ValOre Metals' Path-to-Production Strategy & What It Signals for PGM Investors

• ValOre Metals outlines a clear development pathway for the Pedra Branca PGM Project, anchored by a 2.2 Moz near-surface resource in a favorable Brazilian jurisdiction.
• Structural platinum and palladium supply deficits driven by underinvestment in South Africa and Russia heighten scarcity value for new open-pittable deposits.
• Metallurgical testwork, AI-enhanced targeting, and Brazil's trial-mining permitting regime create an accelerated timeline toward a 2026 Preliminary Economic Assessment (PEA) and early demonstration-phase production.
• ValOre is targeting advanced-stage Brazilian gold assets to add a near-term cash-flow dimension to its portfolio strategy.
  A series of catalysts including metallurgical results (Q4 2025 to Q1 2026), M&A steps, resource expansion, and a 2026 PEA define the investment window for PGM-exposed investors.

Why ValOre's Development Timeline Matters Now

Platinum group metals occupy a critical position at the intersection of industrial demand, constrained global supply, and extended permitting timelines in legacy mining jurisdictions. As electric vehicle adoption accelerates alongside sustained hybrid and internal combustion engine production, autocatalyst demand for platinum and palladium remains structurally robust while new mine supply lags considerably.

ValOre Metals presents a case study in how jurisdictional advantage, development sequencing, and metallurgical validation can materially accelerate a PGM project timeline. The company's Pedra Branca Project in Brazil's Ceará State combines a 2.2 million ounce near-surface resource with access to Brazil's trial mining permit framework, a regulatory structure that enables early production and cash flow generation ahead of full-scale development.

For investors, this convergence of scarcity value, long-cycle pricing dynamics, and tightening platinum group element supply through 2030 creates a defined window for exposure to jurisdictionally differentiated PGM development assets. Chief Executive Officer Nick Smart frames the strategic timing:

"The market is finally realizing the value behind platinum group metals. We've seen a huge increase in terms of interest and certainly in terms of pricing for both platinum and palladium. The timing in many ways feels very right."

Macro Context: A Structural PGM Deficit Meets a Lack of New Mine Supply

Global platinum and palladium mine supply is heavily concentrated in the Russian Federation and South Africa, creating concentrated exposure to operational, political, and economic risk. South African production faces chronic underinvestment in aging deep-level mines, declining ore grades, persistent power grid instability, and rising all-in sustaining costs (AISC). Russian supply remains subject to geopolitical sanctions and restricted access to Western capital markets.

Despite electric vehicle market share growth, hybrid and internal combustion engine autocatalyst demand remains the dominant source of platinum and palladium consumption. According to ValOre's market assessment, hybrid and ICE vehicles are projected to represent more than 50% of forecast PGM demand over the next decade. Hybrid vehicle production, which continues to expand as a transitional technology, requires substantial platinum and palladium loadings per vehicle due to catalyst design requirements.

Chief Executive Officer Nick Smart contextualizes the supply-demand imbalance:

"We're seeing now an increasing awareness that there's going to be a sustained level of demand for platinum and palladium group elements… Interestingly, hybrid vehicles use more platinum and palladium in their catalysts than internal combustion engines… At the same time, we see a gap in terms of supply, with limited numbers of new supply projects coming on board, and most of the projects tend to be complicated, deep-level underground mines located in South Africa or located in Russia. We're obviously very fortunate to have our project in Brazil, which is a friendly jurisdiction place"

The global pipeline of shallow, open-pittable PGM resources remains severely limited. Most new supply projects are structurally complex: deep-level underground operations in South Africa with high capital intensity and elevated AISC, or geopolitically constrained assets in Russia with limited access to project financing. Pedra Branca's near-surface geometry positions it in stark contrast to these capital-intensive peers.

Project Overview: Pedra Branca's 2.2 Moz Resource & Development Levers

The Pedra Branca PGM Project hosts an NI 43-101 compliant inferred resource of 2,198 thousand ounces of platinum, palladium, and gold (2PGE+Au) at a grade of 1.08 grams per tonne across 63.3 million tonnes, with an effective date of March 8, 2022. The resource is distributed across seven near-surface zones, with four core deposits: Esbarro, Curiu, Cedro, and Cana Brava.

ValOre controls over 80 kilometers of prospective PGE trend across a 51,096-hectare land package that is 100% owned by the company, providing substantial exploration upside beyond the current resource base.

Chief Executive Officer Nick Smart emphasizes the resource definition achieved to date:

"Pedra Branca is very well defined. We've done a significant amount of drilling and we're sitting on circa 2.2 million ounces of platinum and palladium."

The mineralization at Pedra Branca extends to surface, a geological characteristic that materially reduces stripping ratios and supports open-pit economics. Lower stripping ratios translate directly to reduced waste movement, lower mining costs per tonne, and improved net present value (NPV) sensitivity. Expected capital expenditure (capex) and AISC for Pedra Branca are anticipated to be significantly lower than underground PGM peers, though precise figures will depend on metallurgical recovery results and preliminary economic assessment inputs currently under development.

