PMET Resources Delivers Positive CV5 Lithium-Only Feasibility Study for its Large-Scale Shaakichiuwaanaan Project Unlocking Shaakichiuwaanaan’s maiden Mineral Reserve and a key step towards final mine authorisation
October 20, 2025 – Montreal, QC, Canada October 21, 2025 – Sydney, Australia
Highlights
- Robust CV5 lithium-only Feasibility Study (“FS”) completed on the Shaakichiuwaanaan Project (Project) providing a defined scope and technical foundation which supports the upcoming Environmental and Social Impact Assessment (ESIA) submissions.
- FS is a mandated requirement of the Environmental and Social Impact Assessment (“ESIA”) which defines the entire scope for approvals sought and will kick-start the final mine authorisation process keeping the Project on track with the proposed permitting and development timeline.
- Maiden Mineral Reserve of 84.3 Mt at 1.26% Li2O Probable (2.62 Mt LCE) at CV5.
- Opportunities remain for additional conversion at CV5 and CV13, which hosts a Mineral Resource – inclusive of Reserves – of 108.0 Mt at 1.40% Li2O Indicated and 33.4 Mt of 1.33% Li2O Inferred.
- FS confirms the scope for a large-scale and long-life lithium operation, based solely on Mineral Reserve and including:
- Low strip ratio open pit mining and higher-grade underground mining;
- DMS (Dense Media Separation) only ore processing operation with less complexity and without the need of flotation and chemical reagents;
- Spodumene concentrate production spanning ~20 years and a nominal steady-state production rate of up to ~800,000 tpa SC5.5 spodumene concentrate upon achieving full production capacity; and
- Positioning PMET Resources (PMET) as potentially the 4th largest spodumene concentrate producer globally.
- Competitive total cash operating cost1 and all-in sustaining cost (“AISC”)2 of ~$729/t (~US$544/t) and ~$800/t (~US$597/t), respectively for SC5.5, consistent with the
1 Total cash operating cost (Incoterms DAP – ‘Delivered at Place’ Grande-Anse as POL – ‘Port of Loading’ basis) includes mining, processing, site administration, and product transportation to Grande-Anse calculated on an SC5.5 basis. They are non-IFRS financial measures, and when expressed per tonne, non-IFRS ratios. Refer to the “Non-IFRS and other financial measures” section of this press release for further information on these measures.
2 All-in sustaining costs (“AISC”) includes mining, processing, site administration and product transportation costs to Grande-Anse and sustaining capital over the LOM per unit of concentrate produced during the LOM. It is a non-IFRS measure, and when expressed per tonne, a non-IFRS ratio. Refer to the “Non-IFRS and other financial measures” section of this press release for further information on these measures.
prior PEA estimates.
- At a long-term spodumene price of US$1,221/t (SC5.5 basis) the Project delivers an after-tax NPV8% of ~$1,594M (US$1,190M) and after-tax IRR of ~18.1%.
- Total development capital of ~$1,978M (or ~$1,510M net of anticipated pre-production credits, including the Canadian Clean Technology Manufacturing – Investment Tax Credit (“CTM-ITC”)3 and Tax Credit Relating to Resources (“TCRR”)4).
- Underpins development of a 5.1 Mtpa ore processing operation producing up to 800ktpa for spodumene concentrate, positioning Shaakichiuwaanaan amongst the largest hard-rock lithium projects globally.
- The CV5 Lithium-only FS confirms the technical feasibility and economic viability of developing a large-scale, long-life spodumene pegmatite operation in the Eeyou Istchee (James Bay) Region of Québec. With a competitive cost production profile, the Project
demonstrates resilience to lower market cycles, positioning the Project to become a potential cornerstone supplier to North American, European, and/or Asian battery supply chains.
- The Project offers further upside potential through ongoing optimisation initiatives, including the opportunity to adopt a more scalable development pathway up to 5.1 Mtpa to optimize capital expenditure, as well as leveraging tantalum recovery and the recent caesium discovery, which could add further value alongside spodumene production.
- The Company has submitted an application to pursue an underground bulk sample advanced exploration program at CV5, targeting the high-grade Nova Zone, with the objective of further de-risking Project execution, supporting further design optimisation and for product validation purposes.
- A Final Investment Decision (“FID”) remains targeted for the second half of 2027, consistent with the Company’s development schedule. The decision at that time will be based on:
- Further optimised development scenarios derived from detailed engineering;
- Co-product recovery and the associated economic impact to the Project;
- Prevailing market conditions in key supply chains; and
- The Company’s commercial relationships with customers and other key players in the battery and other critical minerals supply chains.
