ValOre Metals: Platinum Bet Gains Traction as EU Weighs Russian Metal Ban

• EU's proposed ban on Russian platinum, copper, and other metals could reshape global supply chains, potentially benefiting non-Russian producers like ValOre Metals.‍‍
• ValOre owns the 100% Pedra Branca project in Brazil with 2.2 million ounces of platinum, palladium, and gold resources across seven near-surface zones.
• Both platinum and palladium markets face structural deficits, with platinum up 48% and palladium up 25% year-to-date in 2025.
• The Discovery Group-backed management team has delivered CAD$1.7 billion in mergers and acquisitions across five major discoveries.
• Brazil's mining-friendly jurisdiction, excellent infrastructure, and growing technical talent pool position ValOre advantageously for development.

Why This Matters Now

The European Union's consideration of a ban on Russian copper, platinum, and platinum group metals represents the latest escalation in economic sanctions targeting Moscow's war economy. For investors in the precious metals sector, this geopolitical development creates immediate implications for supply security and price dynamics. ValOre Metals Corp., a TSX Venture-listed explorer with significant platinum group metal resources in Brazil, stands positioned to benefit from this potential market disruption.

Bloomberg reported on February 2, 2026, that the EU is evaluating import restrictions on platinum, iridium, rhodium, and copper as part of its 20th sanctions package against Russia. The proposal requires unanimous approval from all 27 member states, but the mere consideration signals Europe's willingness to target metals critical to industrial manufacturing. Russia's MMC Norilsk Nickel, the world's largest palladium producer and a major platinum supplier, would bear the primary impact of such restrictions. Markets for platinum and copper are already tight, with copper prices historically high and platinum operating in a supply deficit, intensifying the potential economic impact of import restrictions.

Management Team With Proven Track Record

ValOre Metals Corp. operates as a Brazilian-focused precious metals explorer led by mining industry veterans with proven track records in discovery, development, and value creation. The leadership team's credentials speak directly to their ability to navigate both technical and financial challenges in the mining sector.

Chairman Jim Paterson brings 27 years of executive leadership experience and serves as co-founder and principal of Discovery Group. According to the company, Paterson has been "Director/officer of companies which have raised $300+M in equity, and participated in $1+B in M&A transactions" while delivering "exploration discoveries at multiple projects globally." Discovery Group member companies have achieved notable exits, including Kaminak Gold's CAD$520 million acquisition by Goldcorp in 2016 and Great Bear Resources' CAD$1.8 billion takeover by Kinross Gold in 2022.

"Co-founder and principal of Discovery Group. 27 years Executive Leadership experience; Director/officer of companies which have raised $300+M in equity, and participated in $1+B in M&A transactions delivered exploration discoveries at multiple projects globally."

CEO Nick Smart brings 21 years of experience at Anglo American and De Beers, where he gained expertise in the "Design, construction and operation of large scale mining projects: Platinum & Zinc in South Africa, Nickel in Brazil, Diamonds in Canada." VP Exploration Thiago Diniz, who holds a master's degree in economic geology from Queen's University, leads the company's Brazilian field operations with experience in "Exploration, development of fertilizer, base & precious metals in Brazil & Canada."

The Flagship Asset: 2.2 Million Ounces in Brazil

ValOre's flagship Pedra Branca project encompasses 51,096 hectares in Ceará State, northeastern Brazil, approximately four hours by paved highway from the deep-water port and international airport in Fortaleza. The company describes the asset as having "CAD$10M invested in exploration; 23,534 metres drilled by ValOre; USD$30M invested, 30,000 m by previous operators."

The property hosts seven near-surface mineralized zones containing an inferred resource of "2.2 Moz 2PGE+Au @ 1.08 g/t in 7 near surface inferred resource zones," as outlined in a March 2022 NI 43-101 technical report. The four core deposits (Esbarro, Curiu, Cedro, and Cana Brava) collectively contain over 1 million ounces of platinum group metals and gold. Two southern resource zones, Trapia and Massape, host an additional 1 million ounces.

"Near surface, accessible orebodies with excellent regional infrastructure and exploration upside."

The 2023 drill program tested five new exploration zones over 6,000 meters, including the Salvador target, which has not yet been incorporated into the resource estimate. The mineralization occurs along an "80 km+ of prospective and underexplored PGE trend," offering significant resource expansion potential. Infrastructure advantages include proximity to the town of Capitão Mor, which houses project operations with a population of approximately 900 people, along with paved highways, available electrical power, and access to skilled labor.

