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 commenced metallurgical testing on samples from its Lion Deposit, a key part of the Nisk Project, in collaboration with SGS Canada Inc. The primary objectives of this testing are to de-risk the development of mining projects, provide independent analysts with appropriate resource recovery numbers for economic valuations (relevant to NI 43-101 standards), and determine the recovery potential of PGEs, gold, silver, nickel, and copper. The company's initial understanding suggests that the copper mineralization, contained within coarse-grained chalcopyrite and cubanite, should respond well to conventional sulphide concentration methods, indicating good recoveries.

Samples have been collected from both the High-Grade (HG) Zone (semi-massive to massive copper sulphide mineralization) and the Lower-Grade (LG) Hangingwall Zone (disseminated and veined structural hangingwall). Approximately 300 kilograms of drill core reject material were received for each zone, from which 75-kilogram composites were generated. Three 50-kilogram testing composites have been prepared: one for the HG Zone, one for the LG Zone, and a 50/50 blended composite (based on modelled volumes). Test completion is estimated to take approximately 14 weeks, with the final reporting of results not anticipated before January 2026.

The initiation of metallurgical testing at the Lion Deposit is a positive, but routine, step in the methodical advancement of the Nisk Project. This activity was previously communicated as an upcoming milestone, with the July 23, 2025, news release stating that mineralogy work would be completed by the end of summer and metallurgical testing would commence "prior to commencement of winter drill program," with results expected "early next year" (2026). The current announcement confirms that this critical technical work is proceeding on schedule, aligning with prior expectations.

While a necessary de-risking step and essential for future economic evaluations (e.g., Preliminary Economic Assessment, Pre-Feasibility Study), the news does not present any new, unexpected discoveries or breakthroughs. The involvement of SGS Canada, a reputable firm, provides confidence in the quality and independence of the testing. The comprehensive approach, involving various zones and a blend, suggests thoroughness in assessing the deposit's characteristics.

The material impact on the stock price is likely to be neutral to mildly positive. It signifies steady progress and execution on the development roadmap, which is favorable, but lacks the surprise element that would typically lead to a significant price movement. Investors were already aware this step was impending. The actual material impact will likely be realized when the results of these tests are published, which is not expected until January 2026 or later.

Power Metallic Mines Inc., formerly Power Nickel Inc., is a Canadian mineral exploration company dedicated to identifying and developing high-grade polymetallic deposits. The company's strategic decision to change its name to "Power Metallic Mines" in February 2025 reflects the diverse suite of metals discovered, particularly the high-grade copper, platinum, and palladium, which expanded beyond the initial nickel focus.

Flagship Project: The Nisk Project (Quebec, Canada) * Location & Infrastructure: The Nisk Project is located in Nemaska, Quebec, a mining-friendly jurisdiction with exceptional infrastructure. Key advantages include access to inexpensive, low-carbon hydropower from Hydro-Quebec, proximity to major highways and towns, and significant provincial tax credits (50% of exploration costs). The ongoing development of a new copper smelter in Quebec further enhances the regional value proposition for the project's output. * Mineralization: Nisk is a high-grade polymetallic discovery, hosting a critical and precious metal suite including copper, nickel, platinum, palladium, cobalt, gold, and silver. The mineralization is found within a layered ultramafic unit. * Key Discovery Zones: * Lion Zone: This is the primary driver of recent positive news. It is characterized by high-grade polymetallic mineralization, with significant intercepts of copper, PGEs, gold, and silver. Drilling efforts are consistently expanding this zone at depth and along strike. The CEO frequently emphasizes "exceptionally high copper & gold grade kicks." * Nisk Zone: The project's initial discovery, known for nickel-copper-cobalt-PGE mineralization. Current efforts aim to expand its mineral resource estimate and understand its geological connection to the Lion Zone. * Tiger Zone: Located approximately 700 meters east of the Lion Zone, the Tiger Zone has shown promising "Lion-style" copper-dominant polymetallic mineralization and narrow zones of nickel-copper sulphides, making it an increasingly compelling exploration target. * Exploration Strategy: The company employs an aggressive, technically driven exploration strategy, utilizing advanced geophysical techniques such as Borehole EM (BHEM), ground EM, airborne EM, and Ambient Noise Tomography (ANT), alongside detailed geological mapping and geochemistry. The goal is to rapidly expand the known mineralized footprint with large step-out drilling (up to 150-200m) while maintaining a high confidence level in continuity. A 100,000-meter drill program is planned through 2026. * Land Position: Through strategic acquisitions, including 167 square kilometers from Li-FT Power Ltd. in July 2025, the Nisk Project's land package has expanded by over 300% to 212.86 sq km. This covers a significant 50 km of prospective basin margin strike length, increasing the potential for new discoveries. * Spin-out: In February 2025, Power Metallic successfully spun out its non-core assets (the Golden Ivan property in British Columbia and various Chilean exploration assets) into a separate entity, Chilean Metals Inc. This strategic move allows Power Metallic to maintain a singular focus on the Nisk Project while retaining a royalty interest in the Chilean Copaquire project. * Diversification: In June 2025, the company secured an exploration license for the Jabal Baudan project in Saudi Arabia, targeting VMS copper-gold-zinc. This represents a strategic diversification into a new jurisdiction with government support (Exploration Enablement Program) but is a secondary focus compared to Nisk.