Management Comment
Ken Brinsden, PMET Resources CEO and President, comments: “The CV5 Lithium-only Feasibility Study is a critical path item which defines the full scope and documentation necessary to formally commence and underpin the final mine authorisation process. In addition, it will facilitate our continued engagement with the government, community and industry downstream, for what is now clearly a globally
3 The federal CTM-ITC (enacted on June 20, 2024) provides for up to 30% of the cost of the investment in eligible property used for eligible activities through a refundable investment credit mechanism. See table 3 for a full breakdown of the capital cost estimate. 4 The provincial Tax Credit Relating to Resources (“TCRR”) provides a refundable tax credit of up to 45% of the cost of eligible exploration and development expenses for "critical" and "strategic" minerals. See table 3 for a full breakdown of the capital cost estimate. A cap of $100 million per five-year period was introduced to limit expenses eligible for the credit.
significant Project. The FS encompasses a full scope to develop up to 5.1 Mtpa in ore processing capacity, matched to the upcoming ESIA submissions, that will frame approvals for the entire Project and importantly allow the Company to maintain its development timeline, while still allowing flexibility for expected ongoing optimisation that will occur during the detailed engineering phase.
Our large scale and long-life Project is ideally suited to support the emerging American, European, and Asian lithium raw materials supply chains. There are very few projects of this size & scale, quality, and low production cost that can assist in underwriting the expected capital investment supporting new supply chains and demand growth in western markets. Add to that the benefit of the other critical minerals in the Shaakichiuwaanaan resource that are expected to add further value to the Project, and you have a compelling proposition for future development.
“Further, it is widely anticipated that the overall market supply-demand balance tightens over the coming years, providing a potentially improved backdrop for spodumene pricing and a future Project FID at the appropriate scale”, added Mr. Brinsden.
PMET Resources Inc. (the “Company” or “PMET”) (TSX: PMET) (ASX: PMT) (OTCQX: PMETF) (FSE: R9GA) is pleased to announce the results of its lithium-only CV5 Feasibility Study (“FS”) at the Company’s wholly owned Shaakichiuwaanaan Property (the “Property” or “Project”) located in the Eeyou Istchee James Bay region of Quebec, Canada. The lithium-only Feasibility Study reaffirms the scenario presented in the Company’s 2024 Preliminary Economic Assessment (“PEA”), whereby the cornerstone CV5 Spodumene Pegmatite is developed via a hybrid model combining both open pit and underground mining methods. This scenario was confirmed to provide a solid base upon which to define the scope for approvals sought under the Company’s Environmental and Social Impact Assessment (“ESIA”) that will form the basis for final mine authorisation. With the FS being a mandated component of the ESIA, the Company will seek approvals for a broad scope to develop up to 5.1 Mtpa in processing capacity and have maximum optionality and flexibility over time to unlock the potential of the Shaakichiuwaanaan Project to position it as a leading lithium raw materials supplier to North American, European, and Asian markets.
The FS is based on a Mineral Reserve derived from the CV5 Pegmatite’s Indicated Mineral Resource component, part of the current Shaakichiuwaanaan Consolidated Mineral Resource Estimate (“MRE”), which is the largest known lithium pegmatite MRE in the Americas and one of the top 10 largest globally (see news release dated July 20, 2025).
Although no final investment decision (“FID”) has been reached for the Shaakichiuwaanaan Project, the Feasibility Study reaffirms the potential for the CV5 Pegmatite to position the Company as a globally significant spodumene concentrate producer – potentially the 4th largest globally. Following submission of the ESIA, and while awaiting the final mine and environmental approvals, the Company expects to further optimize the Project via various initiatives. These include (but are not limited to):
- Further refinement of Project phasing with a view to develop incrementally and optimize capital outlays;
- De-risk Project execution by pursuing an advanced exploration bulk sample program targeting the underground ore body, with emphasis on better geological
understanding of the high-grade Nova Zone and to test product specification and quality at scale;
- Advance metallurgical work to support the development of a tantalum “bolt- on” recovery circuit at CV5 that could contribute meaningful co-products and further enhance the economics of the Project;
- Advance geological and metallurgical understanding of the caesium opportunity (at both CV13 and CV5) and how to integrate with the overall Project.
The Company expects that these opportunities (and potentially others), as they are assessed and mature over time, will be instrumental in realizing the Project’s full potential.
This announcement has been prepared in accordance with the JORC Code (2012) and the ASX Listing Rules. A technical report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), detailing the FS and the MRE, will be filed on SEDAR+ within 45 days of this announcement.
Unless otherwise indicated, all references to “$” or “CA$” in this release are to Canadian dollars and references to “US$” in this release are to US dollars. A foreign exchange conversation rate of 1.34 CA$/US$ has been used over the life-of-mine (“LOM”).
