Power Metallic: Floor Raised. Ceiling Uncapped.

Three years ago, Lion was one drill hole. Last week, it became an independently defined, high-grade mineral resource.

The initial tonnage was smaller than we expected, and the stock sold off. We were disappointed too. But we believe the market has overreacted—focusing on the tonnes we had hoped to deliver rather than the quality of what we have established and the opportunity ahead.

Our first resource is a starting point. It is not the limit of our ambition.

Why we believe Nisk will become a mine

SGS Canada’s independent estimate defines 4.145 million tonnes of Indicated resources at 3.86% copper-equivalent, alongside 601,000 tonnes of Inferred resources at 4.01% copper-equivalent at Lion. More than 85% is classified as Indicated, giving us substantial geological confidence for a first resource.

The metallurgy is equally important. Testing recovered more than 98% of the copper, producing concentrates grading above 25% copper, with strong recoveries of gold, palladium, platinum and silver.

Put that grade and metallurgy together with mineralization beginning at the surface, along with nearby road and power infrastructure, and our conclusion is clear: we believe Nisk will become a mine.  We expect the Preliminary Economic Assessment—the PEA—to make a compelling case for a highly profitable operation.

So why was the initial resource smaller than expected?

We misjudged how much of the high-grade mineralization could be connected and included in the first model using the drilling available. That affected the tonnage. It does not settle how large Lion can become.

The answer to that question is still being drilled.

Floor Raised. Ceiling Uncapped.

The floor is an independently defined, high-grade resource that we believe can support a profitable mine.

The ceiling is the exploration opportunity still ahead.

Lion remains open at depth. Five rigs are active, and deeper holes outside the resource model have already intersected visible copper mineralization. Assays are expected by the end of September.

That drilling is not reflected in this first resource.

We are already testing the system several hundred metres below the mineralization included in the estimate. The current model is not the end of the exploration story; it is the foundation from which we intend to grow it.

This is what makes the opportunity exciting: we can advance the development of what we have defined while continuing to test how much larger it could become.

We do not have to choose between exploration and development. We are moving both forward.

Why we accelerated the MRE

Some shareholders have asked why we brought the resource estimate forward rather than waiting for more drilling.

First, investors wanted an answer to a straightforward question: had we found enough to build a mine?

Our view was—and remains—that Nisk will be a mine. Bringing the MRE forward gives investors an independent foundation for assessing that view and allows us to advance the economic work.

Second, we want to position Nisk to benefit from the support available for critical-mineral development both in Canada and the USA. Governments are providing unprecedented support both via direct investments, direct grants, advantageous loan terms, tax credits, and expedited tax deductions. But they are giving their support to projects moving progressively along the mine development path.

Waiting to finish exploring would mean delaying the opportunity already in front of us. We believe shareholders are better served by advancing it now.

Building the team to deliver

We are strengthening the company for that next stage.

Chris Beal joined as Vice President of Operations with a central role in advancing the PEA and subsequent feasibility work. A mining engineer with operational and engineering experience across copper, nickel and gold mines, Chris brings the development perspective we need alongside our exploration capability.

His work connects the resource to the practical questions that drive value: how we mine it, how we process it, what it costs and what returns it can generate.

Our exploration team is testing the scale. Chris is helping advance the development case. My job is to make sure both have the people, capital and focus to deliver.

We are building the company to match our ambition for Nisk.

What I believe the market is missing

We believe today’s share price undervalues what we have already defined—and gives us too little credit for what comes next.

Analyst price targets ranging from C$1.90 to C$3.50 provide another perspective on that opportunity. The market’s reaction is not the only assessment of the resource’s value.

But price targets are not our deliverables. Drill results and development milestones are.

We have deeper assays approaching, substantial drilling ahead and the PEA progressing. Each addresses a question that matters to shareholders: how far the mineralization extends, how much resource we can define and what kind of mining business we can build.

That is why I remain excited. We are not waiting for a single event to change the story. We are advancing the exploration and engineering work together, with more results ahead.

Our updated presentation explains the opportunity in greater detail:

View the updated Power Metallic presentation

I have also included recent analyst research and Steve Hyland’s review of the resource announcement:

Roth Capital Partners report     |    Noble Capital Markets report    |
Steve Hyland video

We wanted a larger first resource. We have not reduced our ambition.

We believe Nisk will become a mine. We believe Lion has substantial room to grow. And we are putting the drilling, engineering, and team behind those convictions.

Floor Raised. Ceiling Uncapped.

Thank you for being part of this with us. I look forward to showing you what comes next.

Sincerely,
Terry Lynch

CEO
Power Metallic Mines Inc.

P.S. We will be presenting the updated Power Metallic story live on
September 23–24, 2026, at 9:00 AM EST.
Click here if you would like to join us and see the new presentation live.

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Cautionary Note Regarding Forward-Looking Statements:
This letter contains forward-looking statements, including with respect to drilling plans, the PEA, government incentive programs, and the Nasdaq listing application, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. For the full cautionary language, risk factors, and qualified person disclosure, please refer to our news release dated September 8, 2026, available at powermetallic.com