Mr. Terry Lynch reports

POWER METALLIC ACQUIRES 167KM 2 FROM LI-FT POWER, EXPANDING NISK - LION POLYMETALLIC PROJECT AREA BY OVER 300%

Power Metallic Mines Inc. has executed a definitive agreement dated June 9, 2025, to acquire a 100-per-cent interest in 313 mineral claims totalling 167 square kilometres from Li-FT Power Ltd. The claims adjoin the company's 45.86-square-kilometre Nisk property, where exploration is expanding the high-grade Lion copper/platinum-group-element discovery and the Nisk nickel/copper/cobalt deposit. On closing, Power Metallic's land position will grow more than 300 per cent to approximately 212.86 square kilometres, securing approximately 20km of strike on the northern basin margin and 30 kilometres on the southern margin that envelope the Nisk, Lion and Tiger discoveries.

Nisk project area

The Nisk-Lion-Tiger discoveries have established a new polymetallic district with considerable potential for additional deposits. These deposit types are globally rare but form clusters at district and camp scale (Noril'sk and Talnakh, Kevitsa and Sakatti, as relevant examples). Currently discovered polymetallic mineralization on the Nisk property has been confined to a major translithospheric structure along the sedimentary basin margin defining the locations of the Nisk, Lion and Tiger discoveries.

Work by Power Metallic and Li-FT has identified a larger region proximal to the Nisk property that has additional potential for polymetallic deposits. Significantly Power Metallic sees potential in the wider basin, where exploration to date suggest conditions similar to those at the Nisk-Lion-Tiger discoveries. The land purchased from Li-FT covers a further 20 kilometres of strike length along the northern margin of the basin that contains Nisk-Lion-Tiger and the most prospective 30 kilometres of strike length along the southern basin margin, which has been identified by Power Metallic through regional geophysics as prospective and corroborated by extension soil and till elemental anomalies from surveys carried out by Li-FT. The control of the most readily accessible prospective geology proximal to the known mineralizing system (Nisk-Lion-Tiger) gives Power Metallic the opportunity to control the discovery of multiple polymetallic deposits within the identified regional system across both its 80-per-cent-owned properties and its 100-per-cent-owned properties.

Steve Beresford, director and special adviser, stated: "Polymetallic deposits have unique primary and secondary geochemical footprints (that contrast with nickel-dominant sulphide deposits like Voisey's Bay) that enable us to recognize early the tip of the iceberg -- i.e., extensions of Lion or mimics that represent new camp to district-scale opportunities. We know a lot about how these deposits spatially cluster that's different to lode gold or VMS [volcanogenic massive sulphide], and now is the time to own the whole opportunity."

Purchase agreement terms

The purchase of the 100-per-cent interest in the claims (exclusive exploration rights) requires a $700,000 cash payment to Li-FT and the issuance of six million common shares of the company. All the shares will have a statutory hold period of four months and a day from issuance in accordance with Canadian securities laws. Three million of the six million shares will also bear a 12-month hold and restriction from transfer. Additionally, Li-FT will retain a 0.5-per-cent net smelter return royalty on all acquired claims. The share-weighted consideration preserves cash for drilling while giving both Power Metallic and Li-FT exposure to the exploration upside in the basin. The issuance of the shares is subject to the company's receipt of approval from the TSX Venture Exchange.

Fully financed 100,000-metre drill program through 2026

The drilling rig has been collared on the first hole of the summer program. The company is resuming work along the Nisk-Lion-Tiger trend while integrating its newly acquired Li-FT claims -- an expansion that increases the company's land position more than 300 per cent. Field crews will mobilize in successive waves beginning the last week of May, with camp upgrades -- including grid-power wiring for new core-logging facilities -- well under way. Drilling will initially recommence in the Nisk-Lion-Tiger area to expand current zones. It is anticipated that, by early fall of 2025, the core facility capacity will be ramped up to six drills, enabling quicker exploration target turnaround and flexibility to follow exploration successes on the expanded Nisk project area.

Key elements of the work program:

• District-scale data integration: Historical technical data from the Li-FT claims are being compiled alongside existing data sets to refine regional targeting.
• Airborne and ground geophysics: A large-scale airborne EM (electromagnetic) survey -- followed by targeted ground EM -- will seek near-surface conductors.
• Systematic mapping and prospecting: Field teams will focus on areas highlighted by Li-FT's previous geochemical anomalies, moving from regional reconnaissance to detailed mapping and sampling as anomalies are confirmed.
• Follow-up drilling: Once preliminary geophysics and mapping results are interpreted, priority targets, primarily confirmed by EM, will be drilled through late 2025 and into the 2026 winter season.

Terry Lynch, chief executive officer, stated: "Consolidating the Li-FT ground lets us apply the geological insights from Nisk across a district-scale footprint. With over 100,000 metres of fully funded drilling in front of us, we can systematically approach new sulphide occurrences while continuing to grow our established resources."

J.C. Evensen, strategic adviser, added: "The opportunity to consolidate control of this emerging polymetallic mineral district will allow Power Metallic to fully explore and understand its potential before determining the value maximizing development pathway for all stakeholders involved. The discovery of Lion transformed how this area was understood geologically, and, now, with the counsel of Steve Beresford on the board, Joe Campbell, Adam Findlay and the entire exploration team have an opportunity to see if there is something better than Lion to be discovered."

A more detailed summer exploration plan -- updated to reflect the expanded acreage -- will be released within the next two to four weeks.

Qualified person

Joseph Campbell, PGeo, vice-president, exploration, at Power Metallic, is the qualified person who has reviewed and approved the technical disclosure contained in this news release.

About Power Metallic Mines Inc.

Power Metallic is a Canadian exploration company focused on advancing the Nisk project area (Nisk-Lion-Tiger) -- a high-grade nickel/copper/platinum group metal, gold and silver system -- toward Canada's next polymetallic mine.

On Feb. 1, 2021, Power Metallic (then Chilean Metals) secured an option to earn up to 80 per cent of the Nisk project from Critical Elements Lithium Corp. Following the June, 2025, purchase of 313 adjoining claims (approximately 167 square kilometres) from Li-FT Power, the company now controls approximately 212.86 square kilometres and roughly 50 kilometres of prospective basin margins.

Power Metallic is expanding mineralization at the Nisk and Lion discovery zones, evaluating the Tiger target, and exploring the enlarged land package through successive drill programs.

Beyond the Nisk project area, Power Metallic indirectly has an interest in significant land packages in British Columbia and Chile, by its 50-per-cent share ownership position in Chilean Metals Inc., which were spun out from Power Metallic through a plan of arrangement on Feb. 3, 2025.

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