Feasibility Summary
The lithium-only FS for Shaakichiuwaanaan’s CV5 Pegmatite is a mandated requirement to formally commence the Company’s final mine authorisation process. It confirms the Project’s technical and economic viability while providing a broad project scope for the Company’s ESIA submissions. Together, the FS and ESIAs (Federal and Provincial levels) will be matched to the full-scale scope for a mining and processing operation of up to 5.1 Mtpa and will be filed in tandem to advance the final mine authorisation process in Quebec, a critical step in maintaining the Company’s development timeline and positioning Shaakichiuwaanaan as one of the next major lithium operations in North America.
PMET Resources engaged external consultant G Mining Services Inc. as lead consultant, with contributions from Primero Group Americas Inc. (Primero), AtkinsRéalis Group Inc., BBA Inc., Paterson & Cooke Canada Inc. (Paterson & Cooke), Vision Geochemistry Ltd., Alius Mine Consulting, WSP Global Inc., Mailloux Hydrogeologie and GCM Expert, to prepare an independent Feasibility Study and Technical Report for the CV5 Pegmatite (lithium-only) at the Shaakichiuwaanaan Project.
The FS confirms that the CV5 Pegmatite, with a nameplate design production rate of approximately 800,000 tonnes per annum of SC5.5 spodumene concentrate, has the potential to position PMET among the top four spodumene concentrate producers globally. With planned ore processing capacity of up to 5.1 Mtpa and production spanning approximately 20 years, the Project reaffirms its global standing as a large-scale, long-life lithium pegmatite operation.
Shaakichiuwaanaan also maintains its competitive cost position, supported by projected AISC2 (SC5.5, DAP Grande-Anse as POL basis) of ~$800/t (~US$597/t), consistent with the Company’s PEA. This cost profile underscores the Project’s overall resilience to challenging market conditions and to what the Company believes to be conservative long-term pricing assumptions, enhancing the Project’s ability to deliver substantial upside from improved pricing and stronger market conditions.
The FS delivers an after-tax NPV8% of ~$1,594M (~US$1,190M) at a long-term spodumene concentrate price of US$1,221/t (SC5.5 basis). While reflecting higher capital intensity than outlined in the PEA, total development capital of ~$1,978M (or ~$1,510M, net of anticipated preproduction credit, CTM-ITC and TCRR) is consistent with the overall scale of the Project and prudently accounts for seasonal and construction realities in Northern Québec. The FS estimate is inclusive of an 11% Project contingency.
Importantly, the FS confirms that Shaakichiuwaanaan is both technically feasible and economically viable, and positions the Project to become a cornerstone supplier to the North American, European, and Asian EV supply chains. The combination of scale, longevity, and cost competitiveness, together with the ability to supply a coarse, high quality SC5.5 spodumene concentrate, provides a strong platform for future growth.
The Company will now advance to the next stage of development with detailed engineering, which will build on the FS to define an optimised and scalable development pathway aimed at maximising long-term value. This work will evaluate optimisation initiatives such as staging of capital, design refinements and operational efficiencies, while also assessing opportunities to capture incremental value through tantalum recovery and the recent high-grade caesium discovery at CV13.
To support this optimisation process and further de-risk the Project, the Company is preparing to advance its CV5 exploration program in the form of an underground bulk sample, which will provide data to validate key design assumptions, test product specification and quality at scale, and confirm mine plan enhancements.
In parallel, the completion of the FS positions the Company to now advance discussions with customers, strategic investors and government stakeholders, reflecting the Shaakichiuwaanaan Project’s importance to develop a robust western-facing battery supply chain.
The FID (targeted for H2 2027) will take into account detailed engineering and optimised outcomes, prevailing market conditions, and the Company’s commercial relationships and customer requirements across the battery supply chain.
Feasibility Study Outcomes
The Project is expected to yield an annual production rate of up to ~800,000 tpa of spodumene concentrate (SC5.5 basis). Based on this production rate, over the mine life, the Project is expected to generate an estimated after-tax NPV8% of ~ $1,594 billion (~US$1.190 billion) and after-tax IRR of ~18.1% using a long-term spodumene concentrate price of US$1.221/t (SC5.5 basis).
This spodumene concentrate price is derived from a basket of reference sources including Benchmark Intelligence’s long-term market analysis, consensus forecasts from leading financial institutions, and recent NI 43-101 technical report disclosures. These references indicate that spodumene concentrate prices for SC5.5 generally cluster in a range of US$1,100–1,350/t. Therefore, a price assumption within this range is considered to fairly represent foreseeable longer-term market conditions applicable to the Project development scenario within the context of current and future market expectations.
