Q2 Metals Announces PEA with C$13.5 Billion After-Tax NPV8 for 1.7 Mtpa Cisco Lithium Project in Quebec, Canada

Highlights: Strong project economics: After-tax NPV₈ of C$13.49 billion and After-tax IRR of 38.7%, using a long-term reference price of C$2,289/tonne (US$1,647) for SC5.5 FOB Québec; Large, high-grade mineral resource: PEA is based on an updated MRE of 297.3 Mt @ 1.36% Li2O, derived from 75 holes across 33,343 m drilled through December 2025; Large-scale, long-life production: Estimated average annual production of 1.7 Mt of SC5.5, with total estimated production of 46.5 Mt over a 28-year mine life, supported by phased processing capacity of 5 Mtpa, expanding to 10 Mtpa; Low production cost: Cash operating cost of C$256/t and AISC of C$454/tonne SC5.5, before royalties on FOB Québec port basis; driven in part by the low strip ratio of 2.44:1 over the Project’s mine life and Project’s advantageous location relative to transportation infrastructure; Capital investment and payback: Estimated total CAPEX of C$2.93 billion, including contingency, with an estimated after-tax payback period of 3 years from the start of production; Strong NPV-to-capital ratio: After-tax NPV8 of C$13.49 billion, compared with estimated initial capital expenditure of C$2.93 billion, representing an NPV-to-initial-capital ratio of approximately 4.6:1; Substantial projected cash generation: Total undiscounted pre-tax free cash flow of approximately C$81.22 billion, with cumulative after-tax, undiscounted cash flow of approximately C$46.9 billion; and Potential for resource expansion and project optimization: Extensive drilling in 2026 continues to demonstrate that mineralization remains open along strike, with multiple wide intercepts outside the current resource area. Drilling, metallurgical testing and engineering studies currently underway have the potential to expand and upgrade the resource, refine the processing flowsheet and identify opportunities to further improve Project economics. VANCOUVER, British Columbia, Nov. 10, 2026 (GLOBE NEWSWIRE) -- Q2 Metals Corp. (TSX.V: QTWO | OTCQB: QUEXF | FSE: 458) (“Q2” or the “Company”) is pleased to announce the results from a Preliminary Economic Assessment (“PEA”) for the Cisco Lithium Project (the “Cisco Project” or the “Project”). The PEA is the first conceptual assessment of the economics of the staged development of the Project and outlines the Cisco Project’s potential to be among the largest and lowest cost spodumene concentrate producers in the world. “Combining an already globally significant open pit resource with access to established infrastructure and strong community partnerships, the Cisco Project has emerged as a strategically important spodumene lithium project in a premier mining jurisdiction. This PEA marks an important milestone for Q2 in unlocking the Cisco Project's full long-term potential as it advances toward future stages of development,” Alicia Milne, Q2 Metals President and CEO, stated. “In just two and a half years, our dedicated team has advanced Cisco from a new discovery at acquisition to the PEA-stage and its position among the top global spodumene lithium projects. The technical merits of the Cisco Deposit, in terms of scale, grade and continuity, have combined with its proximity to transportation infrastructure to create a project of major scale, with a preliminary AISC within the lowest quartile of industry peers. We are focused on advancing Cisco toward becoming a prominent new source of lithium to meet anticipated future demand around the world. Delivery of this PEA marks a major milestone and turning point as we transition from pure exploration to establishing Cisco as a key component of Canada’s broader critical minerals strategy and a major contributor to the local and regional economies. The potential production profile outlined in the study reflects the scale of the deposit itself, which was recognized as “Discovery of the Year” by the Association de l’Exploration Minière du Québec this November. The Cisco Deposit will continue to evolve with our 2026 drill campaign. Q2 is well-capitalized to continue aggressive exploration and infrastructure development as we look ahead to future catalysts and milestones.” Preliminary Economic Assessment Overview The PEA, prepared by independent Canadian firm BBA Consultants (“BBA”), describes the Cisco Project’s value proposition through project economics, long-term cash flow generation, and attractive returns over the life of mine. A thorough evaluation of the Project’s technical and strategic advantages underscore its potential to become one of the largest, low-cost producers of spodumene concentrate globally, with an all-in sustaining cost (“AISC”) of C$454/tonne of spodumene concentrate (“SC”) grading 5.5% Li₂O (“SC5.5”). The production profile and mine life reflect the scale of the mineral resource demonstrating the Cisco Project's potential to become a major, long-term producer of high-quality spodumene concentrate. The PEA mine plan contemplates a conventional open-pit truck-and-shovel mining operation, leveraging favourable near-surface geometry and continuity. The PEA has been designed as a two-phase development reaching 10 million tonnes per annum (“Mtpa”) of plant feed, with an estimated initial capital (“CAPEX”) of C$2,926 million (“M”), including mine pre-production and mobile equipment, and an after-tax 3-year payback after start of production. Life-of-mine (“LOM”) operating costs for the mine complex are estimated at C$11,913 million, equivalent to C$256.16/tonne (“t”) of concentrate on a site operating cost basis (before concentrate transportation). The production basis comprises approximately 28 years of operations, processing 264.2 million tonnes (“Mt”) of material mined and producing 46.5 Mt of SC5.5. The PEA is an AACE Class 5 estimate with a target accuracy range of −30% to +50%, developed in Q3 2026, and expressed in constant Canadian dollars. Readers should note the early-stage nature of the estimate when evaluating the PEA results.  