The Chief Executive Officer highlights this advantage:

"One of the things we're really excited about with Pedra Branca is the fact that it's a near-surface deposit. Our mineralization goes right up to surface. The level of investment to be able to get into an ore body like that means we're able to do that more cost-effectively and quicker."

The Pedra Branca Project is located within the Ceará State infrastructure corridor. The project site is accessible via paved highway, with Pecem Port located approximately a four-hour drive from the property, and Fortaleza International Airport providing regional air access. This proximity to existing infrastructure reduces potential logistics costs for equipment mobilization, concentrate transport, and personnel movement.

Technology & Metallurgy: The Core De-Risking Step

ValOre has engaged the University of Cape Town's Department of Chemical Engineering to conduct comprehensive metallurgical testwork encompassing flotation and leaching processes. This partnership leverages UCT's established expertise in platinum group metal processing, particularly for complex sulfide ores similar to those at Pedra Branca. The company completed a substantial sampling campaign to support this work.

Metallurgical validation determines PGM recovery rates, concentrate quality specifications, reagent consumption profiles, and flowsheet design options. These technical parameters feed directly into operating cost assumptions, revenue projections, and ultimately NPV and internal rate of return (IRR) calculations. The company is targeting completion of this current phase of metallurgical testwork by the end of 2025.

Chief Executive Officer Nick Smart underscores the strategic priority:

"For us at this stage, the real work is developing the metallurgical treatment process. We've done a big sampling campaign and we're busy doing the metallurgical testwork with the University of Cape Town at the moment with the aim of proving the economics of the project and moving that forward into the permitting process."

ValOre has renewed its partnership with VRIFY Technology, implementing the company's AI-powered platform named Dora. The system synthesizes geophysical and geochemical datasets, applying learning algorithms to identify high-probability drill targets. For resource expansion programs, this approach improves capital efficiency and accelerates the timeline from drilling to resource conversion.

Chief Executive Officer Nick Smart describes the technology adoption:

"VRIFY has developed a very smart program called the Dora platform, which in many ways is a brilliant use and application of AI technology because you're able to consolidate a huge amount of data… That for us makes the targeting process for our geologists a lot more efficient and easier."

Brazil's Regulatory Advantage: A Faster Permitting Path

Brazil's mining regulatory framework provides ValOre with potential timeline advantages compared to peer jurisdictions. The country's approach to project permitting, particularly through the trial mining permit structure, creates optionality for early production and technical derisking not readily available in Canada, the United States, or South Africa.

Brazil's regulatory structure includes provisions for trial mining permits, which, if granted, can enable production and demonstration plant operation prior to completing full environmental impact assessments and operational licensing. This framework potentially enables operators to generate early cash flow, validate metallurgical assumptions at scale, and refine processing parameters using actual plant data rather than laboratory testwork alone.

The Chief Executive Officer explains the regulatory structure:

"Brazil's got a very smart regulatory regime where you can apply for what they call a trial mining permit. You're able to actually get into mining, build a demonstration plant, and prove the economics and the technical process at an early stage. An accelerated permitting process allows you to get into the operation earlier."

Ceará State has prioritized mining sector development through supportive state-level policy frameworks. Brazil now graduates more mining engineers than both the United States and Canada combined, providing access to technical talent.

ValOre reports strong community support for the Pedra Branca Project. The company is planning for Pedra Branca licensing and environmental impact assessment (EIA) submission in the first quarter of 2027, subject to completion of preliminary economic assessment and baseline environmental studies.

Strategic Portfolio Expansion: Gold M&A to Add Cash Flow

ValOre's strategy extends beyond Pedra Branca to include the pursuit of advanced-stage gold assets in northeastern Brazil. This portfolio diversification reflects a deliberate approach to balance sheet management and development risk mitigation. The company is targeting high-quality precious metals opportunities, specifically advanced-stage gold projects in the region.

The company has disclosed a target for announcement of potential gold asset acquisitions in the first quarter of 2026, subject to completion of due diligence and financing arrangements. Production timelines for any acquired assets would depend on their permitting status and technical readiness, with a targeted timeframe of mid-2026 for production from successfully acquired properties.

Chief Executive Officer Nick Smart outlines the portfolio strategy:

"We're actively looking at partnerships and potential acquisitions in the region as well. We think it's a really exciting and prospective space."

ValOre has access to international capital markets through dual listings on the TSX Venture Exchange and Bovespa, supported by an experienced board of directors and ownership interest by strategic equity partners. Management has participated in raising over $300 million in equity capital in past roles.

