PMET Resources Signs Non-Binding LOI with Cree Nation of Chisasibi to Advance Shaakichiuwaanaan Lithium Project Engagement

Overview of PMET Resources and the Shaakichiuwaanaan Project

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

The Shaakichiuwaanaan Project has emerged as a major critical mineral asset following the release of a positive lithium-only Feasibility Study in late 2025. The project 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, it 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 resource positions Shaakichiuwaanaan as a potential North American critical mineral hub for lithium, tantalum, and caesium production.

Maiden Probable Mineral Reserve and Lithium Production Outlook

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

Ranking among the world’s top ten lithium pegmatites by size, Shaakichiuwaanaan stands out amid rising global lithium demand driven by battery technology and clean energy transitions. The declared reserve combined with the broader mineral resource provides a solid foundation for sustained mining and processing operations. PMET’s emphasis on lithium aligns with market demand and the strategic importance of critical minerals for North American supply chains and technology sectors.

Non-Binding LOI Framework and Engagement Principles

The LOI between PMET and the Cree Nation of Chisasibi establishes a structured, non-binding framework to facilitate engagement, information-sharing, and dialogue during a defined Engagement and Assessment Period. The company clarifies that the LOI does not constitute consent, approval, or endorsement of the Shaakichiuwaanaan Project. Instead, it creates transparency allowing Chisasibi to assess project details, raise questions or concerns, and decide—through its governance processes—whether to engage further, including potential Impact Benefit Agreement negotiations.

The LOI outlines six core engagement principles: transparency and good faith in information exchange; 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 shared interests. These principles underscore the importance of Indigenous governance rights and building respectful, long-term relationships. During the Engagement and Assessment Period, PMET and Chisasibi plan to exchange information, discuss benefits, risks, impacts, mitigation measures, capacity considerations, and community priorities relevant to Chisasibi’s independent evaluation.

Proposed Working Groups and Discussion Topics

Within the LOI framework, both parties intend to form time-limited, subject-specific working groups to facilitate discussion and information exchange on key topics. Participation in these groups will be at each party’s discretion, maintaining flexibility and respect for governance processes. These working groups serve as advisory forums to provide recommendations but will not have decision-making authority or the power to bind either party.

Potential discussion areas include training and skills development, employment opportunities, local economic development, environmental assessment and management, transportation logistics, and other mutually relevant topics. This broad scope reflects the multifaceted nature of large-scale mining projects and community interests in benefits and impact mitigation. The working group approach enables technical and policy-level dialogue to inform Chisasibi’s assessment while preserving clear boundaries on commitments.

Local Employment and Engagement Since 2022

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

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

Strategic Importance in the Critical Minerals Sector

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

Indigenous engagement and benefit-sharing have become standard practice in major mining developments, driven by regulatory requirements and industry recognition that sustainable projects require community support. PMET’s LOI framework with Chisasibi reflects these trends and may ease regulatory approvals. The company’s focus on transparent dialogue, respect for governance, and potential Impact Benefit Agreement negotiations aligns with modern mining standards and stakeholder expectations in Quebec.

Regulatory Permitting and Development Outlook

PMET is currently progressing through review, permitting, and planning for the Shaakichiuwaanaan Project. The company has not disclosed specific timelines for regulatory approvals, permitting milestones, or project start dates in this update. Advancement depends on successful environmental assessments, regulatory approvals from Quebec authorities, and ongoing stakeholder engagement including with the Cree Nation of Chisasibi. The LOI represents one element of this comprehensive approval and engagement process.

The formal engagement via the LOI may facilitate permitting by demonstrating structured, good-faith Indigenous consultation. However, the LOI’s non-binding nature preserves Chisasibi’s full discretion regarding further engagement, Impact Benefit Agreement discussions, and project positions. This respects Indigenous rights and consultation obligations under Canadian law and international standards.

Impact Benefit Agreements and Future Negotiations

The LOI highlights Impact Benefit Agreements (IBAs) as a possible outcome of the Engagement and Assessment Period but does not commit either party to negotiate or finalize an IBA. IBAs typically outline frameworks for community benefits, employment, training, local procurement, and environmental management between mining companies and Indigenous communities. No details on potential IBA terms or commercial arrangements were disclosed. Any future negotiations would be subject to Chisasibi’s independent evaluation and decision-making.

The prospect of IBAs reflects industry norms in Canadian mining, recognizing that mutually beneficial agreements support project stability and community prosperity. The LOI explicitly preserves Chisasibi’s discretion to decide on pursuing an IBA and its terms. PMET’s readiness to engage in structured dialogue through the LOI indicates confidence in aligning project benefits with community interests, while respecting Chisasibi’s sovereign authority.

Environmental and Community Considerations

The LOI identifies environment, health, and community well-being as key areas potentially addressed during the Engagement and Assessment Period. This acknowledges community concerns about environmental impacts from large-scale mining, including effects on land, water, and wildlife. Detailed environmental assessment data and mitigation plans were not provided but are expected to be shared through working groups and formal review processes.

Although Dense Media Separation processing is relatively straightforward, lithium extraction involves environmental factors such as water usage, tailings management, habitat disturbance, and cumulative ecosystem impacts. Located in the boreal forest and wetlands of Eeyou Istchee James Bay, the project requires careful environmental stewardship. PMET’s engagement framework offers mechanisms to identify and discuss these issues, with final environmental approvals governed by provincial regulatory processes.

Outlook on Engagement and Project Advancement

PMET expressed gratitude to the Cree Nation of Chisasibi for hosting company representatives and dedicating Council time to learn about and discuss the project as part of ongoing engagement. This underscores PMET’s view of community relationship-building as a continuous process beyond the LOI. The company plans to provide further project information and continue dialogue on potential benefits, risks, and opportunities.

Investors should watch for developments including the formation and activities of working groups under the LOI, progress in regulatory permitting, announcements regarding Impact Benefit Agreement negotiations or outcomes, and updates on project planning and timelines. The Engagement and Assessment Period duration was not specified, so future communications may clarify timing for key milestones. The LOI’s formalization of engagement with Chisasibi reduces uncertainty about Indigenous consultation and offers a clear pathway to address community concerns as the project advances.