BIG MACK LITHIUM

Overview

Targeting battery-grade lithium production for electric vehicle and energy storage

Property contains rare-metal mineralization similar to world class Separation Rapids Ltihium (SRLD) (Ontario)

Petalite concentrate created from a 5-tonne sample from the Big Mack Pegmatite was approved by Corning Laboratory Services of Corning, New York

The project has an existing closure plan allowing for accelerated exploration and development

Company is proceeding with hydrometallurgical testing to produce battery-grade lithium hydroxide monohydrate (LHM)

Location

Located in the Paterson Lake Area, Ontario Canada

~80 km north of Kenora, ON
Accessible by all-weather highway and logging roads
~50 km by road to Canadian National Railway (Redditt, ON)
Adajacent to existing SRLD, Big Whopper Pegmatite deposit (~1.3 km)¹:
- Tonnage-Grade Estimates
- Measured: 4.28 Mt @ 1.33% Li₂O
- Indicated: 5.80 Mt @ 1.36% Li₂O
- Measured & Indicated Total: 10.08 Mt @ 1.35% Li₂O
- Inferred: 2.81 Mt @ 1.38% Li₂O

1 – Avalon Advanced Materials

The information regarding adjacent properties is taken from public disclosure of the owner or operator of the adjacent property. The Company has not had a qualified person verify this information and this information is not necessarily indicative of the mineralization on the Company’s property.

Eleven Zone, Sprinkler Zone, and 6059 | Geology

Big Mack Pegmatite is the largest petalite dike discovered on the property and with a surface exposed strike length of 180 metres and a maximum width of 36 metres, petalite bearing mineralization across the extent of the exposure – remains open at depth
Eleven Zone is the second largest petalite dike on the property and is exposed on surface for ~40 metres with high grade Li values throughout
Two rare-metal zones lie 600 metres to the east-southeast of the Big Mack pegmatite:
- 1) Sprinkler Zone pegmatite is exposed over a length of 17 metres and a surface width of 2 metres
- 2) 6059 pegmatite has been exposed over a strike length of 30 metres and a width of 5 metres

For further information regarding the exploration information contained herein regarding the Big Mack Property, including additional information regarding sample, analytical and testing results, please see the Company’s technical report with respect to the Big Mack Property entitled Technical Report on the Big Mack property, Kenora Mining District Northwestern Ontario, Canada with an effective date of December 12, 2022 filed on the Company’s SEDAR profile at www.sedar.com on December 14, 2022.

2023-2024 Big Mack Project Winter Drilling Campaign

Phase 1 and Phase 2 diamond drilling: 8322 metres over 60 drill holes

Big Mack Pegmatite assayed up to 1.49 % Li2O over 32.34 metres core length
Eleven Zone assayed up to 1.32 % Li2O over 22.20 metres core length
Exploration drilling intersected additional pegmatites not exposed on surface
Phase 2 drill results pending

The technical content has been reviewed and approved by Jared Suchan, Ph.D., P.Geo., who is an independent consultant of the Company, and a “Qualified Person” as defined by NI 43-101. Dr. Suchan verified the data disclosed (or underlying the information disclosed) by reviewing imported and sorted assay data; checking the performance of blank samples and certified reference materials; reviewing the variance in field duplicate results; and reviewing grade calculation formulas.

Phase 1 Drilling Program Results Big Mack and Eleven Zone

Geophysical Program: Magnetic Survey

The UAV-Borne Magnetic survey was completed by EarthEx Geophysical Solutions Inc. and was successful in identifying multiple prospective features exhibiting low magnetic responses which have been interpreted to have the potential to host lithium-bearing pegmatites

Collaborative Separation Rapids project between Pan American Energy Corp, Avalon Advanced Materials, EarthEx Geophysical Solutions Inc., and University of Manitoba’s Earth Sciences department
Identified multiple prospective features exhibiting low magnetic responses interpreted to have the potential to host lithium-bearing pegmatites
The Company is using the findings of phase 1 and 2 drilling to improve the target model for future exploration

Daniel Card, President of EarthEx. “The correlation between historic drilling and the 3D modelled magnetic low directly below Big Mack, as well as the 2D representation of the mineralization’s surface expression, are among the best EarthEx has seen to date.”

2023 Summer Prospecting Program

Samples graded up to 3.21 % Li2O, with 25 samples reporting lithium assays above 1.00% Li2O from the Eleven, Big Mack, and 6059 zones.

A total of 342 grab/channel samples were collected with 98 collected shown to be above determined background threshold lithium values
25 Samples graded above 1.00% Li2O – all three pegmatites (Eleven, Big Mack, and 6059 zones) have visible petalite at surface
Assays appear to show a geochemical trend (>1 km) continuing along strike between the Big Mack and Sprinkler/6059 Pegmatites
Channel sampling returned 1.06% Li2O over 19.30 m across the Eleven Zone, and 1.72% Li2O over 6.30 m at the 6059 Pegmatite
Assays showed anomalous tantalum, tin, and rubidium, associated with the complex-type petalite bearing LCT pegmatites, including assays up to 150 ppm tantalum and 4200 ppm tin.

Infrastructure

Hydroelectric power generating station is at Whitedog Falls, on the Winnipeg River (68 MW capacity)
The transmission line comes within ~30 km of the Property
Opportunity to produce ‘green lithium’

First Nations Engagement

Property lies within the traditional land use area of the Wabaseemoong Independent First Nations of Whitedog, Ontario
Previous holders have had discussions with Wabaseemooong Independent Nations regarding exploration activities on the property
The Company is committed to collaborating and working with the First Nation community

Work Plan

Prospecting, additional sampling and diamond drilling to further define the potential of the lithium and other rare-metal mineralization associated with the pegmatites
Geophysical and subsurface 3D modelling
Geochemistry and additional diamond drilling will enable further expansion of the Big Mack pegmatite along strike and depth and help to understand relationships of the identified pegmatites adjacent to the property
The Fully Funded Mineral Resource Estimate (MRE) is expected in Q2 2024

Qualified Person

The scientific and technical information contained on this website relating to the Big Mack Project has been reviewed and approved by Craig Ravnaas, P. Geo, a “Qualified Person” as defined by National Instrument 43-101.