Big Mack Project - Pan American Energy

Big Mack PRoject

The Cesium Market

Cesium is classified as a critical mineral by the U.S. Department of Energy, highlighting concerns over supply chain risks and its essential role in various energy technologies.
The global cesium market size is estimated to grow by USD 3.57 billion from 2024 to 2028, according to Technavio. The market is projected to grow at a CAGR of approximately 2.67% during the forecast period.
The cesium market size is expected to increase by 1,680.79 metric tons from 2022 to 2027, with North America projected to occupy a 37% market share, according to Technavio.

Lithium Market Industry Drivers

Surging Demand for Electric Vehicles (EVs):

The global shift toward sustainable transportation has led to a significant increase in electric vehicle (EV) adoption. Lithium-ion batteries, which are essential for EVs, have become the primary driver of lithium demand, accounting for approximately 87% of the market.

Global Lithium Supply: Key Players and U.S. Decline

Over 90% of global lithium production comes from Australia, Chile, China, and Argentina, with Australia leading in mining and China dominating refining. As of 2024, 66% of lithium is mined from ore, while 34% is extracted from brine. U.S. production has declined from 27% in 1996 to less than 1% in 2023, emphasizing the urgent need for a domestic supply to meet electric vehicle (EV) and energy storage demand.

Gigafactory Growth vs. Lithium Supply by 2030

By 2030, if all announced gigafactories come online as planned, only 36% of global production capacity will be utilized—unless significant investments are made in lithium supply chains.

Source: Lithium Harvest

Big Mack Project Overview

The Big Mack Project is emerging as a high-potential lithium-cesium-tantalum (LCT) system, delivering strong lithium results and uncovering a new cesium trend near the world’s only major cesium producer.

The Big Mack Project continues to deliver strong lithium results from petalite-bearing pegmatites in latest drilling campaign.
Drilling has revealed an emerging cesium trend, hosted in Cesium-rich minerals and alteration haloes along pegmatite margins and within altered mafic volcanic rocks.
This dual-commodity profile strengthens the project’s position as a high-potential lithium-cesium-tantalum (LCT) system with multi-critical mineral potential.
With only one major cesium producer globally (Sinomine’s nearby Tanco Mine), these early results may open a new value stream for the project.*

* Proximity to the Tanco Mine is not necessarily indicative of the mineralization on the Big Mack Project

Big Mack Project Location

Located in the Paterson Lake Area, Ontario Canada

~80 km north of Kenora, ON
~4-hour drive from Tanco’s major cesium Mine
Accessible by all-weather highway and logging roads
~50 km by road to Canadian National Railway (Redditt, ON)
Adjacent to existing SRLD, Big Whopper Pegmatite deposit (~1.3 km):
- 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

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 http://www.sedar.com on December 14, 2022.

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.

BM24-068 intersected 0.12% Cs₂O over 0.50 m from 107.80 to 108.30 m within mafic volcanics containing bands of Cs-rich biotite throughout, and two small pegmatites with minor biotite.

Recent Drilling ProgramIntersects Cesium

The Q4-2024 drill program intersected cesium-bearing intervals in three holes:
- BM24-063: 0.12% Cs₂O across 1.00 m
- BM24-066: 0.11% Cs₂O across 1.50 m
- BM24-068: 0.12% Cs₂O across 0.50 m
These intervals occur at pegmatite-volcanic contacts with intense biotite alteration.
Widespread Cesium-rich minerals were observed in multiple holes, with additional supporting assays confirming grades up to 0.124% Cs₂O.

Opposite: BM24-068 intersected 0.12% Cs₂O over 0.50 m from 107.80 to 108.30 m within mafic volcanics containing bands of Cs-rich biotite throughout, and two small pegmatites with minor biotite.

LCT System Zonation and Alteration

Cesium mineralization is concentrated along the outer margins of pegmatites and in biotite-altered mafic host rocks.
This zonation aligns with well-established models of LCT pegmatite evolution, such as at the Tanco Mine (Manitoba) and Bikita (Zimbabwe), where cesium is commonly hosted in alteration halos or pollucite lenses.
Big Mack exhibits similar alteration signatures, indicating potential for deeper or more evolved cesium-bearing zones.

Opposite: BM24-068 intersected 0.12% Cs₂O over 0.50 m from 107.80 to 108.30 m within mafic volcanics containing bands of Cs-rich biotite throughout, and two small pegmatites with minor biotite.

BM24-068 intersected 0.12% Cs₂O over 0.50 m from 107.80 to 108.30 m within mafic volcanics containing bands of Cs-rich biotite throughout, and two small pegmatites with minor biotite.

Big Mack ProjectWork Plan

Results from 2024 sampling program expected in Q2 2025, will be used to generate new exploration targets
Mineralogical analysis to be performed to evaluate cesium host-rocks
Pursuing letter of intent (LOI) with producers for lithium and cesium concentrate
Mineral Resource Estimates (MRE) of lithium and cesium expected in Q3 2025
Follow-up drilling to expand upon theresource model, and test exploration targets for hidden pegmatites

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 Wabaseemoong Independent Nations regarding exploration activities on the property
The Company is committed to collaborating and working with the First Nation community

Infrastructure

Hydroelectric power generating station is located 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’

Big Mack, Eleven Zone, Sprinkler Zone, and 6059 / Pegmatites

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 returning tantalum values from 10 to 159 ppm
2. 6059 pegmatite has been exposed over a strike length of 30 metres and a width of 5 metres and exhibits the highest-grade lithium grab samples collected on the property

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.