Winston: Mine Tailings Investigation Collaboration

Panther Metals Plc (LSE: PALM), the exploration company focused on mineral projects in Canada, is pleased to announce it has agreed a collaboration with London AIM market listed Fulcrum Metals Ltd (AIM: FMET, "Fulcrum") to investigate the potential commercialisation of the historical mine processing tailings storage facility located on the Winston Project ("Winston" or the "Project) in Ontario, Canada.

Fulcrum is a company focussed on the pioneering the use of innovative technology to recover precious metals from mine tailings at their Teck-Hughes Gold Tailings Project, in Ontario, Canada.

The collaboration underscores both companies' shared vision to responsible resource management, innovative recovery technologies, and strategic value creation and is a precursor to an exciting opportunity for both companies to assess the viability of extracting value from the historical mine processing tailings located at the Project's Winston Lake Mine site (Figure 1), where the required access and power infrastructure is already in place (Figure 2).

A modern, sustainable approach to mine waste reprocessing and precious metal capture potentially offers Panther a shorter pathway to significant cashflow, which could be deployed towards extending the 8.5 year mine life envisaged in the 2021 mine redevelopment Feasibility Study.1

Past Production

The development of the Winston Lake Mine was commenced in 1986 by Inmet Mining Limited, and subsequently acquired by First Quantum Minerals Limited. Between 1988 and 1998, a reported 3.3 million tonnes (Mt) of ore was mined and processed with an average head grade of 14.6% Zn, 1.0% Cu, 32.2g/t Ag and 1.4g/t Au, producing 900 million pounds (Mlbs) or 408 thousand tonnes (kt) of zinc, 54 Mlbs (24 kt) copper, with over 1.1 Moz silver and 51,168 oz gold at reported recoveries of 93% zinc and 78% copper. The operation was finally closed in February 1999 due to a very low zinc price at the time (US$0.42/lb). 1,2

Darren Hazelwood, Chief Executive Officer, commented:

"This collaboration is the first step in investigating a potential early source of positive cashflow for Panther at the Winston Project. The infrastructure is well maintained on the brownfield Winston Lake mine site allowing for the potential rapid evaluation and monetisation of the historical mine processing tailings.

Working with Fulcrum Metals, who are advancing mine-tailings reprocessing project elsewhere in Ontario, we intend to explore innovative ways to generate additional value and potentially extend the life of our flagship project. It's a strong step forward in our mission to build a sustainable and profitable future for our shareholders."

Ryan Mee, CEO of Fulcrum Metals Ltd, added:

"We're excited to be collaborating with Panther Metals on this promising opportunity. Fulcrum brings advanced extraction and separation technology to the table through its relationship with Extrakt Process Solutions, which offers cyanide free and environmentally sensitive hydrometallurgical techniques designed to recover critical and precious metals from legacy tailings. This aligns perfectly with our focus on unlocking overlooked value and accelerating resource recovery in a responsible way."

The collaboration envisages setting out a formal agreement for an initial phase of a partnership which would focus on technical and economic assessments of the tailings material. Subject to the results of that evaluation, Panther and Fulcrum would formalise a commercial agreement to advance a tailings pre-processing project.

Key Highlights:

• The collaboration to agree terms for a strategic partnership between Panther Metals and Fulcrum Metals to evaluate the Winston tailings storage facility.
• Application of modern hydrometallurgical extraction technology to maximise recovery while minimising environmental impact
• Low-cost, high-impact opportunity with upside potential for both parties.
• Supports long-term sustainability goals through reprocessing of legacy materials
• All infrastructure well maintained and in place for rapid execution of the opportunity should it exist.

This development underscores both companies' shared commitment to responsible resource management, innovative recovery technologies, and strategic value creation.

Figure 1: Location of Winston Lake Project, Ontario, Canada

Figure 2: Winston Lake Minesite Infrastructure including Plant Site, Tailings and Water Storage Facilities 2

Technical References

• Ontario Ministry of Mines Record ID MDI42D14NW00015. Schnieders et al, 1999. OFR5989, Report of Activities 1998, p. 5 ( https://www.geologyontario.mines.gov.on.ca/persistent-linking?mineral-inventory=MDI42D14NW00015 )

The Panther Metals Winston Project, located 50 km east of Thunder Bay, Ontario, Canada, is an advanced stage polymetallic zinc, copper and precious metal property comprising a high-grade critical mineral mine redevelopment and resource building opportunity. Based on a Feasibility Study published in 2021 the Project is expected to generate average life of mine ("LOM") annual EBITDA of C$67.64 million (M) and have a pre-tax NPV8% of C$ 175.8 M and IRR of 26%, with further strong exploration potential for defining additional Mineral Resources and Mineral Reserves from the two main deposits as well as additional near-mine volcanogenic massive sulphide ("VMS") exploration targets.

2021 Feasibility Study Headline Metrics

• NPV8%: C$175.8M pre-tax, assuming zinc priced at US$2,700/t, copper at US$7,300/t, gold at US$1,635/oz & silver at US$21/oz. At a derisked 6% discount Pre-tax NPV = C$213.2M.
• IRR: 26% pre-tax
• EBITDA : C$574.9M (gross), C$67.64M (annual). Gross revenue: C$983.3M
• CAPEX: C$145.1 M
• OPEX: C$65.17/t
• Indicated Resource 2.07 Million Tonnes @ 18% Zn
• Volcanogenic Massive Sulphide mineralisation well understood by Panther.
• Positive First Nation engagement.
• Strong Institutional and Governmental support for future financing options.

The 2021 Feasibility Study1 for the Winston Project detailed a strong economic case for mine redevelopment for a 1,000 tonnes per day underground operation with a net present value (NPV8%) of C$171.5M and pre-tax internal rate of return (IRR) of 26% based on an Ore Reserve of 1.96Mt @ 13.9% Zn, 0.6% Cu with significant gold and silver credits (Table 1) producing an expected 69.8 thousand tonnes per year (ktpa) of zinc concentrate and 5.3 ktpa of copper concentrate over an initial 8.5 year mine life. The Project boasts a high-grade CIM compliant Indicated Mineral Resource2 of 2.07Mt averaging 17.9% zinc, 0.8% copper, 0.4 g/t gold, and 34 g/t silver plus Inferred 0.27Mt @ 16.2% Zn, 1.0% Cu, 0.3g/t Au & 37.2g/t Ag (Table 2). Project is located only 20km from the trans-Canada highway and infrastructure including power, tailings storage facility, transport links and underground development are already in place. The previous mining operation closed in February 1999 due to very low zinc prices at the time. In total, 3.4 million tonnes grading 1.0% copper and 16% zinc was mined and processed. The total project area covers approximately 60.4km2 and comprises both patented freehold, leased and Crown-land mining claims.

Table 1: Winston Project Mineral Reserve

Notes: JORC (2012) compliant Mineral Reserve effective date 5 July 2019. Ore Reserves are based solely on Indicated Mineral Resources and are reported above an average net smelter return (NSR) cut-off grade of US$98 /t equivalent to 5.2% Zn. 1

Table 2: Winston Project Mineral Resource Estimate at 3% Zn cut-off grade

Technical References:

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