Mr. Mario Pezzente reports

MUSK METALS EXPANDS THE LAC DU KM 35 GERMANIUM PROPERTY IN QUEBEC

Musk Metals Corp. has increased, by claim staking, the recently optioned Lac du Km 35 germanium property, located near the mining town of Chibougamau, Que. The property now comprises 75 claims covering an area of 4,150 hectares (41.5 square kilometres).

Property description

The Lac du Km 35 germanium property is approximately 40 kilometres east of the mining town of Chibougamau in the Nord-du-Quebec region of Quebec and has excellent access through Highway 167 and a main lumber road that transects the whole property from the west to the east as well as a network of secondary roads.

The property is underlain by the volcano-sedimentary sequence of the Roy group and its metamorphic equivalent, the Laganiere gneissic complex, which hosts the Lac Dore intrusive suite, which is a mafic-to-ultramafic stratiform and synvolcanic intrusion, and the later-stage Duberger felsic pluton; all these rock units belong to the northeastern portion of the Abitibi greenstone belt subprovince of Archean age. To the west of the property, rocks were metamorphosed at the greenschist facies where the chlorite mineral is ubiquitous while the eastern portion has reached the amphibolite metamorphism grade.

A prominent structural element is the ductile Faribault shear zone (FSZ), oriented east-southeast and located toward the eastern part of the property. The FSZ dips to the south-southwest and ends to the Grenville front, which extends southwest-northeast for several hundreds of kilometres. The Grenville front separates the Abitibi greenstone belt from younger Mesoproterozoic rocks and is only a few kilometres to the east of the property. The FSZ is an important feature that could have been joined by other permeable zones at depth as a preferential conduit for hydrothermal fluids.

Discovered by government geologists in 1998 and never followed up, the Laganiere germanium showing consists of a peridotite outcrop within the Laganiere gneissic complex that comprises amphibolites and hornblende and biotite gneisses. The Laganiere showing returned a value of 0.02 per cent (186 parts per million) germanium and is currently the highest germanium value ever reported from an outcrop in the whole of Quebec.

The Laganiere germanium showing is located right alongside the main lumber road and immediately adjacent to the south to a cluster of electromagnetic anomalies of roughly 400 metres by 400 metres in size that were never tested. The Laganiere germanium showing is also 450 metres northeast of the FSZ, 800 metres from the southern margin of the Duberger felsic pluton and approximately two kilometres to the west of the Grenville Front. Apart from regional mapping and sampling of government geologists, the Laganiere germanium showing area remains vastly underexplored and overlooked and constitutes the prime focus for Musk.

Recent exploration work performed in 2024, consisting of prospecting and sampling, allowed the company to collect 39 outcrop samples. Values up to 0.27 per cent nickel, 0.04 per cent cobalt, 0.24 per cent copper and 0.21 gram per tonne gold were obtained from these samples. The highest zinc value is 0.07 per cent and only three samples had overall zinc values over 0.05 per cent. Due to the digestion method selected, germanium values were deemed not reliable.

Mario Pezzente, chief executive officer, commented: "Germanium spot prices have traded as high as $4,000 (U.S.) per kilogram last month, reflecting a 44-per-cent increase over the past 12 months. As the global supply faces unprecedented challenges due to geopolitical dynamics, the strategic importance of this critical metal is clearer than ever. With demand outpacing supply and prices on an upward trajectory, now is the time to position ourselves in the germanium market."

About germanium

Germanium is a hard, greyish and brittle metalloid that shares characteristics of both metal and non-metal properties. Germanium has many growing applications in electronics and solar, in fibre optics, and in infrared optics for civil and military uses. One of the growing and key applications for germanium is autonomous vehicle driving system, where germanium is used for thermal imaging cameras and night vision devices.

China's share of germanium global output in 2024 was estimated between 70 per cent and 75 per cent. According to the U.S. Geological Survey in a 2024 report, there is high degree of uncertainty regarding world primary production of germanium. In 2022, the USGS estimated that world production of primary germanium reached 210,000 kilograms while China's primary production capacity of germanium is 309,000 kilograms.

Germanium is in the list of critical metals in Canada, the United States and the European Union. Since Dec. 3, 2024, China, the largest producer of refined germanium, has banned germanium exports to the United States. The challenge will be securing new or alternative supplies of germanium. Germanium is not an openly traded commodity and recent spot prices have germanium over $4,000 (U.S.) per kilogram.

Results from the initial outcrop sampling at its Fafnir Lake uranium property

In November, 2024, Musk conducted geological mapping and outcrop sampling at its 100-per-cent-owned Fafnir Lake property, located north of the town of Mont-Laurier in the Upper Laurentide region of Quebec. A total of 46 rock samples were collected and sent to ALS Global's laboratory in Val d'Or, Que., for assays.

The best results were from samples BM-24-12, which returned 0.14 per cent total rare earth oxides (TREO) and 100 parts per million copper, and BM-24-46, which yielded 53 parts per million molybdenum and 125 parts per million lead. All samples returned low levels of uranium, below 100 parts per million. These two samples were located on the western edge of the prospecting grid.

Musk was unable to locate previous uranium showings and, from a reference point on the field, it appears that there is a discrepancy of roughly 250 metres that would have shifted the actual position of these showings to the west just outside the November, 2024, sampling area. Musk intends to extend that sampling grid at least 500 metres to the west and carry out additional prospecting and outcrop sampling in the coming field season to determine the exact position of these showings.

These samples were analyzed using peroxide fusion with an ICP finish. Detection limits for TREO are between 0.001 part per million and 0.1 part per million, two parts per million for copper, 0.1 part per million for molybdenum and 0.5 part per million for lead. Due to the low number of samples, no blanks, duplicates or standards were inserted.

The company cautions that the geological information provided in this news release is of historical nature and mineralization may not be representative of mineralization either on the Lac du Km 35 or the Fafnir Lake properties.

Pontax South

The company and the vendor have mutually agreed to amend the Pontax South purchase agreement dated June 26, 2023, to extend the cash payment of $50,000 from Dec. 26, 2024, to July 26, 2025.

Benoit Moreau, PEng, a qualified person as defined by National Instrument 43-101, and vice-president of exploration for Musk Metals, is responsible for the technical information contained in this news release.

About Musk Metals Corp.

Musk Metals is a publicly traded exploration company focused on the development of highly prospective, discovery-stage mineral properties located in some of Canada's top mining jurisdictions. The company's properties are in the Chapais-Chibougamau, Abitibi, Upper Laurentides, Temiscamingue and James Bay regions of Quebec as well as in the Golden Triangle district of British Columbia.

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