Table 1: Key Financial Assumptions Assumption Unit Value Exchange Rate   US$/C$ 1.39 Reference price: Long-term SC6.0 Price (CIF China) US$/t 1,900 Long-term SC5.5 Price (CIF China) US$/t 1,742 Long-term SC5.5 Price (FOB port in province of Québec) US$/t 1,647 Long-term SC5.5 Price (FOB port in province of Québec) C$/t 2,289 Discount Rate  % 8 Table 2: Cisco Project PEA Financial Results Results Unit Value Valuations  Pre-tax NPV8 C$ million 23,052 Pre-tax IRR  % 48.5 After-tax NPV8 C$ million 13,490 After-tax IRR  % 38.7 Payback Period After-Tax (Start of Production) Years 3.0 Revenues  Pre‐Tax Cash Flow (Total, Undiscounted)  C$ million 81,216 Estimated Investment Tax Credit C$ million 101 Estimated Total Taxes  C$ million 34,437 After‐Tax Cash Flow (Total, Undiscounted)  C$ million 46,879 Total Gross Revenue  C$ million 106,441 Costs  Initial Capital Cost (Y-2 to Y3) C$ million 2,926 Sustaining Capital Cost  C$ million 589 Operating Cost C$ million 11,913 Concentrate Transportation Loss C$ million 106 Concentrate Transportation Cost C$ million 8,486 Royalty Cost (1%GOR) C$ million 1,064 Closure and Reclamation Cost C$ million 141 Total Project Cost  C$ million 25,225 Industry Cost Metrics (C$/tonne SC5.5)  Cash Costs  C$/t SC5.5 439 All-in Sustaining Costs before Royalties (FOB port in province of Québec) C$/t SC5.5 454 The PEA for the Cisco Project is preliminary in nature and is based solely on Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the results of the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Sensitivity Analysis At a base-case long-term SC6 price of $1,900 (CIF China) and an exchange rate of C$1.39 per US$1.00, the Cisco Project generates a pre-tax NPV8 of C$23,052 million and an IRR of 48.5%, and an after-tax NPV8 of C$13,490 million and an IRR of 38.7%, based on a cumulative effective tax rate of 42.3%. The results indicate that the Cisco Project maintains a positive Net Present Value (“NPV”) and Internal Rate of Return (“IRR”) across the ranges evaluated when each sensitivity parameter is assessed independently. Table 3: Summary of After-Tax NPV8 sensitivity results Sensitivity  -30% -20% -10% 0% 10% 20% 30% Li2O DMS Feed Grade (±30%)  8,126 9,916 11,702 13,490 15,267 17,046 18,823 Price (±30%)  7,691 9,627 11,558 13,490 15,411 17,332 19,251 Exchange Rate (US$:C$) (±30%)  7,691 9,627 11,558 13,490 15,411 17,332 19,251 Recovery (±20%)    9,916 11,702 13,490 15,267 17,046   Initial Capital (±30%)  13,937 13,788 13,638 13,490 13,334 13,179 13,026 Sustaining Capital (±30%)  13,520 13,510 13,500 13,490 13,480 13,470 13,460 Operating (±30%)  14,241 13,990 13,740 13,490 13,237 12,982 12,728 Table 4: Summary of After-tax IRR sensitivity results Sensitivity -30% -20% -10% 0% 10% 20% 30% Li2O DMS Feed Grade (±30%) 28.5% 32.1% 35.5% 38.7% 41.8% 44.7% 47.5% Price (±30%) 27.6% 31.5% 35.2% 38.7% 42.0% 45.1% 48.1% Exchange Rate (US$:C$) (±30%) 27.6% 31.5% 35.2% 38.7% 42.0% 45.1% 48.1% Recovery (±20%)   32.1% 35.5% 38.7% 41.8% 44.7%   Initial Capital (±30%) 47.5% 44.0% 41.2% 38.7% 36.6% 34.7% 33.0% Sustaining Capital (±30%) 38.8% 38.8% 38.7% 38.7% 38.7% 38.7% 38.7% Operating (±30%) 41.0% 40.2% 39.5% 38.7% 38.0% 37.2% 36.4% Table 5: Price of Spodumene Concentrate 5.5% Li2O % Variation -30% -20% -10% 0% 10% 20% 30% LOM Average Price (C$/t) $1,602 $1,831 $2,060 $2,289 $2,518 $2,747 $2,976 NPV 6% 10,464 12,931 15,392 17,856 20,308 22,761 25,212 NPV 8% 7,691 9,627 11,558 13,490 15,411 17,332 19,251 NPV 10% 5,705 7,259 8,808 10,357 11,895 13,434 14,970 IRR 27.6% 31.5% 35.2% 38.7% 42.0% 45.1% 48.1% Payback Period (start of investment) 6.1 5.6 5.2 5.0 4.7 4.5 4.3 Payback Period (start of production) 4.1 3.6 3.2 3.0 2.7 2.5 2.3 Project Summary The Cisco Project is primarily located within the greater Nemaska traditional territory of the Eeyou Istchee James Bay region of Quebec, Canada. The Project comprises 801 Exclusive Exploration Rights totalling 41,253 hectares (“ha”) and the deposit is 6.5 kilometres (“km”) from the paved, all-season Billy Diamond Highway, providing strategic year-round direct access to rail infrastructure in the Town of Matagami, approximately ~150 km to the south. The Project benefits from access to regional transportation infrastructure, including the CN rail network in Matagami which connects to deep-water port facilities along the St. Lawrence Seaway, serving global markets. Beyond its technical merits, the Cisco Project is being advanced with a strong focus on community engagement and responsible development. The Company maintains ongoing dialogue with the Cree Nation Government, the Cree Nations of Nemaska and Waswanipi, local tallymen, the Town of Matagami, and the Eeyou Istchee James Bay Regional Government. The Company has also developed partnerships with Cree-owned and regional businesses and continues to advance environmental and land-use baseline studies to support future permitting, engineering, and project planning activities. Figure 1: Cisco Project, Eeyou Istchee James Bay Quebec Canada Updated Inferred Mineral Resource Estimate An updated Inferred Mineral Resource Estimate has been used as the basis for the PEA. The Inferred Mineral Resource Estimate for the Cisco Project, with an effective date of May 26, 2026, was prepared by Todd McCracken, P.Geo. of BBA, an independent Qualified Person (the “May 2026 MRE”). The May 2026 MRE supersedes the Company's previously disclosed Inferred Mineral Resource Estimate for the Cisco Project with an effective date of April 20, 2026 (the "April 2026 MRE"), as announced in the Company's news release of April 20, 2026. The May 2026 MRE is based on the same original dataset of 75 holes across 33,343 m of drilling completed through December 2025 and reflects revisions to the classification wireframes. The revisions to the wireframe classification resulted in an increase to the total Inferred Mineral Resources tonnage by less than approximately 1%. The contained Li2O increased by approximately 1%. The May 2026 MRE is therefore a reclassification of the existing dataset rather than a new drilling-based increase in the geological inventory. Readers should no longer rely on the April 2026 MRE and the assumptions therein. In accordance with National Instrument 43-101 – Standards for