Lion Delivers High-Grade Copper Intercepts and Positive Metallurgy on Low-Low Grade Mineralization

Highlights

New drill results include 10.30m @ 4.04% CuEqRec1 and 4.07m @ 8.73% CuEqRec1, with metallurgical testing confirming strong recovery potential from disseminated low-grade zones.

• High-grade copper intercepts: 4.07 metres grading 8.73% CuEqRec1 in hole 26-067

• Significant broader intercept: 10.30 metres grading 4.04% CuEqRec1 in hole 26-097

• Positive metallurgy: Locked-Cycle testing on ‘low-low grade’ disseminated mineralization returns encouraging recovery results, enhancing project economics

Summary

Additional assays from its winter 2026 drill program continue to come in with all assay results expected by mid-June for adding to the initial NI-43-101 Mineral Resource Estimate on Lion, and an update of the Nisk Ni-Cu-Pd deposit MRE with completion and reporting of estimates by the end of July. This MRE will form the basis for a Preliminary Economic Assessment to begin immediately following the completion of the MRE.

This news release also reports metallurgical recoveries comparable to those in prior releases, based on recent Locked-Cycle testing of a low-low grade composite of disseminated mineralization at Lion done by SGS Canada Ltd. at its laboratories based in Quebec City, QC, and Lakefield, ON. Testing of this lower grade material will help inform low cut-off grades for deposit modeling in the upcoming MRE.

Lion Zone MRE In-fill program

More drill holes continued to define the high-grade Lion Zone close to surface (Figure 1) ahead of the 2026 Mineral Resource Estimate. The infill drill holes in this release were drilled to increase the confidence in the mineralized zones that are within the range of a potential future open pit. These holes support the robust modelling of the near surface mineralization.

The recent drill holes report good near surface continuity of mineralized zones modelled on the shallow Lion Zone as evidenced by PML-26-067 which intersected high-grade copper near surface with 4.07 m @ 8.73% CuEqRec¹ at 50m below surface, and PML-26-097 which intersected 10.30 m @ 4.04% CuEqRec¹ at approximately 75m below surface (Table 1).

Power Metallic is expecting more assay results from the MRE drilling and regional exploration in the weeks to come.

NI43-101 Mineral Resource Estimate

Preparation of a NI-43-101 MRE is underway with updated report section writing, and the start of geological modelling on both the Lion and Nisk deposits. SGS Canada Inc. has been contracted to author the report with an anticipated delivery of results in late July, 2026.

As part of this MRE report SGS has conducted metallurgical testing of Lion ore (XPS carried out metallurgy on Nisk ore in 2023), including a blended composite of expected average mineralization (see news release of locked cycle test LCT 1 reported Jan 21 2026), and an additional locked cycle test (LG2) of a ‘low-low grade’ composite (Table 2) reported here. This low-low grade composite was designed to investigate whether lower grade disseminated mineralization would respond to conventional flotation copper concentration, with recoveries of the accessory minerals (PGE, Au, Ag, Ni). The results of this test will help define a low cut-off grade for the MRE modelling.

Table 2: LCT1 Locked-Cycle Test on Lion Zone Blended Composite Feed Grade, Concentrate Grade, and Recovery Summary.

As anticipated given the low grade of the LG2 composite test results show lower recoveries than the higher grade LCT 1 blended composite. But surprisingly the test recoveries were only slightly lower, delivering much higher recoveries and concentrate grade than originally anticipated for this low-grade material. Cu recovery was of 98.3% at a 25.4% Cu concentrate grade, with precious metals reporting in the mid to high 80% ranges. This result gives Power Metallic extensive latitude to investigate including significant volumes of very low-grade material into the Lion MRE.

Table 3: LG2 Locked Cycle Test – Feed, Concentrate Grade and Recovery Summary

 

Additionally, SGS Canada Inc. is conducting hydrometallurgical testing of the copper concentrates from Lion LCT tests to determine if a direct to metal solution to recovery could be feasible. Results of this work is pending.

Qualified Person

Joseph Campbell, P. Geo, VP 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 1 February 2021, Power Metallic (then Chilean Metals) secured an option to earn up to 80% of the Nisk project from Critical Elements Lithium Corp. (TSX–V: CRE). Following the June 2025 purchase of 313 adjoining claims (~167 km²) from Li–FT Power, the Company now controls ~330 km² and roughly 50 km 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% share ownership position in Chilean Metals Inc., which were spun out from Power Metallic via a plan of arrangement on February 3, 2025.

It also owns 100% of Power Metallic Arabia which owns 100% interest in the Jabul Baudan exploration license in The Kingdon of Saudi Arabia’s Jabal Said 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 sulfide deposits, including the world-class Jabal Sayid mine and the promising Umm and Damad deposit.

For further information, readers are encouraged to contact:
Power Metallic Mines Inc.
The Canadian Venture Building
82 Richmond St East, Suite 202
Toronto, ON

QAQC and Sampling

GeoVector Management Inc is the Consulting company retained to perform the actual drilling program, which includes core logging and sampling of the drill core.

All core in this news release is either HQ or NQ sized core. Drill core is re-fitted and measured. Geotech on core includes photographs (wet & dry), rock quality index, magnetic susceptibility, conductivity, and recovery estimates. Core is logged for lithology, mineralogy, and structural features, and sample intervals are delineated and tagged.

Sampled core is mechanically sawn, and half-core is retained for future reference. GeoVector’s QAQC program includes regular insertion of CRM standards, duplicates, and blanks into the sample stream with a stringent review of all results. QAQC and data validation was performed, and no material errors were observed.

All samples were submitted to and analyzed at Activation Laboratories Ltd, a commercial laboratory independent of Power Metallic with no interest in the Project. Actlabs is an ISO 9001 and 17025 certified and accredited laboratories. Samples submitted through Actlabs are run through standard preparation methods and analysed using RX-1 (Dry, crush (< 7 kg) up to 80% passing 2 mm, riffle split (250 g) and pulverize (mild steel) to 95% passing 105 μm) preparation methods, and using 1F2 (ICP-OES) and 1C-OES – 4-Acid near total digestion + Gold-Platinum-Palladium analysis and 8-Peroxide ICP-OES, for regular and over detection limit analysis. Pegmatite samples are analyzed using UT7 – Li up to 5%, Rb up to 2% method. Actlabs also undertake their own internal coarse and pulp duplicate analysis to ensure proper sample preparation and equipment calibration.