Mr. Mario Pezzente reports

MUSK METALS NOTES THAT THE NORTH ATLANTIC TREATY ORGANIZATION ("NATO") HAS INCLUDED GERMANIUM IN ITS LIST OF 12 DEFENCE-CRITICAL RAW MATERIALS

Musk Metals Corp. has provided additional information as NATO released a list of 12 defence-critical raw materials, including germanium, in December, 2024. According to Statista, a German research company, combined defence expenditures of NATO countries in 2024 were $1,474-trillion (U.S.), up 13.8 per cent from 2023.

In 2024, the Stockholm International Peace Research Institute (SIPRI) estimated global military expenditure at $2,443-billion (U.S.), the highest level ever recorded by SIPRI. SIPRI further found that the combined revenues of the top 100 largest defence companies globally totalled $632-billion (U.S.) in 2023, up 4.2 per cent from 2022, with the five largest companies by revenue being Lockheed Martin, RTX, Northrop Grumman, Boeing and General Dynamics. These five companies are all U.S. corporations with combined arms sales of $198.3-billion (U.S.).

Germanium is essential to modern warfare systems and has many growing applications for military uses in the following markets.

Military drones and uncrewed aircrafts

Germanium has the ability to block both visible and ultraviolet (UV) wavelengths of light but allow the transmission of infrared light. This makes germanium extremely useful in applications that deal with infrared optics, such as thermal imaging and infrared detection for drones, uncrewed aircrafts and unmanned boats, tanks and armoured vehicles, helicopters, naval systems, as well as night-vision goggles.

According to Market.us research firm, the global military drone market size is expected to be worth around $48.4-billion (U.S.) by 2033, from $14.9-billion (U.S.) in 2023, growing at a compound annual growth rate of 12.5 per cent during the forecast period from 2024 to 2033. Over 35 per cent of global military drone market is supplied by U.S. companies.

Military drones, also known as unmanned aerial vehicles (UAVs), are an essential component in modern defence strategies worldwide due to their versatility in surveillance, reconnaissance and targeted strike operations. These drones provide armed forces with a significant tactical advantage by performing missions in high-risk environments without endangering personnel. Military drones are now widely and routinely used for intelligence gathering, target acquisition and combat operations.

Military satellites

In solar cells that power military satellites, germanium offers superior performance when compared with the older generation of solar arrays as these become smaller and easier to launch. Germanium-based solar cells convert up to twice as much light into electricity as their silicon-based counterparts. Germanium is also much more resistant to damaging cosmic radiations when compared with silicon, extending solar cell technical lifetime to 20 years.

Research firm Precedence Research has estimated that the global military satellite market size accounted for $15.1-billion (U.S.) in 2024, will grow to $16.2-billion (U.S.) in 2025 and is projected to surpass around $29.6-billion (U.S.) by 2034, representing a compound annual growth rate of 6.95 per cent between 2024 and 2034. The North America military satellite market size is worth around $6.1-billion (U.S.) in 2024 and is expected to grow at a compound annual growth rate of 7.09 per cent to $12.1-billion (U.S.) during the forecast period.

Military semiconductor chips

In the semiconductor industry, germanium is one of the most vital metals to develop the next generation of advanced chips. Germanium is increasingly being selected over standard silicon for high performance chips used in defence applications that improve device performance, speed and energy efficiency. The development of sophisticated military systems, such as UAVs, advanced communication systems and high-precision radar systems, is driving the demand for advanced semiconductors in the military sector.

The global military semiconductor market size was valued at approximately $5.2-billion (U.S.) in 2023, and it is projected to reach around $8.7-billion (U.S.) by 2032, growing at a compound annual growth rate of 5.6 per cent during the forecast period with the United States largely supplying the market.

The primary growth factor propelling this market is the increasing emphasis on enhancing the technological capabilities of defence systems, driven by rising geopolitical tensions and the need for advanced military infrastructure, according to research firm DataIntelo.

About the Lac du Km 35 germanium property

The 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.

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), representing one-fifth of a kilogram in contained germanium, and is currently the highest germanium value ever reported from an outcrop in Quebec.

The Laganiere germanium showing is located beside 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 main regional Faribault shear zone, 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.

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

Germanium is a hard, greyish and brittle metalloid. Germanium has many growing applications in electronics and solar, fibre optics, and infrared optics for both civil and military uses. Germanium is also 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. Germanium is not an openly traded commodity and recent spot prices have germanium over $4,000 (U.S.) per kilogram.

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 and the Golden Triangle district of British Columbia.

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