Alaska Energy continues testing at Nikolai

Executive Summary

• Alaska Energy Metals provided a technical update on its Nikolai Nickel Project, detailing ongoing metallurgical testing at SGS laboratories and planned hydrometallurgical studies with Lifezone to evaluate on-site processing alternatives to foreign smelting.
• The company announced an amendment to its Restricted Share Unit (RSU) plan to increase the share reserve to 17,171,936 shares, subject to TSX Venture Exchange and shareholder approval.
• The company granted 5,325,000 stock options and 9.25 million Restricted Share Units (RSUs) to directors, officers, consultants, and employees, with significant portions conditional upon disinterested shareholder approval due to insider grant limitations.

Key Details

• Metallurgical Testing:
  • Testing continues at SGS laboratories in Lakefield, Ont., involving magnetic separation and flotation.
  • A flowsheet has been established; a locked cycle test is planned for the coming week.
  • Production targets include a bulk nickel-copper-cobalt concentrate and an iron-chromium concentrate.
  • Further testing will determine if a separate copper concentrate can be extracted from the bulk concentrate to improve copper payability.
  • Results are expected to be published in November 2025.
• Hydrometallurgical Testing:
  • Concentrates from past SGS flotation tests will be tested by Lifezone to assess proprietary separation processes.
  • This is preliminary work; if results are positive, more robust tests are planned for 2026.
  • Goal: Enable on-site production of semi-refined or refined nickel, copper, and cobalt in Alaska for U.S. use, serving as an alternative to foreign smelting.
• Options Study:
  • An internal options study is underway to assess mine development and provide a surficial evaluation of project economics.
  • Results will not be published but will inform a formal Preliminary Economic Assessment (PEA) scheduled for 2026.
• Government Funding:
  • The company continues to pursue U.S. government grants or investments, noting recent funding awarded to other Alaska critical metals projects.
• RSU Plan Amendment:
  • Board approved an amendment to increase the number of common shares issuable under the RSU plan to 17,171,936.
  • Subject to TSX Venture Exchange acceptance and shareholder approval.
• Stock Option Grants:
  • Total granted: 5,325,000 options.
  • Exercise Price: $0.15 per common share.
  • Term: 5 years from date of grant.
  • Insiders: 5,000,000 options vest conditional upon disinterested shareholder approval.
  • Arm's-length consultants: 325,000 options vest immediately.
• RSU Grants:
  • Total granted: 9,250,000 RSUs.
  • Insiders: 8,500,000 RSUs vest at the later of shareholder approval or one year from grant.
  • Arm's-length consultants: 750,000 RSUs vest on the first anniversary from grant.
• Shareholder Approval Conditions:
  • Issuances to insiders exceed the 10% 12-month rolling limit of issued and outstanding shares.
  • Insiders currently hold security-based compensation representing ~16.2% of issued and outstanding shares.
  • The portion of grants to insiders exceeding the limit is conditional on disinterested shareholder approval at the next meeting.
  • If approval is not obtained, the excess options and RSUs issued to insiders will be null and void on a pro rata basis.

Notable Quotes

• "Hydrometallurgical processing of metal concentrates from the Eureka deposit would allow production of semi-refined or refined nickel, copper and cobalt on site in Alaska for use in the United States. This is viewed as a positive alternative to smelting at a foreign smelter."