Power Metallic Mineral Resource Estimate Presentation

0:00 Hello everyone and thank you for joining us today for this live Power Metallic event. We're joined by the team to discuss today's news regarding the updated mineral resource estimate for the NISQ project, which includes the inaugural mineral resource for the Lion Zone as well as updated mineral resource for the NISQ main deposit. Terry and the team will walk us through an updated presentation and following that we will open the floor to questions. So to submit a question, please use the chat button at the bottom of your screen. And as always, this event is being recorded and will be made available for replay shortly after we conclude. With that, I'll be going off stage here,

0:33 monitor, navigating the deck. But Terry, the floor is yours. Great, Kyle. Thanks so much. Great to be here, everyone. Obviously, a momentous day for us. Before we dive into the show, I wanted to obviously quickly introduce my team members here. We got Joe Campbell, who's obviously our VP of exploration

0:55 and led this whole MRE process. Duncan, who are head of IR, and a formal official power metallic welcome to Chris Beal, who's our VP of operation. And Chris, it's great to have you on board. You know, before we dive into the show, I mean, Chris is a Canadian bilingual, I think from New Brunswick initially, if I recall. And then he's made his way down to Australia where he's coming in the middle of the night for us for right now. But Chris has joined us to drive the PEA and the building of this, what we believe will be a fine mine. But Chris, why don't you just give us a little 5 minute background on yourself

1:35 and why you joined Power? Sure. I'll keep it quick. My background is as a mining engineer. I originally started in operations as an engineer in open pit base metals in British Columbia. I did move over from New Brunswick originally, but university in the West Coast and then later in the career moved over to Australia, as you say. So I did again operations. I've done open pit and underground base metals mining across Canada and Australia, and then on to corporate finance, M&A, transactions, and technology as well for, again, base metals. So I've worked in base metals my whole career. Very interesting to me. With small companies like Tech and Xstrata, people like that? That's right, yeah. Yes, originally Tech, to Seco, Xstrata, Glencore, and then doing transactions for things like Anglo-American.

2:35 A little bit of time and some coal, which was interesting, but back to base metals after that to work on things like sorting technologies. But yeah, The project in Quebec is very interesting to me. It's very prospective. The deposit is something that is eminently mineable in something that I can see a compact, profitable operation being spun up for in a short period of time. So it's something that will be very interesting to turn into a mine. It has an incredible amount of natural favorability that's going for it.

3:23 And so as far as being a project that you can turn from exploration very quickly into an operation, It has a lot of very favorable characteristics and it seems to be one of those relatively unique global deposits where you can start mining very quickly. You can create that small, high-grade, profitable operation. Super, Chris. Well, we're gonna put you, we're gonna hold you to that. We're gonna make you do it. All right, so without further ado, why don't I quickly run you through sort of how we see things now with the MRE, how we're going to be pitching this as we go forward. I won't take you through a full deck, but I'll just take you through some of the highlights.

4:09 And then obviously we'll leave lots of time to handle any questions that I'm sure are out there in the investor minds. So let's start. So when we started this, in I guess February when the market sort of fell off and we went down to about a 200M market cap or so, The management team got together and said, I don't think they really believe this is a mine. We thought we needed to do something to prove to the world that we already had enough discovered tonnage and grade to justify a mine, especially given the ability to do open pit, that it's in a great jurisdiction, all the incentives, that sort of thing. We thought we changed our strategy from just drilling exploration, pushing that envelope, which was what obviously gave us our initial notoriety in terms of a discovery.

5:09 And then we went to, hey, let's show this thing has got a much higher floor than people think. And so that, you know, our, our, our sort of, we've raised the floor and the ceiling is uncapped to sort of our, our sort of pitch right now. And I think it's a very accurate one. I think we've done a good job in doing that. You know, would we have liked to raise the floor even higher? Yes, we would have. And we ultimately will. But right now, what we've got is a, I think a tremendously robust project that pays out, you know, or wouldn't pay out theoretically in perhaps as little as a year. So I don't know when's the last time you've heard that in a mining story, but I haven't heard it yet. So this is pretty incredible. So next slide, please.

5:53 So what we'll walk you through today is the MRE and what we think that sort of suggests. I think The big thing is this is near surface, and it comes with incredibly high recovery rates. Generally speaking, the early years of the mine life, the first 7, 8 years probably, would be pretty much the line zone at the moment. You know, there may be some developments happening at NIST that could change that in terms of how we might be able to mix it together and get better recoveries and extend economics, but that's to be discovered. But I think It's pretty much a lay down to see how an open pit could work here. Of course, we've got the favorable geographic, it's in a great jurisdiction in Quebec. We've got strong support from our community partners, the First Nations of James Bay and Mississippi.

6:49 And we have great government support from Canada and from Quebec. So all that sort of plays into this being very realistic to move quickly ahead and develop. And I think the key thing to remember is that the MRE is a start point. It's not the end point. We cut this thing off on April 19th and we're drilling still. And so we'll be drilling until the end of November. So The material that Chris will use with the selected engineering firm to move forward into the PEA, which will deliver in H1 of next year as early as possible, will be drilling up until the end of November. So that's a lot of drilling that will add, we believe, an extended amount of resource to make the economics even more favorable into the PEA.

