Mr. Duncan Roy reports

POWER METALLIC CLOSES ON LI-FT POWER LAND ACQUISITION

Power Metallic Mines Inc. has closed on the 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 copper/nickel/platinum group element/cobalt deposit. Power Metallic currently holds approximately 212.86 square kilometres of land in the Nisk camp, securing approximately 20 kilometres of strike on the northern basin margin and 30 kilometres on the southern margin that envelop the Nisk, Lion and Tiger discoveries.

Purchase agreement terms

With the closing conditions met, including final TSX Venture Exchange approval received, Power Metallic has advanced a $700,000 cash payment to Li-FT and issued six million common shares of the company. All the shares have a statutory hold period of four months and one day from issuance in accordance with Canadian securities laws. Three million of the six million shares also bear a 12-month hold and restriction from transfer. Additionally, Li-FT retains a 0.5-per-cent NSR on all acquired claims under a royalty agreement between Li-FT and the company effective the closing date. Certain of the claims also retain certain underlying royalties and, in some cases, buyback rights that were contained in previous agreements between Li-FT and prior property vendors.

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.

Administrative updates

The company has appointed MNP LLP, Chartered Professional Accountants, as its new auditor. In alignment with its ongoing growth and strategic objectives, the company elected to engage a PCAOB-registered mid-tier audit firm to support potential listings on senior stock exchanges.

For the company's recently completed Q2 ended June 30, 2025, for its interim financial statements (when filed), it will add a comparative figures note as it relates to investor relations expenses in prior periods: "Certain comparative figures have been reclassified to conform with the current year's presentation. Amounts from investor relations have been reclassified to shareholder communications, listing fees, and advisory and business development. This reclassification should provide greater clarity to investors regarding the breakdown of the company's expenditures. The reclassification of comparative figures had no impact on the June 30, 2024, Dec. 31, 2024, and 2023 statement of financial position or statement of changes in shareholders' (deficit) equity." For the fiscal year ended Dec. 31, 2023, the total investor relations expense of $3,181,461 is reclassified as $497,134 to shareholder communications, $33,372 to listing fees, $1,784,661 to advisory and business development, and $866,294 retained as investor relations to provide greater clarity on the nature of the expenses.

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 copper/platinum group element, nickel, 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.

It also owns 100 per cent of Power Metallic Arabia, which owns 100-per-cent interest in the Jabul Baudan exploration licence in the Kingdom of Saudi Arabia's Jabal Sayid belt. The property encompasses over 200 square kilometres in an area recognized for its high prospectivity for copper/gold and zinc mineralization. The region is known for its massive volcanic sulphide (VMS) deposits, including the world-class Jabal Sayid mine and the promising Umm and Damad deposits.

We seek Safe Harbor.