Disclosure of Mineral Projects (“NI 43-101"), the technical report supporting the PEA and the May 2026 MRE be filed on SEDAR+ within 45 days of this news release. The Mineral Resource Estimate assumptions include open-pit and underground-constrained Mineral Resources reported using a SC6 price of US$1,500/tonne, Free on Board (“FOB”) Bécancour, an exchange rate of US$0.70 per C$1.00, and respective reporting cut-off grades of 0.40% and 0.70% Li₂O. These parameters were used to establish reasonable prospects for eventual economic extraction for Mineral Resource reporting purposes. The PEA assumptions apply to the development scenario and economic analysis; no underground mining operation is contemplated in the PEA. Table 6: NI 43-101 Mineral Resource Statement for the Cisco Deposit Classification Scenario Cut-off Grade (% Li2O) Mass (‘000 t) Li2O (%) Li2O (‘000 t) LCE (‘000 t) Inferred Open Pit 0.4 271,575 1.37 3,724 9,208 Underground 0.7 25,802 1.30 335 829 Total Combined 297,377 1.36 4,059 10,037 Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards (2014). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, economic, or other relevant issues. The independent Qualified Person (“QP”), as defined by NI 43-101, for this estimate is Todd McCracken, P.Geo., Director – Mining & Geology – Central Canada, BBA. The Effective Date of the estimate is May 26, 2026. Estimation was completed using a combination of inverse distance squared (ID2) and ordinary kriging (OK) in Leapfrog Edge software with dynamic anisotropy search ellipse on specific domains. Both underground and open-pit conceptual mining shapes were applied as constraints to demonstrate reasonable prospects for eventual economic extraction. Cut-off grades for open-pit constrained resources are 0.40% Li2O, and underground constrained resources is 0.70% Li2O. Open-pit and underground Mineral Resource constraints are based on a spodumene concentrate price of US$1,500/tonne (SC6 FOB Bécancour) and an exchange rate of 0.70 USD/CAD. The cut-off grades are based on Li2O (%) only. Rounding may result in apparent summation differences between tonnes, grade, and contained metal content. Tonnage and grade measurements are in metric units. Conversion factors used: Li2O = Li x 2.153; Li2O to LCE x 2.473. Pegmatite and non-pegmatite blocks were assigned a fixed SG based on the field measurement median value of their respective lithology. Mining Methods The mine plan in the PEA contemplates a conventional open-pit truck-and-shovel mining operation, leveraging the Cisco Deposit's favourable near-surface geometry and continuity. The mine plan comprises seven phases over a 28-year mine life following a one-year open-pit pre-production period. The ultimate pit shell was evaluated using Deswik.GO and contains 908.4 Mt of material: 264.2 Mt of mineralized material averaging diluted grades of 1.32% Li₂O and 1.10% Fe, 624.6 Mt of waste rock and 19.6 Mt of overburden. The overall strip ratio is 2.44:1. The shell is approximately 1,280 m wide, 1,600 m long and 570 m deep with a metallurgical cut-off grade of 0.50% Li₂O being applied.  As the Project is being built in two phases, a 5 Mtpa processing facility will be built at the beginning of the Project. Expansion of the process plant to 10 Mtpa will begin in the second year of operation. The following ramp-up of processing capacities were considered: Year 1: 3.75 Mt (75% of initial capacity); Year 2: 5 Mtpa (100% of initial capacity); Year 3: 7.5 Mtpa (100% of initial capacity + 50% of expansion capacity); Year 4: 8.75 Mtpa (100% of initial capacity + 75% of expansion capacity); Year 5+: 10 Mtpa (100% of initial and expansion capacities). A pre-production period has also been included to mine approximately 10 Mt of material. Waste rock extracted in this period will be used for construction needs, and mineralized material will be stockpiled for future processing. Total material mined peaks at approximately 45 Mt annually, and material movement (including stockpile rehandling) totals 977 Mt over the LOM. Figure 2: Mine Plan Figure 3: Feed Plan Table 7: Cisco Project Production Metrics Assumption Unit Value Project Timeline Construction Period years 2 Open Pit Pre-Production Period years 1 Life of Mine (LOM) years 28 Total Project Life years 30 Mine Physicals Total Mineralized Material Mined Mt 264 Total Waste Rock + Overburden Mt 644 Total Material Moved (inc. Stockpile movement) Mt 977 Average Strip Ratio  t:t 2.44 Average Annual DMS Plant Feed (Phase 1) Mtpa 5 Average Annual DMS Plant Feed (Phase 2) Mtpa 10 Concentrate Production Product Concentrate Grade % Li20 5.5 LOM Average Feed Head Grade % Li20 1.32 LOM Average Recovery % 73.3 LOM SC5.5 Produced Mt 46.5 LOM Average Annual Concentrate Production Mtpa 1.7 Concentrate Moisture % 8 Metallurgical Testing Metallurgical testwork was completed on three composite samples to characterize the Cisco Project mineralization and assess potential processing methods for lithium recovery. Mineralogical characterization identified spodumene as the principal lithium-bearing mineral, with head grades ranging from approximately 1.53% to 1.68% Li₂O and generally favourable spodumene liberation.  The composites provide an initial indication of processing response; additional variability testing is currently underway and additional testing is planned for subsequent study phases. Comminution testing indicated abrasive material that was classified as very easy to crush based on the combined French abrasion and crushability test sample.  Heavy liquid separation testing demonstrated good potential for dense media separation (“DMS”), although laboratory heavy liquid separation (“HLS”) recoveries were considered optimistic relative to expected commercial performance.  Limited flotation testing indicated that flotation of DMS middlings and fines could provide additional lithium recovery, supporting the selection of a combined DMS and flotation flowsheet for the PEA.  Based on the available testwork and engineering scale-up assumptions, the PEA mass balance predicts an overall lithium recovery of approximately 73.3% to combined DMS and flotation concentrates grading approximately 5.5% Li₂O and 0.62% Fe.  