Power Metallic Reports Maiden Lion Resource

Power Metallic Mines Inc. has reported an inaugural mineral resource estimate for the Lion Zone at its Nisk Project in Québec, defining 4.145 million tonnes of Indicated resources grading 3.86% copper equivalent and 601,000 tonnes of Inferred resources grading 4.01% copper equivalent. The copper-dominant polymetallic deposit contains approximately 406 million pounds of copper equivalent, with more than 85% of the resource classified as Indicated. The estimate, prepared by SGS Canada Inc., also updates the Nisk Main deposit and incorporates drilling completed to 19 April 2026. Power Metallic is now assessing proposals for a Preliminary Economic Assessment that would examine Lion’s development potential alongside Nisk.

Lion Resource Takes Shape

The Lion Zone was discovered in 2023 and extends from surface to approximately 675 metres down-dip, or more than 600 metres vertically, based on drilling included in the estimate. The resource includes 2.782 million tonnes of Indicated material within an open-pit concept at 3.45% copper equivalent, alongside 1.363 million tonnes of Indicated underground material grading 4.71% copper equivalent.

Power Metallic reported that the deposit remains open at depth. Five rigs are active across the Nisk land package, with results from the summer 2026 drilling programme expected from September.

Terry Lynch, CEO at Power Metallic, commented:

“ This inaugural Lion resource confirms what the drilling has been telling us: Lion is a high-grade polymetallic deposit. Approximately 4.75 million tonnes grading close to 4% CuEq has been defined, containing approximately 406 million pounds of CuEq, with more than 85% of the resource already in the Indicated category. Importantly, high-grade mineralisation begins at surface, and the deposit remains open at depth. We believe the quality of Lion has been demonstrated. Now our focus is on demonstrating its scale.

The Federal and Québec governments have put a number of incentive programs in place for critical-minerals projects, and we believe the Company may qualify for several of them. Combining these potential incentives with the high-grade mineralisation from surface and our location next to existing road and major power infrastructure, Lion has the potential to be developed with a relatively modest initial footprint and capital requirement.

From here, the exploration question is how deep Lion goes and where the nickel went. Lion carries the copper and precious metals that come out of a magmatic sulphide system last; the nickel-rich sulphide that comes out first should be somewhere in the system, and we have not found it yet. The summer program has been aimed at the down-dip extension of the shoot, with some holes targeting hundreds of metres below the current resource. Assays on Lion Deep are expected by the end of September”

Metallurgy Supports Copper Recovery

Locked-cycle flotation testing by SGS on representative Lion mineralisation produced copper recoveries above 98% across composite samples, generating concentrates grading more than 25% copper. The testing also reported recoveries for gold, palladium, platinum and silver to a single copper concentrate.

Two tests were completed, including a blended high-grade and low-grade composite representing run-of-mine feed, and a low-grade disseminated mineralisation composite. Hydrometallurgical testing of the copper concentrate is in progress to assess a direct-to-metal processing route.

Joe Campbell, VP Exploration at Power Metallic, added:

“Lion is a textbook fractionated copper- and precious-metal-rich shoot within a magmatic sulphide system. The advantage at Lion over similar deposits of this type is that it begins at surface and is modelled continuously to more than 600 metres vertical depth. The deposit remains open at depth and our priority since the April 19, 2026 cut-off date for drill holes in the MRE has been to test the shoot below 600 metres with deep step-out drilling, following up with borehole EM to delineate more mineralization.”

Nisk Update And Development Studies

The updated estimate restates the Nisk nickel-copper resource, which Power Metallic intends to assess alongside Lion in the prospective PEA. Nisk includes 2.703 million tonnes of Indicated resources and 2.016 million tonnes of Inferred resources across open-pit and underground categories.

The PEA is expected to evaluate an initial open pit followed by underground mining at Lion, with processing options including the potential incorporation of Nisk Main feed. A two-year environmental baseline survey programme began in January 2026 and is scheduled for completion in 2027, running alongside technical studies for an Environmental and Social Impact Assessment.

Power Metallic said a technical report supporting the mineral resource estimate will be filed under its profile on SEDAR+ within 45 days. The company also expects the updated technical report to meet the final requirement in its application process for an American Depositary Receipt on Nasdaq.

Expansion Work Continues

Drilling completed after the resource estimate cut-off is targeting deeper extensions of the Lion shoot, supported by borehole electromagnetic surveys and deep step-out drilling. The company plans to incorporate the results into future resource updates and, where practicable, the PEA.

The maiden Lion estimate provides a defined foundation for this next phase of technical and economic work, while the strong proportion of Indicated material, near-surface mineralisation and reported metallurgical results give Power Metallic a substantial base for evaluating the combined Nisk Project.