7:37 So I think our whole perspective here is the floor is now very measurable. Ceiling is still being drilled. Next slide. So let's start on NISK because NISK has sort of been the forgotten cousin, was the original reason why we made the investment in the place. And Ultimately, I suspect it'll become more important. One of the things we did, the team did in this go round was to optimize NIST so it could be a contributor to the mining plan. So it's a contributor now, not a material contributor, but there's some things that we're doing that we think may help sort of increase its potential to contribute.

8:24 Not the least of which is we're exploring another Met study with SGS on mixing the NISQ ore together with the ore from Lion to see if that could benefit the recoveries at NISC. The Lion ore we have already know recovers very, very well, but we think it's possible that the combination could be favorable. It could drive enhanced recoveries and that will sort of drive economics at NISK if that happens. And we'll want to get that and assess that. It'll happen over the next month or so before we do any more exploration at NISK because we want to understand what the economic framework might be there. But our view is, we've found the lion's own with the copper side of this massive nickel sulfide, but we haven't really found the true nickel sulfide that would have invented this project in the first place. That's still out there to be found. And so our belief is we'll find more nickel here.

9:22 But that's one of the jobs in exploration in the future. We think Mulan could be helpful with that. We think the squid could be helpful with that. We think the borreliam will be helpful with that in the future. So lots of good exploration techniques that are working away right now to help us unravel that mystery. Next slide please. So the Lion Zone that was obviously the star of the show on the MRE and I think you know obviously what we're known for is extremely high grades, mineable widths and exceptional recoveries. Now, obviously the tonnage was less than we anticipated. My experience on that has been, when you get these, you sort of have a length and width and thickness that you apotheoslate in terms of hypothesize.

10:10 And then when you actually get back into, when you're drilling it up to prove it, to indicate it, I would say if you think of length and width and height and you have a square box, but not everything fits in a square box, sometimes hypotenuse comes in. So, things you thought was going to be or just didn't map out. Now, that ultimately can come back in many different ways and That's one of the reasons why I think the Muon thing could be quite valuable to us when it kicks in. Right now, we have a very aggressive, very conservative process on the perimeter of our deposit. And that we expect Muon will identify some areas that we have not got tapped in there that we can tap in, and that'll be good. But even so, what we have is exceptional. And I think what people need to understand is that

11:05 what we have is worth a lot more than a current market cap, I think. And that's what the analysts are already saying. And I think that's the message that we'll carry forward into our fall IR season, which is really kicking off next week when I go to Europe. And then I followed it up with Arizona and Beaver Creek. And, you know, so it'll be a busy season of explaining what we found here. And I think the investors, especially the, you know, I was, you know, talking to the case to Paul and they basically can't invest in anything that doesn't have an MRE. So now finally we're open for people like that. There's, and they're not the only

11:42 one. So there's a lot of big investors that had been, you know, well aware of, of, of Power Metallic and well aware of our discoveries at NISQ and the line zone, but couldn't participate because it hadn't moved to enough of a sophisticated and trustworthy nature for them to evaluate properly. So we're there now and these people will be able to run their own math and many of them will. And now they've got the adequate tools to do that. So we're quite excited about what we think that'll mean. The other thing I would say is that, this cutoff was of April 19th. We've had 5 rigs turning pretty much from early June to, we obviously were off from a moose break at the moment, but we're basically through the end of November, we'll be busy exploring here.

12:30 And we think this has already led to some hits that will, we think, impact the resource. We haven't got the final assays back yet. We've got some peaks and what we see, we're smiling about. So we'll look to get an exploration update on that Lion Deep zone at some point in the very near future. I'll talk more about that as we go through the show. Next slide, please.

12:59 So this is, you know, when you actually do an MRE, this is the type of stuff you look at. So I would say 98, 99% of the MRE resource comes from that main body. So almost none of the other stuff made it in for various reasons, mostly due to connective issues. You know, we weren't able to connect it to the main zone. But that's the type of thing that possibly through Mouin, we'll be able to discover connections here and other pieces that could be connected into this main zone that could add to it. So I think that there's, you know, some good prospectivity to add tonnage that way, and we'll look to do that in the near future. Next slide, please. So the exploration, So obviously you can see 3 specific holes there, and they've gone down from 600 meters true depth, which is where the cutoff was for the MRE, we're down to almost 900 meters.

13:57 Okay, and as you can see, That's a blue block there is the borohalium block that it identified to us that there was, basically

14:07 a sulfide material down there that was reacting to. And these hits sort of confirm that. So we've seen these and they're visibly exciting. I would say the assays will actually be the proof of the pudding, but we're quite excited about that. We'll obviously look to get that out as quickly as we get the assays back. Expectations from the assay labs is that that should be able to be achieved by the end of September. Next slide, please. So, I think we just wanna wrap up with sort of where we're at now. I think, remember the tremendous positive sort of backbone of this company now. And it's number 1 is the great location.

14:55 And we're obviously in Quebec, and we're literally off the road, drive right to the site. We got power on the site. We're a commerce with sign of the town of the Namaska where they've got accommodation and an airport and food for our crew and our team. It's Quebec, arguably one of the great jurisdictions in the world to work within. They've done an amazing job. The infrastructure we just talked about, they've done an amazing job with that. They've also done an amazing job of working with the First Nations so that they're very favorably predisposed to mining. We've had great working relationships with both the James Bay and the Mississippi Cree nations and looking forward to working with them in the future. They've been very helpful.

