Mr. Terry Lynch reports

POWER METALLIC ANNOUNCES EXPANSION IN THE KINGDOM OF SAUDI ARABIA VIA JOINT VENTURE WITH AMAAR MINING

Power Metallic Mines Inc. has entered into a strategic alliance and joint venture framework agreement with Amaar United Mining Company, a Saudi Arabian company affiliated with Amaar Holding, to jointly pursue mining licence opportunities in the Kingdom of Saudi Arabia.

The agreement marks the next step in Power Metallic's expansion strategy in Saudi Arabia following the company's award of the Jabal Baudan exploration licence in the Jabal Sayid mineralized belt. Under the agreement, Power Metallic and Amaar Mining intend to co-operate in future Saudi mining licence auction rounds and other mutually agreed opportunities, combining Power Metallic's technical, geological and exploration capabilities with Amaar Mining's local strategic presence, co-ordination capacity and regulatory interface experience in the kingdom.

Pursuant to the agreement, any licences awarded to the parties under the agreed framework are expected to be advanced through a 50/50 joint venture structure. Power Metallic is expected to act as technical lead and proposed operator of any postaward joint venture, subject to the execution of definitive joint venture documentation. Amaar Mining is expected to act as the local strategic partner, leading local co-ordination, relationship management and administrative support.

The agreement contemplates that, for the first aggregate $10-million (U.S.) of approved postaward work program financing, Power Metallic will contribute $2.5-million (U.S.) and Amaar Mining will contribute $7.5-million (U.S.) while maintaining 50/50 beneficial ownership, economic interests and equity interests in the consortium and any postaward joint venture. Following the financing of the first $10-million (U.S.) of approved work program expenditures, all further approved financing is expected to be contributed by the parties on a 50/50 basis.

"This agreement is an important step in Power Metallic's strategy to build a durable Saudi Arabia exploration platform," said Terry Lynch, chief executive officer of Power Metallic. "Our award of the Jabal Baudan licence demonstrated that Power Metallic can compete successfully in one of the world's most important emerging mining jurisdictions. This partnership with Amaar Mining gives us a strong local partner and a clear framework to pursue additional high-quality licence opportunities in future auction rounds, while preserving 50/50 economics and maintaining disciplined capital exposure."

"Saudi Arabia is moving quickly to establish itself as a major global mining jurisdiction and the quality of future licence applications will matter," said Conor Lynch, vice-president of business development of Power Metallic. "Successful participation in the kingdom requires strong geology, credible work programs, local co-ordination, regulatory preparation and disciplined execution. We believe the combination of Power Metallic's technical capabilities and Amaar Mining's local platform positions the partnership to compete effectively for future opportunities."

Naser Fahad Al-Qahtani, chief executive officer of Amaar Mining, commented: "This agreement represents a strategic step in our plans to expand Amaar Mining's business and enhance its presence in the mining sector by building international partnerships with experienced technical partners. This partnership aligns with the objectives of Saudi Arabia's Vision 2030, which aims to develop the mining sector and increase its contribution to the national economy. Through this alliance with Power Metallic, we look forward to creating quality opportunities in the kingdom and achieving sustainable added value that supports the sector's growth and investment attractiveness."

Key terms of the joint venture framework

The key commercial principles of the agreement include:

• 50/50 ownership and economics: Power Metallic and Amaar Mining are expected to hold equal beneficial ownership, economic interests, and equity interests in the consortium and any postaward joint venture.
• Future licence auction participation: The parties intend to co-operate in future Saudi mining licence auction rounds and other mutually agreed opportunities in the kingdom.
• Power Metallic as technical lead and proposed operator: Power Metallic is expected to lead geological, exploration, technical preparation and work program design matters and to act as proposed operator of any postaward joint venture, subject to definitive documentation.
• Amaar Mining as local strategic partner: Amaar Mining is expected to lead local co-ordination, relationship management and administrative support in the kingdom and contribute to bid preparation and regulatory interface matters.
• Initial approved work program financing: For the first aggregate $10-million (U.S.) of approved postaward work program financing, Power Metallic is expected to contribute $2.5-million (U.S.) and Amaar Mining is expected to contribute $7.5-million (U.S.).
• Equal financing thereafter: Following the first $10-million (U.S.) of approved work program financing, additional approved financing is expected to be contributed by the parties equally on a 50/50 basis.
• Postaward joint venture structure: Any awarded licences under the agreed framework are expected to be advanced through the joint venture structure contemplated by the agreement.

The agreement provides Power Metallic with a scalable structure for future licence participation in Saudi Arabia while allowing the company to maintain a disciplined approach to capital allocation.

Building on Jabal Baudan

Power Metallic's Saudi Arabia expansion began with the award of the Jabal Baudan exploration licence in the Jabal Sayid mineralized belt. The Jabal Baudan property covers more than 200 square kilometres and is located in a highly prospective region known for copper, gold and zinc mineralization. The area forms part of the broader Jabal Sayid belt, a district recognized for volcanogenic-massive-sulphide-style mineralization.

Power Metallic intends to continue advancing Jabal Baudan through a staged exploration approach, including compilation, reconnaissance, review of historical data and advanced exploration targeting of high-priority zones. The company also expects that Saudi Arabia's exploration enablement program and broader mining-sector reforms may help support continued exploration investment in the kingdom, subject to applicable eligibility requirements, approvals and program availability.

The company views Jabal Baudan as both a high-potential exploration asset and a strategic beachhead for broader participation in Saudi Arabia's rapidly developing mining sector.

Qualified person

Joseph Campbell, PGeo, vice-president, 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/platinum group element, 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 Corp. Following the June, 2025, purchase of 313 adjoining claims (approximately 167 square kilometres) from Li-FT Power, the company now controls approximately 330 square kilometres and roughly 50 kilometres 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 through a plan of arrangement on Feb. 3, 2025.

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

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 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., a commercial laboratory independent of Power Metallic with no interest in the project. Actlabs is certified and accredited under ISO 9001 and ISO 17025. Samples submitted through Actlabs are run through standard preparation methods and analyzed using RX-1 (dry, crush (less than seven kilograms) up to 80 per cent passing two millimetres, riffle split (250 grams) and pulverized (mild steel) to 95 per cent passing 105 micrometres) preparation methods, and using 1F2 (ICP-OES) and 1C-OES four-acid near-total digestion plus gold-platinum-palladium analysis and eight-peroxide ICP-OES for regular and over-detection-limit analysis. Pegmatite samples are analyzed using the UT7 method (lithium up to 5 per cent and rubidium 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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