A NEW STRATEGIC CHAPTER BEGINS AS ALBEMARLE PARTNERSHIP CLEARS THE PATH TO CASE LAKE PRODUCTION

The most recent news release on December 16, 2025, provides a comprehensive update on Power Metals' flagship Case Lake Project, framing it as a new strategic chapter for the company. The key points are: - Albemarle Partnership: The release confirms the pre-payment and offtake agreement with global specialty chemicals company Albemarle. The agreement provides up to C$5 million in staged, non-dilutive payments tied to permitting milestones. - First Nations Agreement: The company has signed a Participation Agreement (PA) with the Apitipi Anicinapek Nation and is now negotiating an Impacts Benefits Agreement (IBA). - Path to Production: The project is advancing towards a targeted production start in late 2026. Permitting is progressing with baseline studies underway. - Technical Confirmation: Laboratory test work has confirmed the ability to produce a high-grade cesium concentrate using a simple, dry, chemical-free process. Geological work has also identified 17 new targets, indicating potential for resource expansion.

The partnership with Albemarle, first announced on December 12, 2025, and reiterated here, is a game-changing event for Power Metals. An offtake agreement with a Tier-1 industry leader like Albemarle provides immense validation for the Case Lake project's technical and commercial viability.

Critically, the C$5 million pre-payment structure provides a non-dilutive financial lifeline. As of the last reported financials for the period ending August 31, 2025, Power Metals had only C$369,279 in cash and a working capital deficit of over C$700,000. The company was facing a severe liquidity crisis. The initial C$2 million payment from Albemarle upon execution immediately resolves this issue, funding the company through its next critical permitting and development milestones without resorting to a dilutive equity financing at a potentially depressed price.

The second tranche of C$3 million is contingent on receiving the Environmental Compliance Approval (ECA), creating a powerful incentive to advance permitting. The Chairman's statement in the December 12 release, noting capital requirements under C$8 million, suggests this pre-payment will cover more than 60% of the anticipated capex, significantly de-risking the path to production.

Furthermore, the signed Participation Agreement with the Apitipi Anicinapek Nation is a major de-risking milestone on the permitting and social license front. Securing First Nations support is crucial for any mining project in Canada, and this agreement demonstrates tangible progress.

While the release packages previously announced elements, its collective impact is profound. It transforms Power Metals from a cash-strapped explorer with a promising asset into a well-funded developer with a Tier-1 partner, a clear path to market, and key social and permitting milestones achieved. The primary risk has now shifted from financing and viability to execution.

Power Metals Corp. is a Canadian exploration company focused on critical minerals. Its flagship asset is the 100%-owned Case Lake Project, located in northeastern Ontario. The project is centered on a high-grade cesium deposit hosted in pollucite-bearing pegmatites, with significant by-product potential for lithium (spodumene) and tantalum.

Development has progressed rapidly over the past year, culminating in a maiden NI 43-101 Mineral Resource Estimate (MRE) in June 2025 which established Case Lake as the world's fourth-largest hard rock cesium resource. Metallurgical test work has successfully demonstrated the ability to produce high-grade concentrates of cesium, lithium, and tantalum, as well as technical-grade cesium chemicals. The company aims to bring Case Lake into production by late 2026.