15:41 And that's a big part of it. The other thing, of course, is the government incentives. So in this part of the world, you get about 30% federal tax credit for building a critical mineral mine, which we basically right now would qualify for, and a 25% tax abatement from the profits. So these are substantial, you know, incentives that, you know, we'll be able to realize and will help to really drive the economics of our mind. Next slide, please.

16:13 You know, There's a few variations of this type of slide, but generally speaking, commodities are about to become the place to play. Equities have had their day, and the commodity equities are gonna, I think, do really, really well. And this is just a chart that depicts that. And in particular, if you go to the next slide, the copper, I think is on fire. I mean, I think we hit a new all-time high yesterday. I believe that's what I saw. And This chart here, if you look at it, is basically about copper discoveries

16:51 and copper development stories. And that there is none. There's very, very few. That's what that shows. And this is the, you know, coarse copper demand is going through the roof because of electrification, because of AI, because of the vast needs of infrastructure, because of the political instability of the world, people wanted to align themselves and make sure they have supply for their supply chains. For all those reasons, demand is on fire.

17:17 But what's really been disappointing is the supply side. Okay, there's been a lot of negative supply shocks and the discovery rate has been terrible. You know, so if you have a viable commercial opportunity like, you know, Power Metallic does, what a backdrop it is. What a great sector to be working on. Next slide, please.

17:41 We've been fundamentally super lucky to have an amazing set of shareholders. We've obviously people like Robert Friedman, Rob McEwen, Eric Sprott, Gina Reinhart. We've been blessed with a number of really great investors. We've also followed up with our own personal investments. Management and board owns almost 20 percent in combination. We're pretty aligned with the company. It's a big investment for us. Our skin is in there. We've been buying through the depths. I think that's a plus and I think that we're well-funded at the moment. Next slide.

18:23 So the team, you know, with, you know, again, you know, you can only advance as far as the team can carry you. In mining, you have 2 sides to the program. You have the market side, which raises the capital, tells the story and builds the team. That's me and Duncan and Kieran and a few others.

18:46 But the key move in any mining program is the science and the operations. So we've been blessed to have an exceptional scientific team. Steve Beresford is in the middle. He formerly was at 1st Quantum MMG and IGO

19:05 as a VP of Exploration, Chief Scientific Officer. And he's a legend in the orthomagmatic circles, which is the type of discovery we have. And then, of course, you got Joe, who's on the call today. Joe's a Canadian legend for sure, with all the work he's done with GeoVector and before that with

19:27 the amazing Australian mining company who's Western Mining. I almost lost it there for a second, getting my Alzheimer's moment. But, you know, and, you know, they've done an amazing job of pushing this forward, making the discovery and advancing and growing through. And now we've added Chris, because we're moving into the stage where we need to build something, you know, and we need to sort of, you know, obviously before you build it, you have to de-risk it. And that's what Chris's job is, is to de-risk the thing. And he's got a proven track record of doing that. And then, you know, the other segment I wanted to talk about is that you move through the permitting process, having somebody that, you know, is well aware of the policies and procedures in Ottawa and Quebec, you know, Seamus O'Regan, you know, one of our most current board, a new board member, ex-minister of energy in our country, ex-minister of indigenous affairs.

20:25 Yes, he gives us that extra ability to understand Ottawa and Quebec governments and be able to access them, you know, as needed. We have a very viable project, and of course it'll be enhanceful

20:38 to be able to walk through that. Next slide, please. So, you know what? I mean, this has been one of the, I think the most misunderstood factors is, you know, The metallurgical studies were outstanding and continue to be. This is what makes our economics so compelling. We're excited about this. We're also excited about the potential for, you know, combining the NISC ore with the Lion ore and seeing if that can jack the recoveries on the NISC, which could transform the economics on NISC quite a bit. And that could be super helpful. Next slide.

21:20 So, I think one of the things we've always taken is that these orthomagmatic discoveries are very large and very profitable mines historically. There's been about 20 in the history of the world. They're literally the world's biggest mine, Norelsk. But there's others, the Marinskis Reef in South Africa, Xinchuan in China, Sakatti, probably the most recent discovery, but Anglo-American in Finland. And there are several orders bigger than we are. But we think, I mean, they found these over a course of years and we'll expect to do the same. We think this thing is going to get much bigger. That's why we gobbled up all the land we could. We think this is going to be a district. Generally speaking, you know, Subway has, you know, probably 20, 30 of these types of mines that we were already talking about today in terms of NISC and Lyon. So we'd expect to find in this land package multiples of these. And of course that's the mission in the future.

22:24 Next slide.

