Mr. Terry Lynch reports

POWER METALLIC COMMENCES PRELIMINARY ECONOMIC ASSESSMENT OF THE NISK PROJECT

Power Metallic Mines Inc. has appointed BBA Inc. as lead engineering consultant for the preliminary economic assessment (PEA) of the Lion and Nisk Main deposits at its Nisk project in the Eeyou Istchee James Bay territory of Quebec.

The commissioned study will assess mining and processing options, infrastructure requirements, capital and operating costs, and preliminary project economics. Study mobilization is scheduled for late September, with substantive engineering work commencing in October and completion targeted for the first half of 2027.

Highlights:

• BBA appointed to lead the PEA, bringing multidisciplinary engineering capabilities and experience delivering mining studies in Quebec and across Canada;
• GeoVector Management Inc. will retain its central geological role in the PEA, with independent qualified persons from SGS Canada Inc. responsible for the geological, mineral resource and metallurgical sections of the technical report.
• The PEA mine design and economic analysis will be based on the Sept. 8, 2026, mineral resource estimate for Lion and Nisk, focusing primarily on the high-grade Lion deposit and evaluating the appropriate roll for the Nisk Main deposit given new metallurgical studies being conducted by SGS expected before year-end.
• Continuing drilling at Lion Deeps, the downdip extension below the current Lion resource and any additional resource development indicated by the continuing muon study will continue in parallel.
• The resource section of the PEA could accommodate potential future resource growth and contemplate impact on the development concept.
• Environmental baseline work is progressing alongside the technical studies, with a second field season planned for 2027.
• Quebec-based specialist firm ethos strategie Inc. has been appointed to support community engagement.
• The PEA and associated environmental, technical and community engagement programs are financed from the company's existing cash resources.

Terry Lynch, chief executive officer of Power Metallic, commented: "Appointing BBA puts strong engineering capability behind our next major milestone. Its multidisciplinary capabilities, Quebec presence and experience advancing mining projects through successive study stages make it well suited to lead the PEA.

"Alongside that external capacity, Chris's appointment earlier this year was a deliberate step to strengthen the company's internal capacity. His combination of practical open-pit and underground mining experience, mining technology leadership, and capital markets expertise gives Power Metallic the internal capability to direct the study and carry its findings into the next stage of development."

BBA brings recent, relevant experience in the region, including preliminary economic assessments and advanced study work for base and precious metals projects across Northern Quebec, spanning both open-pit and underground mining scenarios. The firm's project teams have also supported feasibility, permitting and construction planning for gold-copper developments accessible through the same regional infrastructure corridor as the Nisk project, including the all-weather Route du Nord. This experience reflects BBA's depth in regional infrastructure planning, multidisciplinary study co-ordination and the assessment of development options for Northern Canadian projects.

"Northern Quebec projects come with real logistical and technical complexity, and that's exactly where our teams add value," said Isabelle Leblanc, vice-president, mining and metals, at BBA. "We understand the region, the infrastructure constraints and what it takes to move a project from study to construction. That's the kind of partner we aim to be for Power Metallic Mines."

Study objectives and scope

The PEA will use the mineral resource estimate announced on Sept. 8, 2026, as the basis for mine design and economic analysis.

Lion will form the principal basis of the development study. Early work will confirm the preferred mining sequence and whether and how Nisk Main should be incorporated. The broader study will assess mining and processing configurations, infrastructure requirements, capital and operating costs, and preliminary project economics. An initial development configuration has not yet been selected.

The company's objective is to establish a credible and appropriately scaled initial development case, with attention to capital requirements, operating complexity and surface disturbance. The study will also consider how the project design could accommodate potential future resource growth without making that growth necessary to support the initial case.

Results from drilling completed after the Sept. 8, 2026, resource estimate's data cut-off, including those announced in the Sept. 22, 2026, release will be reviewed with SGS and BBA as the study advances. This work will determine how the results should be reflected in future mineral resource updates and subsequent study stages while maintaining a defined basis for the PEA mine design and economic analysis.

The commissioned work will also identify the additional technical investigations and test work required to support subsequent feasibility studies.

Christopher Beal, vice-president of operations, commented: "Our immediate priority is to establish the basis of design so that the broader engineering can proceed efficiently. The PEA will then develop a technically grounded initial development case, define its capital and operating requirements, and identify the work needed to advance the project into subsequent feasibility studies.

"On the company's side, we will co-ordinate the engineering with the environmental program, community engagement and ongoing exploration. That co-ordination is important both to the quality of the PEA and to maintaining momentum after it is completed."

Mr. Beal is a mining engineer, CFA charterholder and fellow of the Australasian Institute of Mining and Metallurgy, with more than 15 years of experience spanning mine engineering and operations, mining technology, corporate development, and capital markets.

Environmental planning and community engagement

The environmental baseline program commenced in January, 2026, following completion of an earlier desktop study. The first field season is being conducted from May to October, 2026, with a second planned for the summer of 2027.

The program is led by Nemaska Resources, supported by the professional resources and expertise of Groupe Synergis, which became part of BBA in May, 2025. Bringing the environmental and engineering teams within the same wider organization should support co-ordination as infrastructure options are developed and assessed.

The baseline information will inform project planning and support subsequent preparation of the environmental and social impact assessment. Survey coverage will continue to be reviewed as results are received and the project configuration develops.

Power Metallic has also appointed ethos, a boutique specialist consulting firm based in Rouyn-Noranda, Que., to support community engagement as the Nisk project advances. Ethos brings experience in Quebec's mining sector, public and indigenous affairs, stakeholder engagement, and sustainability strategy.

ethos will support stakeholder mapping and engagement planning and assist the company in building relationships with communities, local businesses and government representatives. ethos will also advise the company on integrating community priorities, traditional knowledge, and relevant environmental and social considerations into project planning.

Qualified persons

Joseph Campbell, PGeo, vice-president of exploration of Power Metallic, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical information 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 Jabal 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 massive volcanic sulphide (VMS) deposits, including the world-class Jabal Sayid mine and the promising Umm and Damad deposits.

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