Table 1: Summary of Estimated Project Economics
| Financial Results | Unit | CA$ | US$ | ||
|---|---|---|---|---|---|
| Long term price assumption (5.5% LiO) 2 | $/t | 1,636 | 1,221 | ||
| Pre-Tax NPV 0% | M$ | 8,358 | 6,237 | ||
| Pre-Tax NPV 8% | M$ | 2,514 | 1,876 | ||
| After-Tax NPV 0% | M$ | 5,418 | 4,043 | ||
| After-Tax NPV 8% | M$ | 1,594 | 1,190 | ||
| Pre-Tax IRR | % | 19.87% | |||
| After-Tax IRR | % | 18.06% | |||
| Pre-Tax Payback Period | year | 4.9 | |||
| After-Tax Payback Period | year | 4.7 |
Table 2: Estimated Production Metrics
| Key Metrics | Unit | Value |
|---|---|---|
| Open Pit, Phase 1 Construction and Ramp Up Phase (incl. detailed engineering & | year | 3.4 |
| procurement) | ||
| Open Pit, Phase 1 Construction and Ramp Up Phase (from breaking ground) | year | 2.5 |
| Underground, Phase 2 Expansion Construction and Ramp Up Phase | year | 3.6 |
| Life of Mine (LOM) | year | 19 |
| Open Pit | ||
| Ore Mined | Mt | 49.2 |
| Waste Mined (including pre-stripping) | Mt | 167.5 |
| Total Tonnes Mined | Mt | 216.7 |
| LOM Open Pit Strip Ratio (waste tonnes: ore tonnes) | w:o | 3.4:1 |
| Underground | ||
| Ore Mined | Mt | 35.1 |
| Waste Mined | Mt | 5.2 |
| Total Tonnes Mined | Mt | 40.3 |
| Total | ||
| Total Mineral Reserve (Open Pit + Underground) mined and processed | Mt | 84.3 |
| Nominal Process Plant Feed Rate | Mtpa | 5.1 |
| Average Process Plant Feed Rate | Mtpa | 4.4 |
| Average LiO recovery 2 | % | 68.9 |
| Average Feed Grade | % | 1.26 |
| LOM Spodumene Concentrate | Mt | 13.3 |
| Spodumene Concentrate Grade | % | 5.5 |
| Nominal Spodumene Concentrate Production Rate | ktpa | 801.6 |
| LOM Average Spodumene Concentrate Production Rate | ktpa | 693.8 |
Capital Expenditures
The development strategy for the Project outlined in the FS employs a similar approach as the PEA, i.e. a hybrid mining model combining open pit and underground extraction methods. The open pit operation is developed first, with Phase 1 providing an initial production capacity of ~400,000 tpa spodumene concentrate. The underground mine comes online second as Phase 2 and provides an additional production capacity of ~400,000 tpa spodumene concentrate, resulting in ~800,000 tpa nameplate capacity for the Project. Total development capital of ~$1,978M (or $1,510M, net of anticipated pre-production credit and CTM-ITC and TCRR tax credits) will underpin the entire Project, delivering 5.1 Mtpa processing capacity and up to ~800,000 tpa of spodumene concentrate capacity, positioning Shaakichiuwaanaan amongst the largest lithium pegmatite projects globally.
Initial Capital Costs include all construction and pre-production costs up to the date of commercial production, including some pre-investment into the Phase 2 underground mine as well as early engineering and procurement expenses incurred in 2027 prior to FID. Expansion Capital is all construction costs to develop the Phase 2 (underground and the associated additional processing facility) incurred post commercial production.