22:27 But I think, focusing back on What we found today is already very robust. And that's the one endearing message I wanna leave with everyone today is that because of the compact nature and the high grade, we're not gonna have to have a tremendous CapEx to get this in production. So, and I think that's the thing. I think we're probably looking at under 200 million to put this in production. That's what I've seen from one of the analysts. That's sort of the number we've worked at internally as well. And so that, in

22:59 my mind is something that can be paid out in a year, which after producing, of course. So that's unheard of, really. So people, you know, yeah, shoot, would we like to have had more tonnage? Yes. Will we get there? I believe so, yes. But are we proud of what we've done and does what we have done, is it worth a lot? Yeah, I think that's no question. I think this math will come out over the next coming days and weeks. Next slide, please. So milestones, again, you know, we'll just wrap it up and then we'll go to questions. So we'll have an exploration update out before the end of September. Obviously, we're looking at some buoyant commodity markets, particularly in copper, which I think is going to be great for us. We've got the MRE out now.

23:51 The next step is the PEA and we're talking H1 of 2027. We're going to do it as quickly as we can, but we want to do it right and get the proper work done. So hopefully it's in Q1, but it'll get done. The med study we've already sort of reported on, but we'll hopefully have an additional update on that on the NISC that could be super beneficial. The land package we've sort of already talked about and added in. The spinoff, we haven't talked a lot about Chilean lately because we didn't want people to get distracted with what we're doing with the MRE. The MRE and NISQ and Lion are the reason why you'd own the stock. But there will be some positive updates on Chile in the near future. We think there's some good news there.

24:39 And then also Saudi Arabia. Again, we have been moving and making advances in Saudi. We'll get that out now that the MRE news is out and people, you know, wouldn't take the fact that we're trying to sort of, you know, get distracted. No, we're not distracted. We are taking advantage of opportunities. And then finally, a word on

25:00 the coming NASDAQ listing, we hope. The last remaining obstacle to that listing was a new technical report. So that's now just gonna be filed. We're gonna update our filings with Nasdaq and look to take advantage of the American Depository Receipts Program and hopefully get listed in October, November timeframe Nasdaq. And we think that'll be tremendous for our liquidity and valuation. And just in terms of better exposure to the biggest equity market in the world. So that's that's pretty much the story. So why don't we with that throw it open for some questions here. I guess there's been they've been coming in. So if you've got any questions by all means ask them in the thing. And so here's 1 from Mark Gordon. Why is the stock selling off on the apparently great news?

25:55 Yeah. You know, I think that's if I was to put a direct answer on that, The expectations were the tonnage would be higher. And so when that didn't hit, certain traders sold their positions. Now, I think the reality of it all is that had

26:20 the market been evaluated as what we had expected, the stock would have been, in my case, north of $5 and then it would have deserved a fall off to $2.50 or $3 in my view. So instead, we never got there. We were at $1.50 and I don't know what the stock's at now, $1.25 or $1.30 or something like that. You know what, I would have expected that there would have a sort of sell the news sort of response. However, I think my gut feeling is that this thing's worth a lot more. That's what the evidence would show. And it's got a ton of upside. So we're very bullish on it right now. And we'll be telling a very bullish story when we get out there. And so we're not we're not shy about that. But we do understand why it happened. It's not unexpected. But we also believe that investors will replace traders and move this thing back up.

27:21 So maybe a question here for Joe. Why have they used such a low valuation for minerals, be it copper or PGEs? And I guess in the pricing deck, Joe, maybe you could speak to the MRE process on that. So the parts of the story that Power Metallic could control is to convey the shape of the ore body and the sizes and everything else. But the prices that were picked for the MRE were totally under the responsibility of SGS. And so they tend to be conservative on what the price range is that they use. They use a floating average over a period of time.

28:10 The prices that they put in for us were equivalent to prices that they're using for some of the similar Sudbury deposits that SGS is also working on. So we didn't control those prices. Those are just the prices that SGS put into the MRE. Okay. Just a question on how is the Muon coming along. And the Muon, just to remind everyone, are these subatomic particles that come from the cosmos, come through the Earth, and come out the back end, and have been doing it from the end of time. So there, the Muons have been doing just fine and probably forever, a long time after we're dust, they'll still be rolling along. Now, how is the collection going? The collection is going fine.

29:00 As you know, the best way to visualize the Muon process is almost like those old Polaroids, you know, where you see them shaking under the solution and they gradually become clearer and clearer over time and they eventually create a picture. So that's sort of what's happening right now with Muon. We're collecting the data and the data starts to get more, you know, I guess, observable and more trustworthy from the top on down. So, you know, probably internally, we sort of thought to the end of October would be needed before we would start to get the first meaningful data on the top part of the deposit. And we'll start to see, hey, were there any holes? You know, again, just to refresh people, what the Muon does is effectively it's come up with a way to use the subatomic particles, these muons, to identify the specific gravity of the rock they're passing through.

29:55 And this specific gravity will correspond potentially with the massive sulfides that we've found that have also a specific gravity that we know. So we can maybe able to correlate the known specific gravity that drilling has identified with the observable specific gravity that the MOON data collects. If that matches, as we expect it will, has in these other deposits that's being used at, then that'll become a meaningful screen for us and we'll potentially identify areas that are probably outside our exploration or our MRE structure that maybe we could tap into from a drill perspective and add to the resource.

30:41 And certainly that would be the hope. So certainly it's been effective for fireweed, doubled its resource using Muon. Anything like that would be perfectly acceptable to us. But it will also, if it works, become a great, because we've got 330

30:58 square kilometres of area, it would be tremendous to be able to sort of put these long-term exploration holes in play if we know what's working as a great exploration tool over vast areas that we don't have to drill expensively. We can drill intelligently and that could be a real breakthrough for us.

