Silicon Metals obtains five-year permit at Ptarmigan

Executive Summary

• Silicon Metals Corp. completed the final cash payment of $25,000 for its Maple Birch project option, bringing total cash consideration to $50,000 plus 500,000 shares, with further share issuances pending CSE approval.
• The company received a five-year Mines Act Permit and Free Use Permit for its Ptarmigan silica project in British Columbia, authorizing exploration activities including drilling and bulk sampling up to 2,000 tonnes.
• Silicon Metals agreed to issue 923,075 common shares to settle $60,000 in debt owed to consultants and directors at a deemed price of 6.5 cents per share.

Key Details

• Maple Birch Project (Ontario):
  • Permit Status: Permitted for production of up to 3,000 tonnes per year.
  • Option Payment: Final cash payment of $25,000 made to Geotek Exploration and Prospecting Ltd. (aggregate cash paid: $50,000; aggregate shares issued: 500,000 common shares).
  • Future Share Issuance:
    • 1.5 million common shares to be issued on or before 12 months following CSE approval date.
    • 1.5 million common shares to be issued on or before 18 months following CSE approval date.
  • Hold Period: All securities subject to statutory hold period of four months and one day post-issuance (NI 45-102).
  • Operational Updates: Reconnaissance program completed including road assessment, contract mining company tour, and collection of 200-kilogram ore sample for advanced testing.
  • Future Plans: Anticipated 2025 Q4 work program for extraction, hauling, processing, and delivery of high-purity pegmatite quartz. Goal to add non-dilutive capital as early as 2026. Exploration planned on ~2,000-hectare property to identify additional high-purity quartz zones.
• Ptarmigan Silica Project (British Columbia):
  • Permit Status: Received five-year Mines Act Permit and Free Use Permit from B.C. Ministry of Mining and Critical Minerals.
  • Permit Duration: Effective July 31, 2025, to December 30, 2030.
  • Authorized Activities: Surface drilling, trenching, bulk sampling of up to 2,000 tonnes, and construction of exploration access trails/infrastructure.
  • Previous Work: Property-wide sampling (2024) returned 99.9% purity samples; HD LiDAR/ortho-imagery survey; bulk sample collection for metallurgical testing; structural mapping; ground truth/sampling (completed Aug 6, 2025); preliminary 3-D modelling.
  • Future Plans: Phase 1 drill program planning for Q2 2026.
• Debt Settlement:
  • Transaction: Issuance of 923,075 common shares to settle $60,000 debt to consultants and directors.
  • Price: Deemed price of 6.5 cents per share.
  • Regulatory Status: Related party transaction under MI 61-101. Exempt from valuation requirements (shares not on specified market) and minority shareholder approval (value < 25% of market cap).
  • Hold Period: Statutory hold period of four months and one day post-issuance.

Notable Quotes

• "We are pleased to be updating our audience with the last few months of efforts as they constitute a couple of major milestones for Silicon. Not only do we have a funded plan for work at our Sudbury, Ontario-based, Maple Birch project that is permitted to produce up to 3,000 tonnes per year, but we also received our five-year Mines Act Permit and Free Use Permit including drilling for the British Columbia-based Ptarmigan silica project. One provides the company with near-term potential cash flow anticipated in 2026, and the latter allows us to fine tune our phase 1 drill program planning for Ptarmigan in or around Q2 2026, which increases exploration potential for size and grade." — Morgan Good, CEO and Director