Max Power begins drilling natural hydrogen well

Executive Summary

• Max Power Mining Corp. has commenced drilling of Canada's first-ever natural hydrogen well at the Lawson target on the Genesis trend in Southern Saskatchewan.
• The company is advancing a strategic investment for gross proceeds of $5 million at 30 cents per unit, finalized with a Southeast Asian conglomerate, with closing expected in the near term.
• The drilling program utilizes a Stampede Drilling tele-double rig and marks the start of a multiwell exploration campaign on a land package of 1.3 million permitted acres.

Key Details

• Drilling Operations:
  • Commenced drilling of Canada's first-ever natural hydrogen well.
  • Location: Lawson target, near Central Butte, Southern Saskatchewan.
  • Geological Context: Part of the 475-kilometre-long Genesis trend.
  • Rig: Stampede Drilling tele-double rig.
  • Crew: 24 personnel working two 12-hour shifts.
  • Scope: Kickoff of a multiwell drill program on Canada's largest permitted land package for natural hydrogen exploration.
• Financing Update:
  • Strategic investment for gross proceeds of $5 million.
  • Price: 30 cents per unit.
  • Investor: Leading Southeast Asian conglomerate with global energy interests.
  • Unit Structure: One common share and one-half of one common share purchase warrant per unit.
  • Warrant Terms: Each whole warrant exercisable at 45 cents for a period of 24 months.
  • Accelerated Expiry: Subject to previously disclosed accelerated expiry provision.
  • Governance: Investor rights and shareholder agreement finalized; provides for a board seat conditional on maintaining at least 7% ownership.
  • Status: Closing on track in the near term, subject to customary conditions including regulatory approvals.
• Land Position:
  • Current Permitted Land: Approximately 1.3 million acres (521,000 hectares) in Saskatchewan.
  • Additional Applications: 5.7 million acres under application.
  • Other Assets: Portfolio of properties in the US and Canada, including the Willcox Playa lithium project in Arizona (2024 diamond drilling discovery).
• Upcoming Events:
  • Presentation at the world's largest natural hydrogen event in Paris next week.

Notable Quotes

• Mansoor Jan, CEO: "It's a remarkable achievement for our team to be the first to drill for natural hydrogen in Canada. From ideation to execution, every individual involved has brought dedication and expertise to Canada's first natural hydrogen well."
• Mansoor Jan, CEO: "We look forward to sharing the story of the Genesis trend and our broader land package at the world's largest natural hydrogen event next week in Paris. For Max Power, we're now closer than ever in our pursuit of the natural hydrogen molecule, its potential accumulations and, ultimately, a commercial discovery."