31:20 Question, are there any possibilities for toll mining with processing facilities close enough, cheap enough to kickstart cash flow or processing facilities being built? I'll Maybe defer that to Joe. I don't believe there's anything like that up there. Joe? I'm gonna defer that to Chris. Okay, Chris. Yeah, look, there are flotation style processing facilities in the region, but as far as really close proximity, I think we'll have to evaluate that during the PEA. But that being said, I think that the limiting factor on being able to rapidly get to a credible production scenario hinges more on making sure that we hit the environmental submission deadlines with really good submissions to make sure that we are progressing through the pipeline of development projects.

32:16 The processing plant here, it's important to emphasize that this will be a compact facility. And as far as being able to construct that, obviously it does take time and seasonality factors into it. But The strategy may include looking into toll treatment, but I suspect that the pathway to get to production is going to be largely related to just making sure that we're thinking well ahead of time and getting rolling on everything we can be early on in that process. Thanks Chris. Question, electric and automated mining seems to have a huge impact on OpEx. Is this new technology or will this new technology be considered in the PEA? So Another Chris question.

33:01 Yeah, well, absolutely looking at electric equipment. There's a lot of interesting stuff that you can do when you don't have so many, so much diesel fumes, particularly in underground operations. It's also a great part of the world to be using electricity. There's, you know, the electricity is generated almost exclusively from hydroelectric sources, so as far as being clean, that's a great way to get it. As far as automation, it's really impressive how quickly automation is advancing in use in mining at the moment. I think it will be pretty soon a standard that's applied to a lot of mining and particularly for a small operation, being able to keep a limited workforce on site and using remote facilities to get access to even better operators, things like this, there will be a lot of opportunities to incorporate that. And with my background in technology, the trick is always to incorporate in it in a way that doesn't add additional risk into the mine.

34:12 There's a lot of these technologies, there's too many of them, you can quite easily get overwhelmed with it and lose focus on the main objective of the mine, which is to get things produced and do so reliably. But we will absolutely be including those value-adding technologies where it's reasonable, where it's practical, where it's going to add benefit to the project.

34:37 Great question from around Peter. Long term, what is the plan for the company and the district? Are you going to sell to a bigger company to fully develop this district or are you going to go forward and develop, hence maintain the current stock structure and long-term value for investors? We're basically building the company as if we're going to build it.

34:58 Build the first one and then hopefully build the others when we find them. Now, if somebody comes by with an overwhelming offer that takes away a ton of our risk and gives us a bunch of the upside, look, I mean, we're here to work for the shareholders. We're all big shareholders. So that's ultimately the guidepost is what's the best deal for our shareholders. We have no lack of confidence in both our ability to build this thing and to grow it. And we have no lack of confidence in the actual discovery itself. We think this thing's got a ton of legs. So we're not looking to sell.

35:39 If something happens because we're a public company, we'll have to evaluate it when it comes. But that's why we brought Chris to the team. That's why we use guys like Joe, known mine builders and evaluators. We're very much approaching this as this is our project. We're going to build it. So that's our thoughts. Question. US government has taken interest in some critical mines lately. Do you see this as a real potential to see an offtake agreement that will help financing mine built here? So, yeah, we've had conversations with the U.S. Government already, with Ex-Im Bank and with others. You know, preliminate, because honestly, one of the other reasons why we moved up the MRE is both our government, the federal government of Canada and Quebec, and then the US government arms, whether it be DOW or DOE or the Ex-Im Bank, they all need official studies. So the MRE is part of it. The PEA will be a further step forward.

36:42 But tremendous interest because not just the copper, but the platinum and palladium, I would say, are even of more interest to the U.S. In particular because of where they get their product from now, which is South Africa and Russia. So obviously, both are unreliable for different reasons.

37:03 You know, the South Africans, just because they're getting to the end of their mine life and there's a lot of labor issues there and it's so deep underground that a lot of power and grade issues. So it's more of an operational thing. With Austria, it's obviously the current status of the world and how that goes. So there really isn't a lot of great PGE projects that are anywhere close to being built. It would certainly be the only one in the next 10 years from what I can see. So

37:32 it's certainly something that's of interest. And we're exploring it. So our view is we were just at a, in Philadelphia, a big defense forum there. So we've got some leads from that in terms of how to advance things forward. So we're continuing to sort of carry on on that side. I don't know if there's any anywhere in here yet. I haven't seen that one. But a question I get quite often when I'm talking about the story, people ask about the tariffs and what impact that will have on us. And the reality is,

38:12 I think we entered in 2032 or something like that would be when we could get producing this thing. It's a long ways out and the tariffs will exist or not exist by then. Right now, I wouldn't see it impacting us. We're making ultimately Copper concentrate and it's highly desirable concentrate that could be sold anywhere in the world, including the United States, although they don't have a ton of copper processing facilities there. That's something they want to get into. Maybe that's something they'll get into down the road. You know, and, and, you know, we think that they want to process. So in that case, they won't be penalizing the concentrate guys. They'll be, if anything, wanting to help them out by getting them in production because they want the supply.

