Läntinen Koillismaa Project

Läntinen Koillismaa (“LK”) Project: Nickel-Copper-PGE

Status

• 100% owned, Tier 1 Project.

Target

• Basal, contact related disseminated sulphide.
• Potential for Platreef style magmatic sulphide PGE-Ni-Cu mineralization.
• Existing resource only covers 5 kilometers of the 38 kilometer contact, while the balance of the contact has been reconnaissance drilled/mapped/sampled.

Location and Setting

The Läntinen Koillismaa (“LK”) Project is located in North-Central Finland approximately 60 km north of the village of Taivalkoski, some 130 km southeast of the town of Rovaniemi, and 160 km northeast of the port city of Oulu.  It is accessed by major paved roads and locally accessed on gravel and/or dirt roads.

LK is an exploration stage property with NI 43-101 Minerals Resources located at the Kaukua, Kaukua South, Haukiaho, and Murtolampi areas (Figure 1) and which only represents five of approximately thirty-eight kilometers of trend.

Land Status

The LK Project is comprised of various claim groups; the Kaukua Group consisting of the Kaukua and Murtolampi targets (Kaukua North 1-2) and the Haukiaho Group covering the Lipeävaara and Haukiaho targets; as well as Salmivaara, which represents the eastern and western extension of Haukiaho.

In aggregate the project consists of approximately 9,660 hectares; importantly, none of which is located on protected Natura 2000 lands.  Natura 2000 is a nature conservation program established according to Finnish national legislation and in accordance to a directive given by the European Union

Geology and Mineralization

The geological setting of the deposit is well understood (Figure 2), informed through geological mapping, sampling, geophysical surveying, and regional exploration drilling. LK is hosted within the Paleoproterozoic, continental rift-related Koillismaa Layered Igneous Complex (Koillismaa Complex) of the 2.5-2.4 Ga regional Tornio-Näränkävaara intrusion belt (TNB) of north-central Finland consisting of the Näränkävaara Intrusion in the east and the Koillismaa Complex in the west. The Kaukua deposit is hosted within the northern part of the Koillismaa Complex and the Haukiaho deposit is situated 12 km south-southwest from Kaukua, also in the Koillismaa Complex.

The main sulphide minerals are pyrrhotite, chalcopyrite, and pentlandite. The sulphide assemblage occurs as fine to medium grained dissemination, disseminated aggregations, and blebs. Haukiaho mineralization resembles Kaukua geologically and mineralogically and is likely to have the same origin, however, it is more sulphide Cu-Ni rich than Kaukua and includes local narrow massive sulphide veins.

Mineral Resource Estimate – April 2022

Mineral Resources at the LK Project conform to CIM (2014) definitions.

The LK Project Mineral Resources were estimated by GT Resources and audited by SLR. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves dated May 10, 2014 (CIM (2014) definitions) were used for Mineral Resource classifications. In addition to the Mineral Resource Estimate (“MRE”) which used US$1,700/oz palladium (Table 1a, 2b), a sensitivity analysis was completed with seven optimized open-pit constrained resource estimates, with palladium prices ranging from US$900/oz to US$2,500/oz (Table 2a, 2b).

As of April 25, 2022, The MRE provides the following highlights:

• 1.1 million ounces Total Precious Metals (Pd+Pt+Au) (“TMP”) (0.89 g/t), 111 Million Pounds Copper (0.13%), 92 Million Pounds Nickel (0.11%) and 5 million Pounds Cobalt (65 g/t) are classified as Indicated, contained in 38.2 million tonnes (see Table 1b).
• 1.1 million ounces TMP (0.68 g/t), 173 Million Pounds Copper (0.16%), 152 Million Pounds Nickel (0.14%) and 8 million Pounds Cobalt (74 g/t) are classified as Inferred, contained in 49.7 million tonnes (see Table 1b).
• 248% increase in Indicated tonnes and a 14% increase in Inferred tonnes.
• 44% of the MRE is in the Indicated category.
• The MRE assumes a Net Smelter Return (“NSR”) cut-off of US$12.50 per tonne, based on a 20,000 tonne per day milling rate.
• Includes three open-pits in the Kaukua Area (including Murtolampi) and one at Haukiaho, 10-kilometers to the south of Kaukua.
• Recovered, and payable metal assumptions are based on the 2022 Phase II Metallurgical Testing Program, and preliminary indicative copper and nickel smelter quotes.

Table 1a. 2022 LK MRE

Table 1b. 2022 LK MRE In-situ contained metal

CIM (2014) definitions were followed for Mineral Resources.

