Power Metallic Mines Announces Brokered LIFE Offering for Gross Proceeds of up to C$25 Million

• Power Metallic Mines Inc. announced a brokered private placement offering up to C$25 million in gross proceeds via the Listing Issuer Financing Exemption (LIFE).
• The offering consists of 20,000,000 common shares at C$1.25 per share, with an option for an additional C$3 million.
• Red Cloud Securities Inc. is acting as the lead agent and sole bookrunner.
• Net proceeds are designated for advancing the NISK Project in Quebec, the Jabul Baudan exploration license in Saudi Arabia, and general working capital.
• The closing date is anticipated June 10, 2026, subject to regulatory approvals including TSX Venture Exchange.

• Dilution Impact: The issuance of up to 20 million shares represents approximately 8.6% dilution on the basic share count (232.8M), increasing further when accounting for existing warrants and options. This is a material increase in float that typically exerts downward pressure on share price.
• Valuation Signal: The offering price of C$1.25 is significantly below the recent trading range of $1.40-$1.50 (closing at $1.42 on May 27). This discount suggests management believes the current market valuation exceeds intrinsic value or indicates liquidity pressure requiring a discounted raise despite prior claims of being "well-funded."
• Operational Continuity: While dilutive, the financing secures capital for the critical MRE and PEA milestones scheduled for mid-to-late 2026. Without this funding, exploration progress would halt, making it a necessary step rather than an optional one.
• Sentiment: The discount to market price is viewed negatively by risk-averse investors as it signals potential overhang or lack of confidence in current share levels among institutional buyers.

• Flagship Project: Nisk Polymetallic Project in Quebec, Canada.
• Key Discovery: Lion Zone, characterized by high-grade copper, nickel, palladium, platinum, gold, and silver mineralization.
• Geology: Volcanogenic-massive-sulphide (VMS) style deposits with ultramafic host rocks.
• Land Package: Approximately 330 square kilometers following the acquisition of Li-FT Power claims in June 2025.
• Saudi Arabia Asset: Jabal Baudan exploration license (200 km²) in the Jabal Sayid mineralized belt, acquired via strategic partnership with Amaar United Mining Company.