39:00 So I think tariffs won't be an issue for us. While it would be an issue if you were selling copper faucets and you were a Moen competitor or something like that in the plumbing world, that might be an issue. But just straight up selling copper ingot or copper sheet or copper concentrate, not an issue.

39:24 How thick are the visual intercepts at 900 meters? Again, you know what, until you get the assays back, you really can't speak to that with conviction. Let's just say they're thick enough to be mineable from what we can see, as long as the assays are good and it's a massive sulfide. So the visuals are pretty powerful, but I can't give you a number on that.

39:55 Has there been any developments with the Canadian government in regards to restricting the naked shorting? Do you have an update on the current percentage of PNP and might be shorted by then?

40:06 No updates from the Canadian government. Save Canadian Mining, Save Canadian Markets is working on some steps that could be beneficial And we'll get more into that over the fall, I expect. No particular number, our feeling is that we obviously had a sizable naked short position. We filed a complaint with Ciro on that point. They never really responded. They didn't, I guess they responded by saying they didn't find anything to deal with.

40:48 We disagree with that. We believe there is an issue there, not just for Power Metallic, but for much of the junior mining sector. And as we're seeing now with a ton of coverage in the U.S., This is not just a mining stock situation. It's a situation across a number of stocks and they're finding massive malfeasance. So I hope the governments wake up to this because it benefits nobody but the shorters. Doesn't benefit any of the investors. Doesn't benefit the companies. Doesn't benefit the communities. It's a cutoff chain, but you know, I mean, we live in the world we live in. We're not fussed about it. We're gonna, you know, go forward and prosper. Whatever happens, we're not, you know, we're not gonna sit here waiting for the rule changes, but we do think that that could be potentially positive if that would happen in the future.

41:41 Can you speak about using subcontracts to design and operate a mine while remaining the owner works? We see this as a viable possible coming forward. Oil companies don't own rigs. They don't drill. They don't log wells. Pretty much all the operations stuff is handled by service companies. This should be totally possible to do with mining with people to have the teams experience equipment expertise for mining as well. Chris, I've got another question for you. Yeah. Your instincts are on. Contract mining is something that's broadly used across the world. So there's actually a number of different companies that we can go to. As far as a deposit that's suitable for it, I would say that yeah, this is definitely something that we would be considering. It gives you good access to

42:25 trained personnel. It gives you the ability to start up quickly. I've seen very motivated contract mining groups. You can structure contracts to make sure that they are getting the tons and progressing effectively. So yes, it will definitely be considered in the project.

42:45 If PEA is coming out in March 2027, could drill results from later than the end of November 26 be included or is there no drilling planned after the end of November 26? So no, I mean, we'd expect to be drilling on this thing probably 2 years from now, because there's just a ton of exploration to be had. This is, and probably 5 years from then too, you know, this is, the real, I think they're still exploring, you know, I would expect. So, you know, you just keep on drilling. A lot of cases, you know, as the mine advances, like we'll probably go drill to maybe, I don't know, if you drill much more than you were, that 900 metres might be go to 1200 metres, maybe so, but probably not beyond that. And yet, if you think about these structures, They say if the width is X and it's like I think around 300 meters that most cases these things go 10 X and sometimes 20 X so that would imply, you know, 3,000 meters to 6,000 meters You know, we're certainly not going to drill there, you know I mean, So that's the type of thing you get to it when you get underground, you'll do some underground drilling down the road, but

43:52 it's certainly, it's something to consider. But in terms of the cutoff dates, I think we're probably subject to Chris's thoughts, but in the PEA engineering firm's thoughts and capabilities, we're probably we're looking to get the PEA out soon, as soon as possible. You know, so our feeling was we'd cut it off in November And then look to get that out, you know, in that H1, you know, sort of projection and as quickly as possible in H1. Chris, any other thoughts on that? Yeah, I mean, the strategy at the moment is get a credible base case, but do so in a way that ongoing exploration success still fits into that plan.

44:37 So in a lot of respects, this deposit, the benefits that it's naturally got, or the characteristics it's naturally got, are pretty incredible and it's a very straightforward development pathway. But that is one of the options that we have to consider throughout this whole process is what if there is more discovery, larger discovery, and there's more and more available. So preserving that optionality in the development plan will be the real balancing act and making sure that as you do continue to have exploration success, it fits into the program that we've already got.

45:15 Sebastian Emmerhart. Terry, you have stated that you had half the contained metal of the smallest comparable deposit size, which was about 1.25Mt of contained metal. So I'm playing about 600K for PMPN. Why did the MRE differ so much from your comments so drastically. Fair question. Yeah, you know what? I think, as I explained, walking through the show, that was our thoughts based upon how we blocked it out. And then when we did all the drilling to verify, or just close and tighten it up, it didn't really come out in the square blocks. It came out more if you think of it, if the square block is square in the depth and it fills out. And what happens is some of them didn't work out. So you had more of a hypotenuse to it. So you chopped off the square. And so we lost, you know, some of the, you know, thickness. We lost some on the density of the rock.

