Mr. Paul Gorman reports

POWERMAX ACQUIRES CLAIMS TO INCREASE THE SIZE AND SCOPE OF ITS ATIKOKAN RARE EARTH PROJECT

Pursuant to a property purchase agreement dated Jan. 30, 2026, Powermax Minerals Inc. has acquired a 100-per-cent interest (subject to the back-in right described below) in two additional mining claims contiguous to the northern boundary of the company's Atikokan rare earth element (REE) project, specifically adjoining blocks B and C, located in the Thunder Bay mining district of Northwestern Ontario.

Powermax previously entered into a purchase option agreement for the Atikokan project dated June 18, 2025 (see news release dated June 18, 2025). The counterparties to the option agreement are the vendors of the additional claims.

REE claim acquisition highlights:

• The additional claims cover extensions of high-priority exploration targets interpreted from a high-resolution helicopter-borne magnetic and radiometric survey completed over the Atikokan project in 2025 (see Powermax news release dated Jan. 13, 2026). Multiple structurally controlled REE exploration targets have been identified, associated with favourable granitic and pegmatitic host rocks and coincident magnetic lows.
• Elevated thorium-to-potassium (Th/K) radiometric ratios, interpreted as proxies for total rare earth element (TREE) enrichment, outline zones of prospective alteration. These zones show strong spatial correlation with interpreted structural trends and lake sediment TREE anomalies.
• The integrated geophysical and geochemical signatures are consistent with an interpreted phosphate-rich NYF-type (niobium-yttrium-fluorine) REE mineral system enriched in rare earth elements, thorium, uranium and yttrium.

Property description

The additional claims comprise 37 contiguous mining claim cells located in the Ignace-Atikokan area of Northwestern Ontario. The Atikokan project is situated within the Wabigoon subprovince of the Superior province and is underlain by Archean metavolcanic and metasedimentary rocks intruded by granitoid plutons, including granodiorite and granite. Much of the project area is underlain by the White Otter batholith, a large composite intrusive complex considered prospective for REE mineralization.

Transaction terms

The additional claims were acquired pursuant to a property purchase agreement between Powermax and 0761585 B.C. Ltd. and 1544230 Ontario Inc., both of which are arm's-length parties to the company. In consideration for a 100-per-cent interest in the additional claims, Powermax has agreed to pay the vendors $3,000, subject to a back-in right in favour of the vendors. Pursuant to the back-in right, in the event that the company is unable, by Aug. 31, 2028, to fulfill all of the exercise conditions necessary to exercise its option under the option agreement, then, Powermax will be required, for no additional consideration, to transfer all of its right, title and interest in the additional claims back to the vendors.

Management commentary

Powermax chief executive officer Paul Gorman, commented on the decision to acquire the claims, stating: "Based on the positive results from the recently announced results from the airborne geophysical survey completed at Atikokan, the Powermax team was able to negotiate and secure additional ground that was shown to have high-priority targets extending within the newly acquired area. We are excited to continue exploration at Atikokan and look forward to the assay results from the Q4 2025 exploration program that was just recently conducted."

Qualified person

Afzaal Pirzada, PGeo, a director of the company and a qualified person for the purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.

About Powermax Minerals Inc.

Powermax Minerals is a Canadian mineral exploration company focused on advancing rare earth element projects. The company holds an option to acquire the Cameron REE property, comprising three mineral claims totalling approximately 2,984 hectares in British Columbia. Powermax also optioned to acquire the Atikokan REE property, consisting of 455 unpatented mining claims in Northwestern Ontario. Powermax also optioned to acquire the 5,178-hectare Pinard REE property in Northern Ontario. Powermax also owns a 100-per-cent interest in the Ogden Bear Lodge project in Crook county, Wyoming.

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