Powermax enters option deal to acquire Pinard project

Mr. Paul Gorman reports POWERMAX MINERALS ANNOUNCES OPTION TO ACQUIRE PINARD RARE EARTHS PROJECT Powermax Minerals Inc. has entered into an option agreement pursuant to which it may acquire a 100-per-cent interest in and to the Pinard rare-earths project, subject to a 1.5-per-cent net smelter returns royalty (NSR). The project is located in Northern Ontario, Canada, roughly 70 kilometres north-northeast of the town of Kapuskasing, and is defined by 255 contiguous mining claims spanning a total of 5,178 hectares. The mining claims and patents can be easily accessed by four-by-four pick-up truck using an all-weather access road. The Pinard intrusive rock complex is an Alkaline igneous host with rocks ranging from nepheline syenites and trachytes to peralkaline granites. These complexes usually occur in plate tectonic settings associated with rifts, faults or hotspot magmatism (Sage, 1988). Early Precambrian-aged formations like the Pinard complex are typical of the Kapuskasing supprovince geology and is similar to the Clay Howell intrusive, which hosts a REE (rare-earth element) deposit 20 kilometres to the southwest of the Pinard property. Under the terms of the option agreement, the company may acquire the project, subject to the NSR, by making cash and share payments to the optionors as shown in the attached table. The company notes that the NSR is subject to a buyback right in favour of the company, under which the company may reduce the NSR to 1.0 per cent by making a payment of $500,000 to the optionors. Planned exploration program Proposed phase 1 exploration program at the Pinard rare-earths project to evaluate and prioritize prospective zones across the property. The proposed first phase of work will include: Desktop data compilation and GIS modelling: integration of historical geological, geophysical and geochemical data sets to refine exploration targets through advanced spatial and radiometric analysis; Field prospecting and geological mapping: systematic prospecting and detailed mapping to identify and characterize pegmatite zones, mineralized structures and alteration patterns; Geochemical sampling: Rock sampling; Soil sampling; Stream sediment sampling. Radiometric surveys: field measurements using handheld scintillometers to detect radiometric and pathfinder element anomalies across target areas; Airborne geophysical survey: high-resolution helicopter-borne magnetic and gamma-ray spectrometric survey. The phase 1 program is designed to integrate historical and new field data to identify priority targets. The acquisition of the project under the option arrangement, including the issuance of shares to the optionors, is subject to customary closing conditions and regulatory approvals, including approvals by the Canadian Securities Exchange (CSE). Qualified person Afzaal Pirzada, PGeo, a director of the company and a qualified person as defined by National Instrument 43-101, reviewed and approved the scientific and technical information disclosed in this press release. About Powermax Minerals Inc. Powermax Minerals is a Canadian mineral exploration company focused on advancing rare-earth element projects. The company holds an option to acquire the Cameron REE property, comprising three mineral claims totalling approximately 2,984 hectares in British Columbia. Powermax also optioned to acquire the Atikokan REE property, consisting of 455 unpatented mining claims in Northwestern Ontario. Powermax also owns a 100-per-cent interest in the Ogden Bear Lodge project, in Crook county, Wyoming. We seek Safe Harbor.