The available testwork is preliminary and does not fully characterize deposit variability, and the complete PEA flowsheet has not been demonstrated through an integrated test program.  Processing The PEA process flowsheet was developed based on the preliminary metallurgical testwork and conventional spodumene processing practices and consists of three-stage crushing, two-stage DMS, grinding, magnetic separation, spodumene flotation, and concentrate and tailings dewatering and filtration.  The Project has been planned as a phased development, with the crushing plant initially sized for 10 Mtpa, while the concentrator is installed at 5 Mtpa in Phase 1 and is subsequently expanded to 10 Mtpa in Phase 2. The DMS circuit recovers coarse, liberated spodumene through rougher and cleaner stages, while DMS floats and fines are ground and processed by magnetic separation and flotation to maximize lithium recovery and control concentrate iron content.  The process design targets a combined spodumene concentrate grading approximately 5.5% Li₂O, while minimizing iron content with a projected overall lithium recovery of approximately 73.3%. At the ultimate 10 Mtpa processing rate, the facility is expected to produce approximately 1.76 Mtpa of spodumene concentrate (steady state), with concentrate filtered (flotation) or screened (DMS) prior to storage and shipment.  Project Infrastructure Project infrastructure major facilities comprise the open pit, process plant and tailings filtration plant, waste rock and overburden storage areas, a filtered-stack tailings facility, permanent operations camp, garage, warehouse and administration building. Figure 4: Project overall site plan Spodumene Concentrate Transportation The Cisco Project is located approximately 150 km north of the Matagami Transshipment Facility (cour de transbordement de Matagami), an existing bulk-handling facility that provides access to the rail network for the transportation of mining products and other bulk materials. The Project’s proximity to existing road infrastructure and an established rail-linked transshipment facility is expected to support the efficient movement of spodumene concentrate to downstream markets. Spodumene concentrate produced by the Project will be transported in 49-t highway trucks along an approximately 15.5 km access road connecting the site to the all-season Billy Diamond Highway. The concentrate will then be hauled to the Matagami Transshipment Facility where it will be transferred into railcars for transport to a selected export port. The availability of established transportation infrastructure, including year-round road access and close proximity to existing rail infrastructure is expected to reduce the need for additional transportation infrastructure development in support of concentrate shipments. Power Supply and Distribution Preliminary power demand for the Project is estimated at approximately 45 MW and 62 MW for the 5 Mtpa and 10 Mtpa operating scenarios, respectively. Power is expected to be supplied via a new approximately 200 km, 161 kV transmission line with a maximum capacity of approximately 100 MW. The transmission system would require two substations: an off-site connection substation and an on-site distribution substation. The two nearest Hydro-Québec transmission facilities capable of supplying the Project are the Nemiscau Substation, located northeast of the Project site, and the Abitibi Substation, located to the southeast. Both facilities are connected to Hydro-Québec's 315 kV transmission network and are understood to have sufficient capacity to meet the Project's anticipated power requirements. Although the Nemiscau Substation is located slightly farther from the Project site, it is considered the preferred point of supply due to the availability of existing road infrastructure along the corridor between the substation and the Project. The presence of established access routes is expected to facilitate transmission line construction and ongoing maintenance activities. The transmission line distance from the Nemiscau Substation is estimated at approximately 200 km, compared with approximately 175 km from the Abitibi Substation. However, the Abitibi route would require the development of substantial new access infrastructure along much of the corridor. As the Project advances, alternative infrastructure development and ownership arrangements may be evaluated as part of future engineering and project development studies. These could include arrangements involving third parties for the development, ownership, operation or maintenance of transmission infrastructure, where such arrangements are demonstrated to be technically and economically viable and are aligned with the Project requirements. For the purposes of the PEA, it is assumed that the transmission line would be constructed, owned, operated, and maintained by the Company. Environmental Studies, Permitting and Community Engagement The Project is located on Category III lands in Eeyou Istchee James Bay and will be subject to the provincial environmental and social impact assessment and review process applicable under James Bay and Northern Québec Agreement (“JBNQA”) as well as the federal assessment provisions for new metal mines and mills with ore production capacity of 5,000 t/day or more. Environmental Studies To date, environmental baseline data collection efforts remain preliminary, with field surveys being initiated in 2026. As proposed Project-specific infrastructure and associated activities are further defined, the environmental baseline work will be refined accordingly. Key considerations include the characterization of vegetation and wetlands, fish and fish habitat, fauna including woodland caribou distribution and available high-value habitats, migratory birds, surface and groundwater quality and quantity, traditional land use, and Indigenous health and socio-economic conditions. Conceptual closure planning will be developed with community partners and refined as the Project advances. The proposed approach targets public safety, contaminant