Mr. Haydn Daxter reports

RISING AEROSPACE, DEFENCE AND ENERGY DEMAND RESHAPES GLOBAL CESIUM MARKET

Power Metals Corp. has provided a corporate update on the global cesium market and the strategic position of its Case Lake project in Ontario, Canada.

The importance of cesium continues to rise as demand grows across established industries and emerging technologies. Its inclusion on the U.S. 2025 list of critical minerals highlights its essential role in economic and national security applications, as well as the growing need to strengthen a vulnerable and highly concentrated supply chain.

Historically, global supply has been controlled by a small number of producers and processing facilities, much of it located outside of the Western world.

One of the most important established Western sources is the Sinomine-owned Tanco mine at Bernic Lake in Manitoba, Canada, which hosts a globally significant lithium-cesium-tantalum pegmatite. Supply from Tanco appears to be reducing with the recent move toward treatment of waste material at the facility.

Global cesium supply has traditionally been concentrated among a small number of producers and processing facilities, largely outside of North America. Within the region, the Sinomine-owned Tanco mine at Bernic Lake in Manitoba has long served as a cornerstone of the cesium supply chain, supported by its globally significant lithium-cesium-tantalum pegmatite.

The oil and gas industry remains the largest market for cesium, accounting for a reported 55.7 per cent of global demand in 2025, primarily through the use of cesium formate brines in high-pressure drilling operations. This sector has long represented a significant component of Sinomine's cesium business.

Health care is another major market, currently accounting for approximately 18.3 per cent of global demand, with applications spanning pharmaceuticals, medical imaging and scintillation-based radiation detection. Growing demand for radiation detection across health care, security and industrial inspection represents a significant opportunity, particularly as end-users seek greater diversity and security of supply.

Chemical applications, including catalysts and specialized processing, currently represent approximately 14 per cent of the market. The remaining 12 per cent comprises a range of smaller but strategically important applications across precision timing, electronics, aerospace, defence and advanced technologies.

Against this backdrop, Power Metals has received strong inbound interest during the past six months from potential customers and industry participants across multiple international markets seeking access to future cesium supply and potential offtake opportunities. All this is while the current cesium supply from historical sources remains limited at present due to reduced production and political hurdles.

Meanwhile, the company continues to execute its corporate strategy by advancing Case Lake toward production while preparing to resume exploration across the remaining 17 highly prospective targets identified throughout the property.

Power Metals has also identified several emerging sectors with strong potential to drive future cesium demand. These include the rapidly expanding U.S. aerospace industry and advanced solar-cell technologies, particularly perovskite and tandem solar cells, where cesium can improve material stability and conversion efficiency.

The development of new Western supply aligns with broader U.S. efforts to strengthen critical mineral security. This includes investment by the Department of War and the proposed $12-billion (U.S.) Project Vault strategic reserve.

Research supported by the U.S. Department of Energy has also investigated the use of cesium-based additives in lithium batteries. Early findings indicate that cesium ions may improve lithium deposition and cycling performance, supporting the development of longer-lasting batteries with enhanced charging characteristics.

As research into cesium-enabled technologies continues to advance, aerospace, defence, solar and new energy applications could become increasingly important sources of demand.

Together with growing government and industry efforts to secure critical mineral supply chains, these market developments reinforce the strategic importance of establishing new, reliable sources of cesium in North America and the potential role of Power Metals' Case Lake project in supporting that supply.

Global cesium market share -- others:

• Precision timing and metrology -- cesium atomic clocks, frequency standards (the cesium-133 transition literally defines the SI second), used in telecom sync and GPS/satellite navigation;
• Electronics and semiconductors -- photocathodes, ion propulsion for satellites and specialty electronics;
• Aerospace and defence -- ion thrusters and research/scientific instrumentation;
• Niche industrial uses -- specialty glass/ceramics, fireworks (cesium salts) and small-volume applications.

About Power Metals Corp.

Power Metals is a Canadian critical mineral company advancing high-quality exploration and development assets. The company's flagship project is the 100-per-cent-owned Case Lake property in Ontario, an advanced-exploration-stage, high-grade cesium asset with additional exposure to lithium and tantalum.

Located around 80 kilometres east of the established town of Cochrane that has a long history of mining, near the Ontario-Quebec border, Case Lake is a district-scale project comprising 586 cell claims across six townships and a 10-kilometre-long LCT pegmatite trend spanning 14 granitic domes.

This includes six spodumene dikes on the Henry Dome and the West Joe dike, one of the highest-grade cesium systems discovered globally, with pollucite lenses returning grades up to 26 per cent and remaining open at depth.

Power Metals has completed 23,976 metres of drilling between 2017 and 2025, and identified 17 new targets and early indicators of additional mineralized lenses, supporting strong growth potential beyond the initial resource.

We seek Safe Harbor.