Mr. Michael Tucker reports

PERSEVERANCE ANNOUNCES CONVERSION OF SUBSCRIPTION RECEIPTS AND SATISFACTION OF THE LAC GAYOT FREE CARRY RIGHT

Perseverance Metals Inc. has issued a total of 4,902,099 common shares and 2,451,027 common share purchase warrants pursuant to the conversion of 4,902,099 subscription receipts of the company issued on Sept. 5, 2025. The net proceeds from the sale of the subscription receipts, being $3,186,398, have also been released to the company from escrow. The common shares are expected to commence trading on the TSX Venture Exchange under the ticker symbol PMI as of market open on Oct. 14, 2025.

Each warrant entitles the holder thereof to purchase one additional common share at an exercise price of 90 cents for a period of three years from the date of issuance. The expiry date of the warrants is subject to acceleration such that, should the closing price of the common shares on any Canadian stock exchange equal or exceed $1.20 for 10 consecutive trading days, the company, within 15 business days of such event, shall be entitled to accelerate the expiry date of the warrants to a date that is 30 calendar days from the date that notice of such acceleration is given by news release, with the new expiry date specified in such news release.

In connection with the conversion of the subscription receipts, the company issued 28,245 finders' warrants and paid commissions of $17,980 to certain finders. Each finder's warrant entitles the holder thereof to purchase one additional common share at a price of 60 cents for a period of 24 months from the date of issuance, subject to the acceleration clause.

For further information on the terms of the subscription receipts, escrow release conditions and finders' fees, please refer to the company's news releases dated June 26, 2025, Sept. 24, 2025, and Oct. 8, 2025, and the company's prospectus dated Sept. 26, 2025, which can be accessed under the company's profile on SEDAR+.

Satisfaction of the Lac Gayot free carry right

The company is pleased to announce that it has satisfied and extinguished the free carry right under its option agreement dated Dec. 19, 2022, with Coulon Mines Inc., a wholly owned subsidiary of Electric Elements Mining Corp., pursuant to which the company has the exclusive right to earn an undivided 100-per-cent interest in the Lac Gayot project. The company issued 196,816 additional shares (as defined below) to EEM concurrently with the conversion of the subscription receipts to terminate the Lac Gayot free carry right.

Pursuant to the Lac Gayot free carry right, from the effective date of the option agreement, any time the company issued common shares from treasury, whether by way of equity financing, property acquisition, the exercise of stock options and share purchase warrants, or other convertible securities, the company was required to issue to the optionor such number of common shares, representing 9.9 per cent of the particular equity issuance (calculated after giving effect to the issuance of such additional shares), such that the optionor would hold a pro rata 9.9-per-cent interest in the company. The cumulative issue value of the equity issuances reached $15-million upon closing of the subscription receipt offering on Sept. 5, 2025, resulting in the termination of the Lac Gayot free carry right upon deemed conversion of the subscription receipts and concurrent issuance of the remaining additional shares.

The 196,816 additional shares are subject to a hold period pursuant to Canadian securities laws. For additional information on the option agreement and Lac Gayot free carry right, please refer to the prospectus.

About Perseverance Metals Inc.

Perseverance Metals' critical mineral project portfolio is strategically positioned in key North American nickel-copper-cobalt-platinum-group-element and hardrock lithium regions, including Quebec's prolific James Bay district and Michigan's Mid-Continent Rift.

Its strict science-driven approach and extensive record of discovery, coupled with an industry-leading team armed with next-generation exploration tools, provide the company with a distinct competitive advantage. This offers a unique opportunity for investors to be part of multiple discoveries, the advancement of significant critical mineral deposits and the development of a portfolio poised for strategic industry consolidation, all vital for the clean energy transition and the creation of new mining districts.

Perseverance's exploration assets include:

• The Lac Gayot high-grade Ni-Cu-Co-PGE and lithium pegmatite project, which covers the entirety of the Venus greenstone belt in Quebec, featuring multiple, very high-grade Ni-Cu-Co-PGE showings and numerous large spodumene-bearing pegmatites with consistent, high lithium grades in channel sampling;
• The Voyageur Ni-Cu-Co-PGE project which covers 680 square kilometres of the Upper Peninsula in Michigan, 65 kilometres west of the only producing nickel mine in the United States; and
• The Armit Lake Ni-Cu-Co project, which is the consolidated and underexplored western half of the nickel- and gold-rich Savant Lake greenstone belt in Ontario.

We seek Safe Harbor.