control, physical stability, and land restoration compatible with post-closure use. Fish habitat compensation costs remain unquantified. Permitting and Community Engagement The Project lies within a governance framework established by the JBNQA and the Agreement Concerning a New Relationship Between the Government of Québec and the Crees of Québec (Paix des Braves), with Cree rights and traditional land use central to development planning. Category III lands carry specific Cree harvesting and outfitting rights without exclusive land ownership. The 2024 Cree Nation Mining Policy emphasizes environmental protection, respect for rights, sustained engagement, and economic participation through employment, training, and services. Recognizing the importance of community involvement and social responsibility, engagement with First Nations and other stakeholders has been ongoing since 2024, with initial Project community-based public information sessions held in 2026. Activities have focused on sharing Project information and gathering preliminary concerns, interests, and recommendations. The Company is committed to environmental stewardship and social responsibility and continued engagement with First Nations and other stakeholders will include environmental baseline findings, land-use information, and input on mitigation and habitat compensation measures as Project design advances. Spodumene Concentrate Pricing Lithium market fundamentals are expected to remain constructive over the next decade. Continued growth in consumption, combined with uncertainty over the timing of new production, supports the long-term outlook for spodumene concentrate prices. This environment also increases the strategic relevance of large-scale lithium projects located in jurisdictions that support responsible mine development. Lithium demand is expected to remain on a long-term growth trajectory, supported by two increasingly important end markets. Electric-vehicle adoption continues to be the principal source of consumption, while the rapid deployment of battery energy storage systems is expanding the role of stationary storage. This broader end-use profile reinforces demand beyond the automotive market. The supply response is less certain. Forecasts rely heavily on additional mine and processing capacity from projects that remain unbuilt, unfunded, or inactive. Their contribution will depend on access to capital, permitting progress, successful project execution, and market conditions. These factors create uncertainty regarding both the timing and volume of new supply available to meet projected consumption. Against this market backdrop, the PEA adopts a long-term spodumene concentrate price of US$1,900/t on an SC6.0, CIF China basis. The selected value reflects a review of independent benchmarks, including specialist commodity-market research, consensus forecasts from established financial institutions, and assumptions reported in recent NI 43-101-compliant technical reports. Rather than reflecting short-term commodity-price fluctuations, the assumption is intended to represent conditions over the Project’s operating life. The conversion to US$1,647/t SC5.5 FOB Québec incorporates grade adjustment, freight, handling and location differentials. Capital and Operating Costs The PEA outlines a two-phase development of the Cisco Project reaching 10 Mtpa of plant feed from Year 5 onward, with estimated initial capital of C$2,926 M and sustaining capital of C$589M. Phase 1 capital costs are classified as initial capital. Phase 2 capital costs incurred before the second plant reached its nameplate of 5Mtpa in Year 4 are also classified as initial capital. LOM operating costs for the mine complex are estimated at C$11,913 M, equivalent to C$256.16/t of concentrate on a site operating cost basis. The production basis comprises approximately 28 years of operations, processing 264.2 Mt and producing 46.5 Mt of SC5.5. Capital Costs The capital estimate is an AACE Class 5 estimate with a target accuracy range of −30% to +50%, developed in Q3 2026 and expressed in constant Canadian dollars.  Readers should note the early-stage nature of the estimate when evaluating the PEA results. The total LOM capital cost, including sustaining capital, is estimated at C$3,515 million. This includes direct costs, indirect costs, contingency, off-site costs, mine equipment, capitalized mine pre-production costs, environmental disturbance compensation, and a royalties buy-back payment. The estimate comprises: Process plant and site infrastructure: C$1,288.9 million for the process plant, on-site infrastructure, on-site energy and site power distribution, the TSF, and water management and treatment. Of this, C$936.4 million is for Phase 1 and is incurred in Y-1 and Y-2 and C$352.5 million is for Phase 2 (incurred in Y2 and Y3). All is treated as initial capital. Indirects and contingency: C$481.7 million in indirect costs and C$354.1 million in contingency. Approximately C$597.1 million of this is incurred in Y-1 and Y-2, and C$238.7 million in Y2 and Y3. Off-site infrastructure: C$500.0 million for the approximately 200 km, 161-kV transmission line, the Hydro-Québec substation interconnection, and concentrate transport infrastructure (including associated indirects and contingency). All is incurred during construction in Y-1 and Y-2. Mine equipment and pre-production: C$775.4 million for mine mobile equipment (including C$98.9 million in interest under the lease-to-purchase financing strategy for major equipment) plus C$72.4 million covering open-pit mining and G&A pre-production costs. Of the combined C$847.8 million, C$258.9 million is incurred in the initial capital period and C$588.9 million in the sustaining capital period. Environmental compensation and royalties: C$42.5 million, incurred in Y-1 and Y-2, for environmental disturbance compensation and the royalties buy-back. Table 8: Total Process Plant and Infrastructure Capital Costs (excluding mining equipment, mine pre-production costs, environmental compensation and royalties Description Phase 1 C$ million Phase 2 C$ million Phase 1 & 2 C$ million DIRECT