Results of Drilling at Black Schist Project

·    A total of 8 diamond drillholes for 1551,2 m were completed.

·    Drill core was placed in order in wooden trays, with depth marker blocks at the drilling location. Trays were transported to Metals One Finland's core shed in Outokumpu where they were stored inside the secure shed for geological and geotechnical logging, mark-up for sampling and digital photography.

·    All samples retrieved are from diamond drill cores that have been cut longitudinally in half according to lithological and mineralisation intervals and prepared for assaying. The samples are predominantly 1 m in length.

·    All samples were submitted to ALS-Geochemistry Oy in Outokumpu, Finland for assaying.

·    A prepared sample (0.25 g) was digested with perchloric, nitric, hydrofluoric, and hydrochloric acids. The residue was leached with dilute hydrochloric acid and diluted to volume. The resulting solution was analysed by a combination of inductively coupled plasma-atomic emission spectrometry (ICP-AES) and inductively coupled plasma-mass spectrometry with results corrected for spectral or isotopic interferences.

·    Also assaying for gold was made by using Fire Assay Fusion (FA-FUSPG1 & FA-FUSPG2) and Inductively Couple Plasma - Atomic Emission Spectrometry (ICP-AES)

·    All drilling was made by diamond drilling, angled holes were planned and drilled. All the cores were drilled as WL76 (core 57.5 mm diameter).

·    Orientation markings on every core run.

·    Core recovery was calculated on a per drill-run basis (maximum 3 m). Core recovery averaged 95%, ranging from 0% to 100%. Only 96 intervals did not have a recovery of 100%,

·    Drill core was logged in detail for lithology, alteration, mineralisation, geological structure, by geologists, utilising standardised logging codes and data sheets as supervised by the senior geologist.

·    Rock Quality Designation (RQD) logs were produced for all core drilling for geotechnical purposes. Fracture intensity and fragmentation proportion analysis was also gathered for geotechnical information.

·    Logging was both quantitative and qualitative in nature. All core was photographed in the core boxes to show the core box number, core run markers and a scale.

·    Full core was split longitudinally using a rock diamond saw to create half-core samples that were taken at typically 1 m intervals or to rock contacts if present in the core run for both mineralization and wall rock. The drill core was rotated prior to cutting to maximise structure to core axis of the cut core.

·    Half core was taken for sampling for assaying, and one half remains in the core box as reference material.

·    Core samples were prepared according to industry best practice, with initial geological control of the half core, followed by crushing and grinding at the laboratory sample preparation facility that is routinely managed for contamination and cleanliness control. Sampling practice is considered as appropriate for Mineral Resource Estimation.

·    Blanks, duplicates and certified reference materials were inserted into the sample stream at a rate of 1 blank and standard for every 20 samples.

·    Sample sizes are considered appropriate to the grain size of the rocks and style of mineralization being sampled.

·    Gold assaying was conducted by ALS-laboratories.

·    Assaying for Ni, Cu, Co and Zn was conducted by ALS-laboratories.

·    Each sample was geochemically analysed for the following suite of elements: Ag, Al, As, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr.

·    A variety of AMIS CRMs have been used for quality control purposes for all assaying methods. In addition, blanks and pulp duplicates have been assayed to assess the accuracy, repeatability, consistency of analytical methods and machines and for sample contamination.

·    Significant intersections were verified by a number of company personnel within the management structure of the Exploration team. Intersections were defined by the exploration geologists, and subsequently verified by the Exploration Manager.

·    Metals One Finland uses Leapfrog GEO and Imago software for data entry, verification, quality control, logging data and core photography. The data is stored on the cloud and is also saved and stored in MS Excel and MS Access software on Metals One Finland´s internal data drives as a backup and for use in geological modelling software.

·    Data entry is supervised by a data manager, and verification and checking procedures are in place. The format of the data is appropriate for use in resource estimation

·    Drillhole collars were laid out using handheld global positioning system (GPS). The rigs were aligned with survey control, or by compass.

·    A gyroscopic survey instrument (Devicore) was utilised by Northdrill Oy during the course of the Rautavaara R1 Hook surface drill programs.

·    Average drillhole density at the Rautavaara R1 Hook target is variably spaced dependent on the exploration target characteristics.

·    No Mineral Resource or Ore Reserve estimations are being reported.

·    Diamond drillholes were oriented, wherever possible, perpendicular to the mineralized structures.

·    The drilling site is supervised by a Supervising Geologist, the drill core is placed into wooden core boxes that are sized specifically for the drill core diameter. A wooden lid is fixed to the box to ensure no spillage. Core box number, drill hole number and from/to meters are written on both the box and the lid. The core is then transported to the core storage area and logging facility, where it is received and logged into a data sheet. Core logging, and sampling takes place at the secure core management area. The core samples are marked with labels both in and on the core boxes, and data recorded on a sample sheet. The samples are transferred to the laboratory where they are registered as received, for laboratory sample preparation works and assaying. Hence, a chain of custody procedure has been followed from core collection to assaying and storage of pulp/remnant sample material.

