Mr. Harry Barr rpeorts

NAM REPORTS HIGH PGM RECOVERIES FROM PROOF-OF-CONCEPT PLATSOL TESTWORK ON RIVER VALLEY

New Age Metals Inc. has released the results of a proof-of-concept Platsol leaching test work program on its 100-per-cent-owned River Valley palladium project, near Sudbury, Ont.

This Platsol test work was completed by SGS Canada Inc. (SGS) on concentrates made from drill core samples of the Dana and Lismer mineralized zones, as recommended in the 2023 preliminary economic assessment (PEA) (see company press release dated Aug. 11, 2023). This proof-of-concept Platsol study is part of a post PEA metallurgical optimization program designed to examine new and alternative technologies for significantly improving recovery of platinum group metals (PGM), gold and copper at the River Valley project.

Highlights

• The initial Platsol process testing on the Dana and Lismer zones rougher flotation concentrate samples returned positive results with the best observed test results showing final extractions of 93 per cent palladium, 88 per cent platinum, 98 per cent gold, 99 per cent copper and 98 per cent nickel for Dana, and 93 per cent palladium, 85 per cent platinum, 98 per cent gold, 100 per cent copper and 98 per cent nickel for Lismer.
• PGM precipitation recovery testing showed 99 per cent palladium, 94 per cent platinum and 99 per cent gold were recovered in a low-weight final precipitate with grades of 2,908 grams per tonne Pd, 882 g/t Pt and 56.6 g/t Au for Dana, and 99 per cent palladium, 77 per cent platinum and 99 per cent gold recovered in a low-weight final precipitate with grades of 1,832 g/t Pd, 607 g/t Pt and 8.32 g/t Au for Lismer. These high precipitation recoveries are in line with the Platsol process.
• Sample material for the Platsol testing was derived from 2021 drill core of the Dana and Lismer zones stored at SGS Lakefield, Ontario.
• The sample materials at SGS were composited using the same procedures and recipes as used to make the rougher Cu-PGM sulphide concentrates for the 2023 PEA.
• Additional, follow-up test work recommended.

Harry Barr, chairman and chief executive officer, stated: "The very positive palladium and platinum recoveries highlight the potential of our River Valley project through a metallurgical process that includes the Platsol. We look forward to refining these encouraging, initial Platsol results through further test work, as we enhance the viability of our unique, primary multimillion-ounce PGM project."

What is Platsol?

Platsol is a high-temperature and pressure acid leaching hydrometallurgical process developed at SGS Canada Inc. for recovery of PGM, gold and base metals from low-grade, bulk-tonnage polymetallic deposits. Previously, Platsol test work studies of Duluth (Minnesota), Marathon (northwestern Ontario) and Pedra Blanca (Brazil) deposits materials have resulted in Pd, Pt, Au and Cu recoveries of greater than 90 per cent. Conventional locked cycle flotation test work at River Valley produces a bulk copper concentrate (approximately 13 per cent Cu) with significantly elevated PGM values (approximately 96 g/t Pd and approximately 25 g/t Pt for Dana) that, however, is undervalued by base metal smelters. Based on the high recoveries of PGM reported in this press release, Platsol presents a potentially valuable opportunity to produce a much higher-value product at River Valley for metal refining off site.

This proof-of-concept Platsol study of River Valley commenced at SGS Lakefield in October, 2023, and was completed in February, 2024. The study was managed for NAM by D.E.N.M. Engineering Ltd. of Burlington, Ont., and the results could trigger a full, follow-up Platsol study later in 2024.

Platsol test work results for River Valley

Two mineralized samples from the Dana and Lismer zones were subjected to a proof-of-concept Platsol process amenability test work program for the recovery of palladium, platinum, gold, copper and nickel. Rougher flotation on the Dana and Lismer samples provided adequate amounts of concentrates for the purpose of this initial Platsol process testing. The PGM, copper and nickel grades of the Lismer and Dana rougher concentrates are given in Table 1.

Platsol amenability testing on the two samples showed positive results for the extraction of the PGM and base metals of interest. The best results for each sample were observed from a two-stage test where the residues from an initial Platsol test were retested with increased retention time. The test results for the Dana rougher flotation concentrate indicated final extractions of 93 per cent palladium, 88 per cent platinum, 98 per cent gold, 99 per cent copper and 98 per cent nickel. The test results for the Lismer rougher flotation concentrate indicated final extractions of 93 per cent palladium, 85 per cent platinum, 98 per cent gold, 100 per cent copper and 98 per cent nickel. The longer residence time was particularly beneficial for gold and platinum recoveries.

PGM recovery testing using Platsol pregnant leach solutions demonstrated that high recoveries were achievable. The best recovery results for the Dana sample recoveries were 100 per cent palladium, 94 per cent platinum and 100 per cent gold, producing a low-weight final precipitate with grades of 2,908 g/t Pd, 882 g/t Pt and 56.6 g/t Au (Table 2). The best recovery results for the Lismer sample were 100 per cent palladium, 77 per cent platinum and 100 per cent gold, producing a low-weight final precipitate with grades of 1,832 g/t Pd, 607 g/t Pt and 8.32 g/t Au (Table 3).

