Quebec Copper-PGE Explorer Unveils High-Grade Open Pit Starter Mine Resource at Lion Zone
Research Report

Important Disclosures:

Disclosures for Roth, Power Metallic Mines Inc., September 11, 2026

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Disclosures: Shares of Power Metallic Mines Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities. Rating and Price Target History for: Power Metallic Mines Inc. (PNPN.V) as of 09-10-2026 2.00 1.50 1.00 0.50 0.00 Q2 Q3 2024 Q1 Q2 Q3 2025 Q1 Q2 Q3 2026 Q1 Q2 Q3 02/05/25 I:B:$2.5 10/01/25 B:$3 Created by: BlueMatrix Each box on the Rating and Price Target History chart above represents a date on which an analyst made a change to a rating or price target, except for the first box, which may only represent the first note written during the past three years. Distribution Ratings/IB Services shows the number of companies in each rating category from which Roth or an affiliate received compensation for investment banking services in the past 12 months. Distribution of IB Services Firmwide IB Serv./Past 12 Mos. as of September 11, 2026 Rating Count Percent Count Percent Buy [B] 406 78.83 115 28.33 Neutral [N] 75 14.56 6 8.00 Sell [S] 1 0.19 0 0 Under Review [UR] 33 6.41 12 36.36 Our rating system attempts to incorporate industry, company and/or overall market risk and volatility. Consequently, at any given point in time, our investment rating on a stock and its implied price movement may not correspond to the stated 12-month price target. Ratings System Definitions - ROTH Capital employs a rating system based on the following: Buy: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return of at least 10% over the next 12 months. Neutral: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return between negative 10% and 10% over the next 12 months. Sell: A rating, which at the time it is instituted and or reiterated, that indicates an expectation that the price will depreciate by more than 10% over the next 12 months. Under Review [UR]: A rating, which at the time it is instituted and or reiterated, indicates the temporary removal of the prior rating, price target and estimates for the security. Prior rating, price target and estimates should no longer be relied upon for UR-rated securities. Not Covered [NC]: ROTH Capital does not publish research or have an opinion about this security. ROTH Capital Partners, LLC and its affiliates expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however,an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2026. Member: FINRA/SIPC.

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On September 11, 2026, Mike Niehuser of Roth Capital Partners reiterated a Buy rating and CA$3.00 12-month price target on Power Metallic Mines Inc. (PNPN:TSXV; PNPNF:OTCQB; IVV1:FRA), implying roughly 146% upside from the September 10, 2026, closing price of CA$1.22, following the company's updated mineral resource estimate (MRE) on its Nisk Project, which added a maiden estimate for the copper-PGE-rich Lion Zone.

The analyst said the Lion Zone starts at surface, and its high grades and strong metallurgical recoveries support an open-pit scenario with modest capital costs and a small footprint. In his view, this points to "a low-risk starter mine with robust economics, attractive for acquisition."

Maiden Lion Zone Resource Outlines a Starter Mine

The Lion Zone MRE, effective June 19, 2026, includes an indicated resource of 4.145 million tonnes (Mt) grading 3.86% copper-equivalent (CuEq) and an inferred resource of 601,000 tonnes grading 4.01% CuEq. More than 85% of the resource falls in the indicated category, and about 67% of the indicated tonnage lies within the open pit. The estimate used a cut-off grade of 0.35% CuEq for the open pit portion and 0.90% CuEq for the underground portion.

The open pit indicated resource totals 2,782,000 tonnes grading 3.45% CuEq, including 1.47% copper, 2.35 g/t palladium, 0.84 g/t platinum, 0.42 g/t gold, and 11.65 g/t silver. That contains 90.04 million pounds (Mlb) of copper, 210,000 ounces of palladium, and 76,000 ounces of platinum. The underground indicated resource totals 1,363,000 tonnes at a higher 4.71% CuEq, including 2.10% copper and 3.15 g/t palladium. Inferred material adds 100,000 tonnes at 2.36% CuEq in the open pit and 501,000 tonnes at 4.34% CuEq underground.

The analyst noted that the Lion Zone's copper, palladium, and platinum grades contrast with the nickel- and cobalt-dominated Nisk Main deposit. He added that the Lion Zone has additional depth potential and "may be the horn of a nickel unicorn."

Optimized Nisk Main Deposit Estimate

The company also released an optimized MRE for the legacy Nisk Main deposit, effective June 19, 2026. It used cut-off grades of 0.30% CuEq for the open pit and 0.80% CuEq for underground. The open pit indicated resource totals 607,000 tonnes grading 0.60% nickel (1.01% NiEq), with 210,000 tonnes inferred at 0.86% NiEq.

The underground component is larger. It includes 2,096,000 tonnes indicated at 0.96% nickel (1.65% NiEq, 2.75% CuEq), containing 44.44 Mlb of nickel, and 1,806,000 tonnes inferred at 0.98% nickel (1.73% NiEq), containing 39.17 Mlb of nickel. The estimate was completed at a higher level to evaluate adding an underground component and to support blending with Lion Zone material in the initial preliminary economic assessment (PEA).

