Mr. Duncan Roy reports

POWER METALLIC MINES ANNOUNCES UPSIZE OF BROKERED LIFE OFFERING FOR GROSS PROCEEDS OF UP TO C$30 MILLION

As a result of strong investor demand, Power Metallic Mines Inc. and Red Cloud Securities Inc. have agreed to increase the maximum gross proceeds of the company's previously announced best effort private placement from $25-million to $30-million. Pursuant to the upsized marketed offering, the company has agreed to sell up to 24 million common shares of the company at a price of $1.25 per offered share. Red Cloud is acting as lead agent and sole bookrunner on behalf of a syndicate of agents in connection with the offering (as defined herein).

The company also grants the agents an option, exercisable in full or in part up to 48 hours prior to the closing of the marketed offering, to sell up to an additional 2.4 million offered shares at the offering price for up to an additional $3-million in gross proceeds. The marketed offering and the issuance of securities upon exercise of the agent option shall be collectively referred to as the offering.

The company intends to use the net proceeds from the offering for the advancement of the company's flagship Nisk project in Quebec and its Jabul Baudan exploration licence in Saudi Arabia, as well as for general working capital and corporate purposes, as is more fully described in the amended offering document (as defined herein).

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 (Prospectus Exemptions), the offered shares will be offered for sale to purchasers resident in all of the provinces and territories of Canada and pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935 (Exemptions from Certain Conditions of the Listed Issuer Financing Exemption). The offered shares are expected to be immediately freely tradable in accordance with applicable Canadian securities legislation if sold to purchasers resident in Canada. The offered shares may also be sold in the United States or to, or for the account or benefit of, U.S. persons, by way of private placement pursuant to the exemptions from the registration requirements provided for under the U.S. Securities Act of 1933, as amended, and in jurisdictions outside of Canada and the United States on a private placement or equivalent basis, in each case in accordance with all applicable laws, provided that no prospectus, registration statement or other similar document is required to be filed in such jurisdiction.

There is an amended and restated offering document related to the offering that can be accessed under the company's profile on SEDAR+ and on the company's website. Prospective investors should read this amended offering document before making an investment decision.

The offering is anticipated to close on June 10, 2026, or such other date as the company and Red Cloud may agree. Completion of the offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

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 elements, 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 a 100-per-cent interest in the Jabul Baudan exploration licence in The Kingdon of Saudi Arabia's Jabal Said 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 massive volcanic sulphide deposits, including the world-class Jabal Sayid mine and the promising Umm and Damad deposit.

We seek Safe Harbor.