POWER ONE CONFIRMS FIRST EVER GOLD DISCOVERY AT PECORS, EXPANDING A MULTI-METAL SYSTEM IN ONE OF CANADA'S PREMIER JURISDICTIONS - ELLIOT LAKE ONTARIO

On November 26, 2025, Power One Resources announced the first-ever gold discovery at its Pecors Property in Elliot Lake, Ontario. The discovery was made incidentally during a drilling program focused on Rare Earth Elements (REE).

The key intercept was in drill hole P02401, which returned 1.025 g/t Au over 1.5 meters from 242m to 243.5m. The release also mentioned multiple other anomalous gold intercepts. The CEO, Wazir Khan, described the discovery as a "game-changer" that adds a new layer of potential to the project. The company plans to conduct follow-up work, including re-logging and re-sampling of existing core, structural analysis, and planning for further drilling to assess the extent of the gold zones.

From a purely geological perspective, the discovery of a new gold system on a property historically known for uranium is a positive development. For a micro-cap company with a market capitalization under $1 million, any new discovery is material as it can generate significant investor interest and provides a new narrative.

However, a critical assessment reveals two major counterpoints: 1. Grade and Width: The reported intercept of 1.025 g/t Au over 1.5 meters is low-grade and narrow. While it confirms the presence of gold, it is far from being an economically viable intercept on its own. The CEO's description of this as a "game-changer" appears excessively promotional. 2. Financial Position: The company's financial health is extremely precarious. The most recent financial statements for the period ending May 31, 2025, show a cash balance of only $1,900 and a working capital deficit of $249,054. The company is effectively insolvent and cannot fund the announced follow-up program without an immediate capital injection.

The progression of news in 2025 shows a company divesting assets to stay afloat. In May 2025, Power One optioned off 75% of its Wicheeda North REE project for a small cash payment, indicating a weak negotiating position driven by financial distress.

Therefore, the primary material impact of this gold discovery is not its economic potential at this stage, but its utility as a catalyst for a desperately needed financing. The news provides a plausible story to attract new capital. However, any financing at the current stock price of $0.02 will be massively dilutive to existing shareholders and will likely include warrants that will create a future price overhang.

In conclusion, the news is rated "Material - Positive" because it provides a critical lifeline and a new potential value driver for a company on the verge of failure. The materiality is high due to the company's small size, but the positive impact is severely tempered by the overwhelming financial risk.

Power One Resources Corp. is a Canadian junior mineral exploration company. Its primary asset is now the Pecors project, located in the Elliot Lake mining camp of Ontario. The project has a historical (non-NI 43-101 compliant) uranium resource from 1977 and has been explored for its potential to host Nickel, Copper, Platinum Group Metals (PGMs), and Rare Earth Elements (REEs). The recent news adds gold to its list of potential commodities.

The company also holds the Wicheeda North REE project in British Columbia, but in May 2025 it optioned a 75% interest to Primary Hydrogen Corp. to raise funds and advance exploration through a partner.