46:17 In the final analysis, we lost some on just on the blocking. And so it all sort of added up and led us to where we're at. So that was disappointment for sure. That being said, Like I explained, obviously the market didn't really believe that or the stock would have been $5. And it wasn't. And our whole point, the reason why we set out to do the MRE was to prove that there was enough resource there to build the mine today. And I think we've given that evidence. That evidence is pretty strong. We've got a mine that we believe we could build and pay out in a year. That's fantastic. And it would generate a significant upside from where our current market cap is. So for new investors looking at this, they'll sort of see, wow, this is fantastic. And by the way, they got all this exploration upside and it looks like they've had some success. They're gonna speak to it in 2 weeks. They're about to get listed on Nasdaq.

47:12 There's a lot of positives, okay? So I get the disappointment. I was disappointed. But this is, we're moving from the arm waving of Terry to the reality of the data. Okay. And Terry didn't, you know, try to invent stuff. He based it on what we thought we had. As it turns out, as we got right down to it and did the nitty gritty of it all, there was less than we thought. That being said, that's less than we thought for right now.

47:41 Okay, that's the key point. That's April 19th, talk to me in December 19th, we may have a completely different answer. OK. So so you know I truly believe that this thing will not be the smallest discovery of this type of the orthomagnetics and that's 1.25. So that's a big number to move from here. I believe we'll get there. The average is around 3 million tons. I think there's a solid chance we get there too. So I think where people, I've always looked at investing as sort of, it's

48:12 all about, you know, asymmetric risk, okay? So I'm, you know, if you're an investor at all, you're taking risk because you're putting your money on something and there's all sorts of black swans and areas that could happen that could make that money disappear. So when you take that risk, you want to be able to have a little downside and have as much upside. And I think the reason why when we did this MRE was that we didn't believe the market was giving us a fair valuation. So we thought we need to give them more evidence so they can see how little downside there is. In fact there is upside to our current position which I believe we demonstrated very strongly today that this thing should be multiple times more than what it's worth today, in our view. The market will decide, as it always does, but that's what the evidence would show compared to our peers.

49:02 Now the neat part is, look at the upside. We've got this massive district, We've got exceptional potential at depth. There's a lot of ways to win here, you know? And By the way, how about those great commodities we're in? Copper, platinum, palladium, gold, silver, doesn't get much better. So it's like, and we're in a safe jurisdiction off the road with massive government support, both in Canada, Quebec and the US. So it's like, yeah, you know what? We always try and face issues directly, you know? So yeah, we respect the disappointment in not having hit that number today. Our objection is to hit that number as quickly as possible. We definitely believe we're going to hit that number.

49:51 And yet, even with all that, we still have delivered, I think, a massive win for our shareholders that ultimately will be reflected in the stock. Terry, if I could just add on to that. Yes, please. So one of the things that occurred over the last year, over a year is we made a choice to concentrate on infill drilling to bring this resource to indicate it. So If you look at the news released today, the vast majority of the material that came out of Lyon is indicated. That was to get the project ready for development, and also to clearly understand what the geological controls were. This is a vein style deposit, which can tend to be difficult in terms of geometry.

50:42 Now we are in a position where we really understand the controls on the mineralisation. The downside of doing infill drilling is almost invariably you squeeze your deposit because you're defining the edges much better than you did when you had wider spaced. And that was a decision we made well over a year ago that we were going to concentrate on really trying to understand this deposit. And what suffered from that was the extensional drilling. And we're only now getting back into putting these deep holes in, which Terry has shown a graphic of a little earlier, and we know this deposit is going to grow, but it's going to, time-wise, it was taking a backseat to doing that infill drilling and understanding the deposit.

51:34 Fair enough. Where are the drill rigs right now? Lion Deep, Black Panther, Gold Structure, Full Hinge. Right now, they're on 2 rigs. They're still turning on Lion Deep that we got permission to continue to work on, even within the moose break.

51:52 Just because they were quite deep and the work we're doing is not bothering anybody. When we come back after that, again, we'll be focusing on Lion Deep. Certainly the fold hinge will definitely get some action. Black Panther and the Gold structure, we're waiting to evaluate drilling that we've done there and see what the assays show. I can't give you a 100% roadmap. We're going to be opportunistic over the next 60-90 days to beef up the PEA as much as we can, knowing that, you know, we're looking at a November cutoff there. So, I would think a lot of the focus would be around line deep and then on anything that we see that, you know, from the full hinge and from any of the move on info that if we get it in time

52:48 to to tag it in. So and then I think we would look at following up with the other structures, even if there are some positive follow ups, probably get to those in the winter season. That would be my thinking, but Joe, what are your thoughts on that?

53:05 The targets that you mentioned are all still active that we're dealing with right now. On the Black Panther, As Terry said, we've seen some mineralization. We're waiting on assays, so I can't really comment definitively on those. But these are areas that are distal from the 2 deposits that we have now and have the opportunity to build another centre of mineralization. So Everything to the west of NISK is still wide open for us to explore. On the deep targets, the 2 areas that we're drilling is lying east deep and directly below the deposit.

53:51 So far, we've had positive results on the drilling that's below the line itself. We know we're going to build more tons there. It's just a matter of being patient to wait for these deep holes to be drilled. There's a process that we go through to drill the hole, do the borehole EM to see if we can have off-hole conductors, and then wait on the assays to see where we are in terms of mineralization. Now, obviously, because this is a base metal deposit, we see mineralization, so we're confident that Lion is still alive and is still going to death. But we just have to wait on the assays and they'll be reported as soon as we get them.

