TORONTO, ON — January 19, 2026 — Leads & Copy — Power Metallic Mines Inc. (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV) has announced preliminary metallurgical results from its Lion zone mineralization, conducted by SGS Canada Ltd. The initial Lock Cycle Test (LCT) revealed a sulphide concentrate grading 25.8% copper, with high metal recoveries: 98.9% copper, 93.9% palladium, 96.8% platinum, 85.0% gold, and 88.9% silver. These results surpassed Power Metallic’s initial recovery estimates.
The copper mineralization at Lion, primarily within coarse-grained chalcopyrite and cubanite, was expected to respond positively to conventional sulphide concentration methods. The metallurgical tests focused on determining the recovery potential of platinum group elements (PGEs), gold, silver, and nickel.
The Lion deposit features two mineralization zones: a High-Grade (HG) zone and a Low-Grade (LG) zone. Power Metallic compiled drill core reject material from the Lion deposit, spatially representative of the known mineralization, to prepare three composites: HG (103 samples from 15 drill holes), LG (99 samples from 10 drill holes), and a blended composite (approximately 50/50 ratio). Initial sulphide flotation concentration tests by SGS indicated similar recovery characteristics for all three composites, leading to a LCT on the blended composite, representing run-of-mine feed for conventional sulphide flotation.
The LCT results demonstrated high recovery rates for copper, PGEs, silver, and gold, with good nickel recovery. SGS noted the tests demonstrate encouraging preliminary flotation performance and support the mineralization’s suitability for a conventional flotation flowsheet.
Cleaner flotation upgraded the material to approximately 25% copper, with precious metals consistently reporting to the concentrate. The locked-cycle flotation testing produced a concentrate containing 25.8% copper, 1.2% nickel, 4.83 g/t gold, 41.4 g/t palladium, 23.4 g/t platinum, and 159 g/t silver. Recoveries were 98.9% for copper, 93.9% for palladium, 96.8% for platinum, and 88.9% for silver.
SGS suggests these results present opportunities for transforming the concentrate into value-added products, including advanced materials for sectors like battery and energy storage, electrification, clean energy, and advanced manufacturing.
The LCT confirms Power Metallic’s previous statements, based on mineralogical studies, that the Lion zone is amenable to conventional sulphide concentration. The initial LCT confirms previous statements made by Power Metallic, based on mineralogical studies of metal deportment, that the Lion zone would be amenable to conventional sulphide concentration. These results exceed the expectations of Power Metallic’s technical team. Previous reporting by Power Metallic on CuEqRec percent of in-situ intersection grades had calculated an 80% recovery of all metals. These results indicate those CuEqRec percent values greatly underestimated recoveries. Of added importance statements by SGS (see quote above) on the potential for added value processing open the door to even greater potential returns from treatment of Lion zone mineralization.
Table 2 shows the change in recovered metal grade from head grade ore based on the metallurgy result achieved by SGS’s LCT. The Met Recovered CuEQRec shows a 18.2% improvement when compared to the Old Recovered CuEQRec. Using our currently assumed prices for commodities we see CuEQRec contribution from base metals (copper, nickel) at 49% and 51% for precious metals (platinum, palladium, gold, silver). Go forward in future assay results Power Metallic will use the SGS’s LCT recovery rates for copper equivalent assumptions.
Power Metallic plans to complete the initial conventional concentration test results and provide a final report. The company is also considering a Phase 2 study to investigate the creation of value-added products, as suggested by SGS.
Joseph Campbell, P.Geo, VP Exploration at Power Metallic, is the qualified person overseeing the technical disclosure.
Power Metallic Mines Inc. focuses on advancing the Nisk Project Area, a copper-PGE, nickel, gold, and silver system, toward becoming Canada’s next polymetallic mine. The Company controls 313 km² and roughly 50 km of prospective basin margins. The company also owns 100% of Power Metallic Arabia which owns 100% interest in the Jabul Baudan exploration license in The Kingdon of Saudi Arabia’s JabalSaid Belt.
For further information, contact Duncan Roy, VP Investor Relations, at 416-580-3862 or duncan@powermetallic.com.
Duncan Roy, VP Investor Relations
416-580-3862
duncan@powermetallic.com
Source: Power Metallic Mines Inc.