Understanding the Supply Crisis

The platinum and palladium markets have entered structural supply deficits that create significant opportunities for new producers. According to the World Platinum Investment Council, the platinum market recorded a deficit of 446,000 ounces in 2023 and is projected to remain in deficit through 2024 with a shortage of 476,000 ounces. The palladium market faces similar constraints, with Johnson Matthey reporting a deficit of 909,000 ounces in 2023, marking the third consecutive year of undersupply.

Russia and South Africa collectively account for approximately 80% of global palladium production and over 75% of platinum production, creating concentration risk for industrial consumers in automotive, chemical, electronics, and jewelry sectors. ValOre's analysis notes that:

"Mine supply concentrated in Russian Federation and South Africa – declining primary supply from Southern Africa and North America driven by cost and capex pressures. Historic under-investment in supply and sustained demand driving strong price increases: Pt +48% 2025 YTD, Pd +25% 2025 YTD."

The proposed EU ban would force European manufacturers to source platinum and palladium from alternative suppliers or draw down existing inventories. Historical precedent exists for such market disruptions: in March 2022, the London Metal Exchange barred new deliveries of Russian copper, while the London Platinum and Palladium Market removed Russian refiners from delivery lists. Discovery Alert notes that previous measures have already "pushed Russian metals out of key trading venues (e.g., copper excludes some Russian material from the LME and Russian refiners were removed from the London Platinum & Palladium Market delivery lists)."

Brazil's Strategic Mining Advantage

Brazil has emerged as one of the world's most attractive mining jurisdictions, combining geological prospectivity with improving regulatory frameworks and a growing technical workforce. The country ranks among the top 10 gold producers globally, producing approximately $3.8 billion annually and growing to over $6 billion by 2030, according to Grand View Research cited in ValOre's presentation.

The regulatory environment has stabilized significantly in recent years. ValOre notes that "Stable regulatory frameworks support investment and streamline approvals," a critical factor for companies seeking to advance projects through permitting and development. This represents a marked improvement from previous decades when regulatory uncertainty deterred international investment in Brazilian mining.

"Brazil now graduates more mining engineers than both USA and Canada combined!"

The technical talent pipeline has expanded dramatically, addressing a constraint that has limited mining development globally. According to the Mining Industry Human Resources Council, Brazil's universities now produce more mining engineering graduates annually than the United States and Canada combined. This domestic talent pool reduces reliance on expensive expatriate technical staff and facilitates community engagement through local employment.

ValOre has built a "World Class team on the ground in Brazil" with a "Track record of geological resource expansion exploration success and permitting" while maintaining "Strong community support." This local presence positions the company advantageously for both technical execution and stakeholder relationship management, critical factors in successful mine development.

Clear Path to Value Creation

ValOre has outlined a clear development pathway designed to advance Pedra Branca toward production while simultaneously building a broader portfolio of Brazilian precious metals assets through strategic acquisitions. The company's growth trajectory balances technical de-risking of the flagship asset with strategic expansion through mergers and acquisitions.

The fourth quarter of 2025 marked the completion of comprehensive metallurgical testwork conducted in partnership with the University of Cape Town, aimed at demonstrating optimal processing routes for the complex platinum group metal mineralization. This work addresses one of the key technical uncertainties associated with platinum group metal projects: identifying efficient and economical methods to extract and concentrate the valuable metals from host rock.

The company targets an initial merger or acquisition announcement in the first quarter of 2026, focused on Brazilian gold projects that could provide near-term production and cash flow.

ValOre describes its acquisition strategy as seeking :

"High-quality precious metals targets – Advanced stage gold projects in N.E. Brazil. District-scale, exploration and development projects. Significant prior investments with clear upside. Actively pursuing acquisition and partnership strategy."

By the third quarter of 2026, management aims to achieve "Targeted gold production from acquisitions; expanded M&A efforts." This timeline suggests an aggressive but achievable growth plan that could transform ValOre from pure explorer to producer within 18 months. A preliminary economic assessment for Pedra Branca is scheduled for publication in the fourth quarter of 2026, providing investors with initial capital cost estimates, operating cost projections, production profiles, and economic returns at various metal price scenarios.

Technology & Innovation Edge

ValOre has embraced technological innovation as a competitive advantage, recognizing that modern analytical tools can unlock value in underexplored terrains. The company has partnered with VRIFY, a technology company specializing in advanced data processing and 3D visualization for the mining sector, to reprocess legacy geological and geophysical datasets using modern analytical techniques.

