This article has been paid for, and issued on behalf of, NexMetals Mining Corp (formerly Premium Resources Ltd.)

When Frank Giustra’s team bought the Madsen Gold Mine in Ontario two years ago, it was a failed project. Previous management mis-steps and low commodity prices—gold hadn’t started its recent big run yet—had forced the mine into bankruptcy.

But Giustra brought in a new operating team, and led the initial finance rounds into West Red Lake Gold Mines (WRLG-TSX)—and now, VOILA—they just announced commercial production. Giustra’s group raised over $200 million—most of it in a still-tough gold market to make it happen.

I think Giustra and his group are intending to do the same with NexMetals (NEXM-TSX). NEXM has taken control of two former producing mines–Selebi and Selkirk–that have permitted mining leases and updated resource estimates. They have mining leases, two shafts, kilometers of underground workings and just raised CAD$46 million.

This is a huge advantage—getting back to cash flow is a lot faster and cheaper when you have high grade projects with key infrastructure in place, with months (years?) of government approvals already in place.

I’m most interested in the SELEBI MINE that NEXM has. Even today, the resource is big enough–24.7Mt Inferred at 3.40% CuEq (copper equivalent; the other metal is nickel) and 3.0Mt Indicated at 2.92% CuEq — to restart the Selebi Mine. Mining leases are in place. But there is a lot of near term exploration potential, with the two zones of Selebi being wide open “along strike”; (in other words, in the direction they were already going).

I want everyone to understand 3.4% copper equivalent is very high grade. It works out to 1.5% copper and 0.92% Ni for the big 24.7 million tonnes inferred. This grade with this tonnage is not common.

Giustra has organized/spearheaded the restarting of a mine quite recently.

He knows how to get it done. The fact he and the now NEXM CEO, Morgan Lekstrom, were able to raise CAD$46 million this year for NEXM—Giustra with the lead order— and support from his closest investor group (no help from brokers), says a lot of smart investors see the near-term potential here.

Having all these past benefits ready to go saves time and money in getting to production:

1. a lot of infrastructure here—two mining shafts only 6km apart (but no mill)
2. hundreds of meters of accessible underground workings
3. a town full of experienced mining labour
4. big resources already outlined with near term potential for big growth
5. permits!
6. huge exploration potential

And I’m going to explain how this meaningful exploration potential can become reality in the next couple quarters.

I’m sure this is what got Giustra and his network excited. Yes it’s a great asset with lots of value—but if the exploration program—that’s underway right now—is successful, NEXM becomes a different beast. And now the company is fully funded for a year with the recent $46 M financing.

FIRST THE BACKGROUND
THEN THE POTENTIAL NEAR TERM CATALYST

The Selebi Mine started producing copper-nickel in 1980, and ran for 36 years. It’s a massive sulphide deposit, like Voisey Bay in Newfoundland and Stillwater in the western USA (but as yet, nowhere near as big as those). So it’s a known, simple type of asset.

The Botswana government owned and operated it then, and despite producing 40 million tonnes over that time, never did much exploration ever—they just used all that cash flow for general revenue.

So we now have a huge asset, with TWO deposits and TWO mining shafts, with no meaningful exploration ever done! To me, that leaves a lot of opportunity!

Botswana is the longest running democracy in Africa, and its biggest GDP support is mining—right now it’s diamonds. And diamond prices are low! The two largest diamond mines in the world are in Botswana; it’s one of the Top 10 Mining Jurisdictions says The Fraser Institute.

So the government needs all the employment, taxes and royalties from this asset.

The government has a 3% royalty on the Selebi Mine—they are vested in a re-start as quickly as possible!

The Selebi Mine has two producing zones, now just over 2 km apart (they were mining towards each other before closing).

But there is an entire second deposit, another former producing mine, called Selkirk, 75 km away. It was an underground mine, but NEXM plans to re-open it as a lower-grade, open pit mine—a Nov 2024 resource estimate shows 44.2 million tonnes (inferred) of 0.81% CuEq, with the other minerals being nickel, palladium and platinum.

But that is down the road, and Selebi is the main reason that investors should look at this company NOW.

THE NEAR-TERM CATALYST HINGES ON THIS DRILL PROGRAM

Flush with cash, NEXM has started drilling 6 holes, each 400 meters apart, that could connect the two deposits that make up the Selebi Mine—the Selebi Main and the Selebi North. There’s a headframe at the top of both, which you saw in the first picture. Here’s what it all looks like underground:

NEXM has a $1 million option to buy the far left Phikwe extension in green.

The important thing here, which I magnify below, is that mining was taking place from the Selebi Main deposit towards Selebi North and from the Selebi North deposit toward Selebi Main. Now there is just over 2 km untested between them.

NEXM is now drilling to see if they connect. If—and this is a BIG If—they find mineralization, and it’s the same grade over those 2 km, this deposit gets to be very large and rich in a hurry.

But don’t kid yourself, this is exploration—it’s risky. The company is calling the unknown 2 km portion between the deposits “The Hinge”.
I’m going to give you some independent thoughts, not mine or management’s, that should educate you.

First have a look at this more detailed slide of The Hinge:

The current resource known is in red. The yellow “plates” as they’re called, are officially just exploration targets BUT…they are defined by a very successful technology called Borehole Electromagnetic, or BHEM.

An electric current is put through the ground from deep in a drill hole, and a wide loop on the surface measures how much current is picked up. In this area, only the sulphides, the rock type that carries mineralization, shows up.