Exploration Upside: Resource Growth Beyond 2.2 Moz

ValOre completed drilling across five new target zones in 2023, totaling more than 6,000 meters. The newly drilled zones include Salvador, Tróia, Massape, Nambi, and Trapia. These zones confirmed resource expansion and represent exploration upside, as they were not incorporated into the March 2022 resource estimate. The Salvador Target has been identified as a new discovery.

The geological rationale for district-scale potential rests on the 80-kilometer PGE-mineralized trend underlying ValOre's land position. AI-enhanced targeting through the Dora platform, combined with structural geology interpretation and systematic sampling, underpins new target generation across this extensive trend.

Resource expansion in pre-PEA developers typically drives valuation re-rating as enterprise value per ounce multiples compress with resource growth. Exploration success also provides flexibility for mine planning, potentially extending mine life or supporting higher throughput scenarios in future feasibility work.

Key Milestones & Derisking Timeline

ValOre's development timeline through 2027 consists of clearly defined milestones that progressively derisk technical, permitting, and financing inputs for investment decisions:

Q4 2025: Targeted completion of metallurgical testwork with the University of Cape Town, establishing baseline recovery parameters and flowsheet design options.

Early 2026: Expected publication of metallurgical results following internal review.

Q1 2026: Targeted announcement of gold asset acquisitions, subject to due diligence completion and financing arrangements.

Mid-2026: Targeted gold production from successfully acquired assets, contingent on acquisition execution and permitting status.

Q4 2026: Targeted publication of the Pedra Branca Preliminary Economic Assessment, establishing NPV, IRR, capex, and AISC estimates for investment evaluation.

Q1 2027: Anticipated submission of licensing applications and Environmental Impact Assessment, contingent on PEA outcomes and completion of baseline studies.

Each milestone contributes to derisking specific inputs for NPV modeling: metallurgy establishes recovery assumptions, the PEA quantifies capital and operating costs, licensing advances regulatory certainty, and trial mining permit approval potentially enables early production and cash flow. The investor-relevant sequencing follows a logical progression toward construction decision readiness.

The Investment Thesis for ValOre Metals

• Structural PGM supply deficits driven by underinvestment in South Africa and Russia elevate scarcity value for new deposits in stable jurisdictions, creating pricing support for long-cycle development assets.
• Jurisdictional advantage through Brazil's trial mining permit framework potentially accelerates production timelines relative to peer nations, subject to successful permit application and regulatory approval.
• The 2.2 Moz near-surface resource with open-pit potential reduces expected capital intensity and enhances IRR sensitivity compared to deep-level underground alternatives.
• Comprehensive metallurgical testwork incorporating bio-extraction methods demonstrates forward-looking processing economics and ESG alignment, with potential to reduce operating costs and environmental impact.
• Exploration leverage across five newly drilled targets and an 80-kilometer mineralized trend signals resource growth potential beyond the current estimate, creating re-rating opportunity as results are released.
• Portfolio strategy targeting gold M&A brings potential near-term cash flow, subject to successful acquisitions, reducing equity dilution risk and improving financial resilience during capital-intensive PGM development phases.
• Capital markets support from the Discovery Group network enhances credibility with institutional investors and demonstrates proven financing execution capability across multiple development cycles.

A PGM Developer Entering a Defining Strategic Phase

ValOre Metals occupies a differentiated position among global platinum group metal developers through the convergence of jurisdictional advantage, near-surface resource geometry, exploration scale, and strategic portfolio diversification. The Pedra Branca Project's 2.2 million ounce resource, combined with potential access to Brazil's trial mining permit framework, creates an accelerated development pathway relative to conventional PGM projects in legacy mining jurisdictions.

The 2025 to 2027 period will define Pedra Branca's economic clarity through metallurgical validation, PEA completion, and permitting advancement. Simultaneously, targeted gold asset acquisitions add a near-term cash-flow dimension that could strengthen the balance sheet and reduce equity dilution risk during feasibility study execution.

The current development window presents a defined entry point ahead of technical derisking milestones. As metallurgical results emerge in early 2026 and the PEA is targeted for late 2026, ValOre's valuation trajectory will increasingly reflect the economic viability and execution certainty of a project positioned at the intersection of supply scarcity, jurisdictional advantage, and technical differentiation.

TL;DR

ValOre Metals is developing the Pedra Branca PGM Project in Brazil, featuring a 2.2 million ounce near-surface platinum-palladium resource positioned to capitalize on structural supply deficits from South Africa and Russia. The company's strategic advantages include Brazil's trial mining permit framework enabling early production, comprehensive metallurgical testwork with the University of Cape Town targeting completion by year-end 2025, and AI-enhanced exploration across 80 kilometers of prospective trend. ValOre is also pursuing gold asset acquisitions in northeastern Brazil to generate near-term cash flow and strengthen its balance sheet ahead of capital-intensive development phases. Key catalysts include metallurgical results in early 2026, a Preliminary Economic Assessment targeted for Q4 2026, and licensing submissions in Q1 2027, creating a defined investment window for PGM-exposed investors.

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