PMET Resources and Cree Nation of Chisasibi Ink Non-Binding LOI for Shaakichiuwaanaan Lithium Project Collaboration

About PMET Resources and the Shaakichiuwaanaan Lithium Project

PMET Resources Inc. is a critical mineral exploration and development company focused on its 100%-owned Shaakichiuwaanaan Property, a district-scale pegmatite project in Quebec’s Eeyou Istchee James Bay region. Located within the traditional territory of the Cree Nation of Chisasibi on Category III Lands, the project benefits from year-round all-season road access and proximity to regional hydroelectric power, offering strategic advantages for developing a large-scale mining operation in a region with a strong mining legacy and renewable energy infrastructure.

The Shaakichiuwaanaan Project stands out as a major critical mineral asset following a positive lithium-only Feasibility Study announced in late 2025. It hosts a Consolidated Mineral Resource of 108.0 million tonnes at 1.40% Li2O and 166 ppm Ta2O5 (Indicated), plus 33.4 million tonnes at 1.33% Li2O and 155 ppm Ta2O5 (Inferred). Additionally, the project contains the world’s largest pollucite-hosted caesium pegmatite Mineral Resource at the Rigel and Vega zones, with 0.69 million tonnes at 4.40% Cs2O (Indicated) and 1.70 million tonnes at 2.40% Cs2O (Inferred). This multi-commodity profile positions Shaakichiuwaanaan as a potential powerhouse for lithium, tantalum, and caesium production in North America.

Maiden Mineral Reserve and Lithium Production Outlook

PMET Resources declared a maiden Probable Mineral Reserve in late 2025 for the CV5 Pegmatite, comprising 84.3 million tonnes at 1.26% Li2O, forming the basis for development planning. The Feasibility Study highlights a globally competitive high-grade lithium project targeting approximately 800 ktpa of spodumene concentrate production using a straightforward Dense Media Separation processing method. This simplified processing approach offers operational and cost efficiencies compared to more complex metallurgical processes, supporting strong project economics and development timelines.

Ranking among the world’s top ten lithium pegmatites by size, Shaakichiuwaanaan is positioned within an elite group of assets amid rising global lithium demand driven by battery technology and clean energy transitions. The reserve declaration, combined with the broader mineral resource, provides a solid foundation for long-term mining and processing operations. PMET’s focus on lithium aligns with market demand and the strategic importance of critical minerals for North American supply chains and technology sectors.

Non-Binding Letter of Intent: Engagement Framework and Principles

The LOI between PMET and the Cree Nation of Chisasibi establishes a non-binding, structured framework to facilitate engagement, information exchange, and dialogue during a defined Engagement and Assessment Period. The company clarifies that the LOI does not equate to consent, approval, or endorsement of the Shaakichiuwaanaan Project. Instead, it provides a transparent process for Chisasibi to evaluate project information, raise questions or concerns, and independently decide whether to pursue further engagement, including potential Impact Benefit Agreement negotiations.

The LOI outlines six guiding principles for engagement: transparency and good faith in sharing information; respect for Cree governance and community structures; recognition of Chisasibi’s independent decision-making authority; two-way dialogue fostering mutual understanding; stewardship of land, water, wildlife, and people; and identification of mutual interests. These principles acknowledge Indigenous governance rights and emphasize building respectful, long-term relationships. Throughout the Engagement and Assessment Period, PMET and Chisasibi plan to exchange perspectives, discuss potential benefits, risks, impacts, mitigation measures, and address capacity and community priorities relevant to Chisasibi’s independent evaluation.

Proposed Working Groups and Areas of Discussion

The LOI proposes the formation of time-limited, subject-specific working groups to facilitate focused discussions and information sharing. Participation in these groups will be at each party’s sole discretion, ensuring flexibility and respect for governance processes. These groups will serve as forums for recommendations and dialogue but will not hold decision-making authority or binding commitments.

Potential topics for working groups include training and skills development, employment opportunities, local economic development, environmental assessment and management, transportation logistics, and other mutual interests. This comprehensive approach addresses the multifaceted nature of large-scale mining projects and community interests in benefits and impact mitigation. The working groups provide technical and policy-level discussion platforms to inform Chisasibi’s assessment while maintaining clear boundaries on decision-making and commitments.

Local Employment and Community Engagement Since 2022

PMET has actively engaged with Chisasibi since 2022 through community consultations and local hiring initiatives at the Shaakichiuwaanaan site. In 2025, Cree employees comprised approximately 25% of the workforce, reflecting a strong commitment to local employment and economic participation. This pattern aligns with PMET’s goal to foster training, employment, and business development opportunities for Chisasibi and neighboring communities as the project advances through regulatory review, permitting, and planning.

