Mr. Paul Gorman reports

POWERMAX MINERALS TO OPTION MELBA NORTH RARE EARTH CLAIMS ADJACENT TO HOPKINS PROJECT

Powermax Minerals Inc. has entered into a three-year option agreement with Gravel Ridge Resources Ltd. and 1544230 Ontario Inc. (together, the optionors) to acquire a 100-per-cent interest in the Melba North property, a package of 10 unpatented mining claims comprising of 160 cells over approximately 3,360 hectares land adjacent to Powermax's Hopkins REE (rare-earth element) property in Northern Ontario. The option is subject to a 1.5-per-cent net smelter returns royalty in favour of the optionors and to applicable exchange approval.

Melba North is located in the Clay-Howells townships area of Northern Ontario and overlies rocks of the Clay-Howells Alkalic Rock complex. A recent 2025 exploration work report describes syenitic and alkali-syenitic rocks, magnetite-bearing carbonatite and alteration associated with carbonatite emplacement. The property's claims are adjacent to Powermax's Hopkins property. Mineralization continuity between the two properties has not yet been established.

2025 historical drilling

A November, 2025, assessment work report prepared by Laurentia Exploration Inc. for Argyle Resources Corp. documents seven heli-portable BTW size diamond drill holes totalling 1,983 metres on the Clay-Howells claims, including claims listed in the North Melba option schedule. The program tested magnetic highs around the known Clay-Howells Fe-REE deposit, which the report places outside the claims drilled. Selected historical assay highlights reported in the assessment report include:

• CH-25-02 (222 m; azimuth 150 degrees; dip negative 45 degrees): 3.05 m grading 0.33 per cent TREO from 144.95 m to 148.00 m in magnetite-bearing carbonatite, within a broader 16.55 m interval grading 0.16 per cent TREO from 135.00 m to 151.55 m;
• CH-25-04 (225 m; azimuth 170 degrees; dip negative 65 degrees): 15.00 m grading 0.28 per cent TREO from 163.50 m to 178.50 m, including 7.65 m grading 0.34 per cent TREO from 163.50 m to 171.15 m. The report describes a 5.90 m magnetite-bearing carbonatite unit from 165.25 m to 171.15 m;
• CH-25-06 (351 m; azimuth 180 degrees; dip negative 45 degrees): 24.50 m grading 0.17 per cent TREO from 12.00 m to 36.50 m, including 1.50 m grading 0.40 per cent TREO; and a separate 10.50 m interval grading 0.23 per cent TREO from 87.00 m to 97.50 m, including 3.70 m grading 0.45 per cent TREO.

Across the selected samples reported, 49 returned more than 0.17 per cent TREO, including 20 above 0.30 per cent TREO and six above 0.50 per cent TREO. The highest reported sample interval was 0.76 per cent TREO over 0.60 m. TREO is reported as the sum of rare-earth element oxides.

According to the report, selected half core samples were analyzed by Activation Laboratories using its eight REE package (lithium-borate fusion with ICP-OES/MS). The report's QA/QC (quality assurance/quality control) appendix says submitted blanks and certified reference materials met the acceptance criteria.

Planned exploration

Powermax intends to include Melba North in its current Hopkins-area work, integrating the historical drill database with mapping, sampling, and geophysical data to refine targets and assess follow-up drilling. The 2025 report lists permit No. PR-25-000130, issued Sept. 2, 2025; the company will confirm the permit remains valid and covers the planned work before mobilization.

"Melba North adds an important land position beside Hopkins and lets us evaluate the two areas within a co-ordinated exploration framework," said Paul Gorman, chief executive officer of Powermax. "We will integrate the 2025 drilling data with our current fieldwork and evaluate suitable targets for follow-up drilling, subject to permit conditions and regulatory approvals."

Qualified person and historical data

The technical information is based on Laurentia Exploration Inc.'s November, 2025, report for Argyle Resources Corp. and other available historical data on these claims. Powermax has not independently verified the underlying assays, sample custody, drill data or true widths, and treats the results as historical. Reported intervals are downhole lengths; true widths are not established. The known Clay-Howells Fe-REE deposit described in the report is outside Melba North. Results from Hopkins or other adjacent ground do not establish continuity or predict mineralization on North Melba.

Qualified person approval: Afzaal Pirzada, PGeo, a director of the company and a qualified person as defined in National Instrument 43-101, has reviewed and approved the scientific and technical information in this news release before issuance.

About Powermax Minerals Inc.

Powermax Minerals is a Canadian mineral exploration company focused on rare-earth element projects in North America.

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