Mr. Jim Gallagher reports

CLEAN AIR METALS IDENTIFIES POTENTIAL DOWN PLUNGE EXTENT OF ESCAPE INTRUSION AND PROVIDES A COMPANY UPDATE

Clean Air Metals Inc. has released new magnetic inversion results from the company's Thunder Bay North critical minerals project near Thunder Bay, Ont., Canada.

The Thunder Bay North Critical Minerals project hosts an indicated resource of 13.8 Mt (million tonnes) containing 1.2 million ounces of 2PGE (platinum group elements) (Pt+Pd (platinum plus palladium)), 56,800 tonnes of Cu (copper) and 33,800 tonnes of Ni (nickel) between the twin magmatic intrusions (chonoliths) known as the Current and Escape deposits. The Escape deposit contains 5.8 Mt grading 2.6 grams per tonne 2PGE (Pt+Pd), 0.52 per cent Cu and 0.22 per cent Ni, as announced May 3, 2023. The bulk of this mineralization is hosted in the high-grade zone (HGZ) occurring in the southeastern portion of the currently drill defined intrusion. Mineralization remains open to the southeast.

A magnetic inversion case study was executed along the trend of the Escape chonolith and the intersection of the Escape fault to the southeast, to model the potential down plunge extension of the deposit. The study was successful in identifying a volume of material with high magnetic susceptibility at depth, along the plunge of the Escape intrusion. The magnetic inversion model has an estimated top of about 650 m below surface with a vertical extent of about 800 m and estimated width of 500 m and centred about 2000 m ESE (east-southeast) of the most eastern intersection of peridotite from the Escape drill program (ELR20-034). The entirety of this plunge potential is currently untested.

A larger geophysical inversion program using existing datasets has recently been initiated. Joint inversions of the magnetic, magnetotelluric (MT) and Z-TEM data will be completed for an area of about 80 square km which covers the Thunder Bay North intrusive complex. The magnetic susceptibility and conductivity products from these inversions will be utilized to target the intrusions and potential mineralization hosted within at depth.

Geoff Heggie, vice-president of exploration, commented: "The location and size of this magnetic anomaly is a logical down plunge extension of the Escape intrusion and fits with the genesis theory of these intrusions where mineral bearing magma was injected at high pressure from depth. The further refinement of this anomaly by the recently commissioned geophysical inversion program will establish the targets for the next phase of diamond drilling which is expected to commence early in 2024".

Methodology: Two magnetic inversion models were completed by EarthEX utilizing data from a 2010 ground survey and a 2008 airborne magnetic survey data. The 2008 airborne survey was completed by UTS Geophysics, utilizing a fixed wing PAC-750XL plane with three Geometrics G822A cesium vapour total field magnetometers in conjunction with a fluxgate three component vector magnetometer. The survey was carried out on 40 m spaced lines and a nominal sensor height of 30 m. Magnetic inversions were run on both data sets as unconstrained and generated similar results which identified a volume of material with high magnetic susceptibility at depth, along the plunge of the Escape intrusion.

Permitting

The early exploration permitting process for the next phase of exploration drilling was submitted in May, 2023, and has received support from the three proximate first nations communities upon whose traditional territory the Thunder Bay North project lies and from the two potentially affected Metis communities. The Ministry of Mines is currently consulting with one final indigenous group and the Company expects the permits to be issued later this fall.

Receipt of final metallurgical test report

On Aug. 22 the company received the final report from base metallurgical labs for the completed phase two metallurgical test program (see press release dated June 29, 2023). The test program was completed using large diameter core samples from both the Current and Escape deposits to produce three composites and 17 variability samples. The test program comprised a suite of 80 open circuit development tests, eight locked cycle flotation tests and follow-up variability tests. Modelled recoveries are shown in the attached table. These were generated using estimated head grades and the recovery curves derived from the phase two test program.