Table 3: Summary of Estimated Capital Expenditures
| Capital Expenditure | Phase 1 | Phase 2 | Total | Phase 2 | Total | LOM | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OP | UG | Initial | UG | Devel. | Sust. | Capital | |||||||||
| Initial | Initial | Capital | Expansion | Capital | Capital | Cost | |||||||||
| Capital | Capital | Cost | Capital | Cost | Cost | ||||||||||
| Cost | Cost | Cost | |||||||||||||
| (M$) | (M$) | (M$) | (M$) | (M$) | (M$) | (M$) | |||||||||
| 100 – Infrastructure | 124.9 | - | 124.9 | 24.8 | 149.7 | 30.8 | 180.5 | ||||||||
| 200 – Power and Electrical | 173.8 | - | 173.8 | 46.2 | 220.0 | 25.0 | 245.1 | ||||||||
| 300 – Water Management | 128.2 | - | 128.2 | 18.7 | 146.9 | 100.5 | 247.3 | ||||||||
| 400 – Surface Operations | 18.6 | - | 18.6 | - | 18.6 | 11.9 | 30.5 | ||||||||
| 500 – Mining | 120.0 | 99.1 | 219.1 | 36.4 | 255.5 | 550.5 | 806.0 | ||||||||
| 600 – Process Plant | 217.3 | 20.1 | 237.4 | 167.0 | 404.4 | - | 404.4 | ||||||||
| 700 – Construction Indirects | 262.8 | 0.1 | 262.9 | 123.8 | 386.7 | - | 386.7 | ||||||||
| 800 – General Services / Owner’s Cost | 99.8 | 4.7 | 104.5 | 13.4 | 117.9 | 31.6 | 149.6 | ||||||||
| 900 – Pre-production, Start-up, Comm. | 73.3 | 9.3 | 82.6 | 1.5 | 84.1 | 186.1 | 270.2 | ||||||||
| Total Initial Capital Expenditures | 1,218.7 | 133.3 | 1,352.0 | 431.8 | 1,783.8 | 936.4 | 2,720.3 | ||||||||
| (Excl. Contingency) | |||||||||||||||
| 990 – Contingency | 130.7 | 15.0 | 145.7 | 48.7 | 194.4 | - | 194.4 | ||||||||
| Total Initial Capital Expenditures | 1,349.4 | 148.3 | 1,497.7 | 480.5 | 1978.2 | 936.4 | 2,914.7 | ||||||||
| Less: Pre-Prod1. Credit net of TC/RC & | (101.7) | - | (101.7) | - | (101.7) | - | (101.7) | ||||||||
| Royalties | |||||||||||||||
| Total Initial Capex Net of Pre- | 1,247.7 | 148.3 | 1,396.0 | 480.5 | 1,876.5 | 936.4 | 2,813.0 | ||||||||
| Production Credit | |||||||||||||||
| Less: CTM-ITC Tax Credit | (210.1) | - | (210.1) | (113.2) | (323.3) | (36.5) | (359.8) | ||||||||
| Less: TCRR Tax Credit | (29.0) | (14.3) | (43.3) | - | (43.3) | (13.8) | (57.1) | ||||||||
| Total Initial Capex Net of Pre-Prod & | 1,008.6 | 134.0 | 1,142.6 | 367.3 | 1,509.9 | 886.1 | 2,396.0 | ||||||||
| Tax Credit |
100: Infrastructure includes site roads, bridges, truck shop, mine dry and offices, administrative building, camp facilities as well as the fuel and explosives storage and infrastructure earthworks. 200: Power and Electrical includes the main electrical powerline and substations as well as secondary power generation and power distribution at site. 300: Water Management relates to all infrastructure required to collect, manage and treat fresh water, potable water, process water contact and non-contact water. 400: Surface operations relates to construction, process plant and G&A mobile equipment. 500: Mining includes haul roads, open pit equipment purchase, pit surface preparation and some underground infrastructure (ventilation and compressors). 600: Process plant includes capital expenditures for the first production train with a capacity of 2.5 Mtpa and certain early works from the second production train with an additional capacity of 2.5 Mtpa. 700: Construction Indirects include project management and logistics, temporary construction infrastructure and equipment, energy and engineering. 800: General Services / Owner’s costs include general and administrative costs, security, IT, owner’s costs, logistics, taxes and insurances as well as camp operations costs, health & safety and environment services. 900: Pre-Production costs relate to operating costs incurred in processing and mining prior to achieving commercial production. 990: An overall contingency has been applied to all direct and indirect costs based on quality and engineering level of inputs.
1. Pre-Production credits relate to spodumene concentrate revenues expected to be realized during the ramp-up period before reaching commercial production.
Operating Costs
Operating costs have been derived from first principles using supplier quotations whenever available and/or using available benchmarks, adjusted for inflation. All operating costs assume owner-run operations, except for overburden removal for the open pit and for years 1-2 of the underground development, that are assumed to be performed by a contractor.
The estimated cash operating cost5 at site is $511.9/t (US$382/t), to which transportation costs of $217.2/t (US$162.1/t) (inclusive of trucking to Matagami and train to Grande-Anse port) are added, for a total cash operating cost (DAP Grande-Anse as POL)6 of $729.1/t (US$544.1/t) of spodumene concentrate. LOM Sustaining Capital Costs are expected to average $70.7/t (US$52.7/t), yielding an all-in sustaining cost7 of $799.8/t, or US$596.8/t of spodumene concentrate.
