Powermax Options Atikokan REE Property in Ontario

Vancouver, British Columbia--(Newsfile Corp. - June 18, 2025) - Powermax Minerals Inc. (CSE: PMAX) (the "Company" or "Powermax") is pleased to announce that, pursuant to an option agreement, dated June 18, 2025, it has acquired an option (the "Option") to acquire a 100% interest in and to the Atikokan rare earth elements (REE) property (the "Property") located in the Province of Ontario. The Atikokan Property is composed of 455 unpatented mining claims, located in the Ignace-Atikokan area of Northwestern Ontario. Geologically, the Property is in the Wabigoon Subprovince of the Superior Geological Province, composed mainly of Archean metavolcanic and metasedimentary rocks, intruded by granitoid plutons like granodiorite and granite. Most of the Property area is underlain by the White Otter Batholith, a large complex pluton considered favourable for rare earth elements (REE) exploration.

The Option was acquired by way of assignment (the "Assignment") from Bosom Holdings Inc. ("Bosom"), an arm's length entity, that had previously entered into an option agreement (the "Original Option") with the underlying property optionors, 0761585 BC Ltd. ("0761") and 1544230 Ontario Inc. ("1544" and, together with 0761, the "Optionors"). In consideration for the Assignment, the Company has agreed to (i) upon the Assignment, pay Bosom $20,000 and reimburse Bosom for $20,000 previously paid by Bosom to the Optionors pursuant to the Original Option and (ii) within six business days of the Assignment, issue to Bosom an aggregate of 1,550,000 common shares of the Company (each, a "Share") at a deemed price of $0.35 per Share. Pursuant to the Option, in order to acquire a 100% interest in and to the Atikokan Property, the Company must pay an aggregate of $235,000 in cash and issue an aggregate of 450,000 Shares to the Optionors, as set out as follows:

• $25,000 upon the Assignment;
• 150,000 Shares upon receipt of regulatory approval respecting the Assignment;
• $54,000 within one (1) year of the Assignment;
• 150,000 Shares within one (1) year of the Assignment;
• $66,000 within two (2) years of the Assignment;
• 150,000 Shares within two (2) years of the Assignment; and
• $90,000 within three (3) years of the Assignment.

Upon the Company's exercise of the Option, the Optionors will retain a 1.5% net smelter returns royalty (NSR) on the Atikokan Property, one third (1/3) of which may be repurchased for $600,000 and the remaining two thirds (2/3) of which may be repurchased for $3,000,000.

Powermax CEO Michael Malana states: "We are pleased to have secured an option on the Atikokan Property, which represents a compelling opportunity in the rare earths space at a time of growing demand for critical minerals. We look forward to advancing this project and delivering long-term value to our shareholders."

Qualified Person

Afzaal Pirzada, P. Geo., a director of the Company and a "Qualified Person" for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.

About Powermax Minerals Inc.

Powermax is a Canadian mineral exploration company, holding options to acquire the Cameron REE (rare-earth element) property, located in British Columbia, and the Atikokan REE property, located in Ontario.

For more information, investors should review the Company's filings that are available at www.sedarplus.ca.

Forward-Looking Statements

Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes statements respecting the Option and the Company's intentions with respect to the Property. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in CSE policies) accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/256083