COSTS       Process Plant 479.6 269.7 749.3 Onsite Energy & Site Power Distribution 59.6 4.9 64.5 Mine Surface Infrastructure 50.2 14.8 65.0 Onsite Infrastructure 140.6 34.7 175.3 TMF 85.6 28.5 114.1 Water Management 120.8 0.0 120.8 TOTAL DIRECT COSTS (excluding Mining & Off-Site) 936.4 352.5 1,288.9 INDIRECT COSTS       Owner's Costs 74.9 28.2 103.1 EPCM Services 122.9 43.6 166.5 Temporary Facilities & Utilities + Heavy Lift Cranes + POV 65.1 22.5 87.7 Contractor Travel 17.1 7.5 24.6 Temporary Construction Camp & Catering 32.9 20.9 53.8 Freight, Spares Parts, Vendor Reps 28.5 17.5 46.0 TOTAL INDIRECT COSTS 341.6 140.2 481.7 TOTAL DIRECT + INDIRECT COSTS (excluding Mining & Off-Site) 1,278.0 492.7 1,770.6 CONTINGENCY 255.6 98.5 354.1 TOTAL CAPEX (excluding Mining & Off-Site) 1,533.6 591.2 2,124.8 OFF-SITE       OFF-SITE ENERGY & POWER 485.0 0.0 485.0 OFF-SITE - Concentrate Transport Capex 15.0 0.0 15.0 TOTAL CAPEX (including Off-Site) 2,033.6 591.2 2,624.8 Operating Costs Operating costs are developed from first principles based on recent precedent projects with similar mining methodologies and locations. The total LOM operating costs for the Project are estimated to be C$11,912.6 million, or C$256.16/t of concentrate on a site cash operating basis. The mining operation will extract 908.4 Mt and move 977.0 Mt (including stockpile rehandling) over the LOM. Total mining operating costs are estimated to be C$4,505.6 million or C$4.96/t mined (pit material basis) with hauling representing the largest mining activity cost. Processing operating costs average C$89.51/t; reagents account for 32% of process costs, personnel for 21%, and equipment consumables and maintenance for 17%. General and administrative (G&A) costs are estimated at C$45.45/t, while camp costs average C$13.27/t. Table 9: Summary of Operating Costs Operating Cost Total Unit Cost C$ million C$/t conc. Open Pit 4,505.6 96.9 Process 4,162.6 89.5 Tailings Transportation 368.1 7.9 Water Management and Treatment 145.3 3.1 General and Administrative 2,113.7 45.5 Camp Operation 617.2 13.3 Total Cash Operating Cost at Site 11,912.6 256.2 Transportation 8,485.9 182.5 Total Cash Operating Cost 20,398.5 438.6 Sustaining Capital (inc. closure) 729.8 15.7 All-in Sustaining Cost 21,128.3 454.3 Opportunities and Next Steps With the completion of the PEA, the Company intends to continue to advance the Cisco Project with a clear and defined pathway. Key workstreams include: Geological work: Resource growth and conversion drilling: continued infill and exploration drilling within the Cisco Deposit area to grow and upgrade the resource base; District-scale exploration and drilling: surface exploration and drilling across the Cisco Project will continue to test targets; and Update to the MRE: The May 2026 MRE was used as the basis of the PEA and incorporated drilling completed to December 2025 with a total of 33,343 m of drilling across 75 holes. To date, there has been approximately 69,500 m drilled across 151 holes at the Cisco Project; Engineering Studies and Data Collection Programs: Ongoing metallurgical test work with additional work to further refine the flowsheet for the next phase of studies; Geotechnical investigations for open pit design, process plant mill foundation design; Condemnation drilling for siting of plant infrastructure, together with geotechnical and hydrogeological data collection programs; and Tradeoff and optimization studies with more detailed engineering. Environmental, Permitting & Community Engagement: Continued baseline studies based on the proposed mine design and layout, and associated activities; Initiation of the provincial/JBNQA impact assessment process through submission of a Preliminary Information Statement, followed by submission of a project description to subsequently initiate the federal impact assessment process; and Continued engagement with First Nations, local communities, government and key project stakeholders in support of the responsible development of the Project; Together, these workstreams will continue to advance and de-risk the Cisco Project. Figure 5: Project Pathway – 2024 through 2028 CTM-ITC Tax Credits The Company and its external tax advisors have undertaken a preliminary assessment of the Canadian and Quebec government incentives and tax credits that may be available for the Project. The Clean Technology Manufacturing Investment Tax Credit in Canada (“CTM-ITC”) provides a refundable federal tax credit designed to encourage investment in clean technology manufacturing, processing and critical mineral extraction and processing projects in Canada. The tax credit is legislated to provide a 30% refundable tax credit on eligible capital investments and activities through to 2031, after which it is scheduled to phase down to 20% in 2032, 10% in 2033, and 5% in 2034. The rate is 0% after 2034. Based on this preliminary assessment, approximately $658 million of the Project’s estimated initial capital costs included in the PEA may qualify for the CTM-ITC. After consideration of timing, eligible-cost definitions, labour content and the legislated phase-down schedule, the PEA incorporates a potential refundable investment credit of approximately $95 - $101 million. There is no guarantee that the Company will be able to access all or part of the CTM-ITC. The CTM-ITC program is currently scheduled to expire in 2034 and there is no guarantee that it will be extended. The Province of Quebec also has a tax holiday for large investment projects. A qualifying company can receive an income tax holiday that is capped at 20% of eligible investment expenditures. The cumulative eligible investment base is capped at C$1 billion per project. Pending submission and approval, the tax holiday could provide income tax savings of up to $200 million over the first 10 years of production. There is no guarantee that the Company will be able to access the tax holiday program. The Company intends to evaluate and pursue federal and provincial funding programs, grants, tax incentives, and strategic support initiatives that may be available for the Project. While no assurance can be provided that