusion

Power Metallic's winter 2026 drilling programme and the two rounds of metallurgical testing have provided the data sets that will underpin the upcoming MRE. With remaining assays expected by mid-June 2026 and the MRE targeted for late July, the company's stated next step is to commence the PEA immediately following the resource estimate's publication. The PEA will represent the first formal economic study of the Lion and Nisk deposits combined, and its completion will mark the project's progression from resource definition toward economic evaluation.

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