·    All samples received at the core facility are logged and registered on a certificate sheet. The certificate sheet is signed by core facility supervisor (responsible person). All core is photographed, geotechnical logging, geological logging, sample interval determination, bulk density testing, and sample preparation.

·    For external assaying, Metals One Finland Oy utilises ALS-Geochemistry Oy in Outokumpu, Finland.

·    Ther have been no audits of drilling sampling techniques and data.

·    Rauta 9-11 (ML2012:0169) are a extension to existing exploration permit and the applications have been lodged under Metals One Finland Oy.

·    Under Finnish legislation and in relation an Exploration Permit, as stipulated in the permit's conditions, the permit holder has the right to conduct geological surveying and other exploration works necessary for establishing the location, shape, orientation and exploitability of a mineral deposit. The extent of measures depends on the permit stipulations imposed by the Mining Authority and the measures may be undertaken without the landowner's permit, i.e. the exploration permit replaces landowner permissions. The permit stipulations may allow invasive drilling or test mining. The initial term is a maximum of four years, extensions applicable three years at a time to the cap of 15 years (4+3+3+3+2). "Claims" under the 1965 Mining Act correspond to exploration permits under the 2011 Mining Act which was renewed in 2023 (505/2023). The main difference between claims and exploration permits is that claims are initially valid for five years instead of four. Thus, considering transitional provisions in the 2011 Mining Act, claims are valid for 5+3+3+3+1 years. An exploration permit application in itself does not entitle the applicant to conduct exploration activities. However, exploration can be conducted with a landowner consent already.

·    Two phases of exploratory drilling have been completed at Rautavaara. The GTK completed five diamond drillholes in 1979 totalling 879 m, and FinnAust Mining Oy has subsequently completed 43 drillholes totalling a further 5,425 m.

·    Between 2006 and 2008, Magnus Minerals (Magnus), a privately held Finnish exploration company, carried out a review and interpretation of publicly available airborne geophysics, regional geology and historical exploration data, in the Kainuu Schist Belt and Outokumpu-Savonranta Belt, central and southern Finland.

·    During 2009 and 2010, close-spaced ground magnetic data was acquired, and several phases of surface diamond drilling were undertaken with an Onram 1000/three rubber-tracked rig operated by SMOY. Six diamond holes were drilled between September 2009 and January 2010.

·    The Kainuu Schist Belt is represented by remnants of rocks deposited into an oceanic volcano-sedimentary rift basin which developed from Early to Mid-Proterozoic the Archaean crustal Karelian Craton Boundary. It is mostly represented by basal siliceous rocks (interpreted as quartzites) and minor mafic volcanics, metalliferous black schists, wackes with intercalated calcsilicate rocks, ophiolitic ultramafic rocks, and minor serpentinite.

·    The Rautavaara Project is hosted within remnants of the southern Kainuu Schist Belt (Early Proterozoic) which consists mainly of quartzites, mica schists and black schists resting paraconformably on the Archean basement gneiss complex. The black schists are variably recrystallized carbon and sulphide-rich black metasediments.

·    The nickel-zinc-copper-cobalt mineralisation is stratabound, hosted within the high-grade metamorphosed and intensely folded black schist. The main mineral assemblage in the black schist is quartz, mica, graphite, and sulphides.

·    The origin of the black schist mineralisation is postulated to be a result of metal precipitation under a specific set of local conditions unique to that margin at the time of deposition. It is generally accepted that the black shales represent organic carbon-rich muds accumulated under anoxic and sulphidic conditions, and that the metals were derived by direct precipitation from the seawater column, settling out to the ocean floor onto the water-sediment interface. It seems that only the very uppermost part of the basinal water column was oxygenated.

·    Pyrite and pyrrhotite are the dominant sulphide minerals within the black schist deposits at Rautavaara, similar to the Talvivaara deposit. The sulphidic nickel-zinc-copper-cobalt deposits are hosted by highly sulphidic-graphitic muds and turbiditic wackes; which have undergone a high degree (amphibolite facies) of metamorphism.

·    The first phase of holes drilled were all angled between 45 and 60 deg.

·    All holes drilled, their collar co-ordinates azimuth, dip and final depths are tabulated below.

·    Significant intercepts are reported using a cut off of 0.10% nickel.

·    All intercepts are reported as down-hole lengths

·    Maps and sections are provided in the report

·    A considerable amount of aerial and ground geophysical data has been collected.