Mr. Terry Lynch reports

POWER METALLIC INITIATES METALLURGICAL TESTING OF LION DEPOSIT PHASE 1 METALLURGY RECOVERY CONTRACTED TO SGS CANADA INC., QUEBEC CITY, QC AND LAKEFIELD, ON

Power Metallic Mines Inc. has provided an update on preliminary metallurgical studies being performed by SGS Canada Ltd. at its laboratories based in Quebec City, Que., and Lakefield, Ont.

"Metallurgical testing is one of the key steps mining companies take to derisk development of mining projects. It is also a necessary step for NI [National Instrument] 43-101 reporting on the resource and its economic potential. While we have no immediate plans to produce a NI 43-101 resource report, the results of this study will enable independent bank, company and industry analysts to utilize the appropriate resource recovery numbers while developing economic valuations on the Nisk project. In this respect, we are following the path well established by projects like Filo and Great Bear, who both posted assays and azimuths for their exploration results and allowed the analysts to speak to the economic potential of these projects," commented Power Metallic chief executive officer Terry Lynch.

Power Metallic carried out a competitive bid process for carrying out the metallurgical studies and has awarded the contract to SGS Canada Inc. based on its extensive experience with flotation metallurgical testing. Compositing of the samples and flotation studies will be conducted in Quebec City, Que., and analyses and environmental testing will be carried out at Lakefield, Ont.

Work to date has shown that the copper mineralization is contained within coarse-grained chalcopyrite and cubanite, both which should respond well to conventional sulphide concentration methods. Over all, the character of the mineralization suggests good recoveries of copper sulphides, and these initial metallurgical tests will determine the recovery potential of the PGEs (platinum group elements), gold, silver and nickel, which are expected to report within a conventional sulphide concentrate.

The Lion deposit has two zones of mineralization defined by drilling, consisting of a high-grade (HG) zone and a lower-grade (LG) hangingwall zone (LG). Current understanding is that the vast majority of the metal value in the deposit is contained within the high-grade zone, consisting of semi-massive to massive copper sulphide mineralization. The chosen rejects consist of the two zones: the massive-to-semi-massive-sulphide HG zone and the LG zone disseminated and veined structural hangingwall to the HG zone.

Power Metallic compiled a series of drill core reject material from the Lion deposit. The sample rejects were chosen to be spatially representative of the known mineralization across strike and down plunge within the deposit. The HG zone is represented by 103 samples from 15 drill holes and the LG zone is represented by 99 samples from 10 drill holes.

Each zone of collected core rejects represented approximately 300 kilograms of sample material, which were hand delivered to the SGS laboratory in Quebec City. From these amounts, SGS has been instructed to generate a 75-kilogram composite of test material for each zone, with each reject aliquot being length weighed by sample interval to be representative of the total mineralized drill intervals. The HG and LG material will both then be homogenized to ensure consistent subsampling.

The HG zone and the LG zone will each have 25 kilograms extracted from the 75-kilogram composites to form a blended composite, resulting in three separate 50-kilogram composites for initial analyses and flotation testing. The 50/50 ratio of HG-to-LG weighting for the blended composite is based on current estimates of modelled volumes for the two Lion deposit types. Each of the three composites will go through complete metallurgical testing for determining any variability for recovery of the six principal metals (copper, palladium, platinum, gold, silver and nickel) for each zone and for the blended composite. Additional testing may be done for rare earth minerals associated with this polymetallic deposit type (osmium, iridium, rhodium, ruthenium and other) if initial mineralogy suggests potential economic concentration.

The metallurgical tests are anticipated to take approximately 14 weeks to complete. Power Metallic will divulge results of the testing as soon as practical, but final reporting of results is not expected before January, 2026.

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 copper/PGE, 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, 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 a 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 volcanic massive sulphide (VMS) deposits, including the world-class Jabal Sayid mine and the promising Umm and Damad deposit.

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