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POWER METALS REACHES CESIUM CONCENTRATE OFFTAKE AGREEMENT WITH ALBEMARLE

Albemarle Corp. has agreed to a $5-million prepayment arrangement for cesium oxide concentrate from Power Metals Corp.'s Case Lake project in Ontario, Canada.

Major highlights

• Power Metals secures significant commercial milestones with Albemarle Corp., one of the world's leading critical minerals companies, which has acquired the current offtake agreement from Winsome Resources (Australian Securities Exchange: WR1) for the Case Lake project;
• Deal sees Albemarle purchase Winsome Resources offtake rights in Power Metals Corp's Case Lake project;
• Case Lake hosts near-surface, high-grade cesium with Albemarle securing the rights to all project offtake;
• Under the offtake agreement, Albemarle has agreed to prepay for up to $5-million of cesium oxide concentrate from the Case Lake project;
• Agreement delivers clear benefits to existing Power Metals shareholders by providing access to project funding through a fully non-dilutive transaction structure;
• Case Lake is currently advancing toward its production target for 2026.

The milestone involves Albemarle also acquiring current offtake rights held by Winsome Resources (ASX: WR1), marking a significant endorsement from one of the world's leading critical-minerals companies.

It also underscores the growing importance of Case Lake as a strategic asset and the role it is poised to play in securing North America's cesium supply chain.

Pursuant to a purchase agreement between Winsome and Albemarle, Winsome is assigning its Case Lake offtake rights to Albemarle. Winsome will retain its 15.8-per-cent shareholding of Power Metals and looks forward to continued collaboration with both PWM and Albemarle as the project advances.

The offtake rights were previously held by Hong Kong-based Sinomine Resources Ltd. in 2020, before being rescinded through intervention by the government of Canada in 2022, at which point Winsome Resources acquired the rights.

The agreement highlights a clear shift in the global critical minerals landscape, with an increased focus on securing the North American supply chains.

The prepayment commitment is conditional on Power Metals securing necessary approvals and permits to commence mining at Case Lake, and provides financing in stages as key development milestones are achieved:

• $2-million promptly following execution of the prepayment commitment;
• $3-million upon delivery of Environmental Compliance Approval (ECA) for the Case Lake project in 2026.

The transaction strengthens Power Metals position as a key player in the global cesium market, with the project now backed by one of the sector's most influential producers.

Power Metals chief executive officer and director Haydn Daxter commented:

"We are incredibly pleased with Albemarle's participation as we continue to strengthen our footprint in Canada for critical minerals. Albemarle's expertise in producing high-value cesium chemicals secures the downstream component of our strategy while bolstering the emergence of an integrated cesium market."

Power Metals chairman and director Johnathan More commented:

"This agreement is a significant step for Power Metals and a strong outcome for our shareholders. The prepayment structure provides access to funding without dilution, allowing us to advance Case Lake while preserving the value of the company. With the project's extremely low capital requirements, under $8-million required, this support positions us well to move toward production and unlock the full potential of our cesium opportunity."

Case Lake property

The Case Lake property is located 80 kilometres east of Cochrane in Northeastern Ontario, near the Ontario-Quebec border. It comprises 586 cell claims across Steele, Case, Scapa, Pliny, Abbotsford and Challies townships within the Larder Lake mining division. The property is 10 kilometres by 9.5 km in size with 14 granitic domes.

The Case Lake pegmatite swarm consists of six spodumene dikes known as the North, Main, South, East and Northeast dikes on the Henry Dome, and the West Joe dike on a new dome, collectively forming mineralization trend that extends for approximately 10 km.

Power Metals has completed several exploration campaigns leading to the discovery and expansion of new and historic spodumene-bearing LCT pegmatites at Case Lake. The company has drilled a total of 23,976 metres of core between 2017 and 2024 at the property. The Case Lake property is owned 100 per cent by Power Metals. A National Instrument 43-101 technical report has been prepared on Case Lake property and filed on July 18, 2017.

Decelles property

The Decelles property contains 247 claims, covering 14,229 hectares of LCT prospective ground near the mining centres of Val d'Or and Rouyn-Noranda, approximately 600 km from Montreal.

Power Metals acquired the Decelles and Mazerac properties from Winsome Resources in 2023 in a deal that increased Winsome equity stake in the company (refer to press release announced on Aug. 24, 2023). The geology of Decelles property is part of the Archean Pontiac subprovince where S-type LCT prospective, pegmatite-bearing, granitic Decelles batholith intrudes into metasedimentary units of the Pontiac Group.

Spodumene- and beryl-bearing pegmatites have been reported historically within the Pontiac subprovince in association with S-type garnet-muscovite granite. The Decelles property is adjacent to Vision Lithium's Cadillac property where discovery of high-grade lithium pegmatites was reported in 2022.

Mazerac property

The Mazerac property is located approximately 30 km east of Power Metals Decelles property near well-established mining camps in the Abitibi region of Canada and is accessible by network of mining-grade forestry roads.

The Mazerac property contains 115 claims that cover 6,653 hectares of LCT prospective ground near the mining centre of Val d'Or and Rouyn-Noranda. The regional geology of Mazerac is similar to Decelles where S-type LCT prospective, pegmatite-bearing, granites of Decelles batholith intrude into metasedimentary units of the Pontiac Group. Spodumene- and beryl-bearing pegmatites have been reported historically within the Pontiac subprovince in association with S-type garnet-muscovite granite.

Pollucite and cesium

Pollucite is a rare mineral that hosts high-grade cesium and is associated with highly fractionated, rare element pegmatites. The main source of cesium known globally is pollucite. Currently there is no operational mining of high-grade cesium from pollucite occurring globally.

About Power Metals Corp.

Power Metals is a Canadian exploration company focused on developing high-quality critical mineral projects. Its flagship Case Lake property in Ontario -- 100 per cent owned by Power Metals -- is a high-grade cesium, lithium and tantalum asset.

Beyond Case Lake, the company's portfolio includes the Decelles and Mazerac properties near Val D'Or, Que. Together, these assets cover 947 claims spanning more than 330 square kilometres of lithium-cesium-tantalum (LCT) prospective ground. As global demand for critical minerals continues to grow global, and particularly in North America, Power Metals is strategically advancing its projects to support the continent's growing supply needs.

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