Mr. Frank Basa reports

NORD WELCOMES FEDERAL TAX PROPOSAL AS IT ADVANCES GOWGANDA SILVER RECOVERY

Nord Precious Metals Mining Inc. has welcomed the Carney government's proposed Productivity Mega Deduction as it advances engineering and permitting for its Gowganda silver tailings project. The proposed investment incentives come as Nord defines the processing equipment and water systems needed to build a silver-recovery operation around historical tailings already at surface.

"Canada should be putting the value in its historic mining districts back to work," said Frank J. Basa, PEng, chief executive officer of Nord. "At Gowganda, we are defining the equipment and water systems needed to turn a silver resource into a recovery business. We welcome policies that encourage that investment. Responsible tailings recovery deserves a prominent place in Canada's resource development strategy."

The Mining Association of Canada has welcomed the proposal's broad support for mining and mineral-processing investment, including precious metals. In its Sept. 15 statement, president and chief executive officer Pierre Gratton said: "Today's announcement by Prime Minister Carney is transformative."

The case for reinvesting in established mining districts was also highlighted in Bryan Detchou's Sept. 11 Northern Miner article, "Canada's critical-minerals shortcut is old mines." Nord believes that investment agenda should also embrace responsible recovery of historical tailings.

Connecting the proposal to Gowganda

For Nord, the clearest potential application is the equipment needed to turn Gowganda's tailings into an operating recovery project: mineral-processing machinery and systems to supply, recycle and treat process water. Permanent immediate expensing of qualifying purchases could lower the after-tax cost of that investment when Nord can use the deductions. It is a relevant consideration as engineering defines the project's capital requirements and the company evaluates equipment that could serve successive recovery campaigns.

Nord's Sept. 15 resource update reported an updated mineral resource estimate to support that work. Its Sept. 22 engineering and permitting update reported revised process-design parameters, mass and water balances, and plans to draw process water from the underground mines. Nord is co-ordinating the recovery-permit program with the separate water-taking and environmental approvals required for an operation. The objective is to establish Gowganda as a base for a wider recovery business supported by TTL Laboratories in Cobalt. commercial recovery remains subject to technical and economic work, financing and approvals.

Proposed measures and legislative status

As of Sept. 26, 2026, the Department of Finance draft legislative proposals have not been enacted. They would permanently allow a 100-per-cent deduction for a broad range of eligible equipment acquired on or after Sept. 15, 2026, generally in the year it becomes available for use. Qualifying Canadian development expenses (CDE) incurred from that date would also become fully deductible. Eligibility for equipment and CDE is assessed separately; the proposal does not establish that Nord's tailings expenditures qualify.

As Prime Minister Mark Carney explained in his Sept. 15 remarks, "The effect is straightforward: when you invest in Canada, you can deduct substantially more of that investment immediately." Nord's existing tax position Nord's audited 2025 financial statements disclose $29,925,000 in consolidated non-capital tax-loss carryforwards at Dec. 31, 2025, expiring between 2026 and 2045, with no related deferred tax asset recognized. Available losses may shelter future taxable income and limit the additional near-term cash benefit of faster deductions. Their use is subject to entity-specific tax rules; the full consolidated balance should not be assumed available against Gowganda income. Any benefit to Nord therefore depends on final legislation, qualifying expenditures and its future tax position.

Qualified person

Frank J. Basa, PEng (Peo), chief executive officer and a director of Nord, is a qualified person as defined by National Instrument 43-101 and is not independent of the company.

About Nord Precious Metals Mining Inc.

Nord Precious Metals Mining is advancing a silver-recovery and exploration strategy in Ontario's historic Cobalt-Gowganda mining camp. Its immediate priority is to put the technical, engineering, financing and permitting components in place for silver recovery at Gowganda, with the objective of generating cash flow to support further exploration.

Nord's recovery strategy is anchored by its wholly owned TTL Laboratories in Cobalt, the only permitted high-grade milling facility in Ontario's historic Cobalt camp. TTL combines assay and bulk-sampling services with high-grade silver processing infrastructure and silver dore pouring capability. Its crushing, screening and gravity equipment, and bullion furnace give Nord a base for advancing its own projects and developing a broader processing business serving other operators across the historic Cobalt camp. The company intends to expand that regional role through technical work, commercial arrangements and the environmental approvals applicable to new material streams.

The company's 63-square-kilometre combined Castle-Gowganda property, including 225 hectares of leases, hosts the past-producing Siscoe-O'Brien, Castle and Millerett silver mines, and the Castle East discovery. Nord continues to evaluate Castle East drilling results and the exploration-stage open-pit concept described in its Aug. 31, 2026, update. It is also pursuing metal-recovery opportunities involving the Re-2Ox hydrometallurgical process.

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