Table 4: Estimated Cash Operating Costs per Tonne of Concentrate (SC5.5 – DAP Grande-Anse as POL basis)
| Financial Results | CA$/t | US$/t | ||
|---|---|---|---|---|
| Mining | 320.1 | 238.9 | ||
| Processing | 91.2 | 68.0 | ||
| Site Administration | 100.7 | 75.1 | ||
| Cash Operating Cost at Site5 | 511.9 | 382.0 | ||
| Transportation cost | 217.2 | 162.1 | ||
| Total Cash Operating Cost (DAP Grande-Anse as POL)6 | 729.1 | 544.1 | ||
| Sustaining Capital | 70.7 | 52.7 | ||
| All-In Sustaining Cost – (DAP Grande-Anse as POL)7 | 799.8 | 596.8 |
Price forecasts in the market are generally presented on a 6.0% Li₂O spodumene concentrate
Revenue and Market Pricing Assumption
(“SC6”) basis. For the purpose of this FS, the Company’s pricing assumption has been calibrated to SC5.5 by adjusting for targeted lithium content on a pro rata basis. Consistent with the PEA scenario, the assumed pricing reflects pricing for FOB Australia terms as a comparable price for the Company’s product excluding shipping costs.
In preparing this FS, PMET has followed the Canadian Institute of Mining (CIM) disclosure guidelines, which require long-term price assumptions benchmarked against independent consensus forecasts and peer technical reports. This ensures that the pricing assumptions adopted are transparent, defensible and robust.
5 Cash operating cost at site includes mining, processing, and site administration, it is a non-IFRS measure, and when expressed per tonne, a non-IFRS ratio. Refer to the “Non-IFRS and other financial measures” section of this press release for further information on these measures.
6 Total cash operating cost (DAP Grande-Anse as POL) includes mining, processing, site administration, and product transportation to Grande-Anse. It is a non- IFRS measure, and when expressed per tonne, a non-IFRS ratio. Refer to the “Non-IFRS and other financial measures” section of this press release for further information on these measures.
7 All-in sustaining costs (“AISC”) includes mining, processing, site administration, and product transportation costs to Grande-Anse and sustaining capital over the LOM per unit of concentrate produced during the LOM.. It is a non-IFRS measure, and when expressed per tonne, a non-IFRS ratio. Refer to the “Non-IFRS and other financial measures” section of this press release for further information on these measures.
On this basis, the FS adopts a long-term spodumene price assumption of US$1,221 per tonne (SC5.5 basis). This figure is derived from a basket of sources including Benchmark Intelligence’s long-term market analysis, consensus forecasts from leading financial institutions, and recent NI 43-101 technical report disclosures. These references indicate that spodumene concentrate prices for SC5.5 generally cluster in the US$1,100–1,350/t range. Therefore, a price assumption within this range is considered to fairly represent foreseeable longer-run market conditions applicable to the Project development scenario, as compared to the recent spot price of US$830/t (SC6, FOB Australia basis – September 19, 2025).
While EVs remain the primary driver of lithium demand, the rapid expansion of battery energy storage systems (BESS) has become an increasingly material factor. Global BESS installations grew more than 60% year-on-year in 2024 and reached 107 GWh in the first seven months of 2025, representing a 38% increase over the same period in 2024. This growth trajectory highlights BESS as a structural new source of lithium demand.
On the supply side, achieving the growth required to meet projected demand will be highly challenging. A significant portion of the future supply pipeline is expected to come from projects that are either not yet in production, in care and maintenance, or at early development stages. These categories of projects carry elevated execution and financing risks, and historically many have faced delays or failed to progress as planned. As a result, there is considerable uncertainty as to whether the necessary supply capacity will be delivered on the timelines assumed in market forecasts. Benchmark Intelligence projects that, despite the sizeable development pipeline, structural supply deficits are expected to emerge from 2030 onwards, with shortfalls of approximately 290,000 tonnes LCE by 2035 and nearly 600,000 tonnes LCE on average between 2035 and 2040.
Taken together, accelerating BESS demand and the uncertainty of future supply additions are expected to place further upward pressure on long-term spodumene pricing.
The Company has an offtake binding term sheet for 100,000 tonnes (SC5.5) per year for a period of 10 years with PowerCo (see news release dated December 18, 2024), with pricing largely linked with reported market price references. Based on ongoing engagement with industry, the Company views the balance of its production (~700,000 tonnes per year at full production) being readily placed to customers consistent with the Project development and expansion schedule.
These factors, together with the increasing focus in Western markets on establishing resilient and sustainable supply chains for battery materials supports the decision to adopt a long-term spodumene price assumption of US$1,221 (SC5.5) per tonne in the FS. The NPV sensitivity analysis included in this release (Figure 1) illustrates the impact of higher (as well as lower) spodumene prices on Project economics, demonstrating that while the FS base case is grounded in prudent assumptions, stronger pricing outcomes have the potential to materially enhance the Project’s valuation.