54:43 David asks a very good question. Are you going to wedge down to help reduce drilling costs? Joe? Good question. And yes, we are. We're in the process right now of finishing one of our, well, actually the deepest hole we've drilled. We've just entered into the mineralized zone and we have to pass through that. Once that's completed, we're going to wedge off that hole to give us another, at this point, with the depths we're at, we're going to be looking at 50-200m offsets from the trunk holes. We've planned right now a wedge that will put us about 50m away from that deepest hole to follow up on the mineralization that we've seen in it.

55:38 We have 3 holes right now that we can put wedges off,

55:45 and That'll be a major part of the expiration program going through the winter.

55:53 Question from Steve, do you believe the maiden resource estimate will still lead to a re-rating and share price appreciation, or do you think the market is now waiting for a subsequent catalyst, such as a PEA, continued resource growth, or NASDAQ listing for assigning additional value to the project? I think we sort of handled this question a little bit earlier in a way. We sort of expected that the market might have a little reaction today. And then what happened is investors would start to assess and realize, hey, actually, this is a great entry point for us because now that it's completely de-risked or mostly in a long, long, long way. And there's a substantial upside from where we're at right now that's already locked in and there looks to be great expiration upside. So I do expect over the fall the thing to get re-rated.

56:41 We are luckily going to have the expiration update in 2-weeks, so that's going to come. So I don't have to wait long. And then of course the NASDAQ listing that we explained you know we're in the full process of doing that and expect that you know to take place in October, November. We believe that will be helpful as well. So catalysts are coming. So there's that.

57:06 Were the assays coming run through the labs on a normal timeline or did you pay for rush service? No, I don't think we paid for rush service. I believe we just let them go through the normal timelines. I believe that's I think the latest on that. Jerry, If I could just add into that. Part of the thing about how we handle our assaying is I am very reluctant to shuffle samples around, certainly on site. We do our sampling as the core comes in and that helps to prevent any conflict and errors that can occur when you try to jump something in front of the order that you've put things into. So I'm really reluctant to do rush sampling on these cores.

57:58 Question from Bob Power. Why do you focus so much on the stock prices and do so much promotion. Surely the price will follow results and you will have the capital you need for the moment. You know Bob, as a significant investor in the company myself, when I spend money I feel like I'm spending my own money, not just your money or Joe's money or Chris's money. I mean, I feel like I'm spending it all mine, you know? And that's how I look. I don't like to spend money on promotion, you know?

58:27 However, you know what? If you don't spend money on promotion, you get ignored and you get beaten up. And I had this conversation with a prominent fund manager and I showed him the TSV XV price chart and I showed him our price chart. I said, that's why I spend money because there's a lot of good companies that have good results, but they don't just get out and work it. And it's not just one thing. Like we work extensively just to try and meet investors and get to know them because people do business with people that know, like, and trust. And it does take money. And but we feel like there's only 2 things to spend money on in mining at this stage of development. It's on exploration and science, and it's on investor relations. Because you've got to, unfortunately with the shorts and all this other crap that's out there, you got to be able to fight it. And the only thing that fights it is stronger investor relations of getting people to buy. Now, you can't be pushing hot air. You got to have a product that you believe in. We have a product that we believe in. We think we're substantially undervalued. We've got evidence that would suggest that. And we always try and keep on pushing it up, keep on building a stronger for, much more foundation so that it isn't perceived as promotion, but as communication.

59:44 And that's ultimately what we want to try to do is we're just trying to get a fair price for our shareholders so that we can advance forward and get this thing to the finish line.

1:00:03 Pretty much got through most of the stuff. We are at the top of the hour too. So if you want to wrap up, we can wrap up here, Terry. Yeah, I think we've gotten through most of the questions. If I missed any, I'm sorry. By all means, both Duncan and I are available too. You can be emailed and we're super approachable. Thanks everyone for the questions. Thank you for your concern and your direct approach to things. We appreciate you guys. You made it possible for us to go forward. We ultimately believe today's news is very positive that we've put a substantial floor on the company today, that this floor has no ceiling and the ceiling is before us. We're going to start to see some of that in the next few weeks.

1:01:05 And we've got some other amazing catalysts such as the NASDAQ listing. Some of the questions we're asking about Saudi Arabia. Yeah, We like what we're doing in Saudi. One of the questions was asking, when do we expect to drill? We expect to drill on the fourth quarter in Saudi. And we think that there'll be some additional business development news in Saudi that'd be quite interesting. So there's lots of great news coming from the company. We're in a sector, I think, in critical minerals that's becoming increasingly important in the world. And, you know, as seen by the government actions to support this sometimes through direct investment. So I think, you know, we're in the right spot at the right time, and I think we've got the right product and we've got the right team. You know, so, you know, I wish Rome was built in a day but it takes a long time to build something constructive but we'll do it step by step and we'll communicate it with you.

1:02:05 And I think we're building something that's going to create a lot of value for everyone here and for the communities we work within. So we look forward to having more in the future, perhaps with the exploration update in a couple of weeks. And until then, we wish you all the very best and hope you have a great day and take care. And thanks again for your attendance. Cheers for now. Thanks everyone. Bye now.