Nisk & Lion: The MRE Is Almost Here

Sep 4, 2026

We’re just days away from an important milestone for Power Metallic Mines

SGS Canada is putting the finishing touches on an independent Mineral Resource Estimate (MRE) for Nisk and Lion, built on the drilling and geological work completed up to the effective date.

This estimate carries particular significance because it’s the first MRE to include Lion. Back in November 2023, our estimate covered the Nisk Main Zone only. Now that Lion is part of the picture, this update gives us a much fuller view of the mineralized system we’re working with.

And Lion has given us plenty to work with. Some of the intersections we’ve reported over the past year include:

16.55 metres at 15.11% CuEqRec
22.00 metres at 11.46% CuEqRec
36.42 metres at 2.83% CuEqRec, including 6.00 metres at 12.38% CuEqRec

On the metallurgical side, SGS Canada’s work has been just as encouraging. Initial recoveries included 98.9% for copper, 93.9% for palladium and 96.8% for platinum. Every drill result and metallurgical result has added to our understanding of Lion. Now the MRE will bring that work together in one independently prepared resource model.

The purpose of our moving the MRE up from Q1 2027 to Sept 2026 was to establish a new floor for our valuation. This spring we were under $200,000,000 CAD in value. We sincerely believe that the MRE will suggest a base valuation much higher than that. The market has been responding to this change, anticipating the MRE will raise the floor of our valuation while our ceiling as a potential world-class district play remains something very much in our aspiration.

Tonnage will grab the headlines, but it’s only part of the story. Grade, resource classification, the geometry of the mineralization and the distribution of copper, nickel, palladium, platinum, gold and silver will tell us more about the scale and character of the system.

The estimate will also represent a snapshot in time. About 15,000 metres of drilling completed after the data cut-off won’t be reflected in it, with post-cut-off drilling expected to reach approximately 35,000 metres by year-end.

We’re also moving forward on other fronts. Our work with Ideon Technologies is giving us another lens into the subsurface at Lion, while the metallurgical program is helping us understand how the mineralization may respond to processing. Together, these programs are helping us build a more complete picture of the system.

The MRE is the next big step, but it’s not the last one. More drilling and assay results are coming, and we’re targeting a Preliminary Economic Assessment in 2027.

Once the MRE is out, we’ll bring the technical team behind the model together for a call with investors (watch for that, likely Tuesday). They’ll walk through the results, the assumptions behind them, and what the estimate tells us about Nisk and Lion.

We’ve built this project one drill hole, one assay, and one result at a time. In a few days, we’ll see how that work adds up.

We’re almost there.

Sincerely,

Terry Lynch
Chief Executive Officer
Power Metallic Mines Inc.

Questions or comments on the above, or about Power Metallic?
Write to us at [email protected] — we would be glad to connect.

—————————–—————————————————————————

Notes

CuEqRec represents CuEq calculated based on the following metal prices (USD): $2,360.15/oz Au, $27.98/oz Ag, $1,215.00/oz Pd, $1,000.00/oz Pt, $4.00/lb Cu, $10.00/lb Ni and $22.50/lb Co, and recovered grades based on recent locked-cycle metallurgical recoveries by SGS Canada Inc.
Reported lengths are downhole distances. True widths based on model projections are estimated at 85% of downhole lengths.

Cautionary Note Regarding Forward-Looking Statements

This message contains certain statements that may be deemed “forward-looking statements” concerning the Company within the meaning of applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential,” “indicates,” “opportunity,” “possible” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements.

Such material risks and uncertainties include, but are not limited to, among others; the timing for various drilling plans; the ability to raise sufficient capital to fund its obligations under its property agreements going forward and conduct drilling and exploration; to maintain its mineral tenures and concessions in good standing; to explore and develop its projects; changes in economic conditions or financial markets; the inherent hazards associated with mineral exploration and mining operations; future prices of nickel and other metals; changes in general economic conditions; accuracy of mineral resource and reserve estimates; the potential for new discoveries; the ability of the Company to obtain the necessary permits and consents required to explore, drill and develop the projects and if accepted, to obtain such licenses and approvals in a timely fashion relative to the Company’s plans and business objectives for the applicable project; the general ability of the Company to monetize its mineral resources; and changes in environmental and other laws or regulations that could have an impact on the Company’s operations, compliance with environmental laws and regulations, dependence on key management personnel and general competition in the mining industry.

https://www.powermetallic.com/