any additional funding or incentives will be secured, the Company believes there may be opportunities to further enhance Project economics through participation in eligible government support programs. PEA Technical Report & Technical Disclosure The Preliminary Economic Assessment was prepared by BBA Consultants. The study was completed by the following Qualified Persons as defined by NI 43-101: Todd McCracken, P.Geo. Director – Mining & Geology; Dario Evangelista, P. Eng., Senior Mining Engineer; Patricia Dupuis, P.Eng., Senior Process Engineer; Isabelle Leblanc, P.Eng., VP Mining & Metals and Geraldine Cosset P.Eng, M.Sc.A, Principal Tailings Engineer. All are independent of the Company in accordance with NI 43-101. They are not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the results of the PEA. Additional scientific and technical information in this news release not specific to the PEA has been prepared under the supervision of and approved by Neil (Sage) McCallum, B.Sc., P.Geol, Qualified Person (QP) as defined by NI 43-101, and a registered permit holder with the Ordre des Géologues du Québec and member in good standing with the Professional Geoscientists of Ontario. Neil (Sage) McCallum is a director and the Vice President Exploration for Q2 Metals and has reviewed and approved the technical information in this news release.  The effective date of the PEA will be provided in the NI 43-101 Technical Report, which will be filed on the Company’s website and under its SEDAR+ profile within the required 45-day period. The scientific and technical information contained herein has been reviewed and approved by the aforementioned Qualified Persons. Upcoming Events Q2 will be attending the following conferences and events:  Canaccord Genuity Australia Metals & Mining Conference Noosa, Australia November 11-13, 2026 Québec Mines + Énergie Quebec City, Quebec November 17-19, 2026 121 Conference London, UK November 23-24, 2026 About Q2 Metals Q2 Metals is a Canadian mineral exploration company focused on advancing the Cisco Lithium Project which is located within the greater Nemaska traditional territory of the Eeyou Istchee, James Bay region of Québec, Canada. The Cisco Deposit is strategically situated just 6.5 km from the Billy Diamond Highway, providing access to rail infrastructure in the Town of Matagami, ~150 km to the south, with connections to deep seaports beyond. The current Inferred Mineral Resource Estimate on the Cisco Deposit outlines a pit-constrained resource of 271.6 Mt grading 1.37% Li2O at a 0.4% Li2O cut-off grade and an additional underground-constrained resource of 25.8Mt grading 1.30% Li2O Inferred at a 0.7% Li2O cut-off grade. Together, these support a combined inferred mineral resource of 297.4 Mt grading 1.36% Li2O. The Cisco Deposit remains open along strike, with several additional high-priority targets identified across the broader 41,253 ha project area. FOR FURTHER INFORMATION, PLEASE CONTACT:  Alicia Milne President & CEO   [email protected] Jason McBride Investor Relations Manager [email protected] Chris Ackerman Corporate Development [email protected]       Telephone:  1 (800) 482-7560   Website: www.Q2Metals.com E-mail:  [email protected]   Social Media:  Twitter,LinkedIn,Facebook, and Instagram  Forward-Looking Statements  This news release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian legislation. Forward-looking statements are typically identified by words such as: “believes”, “expects”, “anticipates”, “intends”, “estimates”, “plans”, “may”, “should”, “would”, “will”, “potential”, “scheduled” or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. Accordingly, all statements in this news release that are not purely historical are forward-looking statements and include statements regarding beliefs, plans, expectations and orientations regarding the future including, without limitation, statements regarding the results of the PEA and the estimates, projections and assumptions contained therein, the geological prospects of the Company’s properties and the future exploration and development endeavors of the Company. The PEA is preliminary in nature and is based on Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA results will be realized. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions.  Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date specified in such statement. Forward looking statements in this news release may include, but are not limited to, the results of the PEA, including estimated pre-tax and after-tax NPV and IRR, payback period, cash flows, revenues, capital costs, sustaining capital costs, operating costs, cash costs, AISC, taxes, royalties and closure and reclamation costs; estimated mine life, production rates, throughput, concentrate grade, recoveries and the phased development of the Project; the proposed mine plan, processing flowsheet, infrastructure, power supply, transportation and logistics, and waste and water management concepts; the potential for the Project to be among the largest and lowest cost spodumene concentrate producers; the sensitivity of the Project economics to changes in lithium prices, exchange rates, grade, recovery and costs; the availability and amount of the CTM-ITC, the Québec tax holiday and other government incentives and funding programmes; the updated MRE and the estimation of mineral resources; the timing of filing of the NI 43-101 Technical Report supporting the PEA and the updated MRE; drilling results on the Cisco Project and inferences made therefrom; the potential scale of the Cisco Project and opportunities for resource growth and project optimization; the focus, scale, scope and location of future exploration, drilling, metallurgical testing and engineering studies; environmental baseline studies, permitting, the environmental and social impact assessment process and the submission of a Project Description; community and First Nations engagement; the Company’s objectives, goals, next steps and future plans; the Company’s transition from exploration to development stage; the timing of the commencement of construction and operations; and