Optimal results were achieved with bulk flotation, followed by a copper-nickel separation process which resulted in a simple flowsheet and improved overall recovery of metals in two concentrates. The modelled concentrate grade outlined the potential for a clean copper concentrate grading 22 per cent Cu, 38 g/t Pt+Pd and a PGE Ni-rich concentrate grading 50 g/t Pt+Pd and 3.75 per cent Ni. In addition, the results of three multielement scans of the concentrates did not identify problematic abundances of deleterious elements. A preliminary assessment of concentrate marketability was completed and identified that the projected concentrates produced, were marketable with interest and indicative terms received from several domestic and overseas smelters.

Market commentary

With four critical metals as potentially payable in its concentrate, the company is well positioned to take advantage of the pending metals price super cycle predicted by many analysts to supply the green energy revolution. Climate-related events over the last few years have awoken the world to the effects of climate change and the need to transition away from fossil fuels as quickly as possible. Almost every major government is injecting significant financial incentives into the green energy transition. Were it not for a generally slower global economy, most significantly China's slowing economy, the company would perhaps already be entering a metals price super cycle.

Of particular importance to Clean Air Metals, but not fully recognized yet by the markets, is the important role that platinum will play in the green hydrogen economy. Hydrogen is expected to be the fuel that replaces carbon-based energy in planes, ships, trains, long distance trucking and the remainder of the heavy transportation industry. In addition, steel manufacturing and other heavy industry, currently reliant on fossil fuels will have to transition to hydrogen.

The production of green hydrogen through electrolysis utilizes platinum in the electrodes to improve efficiency and resist corrosion. Likewise, hydrogen fuel cells use a platinum-based membrane to generate electricity from hydrogen. The platinum market globally is very small with only about six million ounces of primary production per year, almost 90 per cent of which comes from South Africa with its inherent supply risk.

Jim Gallagher, chief executive officer of Clean Air Metals, stated: "The Thunder Bay North project remains one of the very few and very rare platinum projects outside of Africa. The project development timeline of further exploration, permitting, technical studies and project construction potentially aligns with the growth of the hydrogen economy and potential metals price appreciation. We continue to prudently manage our cash resources and still advance the project. Equity markets in general are currently very difficult for most of the junior mining sector and the company does not currently intend to do any dilutive financing at these low valuations. We currently have approximately $8-million in cash, sufficient to support currently planned activities well into 2024. We do continue to investigate potential strategic partners who share the company's long-term view on the platinum market and who potentially would partner with the company moving forward."

Upcoming events

• Webinar and Q&A (question and answer) session: Sept. 6, 2023, at 4 p.m. ET;
• Beaver Creek Precious Metals Summit: Sept. 12 to Sept. 15, 2023.

Qualified person

Dr. Geoff Heggie, PhD, PGeo, a qualified person under National Instrument 43-101 and vice-president of exploration for the company, has reviewed and approved all technical information in this press release.

Indigenous community social and economic engagement

Clean Air Metals and its wholly owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Thunder Bay North project is on the traditional territories of the Fort William First Nation, Red Rock First Nation and Biinjitiwabik Zaaging Anishinabek. The parties together are the co-operating participants in a memorandum of agreement dated Jan. 9, 2021 (press release Jan. 11, 2021), and exploration agreement signed April 13, 2022 (press release April 14, 2022).

The company appreciates the opportunity to work in these territories and remains committed to the recognition and respect of those who have lived, travelled and gathered on the lands since time immemorial. Clean Air Metals is committed to stewarding indigenous heritage and remains committed to building, fostering and encouraging a respectful relationship with first nations, Metis and Inuit peoples based upon principles of mutual trust, respect, reciprocity and collaboration in the spirit of reconciliation.

About Clean Air Metals Inc.

Clean Air Metals' flagship asset is the 100-per-cent-owned, high-grade Thunder Bay North project, a platinum, palladium, copper, nickel project located near the city of Thunder Bay, Ont., and the Lac des Iles mine owned by Impala Platinum. The Thunder Bay North project hosts the twin magma conduit bodies which host the Current and Escape deposits forming the basis for the new mineral resource estimate subsequently reported on May 4, 2023.

We seek Safe Harbor.