Mr. Paul Gorman reports

POWERMAX MINERALS SHARES COMBINED ASSAY AND GEOPHYSICAL FINDINGS FOR ATIKOKAN RARE EARTH PROPERTY IN NORTHWESTERN ONTARIO

Powermax Minerals Inc. has released the results of an integrated geochemical and geophysical interpretation, including 2025 rock, soil and sediment assay results, from its Atikokan rare earth element (REE) property in Northwestern Ontario.

The interpretation identifies and prioritizes exploration targets with characteristics consistent with potential REE mineralization, with multimedia geochemistry suggesting that surface anomalies may serve as vectors for follow-up exploration.

Key highlights:

• Rock sampling (117 samples):
  • TREO (total rare earth oxide) values range from 19.1 to 503.3 parts per million;
  • Multiple samples exceed 200 ppm TREO;
  • Elevated REE values primarily associated with gneissic units (blocks B and C);
• Soil sampling (228 samples):
  • TREO values range from 28.4 to 615.8 ppm;
  • Strong REE anomalies identified across north-south soil grids;
  • High values spatially associated with structural corridors and lithological contacts;
• Sediment sampling (10 samples):
  • TREO values range from 37.1 to 377.2 ppm;
  • Indicates mechanical dispersion of REE-bearing minerals downstream;
  • Supports presence of proximal REE source rocks.

These values fall within background to moderately anomalous ranges typical of early-stage REE exploration systems.

Interpretation summary

The integrated interpretation demonstrates two distinct mineralization environments across the property:

• Dashwa gneiss complex (blocks B and C) -- priority targets for follow-up exploration;
• Geochemical and radiometric data indicate that REE enrichment is:
  • Associated with thorium-bearing accessory minerals (monazite and allanite);
  • Strongly correlated with thorium/uranium ratios and uranium enrichment;
  • Controlled by regional structural corridors and shear zones;
• The data suggest a metamorphic or metasomatic LREE (light rare earth element) system, where REEs are concentrated along deformation zones rather than uniformly distributed;
• Soil geochemistry further strengthens the exploration model, showing REE-Th-U associations and that surface anomalies are vectors toward underlying mineralization;
• White Otter batholith (block A) -- lower priority due to:
  • TREO values ranging from 22 to approximately 487 ppm, typical of background granitic rocks;
  • Weak correlations between REE and radiometric indicators;
  • REEs hosted in dispersed accessory minerals (allanite, zircon and apatite) rather than concentrated zones;
  • While overall prospectivity is limited, localized structurally focused targets remain, particularly at fault intersections and pegmatitic zone.

Based on the interpretation of geochemistry and geophysical results, the company has developed a conceptual exploration model consistent with structurally controlled REE mineralization, primarily in monazite (a light REE-thorium phosphate) and allanite (an REE-bearing epidote group), which occur within gneissic foliation zones, shear corridors, and at contacts between batholith and gneiss.

Paul Gorman, chief executive officer of Powermax Minerals, commented: "These results significantly advance our understanding of the Atikokan property and clearly define a path forward for exploration. The identification of structurally controlled REE targets within the Dashwa gneiss complex is particularly encouraging as it points to a coherent mineralization system rather than isolated occurrences." Mr. Gorman further explained, "The strong association of rare earth elements with thorium and uranium geochemistry provides us with reliable vectors to prioritize targets, and we are confident that focused follow-up exploration work will allow us to unlock the full potential of this project."

Exploration work summary

In October, 2025, property-scale airborne magnetic and radiometric surveys were conducted by Geo Data Solutions Inc. (GDS), flown at 50-metre line spacing with gridded outputs at 25-metre resolution and an average ground clearance of 44 metres for the helicopter.

Complementing this survey, the 2025 exploration work also included a field program of geological mapping, prospecting, radiometric surveys, and systematic soil, sediment and rock sampling. A total of 426 samples, including quality assurance/quality control (QA/QC) samples, were collected and submitted to Agat Laboratories Ltd. for analysis.

Sampling, analytical methods and QA/QC

Soil samples were collected from the B horizon where possible at depths of approximately 10 to 30 centimetres using hand tools. Approximately 0.5 to 1.0 kilogram of material was placed in labelled kraft sample bags. Sample locations were recorded using hand-held GPS (Global Positioning System) units.

Representative rock samples were collected during prospecting of rock outcrops and mineralized float across the property. Rock samples consisted of selective grab samples weighing approximately one to two kilograms and were collected using a geological hammer. Grab samples are selective in nature and may not represent of the mineralization hosted on the property. Hand-held scintillometers were used as prospecting tools due to affiliation of REE mineralization with higher radioactivity.

Samples were submitted to Agat Laboratories' Thunder Bay, Ont., location and were later prepared and analyzed at its Calgary, Alta., location using the 201-380 metals package. Agat is an ISO/IEC 17025:2017-accredited independent laboratory. Quality assurance and quality control procedures included the insertion of field duplicates, blanks and standards. At the laboratory, rock samples were dried, crushed to approximately 70 per cent passing two millimetres and pulverized to 85 per cent passing 75 microns. Soil samples were dried and sieved to obtain the fine fraction (typically minus-80 mesh). Samples were analyzed for rare earth elements using sodium peroxide fusion followed by ICP-OES/MS analysis, which provides near-total digestion for REE determination. Quality assurance and quality control procedures included the insertion of field duplicate samples into the sample stream at regular intervals. Laboratory internal QA/QC procedures were also applied.

Qualified person

The technical information contained in this news release has been reviewed and approved by Afzaal Pirzada, PGeo, who is a director of the company and a qualified person under National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Cautionary statement

The geochemical and geophysical results presented in this news release are preliminary in nature and are intended to guide exploration targeting. There has been insufficient exploration to define a mineral resource, and it is uncertain whether further exploration will result in the delineation of a mineral resource. Grab samples are selective in nature and may not be representative of the mineralization on the property.

About Powermax Minerals Inc.

Powermax Minerals is a Canadian mineral exploration company focused on advancing rare earth element projects. The company holds an option to acquire the Cameron REE property, comprising three mineral claims totalling approximately 2,984 hectares in British Columbia. Powermax also optioned to acquire the Atikokan REE property, consisting of 455 unpatented mining claims in Northwestern Ontario. Powermax also optioned to acquire the 5,178-hectare Pinard REE property in Northern Ontario. Powermax also owns a 100-per-cent interest in the Ogden Bear Lodge project in Crook county, Wyoming.

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