Bahia Metals Confirms Development Potential of Mangueiros Main Nickel-Copper-Cobalt Project in Brazil with Comprehensive Technical Review

Mangueiros Main: A Well-Defined Sulphide Nickel Deposit with Development Prospects

The technical review by Bahia Metals solidifies confidence in Mangueiros Main as a development-stage sulphide nickel deposit exhibiting significant scale and strategic value. Situated in Bahia State, a leading mining region in Brazil, the project benefits from extensive historical drilling, promising preliminary metallurgical outcomes, and proximity to established mining infrastructure. This strong technical foundation supports ongoing resource definition and economic evaluation efforts.

Drilling has delineated a broad, continuous zone of nickel-copper-cobalt sulphide mineralization spanning at least 2,000 metres in strike length and approximately 500 metres in width. Notably, mineralization starts at surface, which could favorably impact future mining by reducing stripping ratios. The mineralized zone remains open in multiple directions, indicating potential for further expansion.

Exploration Target and Geological Features of Mangueiros Main

Bahia Metals has defined an exploration target for Mangueiros Main of 75 to 200 million tonnes grading 0.20% to 0.25% nickel sulphide, as detailed in the NI 43-101 Technical Report by SRK Consulting. The company emphasizes that this target is conceptual and that further analysis or exploration is required to confirm a mineral resource.

The sulphide composition of the mineralization is significant, as such deposits typically allow conventional processing with lower carbon footprints compared to laterite deposits. This aligns the project with evolving ESG standards and critical mineral supply chain demands supporting electrification and energy transition technologies.

Robust Drilling Database and Technical Infrastructure

The project’s technical database comprises approximately 12,786 metres of diamond drilling in 86 holes, including 10,005 metres at Mangueiros Main and nearby targets. Multiple geophysical datasets complement this drilling, providing confidence in the mineralized system’s continuity and predictability. This robust foundation enables a swift transition from exploration to resource definition and project advancement.

Drilling has confirmed a shallow, laterally continuous mineralized system extending roughly 2.0 kilometres along strike, with widths up to 500 metres and depths reaching approximately 300 metres. These attributes support the project’s future development planning potential.

2023 Preliminary Metallurgical Test Results and Future Recommendations

Preliminary metallurgical testing conducted in 2023 involved four composite samples, each around 33 kilograms, derived from crushed drill core rejects at 3 mm sizing. Testing revealed nickel sulphide recoveries ranging from 81.2% to 91.5% for bleb samples and 79.7% to 81.9% for disseminated samples, indicating strong recovery potential.

The independent SRK report recommends further metallurgical testing to refine nickel recovery estimates and assess recovery potential for associated metals including copper, cobalt, and platinum group metals. Bahia Metals plans to advance metallurgical, geological, and engineering studies as part of its technical development roadmap.

Mangueiros West: Promising District-Scale Exploration Target

Bahia Metals is progressing exploration at Mangueiros West, situated about 1 kilometre from Mangueiros Main. This target exhibits a geophysical signature comparable in scale and intensity to Mangueiros Main and has yielded encouraging sulphide nickel-copper-cobalt intercepts. Notably, drill hole MGDH-069 returned 25.40 metres grading 0.24% nickel sulphide, 0.20% copper, and 0.02% cobalt, ending in mineralization and indicating open potential.

Management regards Mangueiros West as evidence of a district-scale mineral system in the area. CEO Stephen Goodman highlighted Mangueiros West as a key focus for ongoing district advancement. Additional targets, including Lagoa da Ona and Lagoa da Ona North, are also under evaluation to determine their contribution to the broader district potential.

Strategic Development Roadmap and Technical Milestones

Subject to technical results and funding, Bahia Metals aims to advance toward an initial NI 43-101 Mineral Resource Estimate for Mangueiros Main, marking a critical step from exploration to resource definition. The company will continue evaluating Mangueiros West, Lagoa da Ona, and Lagoa da Ona North to assess district-scale potential.

Pending successful outcomes, the company plans to consider a NI 43-101 Preliminary Economic Assessment to provide investors with an early economic overview based on conceptual mining and processing scenarios. All advancement depends on technical results and available funding.

Location Benefits, Infrastructure, and Jurisdictional Strengths

Located in Bahia State, Brazil, Mangueiros Main benefits from a well-established mining jurisdiction featuring existing infrastructure, supportive regulatory frameworks, and a strong mining heritage. These factors position the project to contribute meaningfully to critical mineral supply chains essential for global electrification and energy transition technologies.

Bahia Metals completed its initial public offering in January 2026, raising gross proceeds of $5.75 million, and acquired a 100% interest in the Mangueiros Main Nickel-Copper-Cobalt-PGM Project along with regional exploration properties. These assets were initially developed by entities affiliated with Appian Capital Advisory Limited prior to Bahia Metals' formation as a standalone Canadian exploration and development company.

Sampling, Quality Assurance, and Laboratory Protocols

The company detailed its sampling and quality assurance procedures, including recovery, logging, and transport of drill core to a facility in Campo Alegre de Lourdes for inspection. Core was logged and sampled based on geological features and sulphide content, with half of each core retained and the other half bagged with unique identifiers.

Samples were prepared at an ALS facility in Vespasiano, Minas Gerais, Brazil, and analyzed at an ALS laboratory in Callao, Peru. Preparation involved oven drying, crushing to 70% passing 2 mm, and pulverizing to 85% passing 75 microns. Nickel was analyzed using ALS Code NI-ICP05, with multi-element digestion (ALS Code ME-ICP61) and ICP-AES finish for total nickel. Platinum, palladium, and gold were analyzed by fire assay with ICP-AES finish (ALS Code PGM-ICP23). QAQC procedures included certified standards, blanks, and duplicates, all within acceptable limits. ALS laboratories hold ISO 17025 accreditation.

Extension of Warrant Expiry Date

Bahia Metals approved an amendment extending the expiry date of 2,445,000 share purchase warrants from September 19, 2026, to April 3, 2027. The exercise price remains unchanged at $0.50 per share. No replacement certificates will be issued; this announcement serves as official notice under Canadian Securities Exchange regulations.

The company will file a Form 13 2 Notice of Amendment of Warrant Terms with the Canadian Securities Exchange. The immediate impact on the share price was not evident at the time of the announcement.

Qualified Person Certification and NI 43-101 Technical Report

Technical information in this announcement is sourced from the independent NI 43-101 Technical Report titled "Project Status Report Mangueiros Ni-Cu-Co Project, Bahia, Brazil," dated January 6, 2026, with an effective date of November 15, 2024. The report was prepared by Douglas Reid, P. Eng of SRK Consulting and is available on SEDAR+. The scientific and technical data have been reviewed and approved by Paul Sarjeant, P.Geo. (Ontario), a Qualified Person under National Instrument 43-101, who is independent of Bahia Metals Corporation.