Power Minerals Limited (ASX: PNN) — Maiden Diamond Drilling Commences at Morro do Ferro Rare Earths Project, Brazil

15 June 2026

Price Sensitive Announcement $

Highlights:

• Power Minerals has commenced its maiden diamond drilling campaign at the high-grade Morro do Ferro Rare Earths Project (MDF Project) in Minas Gerais, Brazil — just seven weeks after completing the project acquisition on 27 April 2026
• The program comprises approximately 4,000m of NQ3/HQ3 diamond core drilling targeting depth and strike extensions of existing high-grade mineralisation, plus 800m of larger diameter PQ diamond core drilling to obtain representative material for metallurgical test work
• Drilling will follow up exceptional previous results including:
  • 60.85m @ 89,177ppm (8.92%) TREO from surface to EOH in MFSR-35
  • 70.9m @ 79,997ppm (8.00%) TREO from surface to EOH in MFSR-44
  • 60.6m @ 70,217ppm (7.02%) TREO from surface to EOH in MFSR-20
• Ultra-high-grade Magnet Rare Earth Oxide (MREO) intervals previously returned include 2m @ 34,835ppm (3.48%) MREO in MFSR-47 and 2m @ 33,569ppm (3.36%) MREO in MFSR-35
• The deposit remains open at depth, along strike and at its side margins, with the current program designed to expand the mineralised footprint and underpin a maiden Mineral Resource Estimate
• Drilling is expected to be completed in July, with assay results to be released progressively approximately 3–4 weeks after sample submission
• The MDF Project is strategically located within the Poços de Caldas alkaline complex — an emerging global rare-earth hub — and is characterised by extensive near-surface mineralisation enriched in magnet rare-earth elements critical to artificial intelligence, robotics, electrification and advanced manufacturing

Overview:

Power Minerals has wasted no time at Morro do Ferro, moving from acquisition completion to maiden drilling in just seven weeks — a rapid transition that underscores the Company’s conviction in the project’s potential as a globally significant magnet rare-earth development opportunity.

The MDF Project sits within the Poços de Caldas alkaline complex in southern Minas Gerais, Brazil, and has already demonstrated exceptional near-surface mineralisation through previous drilling, with multiple holes returning TREO grades above 7% from surface to end of hole and MREO sub-intervals exceeding 3% — grades that place Morro do Ferro among the highest-quality rare earth assets globally. Critically, the boundaries of the deposit remain open in all directions, presenting meaningful upside for resource growth through the current campaign.

The 4,800m program is structured across two components: 4,000m of standard diamond core drilling to test depth extensions and strike expansions of the known high-grade MREO and TREO mineralisation, and 800m of wider-diameter PQ drilling to collect representative bulk samples for metallurgical test work — positioning the Company to rapidly advance processing studies in parallel with resource definition. Results will be released progressively as they become available, with the program expected to generate sustained news flow through the current quarter.

With growing global demand for magnet rare-earth elements — driven by the rapid expansion of AI, robotics, electric vehicles and advanced manufacturing — Power Minerals believes Morro do Ferro is well placed to become a strategically important source of critical minerals for future technologies.

Company Notes:

Power Minerals CEO Alistair Stephens highlighted the speed of execution since the acquisition, noting the Company had successfully mobilised its team and commenced drilling within six weeks of completing the transaction. He described this as a demonstration of the Company’s commitment to advancing the project and creating shareholder value, and expressed confidence that Morro do Ferro has the potential to become one of the world’s most significant magnet rare-earth projects. Stephens said the drilling program marks the crucial first step in realising that opportunity and indicated the Company looks forward to sharing results progressively as it advances the project.

About Power Minerals Limited (ASX: PNN | OTCQB: PEIMF):

Power Minerals is an ASX and OTCQB-listed critical minerals exploration and development company advancing its flagship Morro do Ferro Rare Earths Project in Minas Gerais, Brazil. The project is 100% owned by Power Minerals and is situated within the Poços de Caldas alkaline complex, an emerging global rare-earth hub, hosting exceptional near-surface TREO and MREO mineralisation that remains open in all directions. The Company’s maiden drilling campaign is designed to expand the project’s mineralised footprint and underpin a maiden Mineral Resource Estimate, with metallurgical test work to be advanced in parallel.