Powermax Minerals adds mining claims to Atikokan

Executive Summary

• Powermax Minerals Inc. has acquired a 100% interest (subject to a back-in right) in two additional mining claims contiguous to its Atikokan Rare Earth Element (REE) project in Northwestern Ontario.
• The acquisition expands the project's size and scope, targeting extensions of high-priority exploration targets identified via a 2025 high-resolution helicopter-borne magnetic and radiometric survey.
• The transaction involves a nominal cash payment of $3,000 and includes a back-in right clause that requires the transfer of the claims back to the vendors if certain option exercise conditions are not met by August 31, 2028.

Key Details

• Transaction Structure: Property purchase agreement dated January 30, 2026, between Powermax Minerals Inc. and arm's-length parties 0761585 B.C. Ltd. and 1544230 Ontario Inc.
• Asset Acquired: 100% interest in two additional mining claims (37 contiguous mining claim cells) adjoining blocks B and C of the existing Atikokan project in the Thunder Bay mining district.
• Consideration: $3,000 cash payment to the vendors.
• Back-in Right Terms: If Powermax is unable to fulfill all exercise conditions necessary to exercise its option under the prior June 18, 2025 purchase option agreement by August 31, 2028, Powermax must transfer all rights, title, and interest in the additional claims back to the vendors for no additional consideration.
• Geological Context & Exploration Targets:
  • The new claims cover extensions of targets from a 2025 high-resolution helicopter-borne magnetic and radiometric survey.
  • Identified targets are structurally controlled and associated with favorable granitic and pegmatitic host rocks and coincident magnetic lows.
  • Elevated thorium-to-potassium (Th/K) radiometric ratios serve as proxies for total rare earth element (TREE) enrichment, outlining zones of prospective alteration.
  • These zones show strong spatial correlation with interpreted structural trends and lake sediment TREE anomalies.
  • The geophysical and geochemical signatures are consistent with a phosphate-rich NYF-type (niobium-yttrium-fluorine) REE mineral system enriched in REEs, thorium, uranium, and yttrium.
• Project Geology: Located in the Ignace-Atikokan area of Northwestern Ontario, within the Wabigoon subprovince of the Superior province. The area is underlain by Archean metavolcanic and metasedimentary rocks intruded by granitoid plutons (granodiorite and granite), including the White Otter batholith, which is considered prospective for REE mineralization.
• Management Commentary: CEO Paul Gorman highlighted that the acquisition was driven by positive results from the airborne geophysical survey, allowing the team to secure ground with high-priority targets. He noted anticipation for assay results from the Q4 2025 exploration program.

Notable Quotes

• "Based on the positive results from the recently announced results from the airborne geophysical survey completed at Atikokan, the Powermax team was able to negotiate and secure additional ground that was shown to have high-priority targets extending within the newly acquired area. We are excited to continue exploration at Atikokan and look forward to the assay results from the Q4 2025 exploration program that was just recently conducted." — Paul Gorman, CEO