Sensitivity Analysis
A sensitivity analysis was conducted on the base case post-tax NPV8% of the Shaakichiuwaanaan Project. The analysis shows that the Project is most sensitive to revenue factors around the Project including lithium grade (%Li2O), followed by spodumene concentrate price, and exchange rate.
Post-tax NPV @ 8%
| Li Oxide Grade (±20%) | 310 | 2,748 | |||
| Exchange Rate (±20%) | 393 | 2,689 | |||
| Price (USD) Li Oxide Grade 5.5% (±20%) | 399 | 2,686 | |||
| Recovery (±20%) | 570 | 2,546 | |||
| Operating Cost (±20%) | 1,228 | 1,948 | |||
| Capital Costs (±20%) | 1,320 | 1,868 | |||
| Sustaining Capital (±20%) | 1,416 | 1,773 | |||
| 0 | 500 | 1,000 1,500 | 2,000 | 2,500 3,000 |
Figure 1: Sensitivity Analysis (+/- 20%)
Current market conditions (as defined by a recent spot price of US$830/t SC6, FOB Australia basis – September 19, 2025) are not representative of long-term market price forecasts from independent reporting agencies (please see Revenue and Market Price Assumption section above). In any case, the project sensitivity analysis (Figure 1) demonstrates the relative economic resilience of the project to lower than forecast price outcomes.
Funding & Strategic Engagement
Since completion of the Preliminary Economic Assessment (PEA), the Company has been evaluating a range of potential funding solutions designed to deliver the most cost-effective and value-enhancing package(s) for both the Company and its shareholders. This work continues to progress alongside the FS and ESIA development process and will continue as the Company moves through project optimization and permitting. Potential funding solutions under consideration include an appropriate combination of strategic, debt and listed equity, and government programs, integrated with potential downstream collaboration opportunities to further enhance project value.
The scale, quality, and strategic positioning of the Project have already enabled PMET to attract globally recognized partners. Volkswagen AG, through its financing subsidiary, invested approximately C$69 million at a 65% premium to the share price at the time, reflecting strong confidence in the Project’s fundamentals and its alignment with Volkswagen’s global battery and EV ambitions. The partnership also provides Volkswagen with a right to negotiate to be a cornerstone investor for Project funding at FID in return for additional offtake (on terms to be mutually agreed). The structure of this strategic investment demonstrates PMET’s ability to attract high-quality partners and value-accretive capital.
Discussions are also ongoing with several industry participants and strategic groups interested in further long-term supply arrangements, reflecting growing global efforts to establish diversified, transparent, resilient supply chains for lithium and other critical minerals.
PMET continues to build strong engagement with governmental and institutional stakeholders, including both Canadian and international export credit agencies, alongside tier-1 commercial financiers and equity funding groups. These discussions are progressing in support of a targeted project financing package aligned with an FID by the end of FY2027.
Furthermore, the Governments of Canada and Québec continue to demonstrate sustained commitment to advancing the critical minerals sector. The Company believes it could potentially have access to tailored financial programs and incentives designed to accelerate the development of key battery supply chain assets, such as Shaakichiuwaanaan. PMET’s recent participation in a ministerial trade and investment mission organized by the Ministère des Ressources Naturelles et des Forêts and Investissement Québec — in collaboration with KOMIR and the Japan Bank for International Cooperation — underscores the Project’s growing international visibility and the Company’s ongoing dialogue with prospective partners across the lithium, tantalum, and caesium value chains.
Taken together, these relationships and initiatives provide a strong foundation for PMET’s future funding strategy, positioning the Company to advance toward FID with credible partners, robust institutional support, and a competitive project ready to anchor new supply chains across North America, Europe, and Asia. Although a Final Investment Decision (FID) is not required at this time, these ongoing discussions are focused on establishing the commercial and financial framework to support a development-ready project.
Mineral Resource Estimate
The Shaakichiuwaanaan Consolidated Mineral Resource Estimate (MRE), which includes both the CV5 and CV13 pegmatites, has been completed in accordance with NI 43-101, and CIM Definition Standards for Mineral Resources and Reserves reporting guidelines and is presented in Table 5. As the Company is dual listed on the ASX in Australia, the QP also considered the definitions of JORC 2012. The Company has reported the Consolidated MRE (effective as of June 20, 2025) to ASX in accordance with the JORC Code 2012 (see news release dated July 20, 2025).