1. The Mineral Resources have been reported above a preliminary open pit constraining surface using a net smelter return (NSR) pit discard cut-off of US$12.5/t (which, for comparison purposes, equates to an approximately 0.65 g/t palladium equivalent (PdEq) in-situ cut-off grade, based on metal prices only).
2. The NSR used for reporting is based on the following:
   2.1 Long term metal prices of US$1,700/oz Pd, US$1,100/oz Pt, US$1,800/oz Au, US$4.25/lb Cu, US$8.50/lb Ni, and US$25/lb Co.
   2.2 Variable metallurgical recoveries for each metal were used at Kaukua and Murtolampi and fixed recoveries of 79.8% Pd, 80.1% Pt, 65% Au, 89% Cu, 64% Ni, and 0% Co at Haukiaho.
   2.3 Commercial terms for a Cu and Ni concentrate based on indicative quotations from smelters.
3. Total Precious Metals (TPM) equals palladium plus platinum plus gold.
4. Bulk densities range between 1.8 t/m3 and 3.23 t/m3.
5. Numbers may not add up due to rounding.
6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
7. The quantity and grade of reported Inferred Mineral Resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

Table 2a. 2022 LK MRE Sensitivity to Palladium Price – Grade

Notes:

1. Total Precious Metals (TPM) equals palladium plus platinum plus gold
2. Only the Palladium price is varied, all other commodity prices remained fixed at the 2022 MRE price deck
3. Each Palladium price point is tabulated using a conceptual pit specific to that price point

Table 2b. 2022 LK MRE Sensitivity to Palladium Price – contained metals

Notes:

1. Total Precious Metals (TPM) equals palladium plus platinum plus gold
2. Only the Palladium price is varied, all other commodity prices remained fixed at the 2022 MRE price deck
3. Each Palladium price point is tabulated using a conceptual pit specific to that price point

Future Resource Expansion

LK remains open for additional resource expansion both along strike and at depth.

• The MRE covers approximately 5 kilometers of the 38 kilometer marginal series contact zone, for which reconnaissance historical drilling indicated mineralization along nearly it’s entire length.
• The Company’s near-term targeting includes two additional open-pit targets in the Kaukua Area and possibly multiple open-pit targets along the 17-kilometer Haukiaho Trend.
• Three areas of Target Potential have been defined for near term resource expansion representing an additional 2.4-kilometer of strike length along the favourable marginal series and could add between 21.6 million and 36.0 million tonnes of resource. Refer to Table 3, Figures 3 & 4.

Metallurgical Testing

Extensive metallurgical testing was carried out in 2021-2021 using over 1,300kg of material collected form drill core from the Kaukua and Kaukua South deposits by SGS Lakefield, Canada.

Advanced Metallurgical Testing

• High-tenor sulphide deposit
• Conventional flotation process
• Consistently reproducible recovery rates across all rock types.
• High value Copper and Nickel concentrates
• Nickel concentrate value exceeds typical Sudbury & Scandinavian Concentrates
• Desirable high content of both Iron and Sulphur in concentrates.
• No deleterious elements, MgO < 6%
• Low shipping costs with 1.2% mass pull

Payable Metal Economic Exposure

• 59% Precious Metals
• 44% Palladium
• 29% Copper
• 12% Nickel

Table 5. Concentrates Grades

Table 6. Recoveries

1. Represents aggregate concentrate produced.
2. Represents preferential copper segregation form the Bulk Concentrate.
3. Represents the remaining Bulk concentrate less the Copper Concentrate extracted.
4. Rhodium was not consistently analyzed for; these values represent select analysis of nickel and copper concentrates; a price of $10,000/oz was used for purpose of this table for information purposes only.
5. PdEq and Concentrate Value is calculated using metal price only for information purposes, it does not include Rhodium and is calculated using the current resource price deck of US$1,700/oz  Pd, US$1,100/oz Pt, US$1,800/oz Au, US$4.25/lb Cu, US$8.50/lb Ni, and US$25/lb Co.

Resource Estimate Technical Information and Qualified Person

The SLR Qualified Persons (QP) for the Technical Report published with the above MRE data are Sean Horan, P.Geo., Technical Manager, and Brenna J.Y. Scholey, P.Eng., Principal Metallurgist. The Technical Report was filed June 7, 2022 on SEDAR titled: Technical Report on the Läntinen Koillismaa Project, Finland Report for NI 43-101

Proposed Exploration Program

Additional drilling is proposed to expand both the Kaukua and Haukiaho deposits to their east with the goal of doubling the resource endowment.

Agreement and Terms

The Haukiaho Zone is free from any encumbrances including royalties, while the Kaukua Zone has an existing 2% NSR of which 50% can be repurchased by the Company.