Brazil remains largely underexplored, with less than 30% of the country mapped at high-resolution geological or geophysical standards according to the Brazilian Geological Survey. ValOre notes that while "The Brazilian Geological Survey (SGB/CPRM) has ramped up aerial geophysics, litho-structural mapping, and mineral potential modeling, but datasets remain fragmented and underused." The company's "VRIFY partnership gives ValOre edge by reprocessing legacy datasets, applying modern tech, and targeting data gaps to unlock hidden value."

The company has also initiated bacteria-based bio-extraction testwork for platinum group metals, describing it as having "high potential for efficient, lower cost, lower impact processing." Traditional platinum processing relies on energy-intensive pyrometallurgical and hydrometallurgical methods that require significant capital investment and generate environmental liabilities. Biological extraction using specialized bacteria represents a frontier technology that several research institutions and mining companies are developing for more sustainable metal recovery.

What Investors Should Watch

Several catalysts could drive revaluation over the next 18 months. The publication of metallurgical testwork results in late 2025 will demonstrate technical feasibility and optimal processing methods. The targeted first-quarter 2026 acquisition announcement could accelerate the company's transition toward production and revenue generation. The fourth-quarter 2026 preliminary economic assessment will provide the first comprehensive economic analysis of Pedra Branca, establishing baseline valuation metrics for the asset.

Throughout this period, continued strength in platinum and palladium prices driven by supply deficits and potential sanctions will support sector-wide multiple expansion. The company's positioning emphasizes that "ICE and hybrid vehicles continue to form a large segment of demand (>50%) for an extended period," providing sustained fundamental support for platinum group metal prices even as electric vehicle adoption accelerates.

"Part of highly successful Discovery Group ($1BN raised, $2.6BN M&A activity). Board with a strong transaction track record. Access to global finance through Canadian TSX-V."

The company trades on the TSX Venture Exchange under symbol VO, on the OTCQB as KVLQF, and on the Frankfurt Stock Exchange as KEQ0. As of January 1, 2026, ValOre maintained 257.9 million shares outstanding at a price of CAD$0.105, yielding a market capitalization of approximately CAD$27.1 million with CAD$900,000 in cash. The shareholder base includes 25% held by resource and mining funds, 20% by insiders and advisors, 10% by close associates, and 45% by retail and other investors, demonstrating significant insider alignment.

Investment Thesis for EU Sanctions Impact on Platinum Markets

• Diversify into non-Russian platinum producers if EU sanctions materialize and prices rise above USD$1,200 per ounce.
• Monitor geopolitical risk by tracking EU member state negotiations on the 20th sanctions package through February 2026.
• Evaluate junior explorers with advanced-stage platinum projects in stable jurisdictions as supply security concerns intensify.
• Consider inflation hedges through precious metals exposure as deficit markets and sanctions drive structural price support.
• Assess acquisition targets in Brazil's mining sector where regulatory improvements and technical talent enhance development prospects.
• Position for long-term automotive demand from hybrid vehicles which will consume platinum group metals beyond 2030.

The Bottom Line for Investors

The European Union's evaluation of sanctions targeting Russian platinum and copper creates a watershed moment for global metals markets already operating in supply deficit. ValOre Metals, with its 2.2 million ounce Brazilian platinum group metal resource, experienced management team, and clear development pathway, offers investors leveraged exposure to this evolving market dynamic.

The company's CAD$27.1 million market capitalization significantly undervalues the strategic importance of jurisdiction-diversified platinum supply in an increasingly fragmented geopolitical landscape. With CAD$40 million invested to date (CAD$10 million by ValOre plus USD$30 million by previous operators), the current valuation implies the market assigns minimal value to exploration upside, near-term acquisition potential, or the geopolitical premium that non-Russian platinum sources should command.

Investors should recognize the inherent risks associated with junior exploration and development companies, including execution risk on the acquisition strategy, financing requirements for project advancement, commodity price volatility, and regulatory uncertainties in permitting processes. However, the combination of proven management, quality assets in a favorable jurisdiction, technological innovation, and favorable market fundamentals creates a compelling risk-reward proposition. As global supply chains reconfigure around geopolitical realities and resource nationalism, companies like ValOre that control strategic metal resources in stable, mining-friendly countries warrant serious consideration in diversified precious metals portfolios.

TL;DR

ValOre Metals' 2.2 million ounce Brazilian platinum project gains strategic value as the EU considers banning Russian platinum group metal imports. With platinum markets in structural deficit and proven Discovery Group management, the CAD$27 million company offers leveraged exposure to supply chain reconfiguration. Key catalysts include Q4 2025 metallurgical results, Q1 2026 acquisition targets, and Q4 2026 preliminary economic assessment, positioning ValOre as a jurisdiction-diversified alternative to Russian-dominated supply.

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