Table 5: Shaakichiuwaanaan Consolidated Mineral Resource Estimate
| Pegmatite | Classification | Tonnes | Li2O | Cs2O | Ta2O5 | Ga | Contained LCE (Mt) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mt | % | % | ppm | ppm | |||||||||
| CV5 & CV13 | Indicated | 108.0 | 1.40 | 0.11 | 166 | 66 | 3.75 | ||||||
| Inferred | 33.4 | 1.33 | 0.21 | 155 | 65 | 1.09 |
1.
Mineral Resources were prepared in accordance with NI 43-101 – Standards for Disclosure of Mineral Projects and the CIM Definition Standards (2014). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, economic, or other relevant issues.
2. The independent Competent Person (CP), as defined under JORC, and Qualified Person (QP), as defined by NI 43-101 for this resource estimate is Todd McCracken, P.Geo., Director – Mining & Geology – Central Canada, BBA Inc. The Effective Date of the estimate is June 20, 2025 (through drill hole CV24-787).
3. Estimation was completed using a combination of inverse distance squared (ID2) and ordinary kriging (OK) for CV5 and inverse distance squared (ID2) for CV13 in Leapfrog Edge software with dynamic anisotropy search ellipse on specific domains.
4. Drill hole composites at 1 m in length. Block size is 10 m x 5 m x 5 m with sub-blocking.
5. Both underground and open-pit conceptual mining shapes were applied as constraints to the Consolidated MRE to demonstrate reasonable prospects for eventual economic extraction. Cut-off grades for open-pit constrained resources are 0.40% Li2O for both CV5 and CV13, and for underground constrained resources are 0.60% Li2O for CV5 and 0.70% Li2O for CV13. Open-pit and underground Mineral Resource constraints are based on a long- term average spodumene concentrate price of US$1,500/tonne (6% basis FOB Bécancour) and an exchange rate of 0.70 USD/CAD.
6. Mineral Resources for the Rigel and Vega zones are hosted within the CV13 Pegmatite’s open-pit conceptual mining shape and, therefore, are included within the Consolidated MRE for CV5 and CV13 pegmatites. The Rigel and Vega zones were interpreted using a 0.50% Cs2O grade constraint based on mineral processing analogues and mineralogical analysis supporting pollucite as the predominant Cs-bearing mineral present.
7.
Rounding may result in apparent summation differences between tonnes, grade, and contained metal content.
8. Tonnage and grade measurements are in metric units.
9. Conversion factors used: Li2O = Li x 2.153; LCE (i.e., Li2CO3) = Li2O x 2.473, Ta2O5 = Ta x 1.221, Cs2O = Cs x 1.0602
10. Densities for pegmatite blocks (both CV5 & CV13) were estimated using a linear regression function (SG = 0.0674x (Li2O% + 0.81 x B2O3%) + 2.6202) derived from the specific gravity (“SG”) field measurements and Li2O grade. Non-pegmatite blocks were assigned a fixed SG based on the field measurement median value of their respective lithology.
11. The Mineral Resources are inclusive of the Mineral Reserves.
All reported Mineral Resources have been constrained by conceptual open pit and underground mineable shapes to demonstrate reasonable prospects for eventual economic extraction (“RPEEE”). The cut-off grade is variable depending on the mining method and pegmatite (0.40% elements reported (Cs₂O, Ta₂O₅, and Ga) are considered to have RPEEE when mined and Li2O open-pit, 0.60% Li2O underground at CV5, and 0.70% Li2O underground at CV13). All other
processed concurrently with the lithium resource. The Effective Date of the MRE is June 20, 2025. Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. The FS presented has been completed for lithium only on the CV5 Pegmatite’s Mineral Resource component (of the Consolidated MRE), which includes 101.8 Mt at 1.38% Li2O Indicated and 13.9 Mt at 1.21% Li2O Inferred.
The CV5 Pegmatite is a Li-Cs-Ta (LCT) pegmatite situated central to the Property within the Guyer Greenstone Belt, considered part of the larger La Grande River Greenstone Belt, and intrudes predominantly amphibolite, metasediment, and lesser ultramafic rock types. The principal lithium mineral is spodumene which is present typically as decimetre to metre scale crystals. The CV5 Pegmatite, including the principal dyke, is modelled to extend continuously over a lateral distance of at least 4.6 km and remains open along strike at both ends and to depth along a large portion of its length (Figure 2). The principal dyke ranges from <10 m to more than 125 m in true width, and may pinch and swell aggressively along strike, as well as up and down dip. It is primarily the thickest at near-surface to moderate depths (<225 m), forming a relatively bulbous, elongated shape, which may flare to surface and to depth variably along its length. The principal dyke also hosts the high-grade Nova Zone, which has been traced over a strike length of at least 1.1 km and includes multiple drill intersections ranging from 2 m to 25 m (core length) at >5% Li2O, within a significantly wider mineralized zone of >2% Li2O.