In conclusion, the tests proved that the PGM minerals in the Dana and Lismer mineralized zones are amenable to the Platsol process. PGM recovery followed by precipitation was effective and recovered approximately 100 per cent of the Au and Pd and 80 to 90 per cent of the Pt, along with a small amount of copper (10 to 20 per cent). Concentrates grading approximately 57 g/t Au, 882 g/t Pt and 2,908 g/t Pd were produced for Dana, and approximately eight g/t Au, 607 g/t Pt and 1,832 g/t Pd for Lismer.

Next steps

Based on these positive results from the proof-of-concept Platsol process testing and subsequent PGM recovery testing, SGS recommends further test work as follows:

1. Bulk flotation processing of approximately 200 to 400 kilograms of each of the Lismer and Dana sample to generate the low mass pull/high grade flotation concentrates as produced for the 2023 PEA test program during locked cycle flotation.
2. Further Platsol optimization testing to improve the kinetics and extractions of the PGM and base metals, and to determine if the higher-grade flotation concentrates have a positive effect (in example, higher leach recoveries) on the process.
3. Further PGM recovery optimization testing to improve the precipitation recoveries of the PGM and explore base metals recoveries and to determine if the higher grade flotation concentrates have a positive effect this process.
4. Additional work is required to investigate the factors controlling the lower platinum recoveries, particularly from the Lismer zone.

About the River Valley project

The River Valley palladium project is located 100 road km east-northeast from the city of Sudbury.

The project area is linked to Sudbury by a network of all-weather highways, roads and rail beds, and is accessible year-round with hydro grid and natural gas power nearby. River Valley enjoys the strong support of local communities, like the Village of River Valley, 20 km to the south. Fully executed memorandum of understandings are in place with the Temagami First Nation and the Nipissing First Nation groups, since 2014 and 2022, respectively. Environmental baseline studies recommenced in 2020 and will continue through 2024.

The new PEA results for the River Valley palladium project were announced in New Age's press release dated June 29, 2023. The PEA outlines a 6,850 tonne/day open pit and underground mine and processing plant operation producing an average of 47,400 ounces of Pd per year over a mine life of 16 years. Using assumed metal prices of $2,150 (U.S.)/ounce Pd, $1,050/oz Pt, $1,830/oz Au and $4.00/pound Cu, the PEA shows a pretax NPV (net present value) (5 per cent) of $296-million (U.S.) and a pretax IRR (internal rate of return) of 16 per cent and an after-tax NPV (5 per cent) of $140-million and after-tax IRR of 11 per cent. Opportunities to progress the viability of the project include improved metal recoveries and increased higher-grade mineral resources.

The PEA was prepared in accordance with National Instrument 43-101 -- Standards of Disclosure of Mineral Projects. It was prepared by P&E Mining Consultants Inc. with D.E.N.M. Engineering Ltd., Knight Piesold Ltd. and Story Environmental. Readers are cautioned that the PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be classified as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic variability.

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About New Age Metals Inc.

New Age Metals is a junior mineral exploration and development company focused on the discovery, exploration and development of green metal projects in North America. The company has two divisions: a platinum group metals division and a lithium/rare element division.

The PGM division includes the 100-per-cent-owned, multimillion-ounce, district-scale River Valley project, one of North America's largest undeveloped platinum group element projects, situated 100 km by road east-northeast of Sudbury, Ont. In addition to River Valley, New Age owns 100 per cent of the Genesis PGM-Cu-Ni project in Alaska, and plans to complete a surface mapping and sampling program in 2022.

The company's lithium division is one of the largest mineral claim holders in the Winnipeg River pegmatite field, where the company is exploring for hard rock lithium and various rare elements, such as tantalum, rubidium and caesium.

Exploration plans for 2024 include up to 15,000 metres of diamond drilling following up on the anomalous results from the geochemical samples collected during summer 2023 and geophysical/structural interpretation. The company has a partnership with Mineral Resource Ltd. (MRL, ASX: MIN), a top global lithium producer to explore and develop the company's lithium project portfolio in Southern Manitoba. The company's philosophy is to be a project generator with the objective of optioning the company's projects with major and junior mining companies through to production.

The company is actively seeking an option/joint venture partner for its newly acquired Northman and South Bay lithium projects in Northern Manitoba, and its road-accessible Genesis PGM-Cu-Ni project in Alaska.

Qualified persons

The contents contained herein that relate to exploration results, mineral resources and the PEA for the River Valley project is based on information compiled, reviewed or prepared by Dr. Bill Stone, PGeo, lead geoscience consultant for New Age Metals. Dr. Stone is the qualified person as defined by National Instrument 43-101 and has reviewed and approved the geoscience-related technical content of this news release. David Salari, PEng of D.E.N.M. Engineering, has reviewed and approved the metallurgically related content of this press release.

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