Metallurgical Results and Development Path

Locked-cycle flotation testing on a blended Lion Zone composite produced the following recoveries:

• Copper recovered at 98.9%, and the copper concentrate graded 25.8%.
• Platinum recovered at 96.8%.
• Palladium recovered at 93.9%.

Recoveries applied in the MRE were 98.5% for copper, 92% for palladium, and 90% for platinum. The analyst called these "exceptional metallurgical results for a polymetallic project." He compared them to similar deposits in the Sudbury camp in Ontario. He also said the test work may justify further hydrometallurgical testing to evaluate direct-to-metal production of copper sheets or ingots.

The company is assessing whether blending Nisk Main material with Lion Zone material could raise Nisk Main recoveries enough to include it in a larger operation, without affecting Lion Zone recoveries. A PEA that may cover both deposits is planned for 1Q27.

Exploration and Resource Growth Potential

The Lion Zone is a steeply plunging shoot dipping 65° to the north-northwest. It extends 675 meters downdip to a vertical depth of more than 600 meters. The model estimates a strike length of 290 to 400 meters and a mineralized width of up to 50 meters, with higher-grade lenses about 2 to 15 meters thick.

The deepest hole, PML-25-002, intersected 1.95 meters of 7.95% CuEq at about 610 meters vertical depth. Drilling for the MRE was cut off on April 19, 2026, and focused on near-surface infill to build confidence in open-pit mining. The company is now drilling a borehole electromagnetic (BHEM) conductor below the Lion Zone and expects assays from three holes, the deepest reaching 890 meters vertical depth. The analyst noted that these systems may extend kilometers deeper, and several analogous Sudbury mines go below 1,000 meters.

The company is also using muon tomography to help prioritize targets. It has five rigs active and is fully funded to complete its 100,000-meter drill program in 2026. The Nisk Project, in which the company has earned an 80% ownership position, expanded by about 600% in 2025. Roth estimates total land holdings of about 326.8 km² (128.2 mi²).

Jurisdiction, Infrastructure, and Market Backdrop

The analyst described Quebec as a premier mining jurisdiction with strong government and First Nation support. Federal and provincial tax credits cover 50% of exploration and development costs. The Cree First Nations have shown support in negotiations with Hydro-Québec. The project area has:

• road access and access to Hydro-Québec's airport,
• an available camp built for hydroelectric dam construction, and
• inexpensive hydropower from a nearby substation.

Copper, nickel, cobalt, platinum, and palladium appear on critical minerals lists in Quebec, Canada, the U.S., and the European Union.

On the market side, the analyst pointed to a record copper price trend. Supply is declining because of fewer discoveries and the higher cost of lower-grade production. Demand is rising with domestic manufacturing and electrification. Current copper prices sit above real prices from 1880 to 1914, and platinum, palladium, and gold prices remain elevated.

Management was also highlighted. The newest hire is VP of Operations Chris Beal, whose appointment the analyst believes will help the project advance in a way a major operator would recognize. Beal believes the Lion Zone could rapidly become a mine with fast capital payback.

Financial Position and Estimates

Power Metallic is pre-revenue. It has CA$21.9 million in cash, no debt, 236.95 million shares outstanding, and a market capitalization of CA$289.09 million. The stock has traded between CA$0.78 and CA$1.63 over the past 52 weeks, with a three-month average volume of 675,308 shares.

Roth's estimates:

• 2026: net loss of CA$38.6 million, or CA$0.16 per share, down from a prior estimate of CA$0.21 per share. This compares with a 2025 net loss of CA$39.0 million, or CA$0.18 per share.
• 2027: net loss of CA$42.0 million, or CA$0.17 per share.

Valuation

The analyst believes the updated MRE was completed at a higher level of confidence than he assumed when initiating coverage. He wrote, "While slightly below our earlier speculation, the quality suggests a higher valuation premium, currently under evaluation."

Roth's earlier discounted cash flow analysis covered about 13.3 Mt from the Nisk Main deposit and Lion Zone target. It assumed initial capital costs of US$265 million and a 14-year mine life, producing an NPV10% of US$794 million (CA$1.09 billion) and an IRR of 58.2%. Taking 80% of that NPV, applying a 0.6x multiple and a USD:CAD exchange rate of 1.369, the analyst values the company's share of the project at CA$2.26 per share.

He believes a 2026 listing on a U.S. exchange could add a premium of more than 30%, suggesting about CA$2.93 (US$2.11) per share. That figure excludes subsequent drill results, the funded drill program, and any land package expansion.

Risks

Roth identified these factors that could keep the stock from reaching the target:

• failure to define additional resources and general exploration risk,
• declining prices for copper, platinum, palladium, gold, silver, and nickel, and
• inability to access capital.

Broader risks include political, commodity price, operational and technical, pre-revenue, and market risk. The report also warns that inferred resources carry limited certainty and should not be assumed to be economically mineable. The shares may be subject to U.S. penny stock rules. Roth disclosed that it expects to receive or intends to seek investment banking compensation from covered companies within the next three months.