estimates of market conditions. Factors that could cause actual results to differ materially from those in forward-looking statements include the preliminary nature of the PEA and its reliance on Inferred Mineral Resources; fluctuations in lithium and spodumene concentrate prices and exchange rates; variations in grade, metallurgical variability or recovery rates and the risk that the PEA flowsheet does not perform as expected at commercial scale; inaccuracies in the capital and operating cost estimates, including as a result of inflation and the accuracy range of a Class 5 estimate; changes in project parameters as plans continue to be refined; results of future resource estimates; unsuccessful exploration results; failure to obtain, or delays in obtaining, necessary permits and approvals, including under the JBNQA and federal assessment processes; the inability to construct or finance the proposed powerline and other infrastructure; transportation, rail and port access risks; changes in tax laws or the inability to access the CTM-ITC, the Québec tax holiday or other government incentives; relations with First Nations and other stakeholders; geotechnical, hydrogeological and geochemical uncertainties; future metal prices; availability of capital and financing on acceptable terms; reallocation of proposed use of funds; general economic, market or business conditions; risks associated with regulatory changes; defects in title; availability of personnel, materials and equipment on a timely basis; accidents or equipment breakdowns; uninsured risks; and unanticipated environmental impacts on operations and costs to remedy same. Readers are cautioned that mineral exploration and development of mines is an inherently risky business and accordingly, the actual events may differ materially from those projected in the forward-looking statements. Additional risk factors are discussed in the section entitled “Risk Factors” in the Company’s Management Discussion and Analysis for its recently completed fiscal period, which is available under Company’s SEDAR+ profile at www.sedarplus.com.   Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.  Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Non-GAAP Financial Measures This news release includes certain terms and performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards (“IFRS”), including all-in sustaining costs (“AISC”), cash costs, free cash flow, pre-tax and after-tax cash flow (undiscounted), net present value (“NPV”), internal rate of return (“IRR”), payback period, operating and capital costs per tonne, and the ratio of after-tax NPV to initial capital expenditure (collectively, the “Non-GAAP Measures”). Certain of these measures are non-GAAP financial measures and others are non-GAAP ratios within the meaning of National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112″). The Non-GAAP Measures do not have any standardized meaning prescribed under IFRS and may not be comparable to similar measures disclosed by other issuers. The Non-GAAP Measures are forward-looking information, are derived from the PEA and are subject to the assumptions, risks and uncertainties described under “Forward-Looking Statements” below. The Cisco Project is not in production. Accordingly, the equivalent historical non-GAAP financial measure for each forward-looking Non-GAAP Measure disclosed in this news release is nil, and the forward-looking Non-GAAP Measures cannot be reconciled to the nearest comparable measures under IFRS. The Company believes the Non-GAAP Measures provide investors with useful information to evaluate the potential economic performance of the Project and to compare it with other mineral projects; however, they should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. AISC is calculated as total cash costs plus sustaining capital costs and closure and reclamation costs, divided by the tonnes of SC5.5 produced over the LOM. As presented in this news release, AISC is stated before royalties and on an FOB port in the province of Québec basis. Cash costs are calculated as LOM operating costs, including mining, processing, tailing management, water management/treatment, G&A and camp costs and concentrate transportation to the Québec port, divided by the tonnes of SC5.5 produced over the LOM. Free cash flow is calculated as revenue less operating costs, royalties, concentrate transportation costs, initial & sustaining capital costs, closure and reclamation costs, and, where presented on an after-tax basis, less estimated taxes and plus the estimated Investment Tax Credit. Pre-tax and after-tax cash flow (undiscounted) represent the cumulative LOM total of such cash flows before and after taxes, respectively. NPV is calculated as the present value of projected after-tax (or pre-tax, as indicated) cash flows discounted at the rate indicated (8% in the base case). IRR is the discount rate at which the NPV of projected cash flows equals zero. Payback period is the period, measured from the start of production unless otherwise indicated, required for cumulative cash flows to recover the initial capital cost. Operating costs per tonne are calculated as the applicable LOM operating cost divided by the tonnes of concentrate produced, material mined or material processed, as indicated. The NPV-to-initial-capital ratio is calculated as after-tax NPV8 divided by initial capital expenditure (Y-2 to Y3). Photos accompanying this announcement are available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/3657a81c-7900-4186-9907-98dec843b4ba https://www.globenewswire.com/NewsRoom/AttachmentNg/f5e54173-2c96-45eb-b19e-ccf870170bff https://www.globenewswire.com/NewsRoom/AttachmentNg/dfcaa421-c742-4eb9-8eda-f30c44541bab https://www.globenewswire.com/NewsRoom/AttachmentNg/8ee76cbd-3a8b-4471-9d05-3fc49eaa783a https://www.globenewswire.com/NewsRoom/AttachmentNg/b3340885-83cb-4a9e-bbd0-87b7de9d1c84 Figure 1 Cisco Project, Eeyou Istchee James Bay Quebec Canada Figure 2 Mine Plan Figure 3 Feed Plan Figure 4 Project overall site plan Figure 5 Project Pathway – 2024 through 2028 © 2026 Canjex Publishing Ltd. All rights reserved.