Electric Metals Files NI 43-101 Preliminary Economic Assessment for the North Star Manganese Project on SEDAR+

Executive Summary

• Electric Metals (USA) Limited filed its NI 43‑101 Preliminary Economic Assessment for the North Star Manganese Project on SEDAR+, highlighting after‑tax NPV(10%) of US$1.39 billion and IRR of 43.5%.
• The PEA outlines an initial capital requirement of US$474.8 million to develop an underground mine in Emily, Minnesota and a U.S. high‑purity manganese sulfate monohydrate (HPMSM) plant.
• Strong economics are supported by indicated and inferred mineral resources, underhand cut‑and‑fill mining method, and battery‑grade metallurgical test work; the company will now move into pre‑feasibility studies and permitting.

Key Details

• PEA Effective Date: 15 August 2025; Issue Date: 30 September 2025.
• Economic Highlights:
• After‑tax NPV (10%) – US$1.39 billion
• Internal Rate of Return (IRR) – 43.5%
• Initial capital expenditure (CapEx) – US$474.8 million
• Project Scope: Integrated underground mine at Emily, Minnesota plus a U.S.-based HPMSM chemical plant (site under evaluation).
• Resource Basis: Indicated and inferred mineral resources presented in Table 1 of the filing (specific tonnage/grade not reproduced here).
• Mining Method: Underhand cut‑and‑fill selected for geometry control and selectivity.
• Metallurgy: Test work confirms production of battery‑grade HPMSM; pre‑feasibility study will finalize flowsheet and unit costs.
• Operating Cost Structure: Life‑of‑Mine OPEX itemized across mining, processing, transportation, and G&A to support HPMSM economics (details in PEA).
• Sensitivity: NPV and IRR remain robust across a wide range of manganese prices, capital cost variations, and operating expense assumptions.
• Future Work Program:
• Additional drilling to expand resource confidence.
• Metallurgical/flowsheet optimization.
• Siting and logistics studies for mine and plant.
• Environmental and hydrologic assessments.
• Advancement to pre‑feasibility study.
• Qualified Persons (NI 43‑101): Donald E. Hulse, P.E.; Deepak Malhotra, Ph.D.; Gordon Sobering, P.E.; Ronald A. Steiner, Ph.D.; Douglas F. Hambley, P.E. – all reviewed and approved the technical content.
• CEO Comment: Brian Savage emphasized that filing the PEA is a major milestone, positioning the company to supply U.S.-sourced HPMSM for battery, defense, steel/alloy, technology, and industrial markets, and outlined next steps toward pre‑feasibility, flowsheet optimization, permitting, and siting.

Notable Quotes

“Filing the PEA is a major milestone for Electric Metals' North Star Manganese Project. With strong economics and North America's highest‑grade manganese resource, we're positioned to deliver U.S.-sourced, HPMSM for the electrification of everything—and to support defense, steel/alloy, technology, and industrial markets.” – Brian Savage, CEO