CEO Ken Brinsden expressed anticipation for continued information sharing and discussions about the Shaakichiuwaanaan Project, including potential training, employment, and business development opportunities, while respecting Chisasibi’s governance and decision-making autonomy. The LOI formalizes ongoing engagement efforts, providing clarity and structure for future interactions. This history of engagement and demonstrated local employment underscores PMET’s view of long-term community relationships as integral to project success.

Strategic Positioning in the Critical Minerals Sector

PMET’s formalized engagement with Chisasibi aligns with broader industry and policy trends emphasizing critical minerals security, North American supply chain development, and Indigenous rights recognition in resource projects. Lithium and other battery minerals have gained strategic importance amid accelerating electric vehicle adoption and expanding energy storage infrastructure. The Shaakichiuwaanaan Project’s scale and grade position it as a potentially vital contributor to North America’s lithium supply, supporting domestic critical mineral production policies.

Indigenous engagement and benefit-sharing have become standard in major mining developments, driven by regulatory requirements and industry understanding that sustainable projects require community support. PMET’s LOI framework with Chisasibi reflects these trends, potentially easing regulatory approvals. The company’s focus on transparent dialogue, respect for governance, and possible Impact Benefit Agreement discussions aligns with contemporary mining practices and stakeholder expectations in Quebec.

Regulatory Permitting and Development Outlook

PMET continues regulatory review, permitting, and planning for the Shaakichiuwaanaan Project. The company has not disclosed specific timelines for approvals, permits, or development start dates. Progress depends on environmental assessments, Quebec regulatory approvals, and ongoing stakeholder engagement, including with the Cree Nation of Chisasibi. The LOI is one component in this comprehensive approval and engagement process.

While the LOI may facilitate permitting by demonstrating structured, good-faith Indigenous engagement, its non-binding nature means Chisasibi retains full discretion regarding further engagement, Impact Benefit Agreement negotiations, and project positions. This respects Indigenous rights and consultation requirements under Canadian law and international standards for Indigenous participation in resource development.

Impact Benefit Agreements and Commercial Prospects

The LOI identifies Impact Benefit Agreements (IBAs) as a possible outcome of the Engagement and Assessment Period but does not commit either party to negotiate or execute an IBA. IBAs typically outline frameworks for community benefits, employment, training, local procurement, and environmental management between mining companies and Indigenous communities. Details of any potential IBAs, including terms and commercial arrangements, remain undisclosed. Future negotiations would occur within Chisasibi’s independent assessment and decision-making framework.

The prospect of IBAs reflects industry norms in Canadian mining and acknowledges that mutually beneficial agreements support project stability and community prosperity. The LOI preserves Chisasibi’s sole discretion regarding pursuing IBAs, terms, and conditions. PMET’s readiness to engage in structured dialogue via the LOI demonstrates management’s confidence that project benefits can align community and company interests, subject to Chisasibi’s sovereign authority.

Environmental and Community Impact Considerations

The LOI highlights environment, health, and community well-being as key concerns during the Engagement and Assessment Period. This recognizes community interests in understanding and mitigating environmental impacts from large-scale mining, including effects on land, water, and wildlife. Detailed environmental assessment data and mitigation plans were not provided in this update but are expected to be addressed through working groups and formal regulatory reviews.

Large-scale lithium extraction, even with simplified Dense Media Separation processing, involves environmental factors such as water usage, tailings management, habitat disturbance, and cumulative ecosystem impacts. Located in the boreal forest and wetlands of the Eeyou Istchee James Bay region, the Shaakichiuwaanaan Project requires careful environmental stewardship, a priority for regulators and Indigenous communities alike. PMET’s engagement framework facilitates identification and discussion of these environmental issues, while final assessments will be conducted through provincial regulatory processes.

Future Engagement and Project Advancement

PMET expressed gratitude to the Cree Nation of Chisasibi for hosting company representatives and council members during ongoing engagement activities. This reflects PMET’s commitment to continuous community relationship-building beyond the LOI’s formal provisions. The company plans to provide further updates on the Shaakichiuwaanaan Project and continue dialogue on potential benefits, risks, and opportunities.

Investors should watch for developments including the establishment and activities of working groups under the LOI, progress in regulatory permitting, announcements about Impact Benefit Agreement negotiations or outcomes, and updates on project development timelines. The company has not specified the length of the Engagement and Assessment Period, so future communications may clarify key engagement milestones. The LOI’s formalization of engagement with Chisasibi removes uncertainty about Indigenous consultation approaches and offers a clear path to address community concerns during project advancement.