Generation Mining Commences Construction at Marathon Copper-Palladium Mine

Generation Mining Limited has formally commenced construction at its 100%-owned Marathon Copper-Palladium Project in Northwestern Ontario, following the posting of construction-phase financial assurance under its filed Closure Plan. The early works program is expected to run through Q4 2026 and into 2027 and includes site access road and entrance upgrades; clearing and grubbing of the plant site, laydown areas and initial pit footprint; early water management structures with pumps and pipelines; upgrades to the existing Valard camp and expansion toward construction/permanent camp requirements; a temporary fuel farm and site offices; initial bulk earthworks and aggregate production; temporary power installation; and site-wide environmental controls and monitoring.

Regarding procurement, the company expects to make initial payments of approximately $30 million to secure supplier delivery commitments and pricing. These payments are expected to secure approximately $150 million of critical purchases, including mining equipment, primary crushing station, grinding and regrind mills, hydrocyclones, flotation equipment, thickeners, plant buildings and cranes. The company states this aggregate is at or below the Feasibility Study budget and that delivery lead times fall within the Project's baseline schedule.

A $6.5 million bond has been posted for the construction phase. Assurance is posted in phases under the Ontario Mining Act, sized to the rehabilitation obligations of each phase, rather than securing the full life-of-mine closure obligation up front.

No new financing, no revised capital cost, no revised project economics and no new reserve/resource figures are disclosed. The Feasibility Study metrics are restated unchanged: - NPV $1.07B (6% discount) - IRR 28% - 1.9-year payback - 13-year mine life - Payable LOM production of ~2,161,000 oz Pd, 532M lbs Cu, 488,000 oz Pt, 160,000 oz Au, 3,051,000 oz Ag

The technical content was approved by Clinton Swemmer, P.Eng., VP Projects, a NI 43-101 Qualified Person.

Generation Mining Limited (GENM) issued an execution and operations update rather than an earnings release or financing event. The company provided no new financial statements, cash flow figures, updated capital costs, or economic studies. The materiality of the announcement rests on whether the confirmation that construction has commenced constitutes genuinely new information.

Substantively, the start of construction was previously communicated. A September 14, 2026 release that secured the final $340 million of funding explicitly stated, "With financing now complete, we are thrilled to begin early works construction in Q4 2026." Previous guidance in releases dated June 22 and June 17 pointed to a construction start in the second half of 2026. Additionally, the Q2-2026 Management’s Discussion and Analysis listed "commence construction of the Marathon Project" as an explicit twelve-month management promise. Today’s release represents the delivery of a pre-announced, pre-guided, and market-known step.

The verifiable increment in today’s disclosure is that the $6.5 million construction-phase bond has been posted, fulfilling a stated condition to breaking ground, and crews are physically on site. This removes a discrete permitting and assurance gating item.

Procurement disclosures are consistent with and represent a modest extension of the August 12, 2026 release, which reported bid pricing for approximately 30% of estimated capital cost at or below the 2025 Feasibility Study allowances. Today’s announcement details approximately $150 million in secured purchases against a $992 million initial capital cost, representing roughly 15% of total capital expenditure. This is an earlier-stage slice than the 30% referenced in August. The $30 million payment against the $150 million commitment reflects the same "at or below budget" language applied to the procurement package and should not be interpreted as new cost-improvement evidence.

Regarding financial assurance, the phased structure serves as a cash-preservation measure. However, the company’s forward-looking cautionary language notes that financial assurance for subsequent phases may exceed current estimates, may not be postable on the anticipated timeline, or may not be postable in the anticipated form, which could delay or suspend construction. This is a company-disclosed risk attached to the announcement.

Prior-period context not included in today’s release shows that the Q2-2026 financials (for the six months ended June 30, 2026) reported cash of $33.4 million, total current liabilities of $8.6 million, negative total equity of -$67.4 million, a net loss of $33.3 million, and an explicit going-concern material uncertainty. A $240 million equity raise closed on September 21, 2026, after that balance sheet date. While the going-concern disclosure is stale relative to today’s release, it was the reason the September capital raise was dilutive and the reason the stock traded down into the raise.

Generation Mining Limited (TSX: GENM; OTCQB: GENMF) is a pre-revenue mine developer with zero revenue in every reported period. Its flagship asset is the 100%-owned Marathon Copper-Palladium Project, located in Northwestern Ontario on the north shore of Lake Superior, approximately 10 km from the Town of Marathon, which has a population of approximately 3,000. The site sits on the Trans-Canada Highway, is served by the CPR main rail line, is crossed by the Wawa–Thunder Bay high-voltage powerline, has a commercial airport adjacent to the deposit, and has access to the Port of Marathon, which received $2M in provincial funding for revitalization.

The project is fully permitted and construction-ready, with an EPCM contract executed with Ausenco, awarded in March 2026. Construction has commenced as of the current release. The project targets copper, palladium, platinum, gold, silver, and cobalt, producing a polymetallic copper-PGM concentrate with low deleterious elements and a mass pull of approximately 2.0% to final concentrate.

Reserves for the Marathon Deposit, effective November 1, 2024, stand at 128 Mt proven and probable at 0.21% Cu and 0.64 g/t Pd, containing 605M lbs Cu and 2,627 koz Pd. Ninety percent of reserves are in the proven category. Total Marathon measured and indicated resources (pit-shell constrained) amount to 202 Mt at 0.19% Cu and 0.53 g/t Pd. Additionally, there are Sally and Geordie indicated resources of 42 Mt at 0.24% Cu and 0.44 g/t Pd, plus 30 Mt inferred. Sally and Geordie resources are based on effective dates of June 30, 2020, which is materially older than the Marathon reserve estimate.

The land package was expanded by approximately 36% on December 9, 2025, to 1,617 claims and 47 mining leases covering 36,398 ha (364 km²). The mine plan outlines a 13-year reserve-based life with approximately 10 Mtpa average throughput. Average annual production in the first three years is projected at 42M lbs Cu and 168,000 oz Pd.

A feasibility study effective November 1, 2024, and dated March 28, 2025, reports an after-tax NPV of $1.07B at a 6% discount rate, an after-tax IRR of 28%, and a 1.9-year payback, based on the 3-year trailing average metal prices at the effective date. An investor presentation also shows a spot-price sensitivity: an NPV of $2.0B USD, an IRR of 33%, and a 1.4-year payback at August 2026 spot prices. This spot case is a company-prepared sensitivity, not a study, and the palladium and copper price environment is the single largest swing factor in that number.

Capital requirements include an initial capital of $992M, preproduction revenue of $(184)M, resulting in total initial capital of $809M. Sustaining capital is $565M, closure and reclamation is $72M, and contingency is $87M from the feasibility study plus $32M additional, totaling $119M.

As presented, the All-In Sustaining Costs (AISC) are US$781/PdEq oz, US$103/Pd oz, US$2.05/CuEq lb, and US$(1.72)/Cu lb net of by-products. The negative copper AISC reflects by-product credits from palladium. Metallurgical recoveries, at maximum values, are Cu 94%, Pd 90%, Pt 84%, Au 86%, and Ag 68%.