Mr. Duncan Roy of Power Metallic reports

LION DELIVERS HIGH-GRADE COPPER INTERCEPTS AND POSITIVE METALLURGY ON LOW-LOW GRADE MINERALIZATION

Power Metallic Mines Inc. has provided an update on assays and recent testing of low-low-grade composite of disseminated mineralization on the Lion zone at the Nisk project area, under option from Critical Elements Lithium.

New drill results include 10.30 metres (m) at 4.04 per cent CuEqRec (copper equivalent rec calculation) and 4.07 m at 8.73 per cent CuEqRec, with metallurgical testing confirming strong recovery potential from disseminated low-grade zones.

High-grade copper intercepts:

• 4.07 metres grading 8.73 per cent CuEqRec in hole 26-067;
• Significant broader intercept: 10.30 metres grading 4.04 per cent CuEqRec in hole 26-097;
• Positive metallurgy: locked-cycle testing on low-low-grade disseminated mineralization returns encouraging recovery results, enhancing project economics.

Summary

Additional assays from its winter 2026 drill program continue to come in, with all assay results expected by mid-June, for adding to the initial National Instrument 43-101 mineral resource estimate (MRE) on Lion, and an update of the Nisk Ni-Cu-Pd (nickel-copper-palladium) deposit MRE, with completion and reporting of estimates by the end of July. This MRE will form the basis for a preliminary economic assessment (PEA) to begin immediately following the completion of the MRE.

This news release also reports metallurgical recoveries comparable with those in prior news releases, based on recent locked-cycle testing (LCT) of a low-low-grade composite of disseminated mineralization at Lion done by SGS Canada Ltd. at its laboratories based in Quebec City, Que., and Lakefield, Ont. Testing of this lower-grade material will help inform low cut-off grades for deposit modelling in the upcoming MRE.

Lion zone MRE infill program

More drill holes continued to define the high-grade Lion zone close to surface ahead of the 2026 mineral resource estimate. The infill drill holes in this news release were drilled to increase the confidence in the mineralized zones that are within the range of a potential future open pit. These holes support the robust modelling of the near-surface mineralization.

The recent drill holes report good near-surface continuity of mineralized zones modelled on the shallow Lion zone as evidenced by PML-26-067, which intersected high-grade copper near surface, with 4.07 m at 8.73 per cent CuEqRec at 50 m below surface, and PML-26-097, which intersected 10.30 m at 4.04 per cent CuEqRec at approximately 75 m below surface (table 1).

Power Metallic is expecting more assay results from the MRE drilling and regional exploration in the weeks to come.

National Instrument 43-101 mineral resource estimate

Preparation of an NI 43-101 MRE is under way, with updated report section writing, and the start of geological modelling on both the Lion and Nisk deposits. SGS Canada Inc. has been contracted to write the report, with an anticipated delivery of results in late July, 2026.

As part of this MRE report, SGS has conducted metallurgical testing of Lion ore (XPS carried out metallurgy on Nisk ore in 2023), including a blended composite of expected average mineralization (see news release of locked cycle test LCT 1 reported Jan. 21, 2026), and an additional locked cycle test (LG2) of a low-low-grade composite (table 2). This low-low-grade composite was designed to investigate whether lower-grade disseminated mineralization would respond to conventional flotation copper concentration, with recoveries of the accessory minerals (PGE (platinum group element), Au (gold), Ag (silver), Ni (nickel)). The results of this test will help define a low cut-off grade for the MRE modelling.

As anticipated, given the low grade of the LG2 composite, test results show lower recoveries than the higher-grade LCT 1 blended composite. But surprisingly, the test recoveries were only slightly lower, delivering much higher recoveries and concentrate grade than originally anticipated for this low-grade material. Cu recovery was of 98.3 per cent at a 25.4 per cent Cu concentrate grade, with precious metals reporting in the mid- to high 80 per cent ranges. This result gives Power Metallic extensive latitude to investigate, including significant volumes of very-low-grade material into the Lion MRE.

Additionally, SGS Canada is conducting hydrometallurgical testing of the copper concentrates from Lion LCT tests to determine if a direct to metal solution to recovery could be feasible. Results of this work are pending.

Qualified person

Joseph Campbell, PGeo, vice-president of exploration at Power Metallic, is the qualified person who has reviewed and approved the technical disclosure contained in this news release.

About Power Metallic Mines Inc.

Power Metallic is a Canadian exploration company focused on advancing the Nisk project area (Nisk-Lion-Tiger) -- a high-grade copper-PGE, nickel, gold and silver system -- toward Canada's next polymetallic mine.

On Feb. 1, 2021, Power Metallic (then Chilean Metals) secured an option to earn up to 80 per cent of the Nisk project from Critical Elements Lithium. Following the June, 2025, purchase of 313 adjoining claims (approximately 167 square kilometres (km)) from Li-FT Power, the company now controls approximately 330 square km and roughly 50 km of prospective basin margins.

Power Metallic is expanding mineralization at the Nisk and Lion discovery zones, evaluating the Tiger target, and exploring the enlarged land package through successive drill programs.

Beyond the Nisk project area, Power Metallic indirectly has an interest in significant land packages in British Columbia and Chile, by its 50-per-cent share ownership position in Chilean Metals Inc., which was spun out from Power Metallic via a plan of arrangement on Feb. 3, 2025.

It also owns 100 per cent of Power Metallic Arabia, which owns a 100-per-cent interest in the Jabul Baudan exploration licence in the Kingdom of Saudi Arabia's Jabal Said belt. The property encompasses over 200 square km in an area recognized for its high prospectivity for copper gold and zinc mineralization. The region is known for its massive volcanic sulphide (VMS) deposits, including the world-class Jabal Sayid mine, and the promising Umm and Damad deposit.

QA/QC (quality assurance/quality control) and sampling

GeoVector Management Inc. is the consulting company retained to perform the actual drilling program, which includes core logging and sampling of the drill core.

All core in this news release is either HQ- or NQ-sized core. Drill core is refitted and measured. Geotech on core includes photographs (wet and dry), rock quality index, magnetic susceptibility, conductivity and recovery estimates. Core is logged for lithology, mineralogy and structural features, and sample intervals are delineated and tagged.

Sampled core is mechanically sawn and half core is retained for future reference. GeoVector's QA/QC program includes regular insertion of CRM (certified reference material) standards, duplicates and blanks into the sample stream with a stringent review of all results. QA/QC and data validation were performed, and no material errors were observed.

All samples were submitted to and analyzed at Activation Laboratories Ltd. (Actlabs), a commercial laboratory independent of Power Metallic with no interest in the project. Actlabs is an ISO 9001- and 17025-certified and accredited laboratory. Samples submitted through Actlabs are run through standard preparation methods, and analyzed using RX-1 (dry, crush (less than seven kilograms (kg)) up to 80 per cent passing two millimetres (mm), riffle split (250 grams (g)) and pulverized (mild steel) to 95 per cent passing 105 microns), and using 1F2 (ICP-OES (inductively coupled plasma optical emission spectroscopy)) and 1C-OES -- four-acid near-total digestion plus gold-platinum-palladium analysis and eight-peroxide ICP-OES, for regular and overdetection limit analysis. Pegmatite samples are analyzed using UT7 -- lithium (Li) up to 5 per cent, rubidium (Rb) up to 2 per cent. Actlabs also undertakes its own internal coarse and pulp duplicate analysis to ensure proper sample preparation and equipment calibration.

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