See how these yellow plates—the exploration targets—in the picture show a potential connection with this BHEM technology. So this information is showing us there is a possibility these two zones connect.

Sophisticated technology gives a detailed model with shape, size and depth of targets—and it has been very successful in new mineralization below Selebi North and Selebi Main for a couple years. Pay attention to the grades in the company powerpoint slide below, bottom left!!!

Now, here’s how the drilling is scheduled to go as NEXM management tries to fill the information gap between these two zones:

Management thinking is—the large, highly conductive BHEM plates are Cu-Ni mineralized horizons, which to date correlate with mineralized, massive sulphide zones. So this is a good shot. The holes will be 350-400 m apart, and they’re deep. These are expensive holes. But even in the independent technical report last year, SLR Inc said some very encouraging things:

This is straight from an independent technical report….potentially greater thicknesses and depth than earlier indicated…from independent consultants. So YES IT’S RISKY—but there’s some good science on the side of optimists.

When you look down from above ground to the aerial extent of potentially new mineralization (i.e. what these BHEM plates look like) you get this (though this obviously doesn’t show great depth)

If…this current drill program shows there is enough mineralization in the 2 km gap between Selebi North and Selebi Main—if The Hinge has the same mineralization as either of the two know deposits—it becomes one big deposit.

Not only would more tonnage (metal content) be added in this hypothetical scenario, but it would become one big project—much more appealing to a major or even intermediate producer.

There have been many improvements in mining and smelting since Selebi went into production in 1980 which may be available to NEXM in the future if it reaches production stage. A process called XRT sorting culls the ore while it’s still underground to increase head grade. A process called Hydromet increases recoveries to over 90% for copper and nickel now, though it’s not cheap.

But Giustra has worked through all of this before. He had a vision with West Red Lake Gold, WRLG—he started that before everyone got excited about gold.

Now everyone is excited about gold, and he is looking at this huge copper nickel play, with immediate scale potential, that used to be a former producer.

Again—having such a very high grade – 3%+ copper equivalent—with this tonnage is unusual. If the 2 km long HINGE drill program is successful—and it’s now underway—then Selebi becomes a world class asset, with permits and infrastructure in place.

Giustra and his group are the cheapest money in the deal. That has been a good road for investors to follow so far this cycle. Hopefully, NexMetals is next.

DISCLAIMER

Scientific and Technical Information
Caution Regarding Historical Data

Certain scientific and technical information in this article, including historical data compilation at the Selebi and Selkirk projects, are historical in nature. Reference should be made to the full text of the Selebi Technical Report (as defined herein) and the Selkirk Technical Report (as defined herein) for the assumptions, limitations and data verification relating to the historical data compilation presented in this article, which are available electronically on SEDAR+ (www.sedarplus.ca) under NEXM’s issuer profile.
The work undertaken by the Company, SLR Consulting (Canada) Ltd., and G Mining Services Inc., respectively, to verify the historical data compilation are further described in the Selebi Technical Report and the Selkirk Technical Report. While (i) visual estimates of oxidized sulphides appear to correlate well with logged intercepts and analytical values, and (ii) analytical values compared between the logs and the digital database appear to compare well, the technical team continues to collect, compile,
review and validate historical technical data relevant to the project. To that end, the Selebi and Selkirk Technical Report recommends continued compilation and verification to confirm that the QA/QC program results are adequate to support the inclusion of the historical drill hole information in future mineral resource estimate in accordance with NI 43-101.

Selebi Technical Report

The scientific and technical information in this article relating to the Selebi project is supported by the technical report entitled “Technical Report, Selebi Mines, Central District, Republic of Botswana” and dated September 20, 2024 (with an effective date of June 30, 2024) (the “Selebi Technical Report”), and prepared by SLR Consulting (Canada) Ltd. for NEXM. Reference should be made to the full text of the Selebi Technical Report, which was prepared in accordance with NI 43-101 and is available on
SEDAR+ (www.sedarplus.ca) under NEXM’s issuer profile.

Selkirk Technical Report

The scientific and technical information in this article relating to the Selkirk project is supported by the technical report entitled “NI 43-101 Technical Report Selkirk Nickel Project, North East District, Republic of Botswana”, dated November 1, 2024 (with an effective date of January 10, 2025) (the “Selkirk Technical Report”) prepared by SLR Consulting (Canada) Ltd. for NEXM. Reference should be made to the full text of the Selkirk Technical Report, which was prepared in accordance with NI 43-101, and available on SEDAR+ (www.sedarplus.com) under NEXM’s issuer profile.

QA/QC

Drilling at Selebi Mine Project was completed by Mitchell Drilling of Botswana utilizing a Sandvik UDR1500 and a Boart Longyear LF-160 diamond drill rig. Drill core samples (47.75mm NQ) are cut in half by a diamond saw on site. Half of the core is retained for reference purposes. Samples are generally 1.0 to 1.5 metre intervals or less at the discretion of the site geologists. Sample preparation and lab analysis was completed at
ALS Geochemistry in Johannesburg, South Africa. Commercially prepared Blank samples and certified Cu/Ni sulphide analytical control standards with a range of grades are inserted in every batch of 20 samples or a minimum of one set per sample batch.
Analyses for Ni, Cu and Co are completed using a peroxide fusion preparation and ICP-AES finish (ME-ICP81). Analyses for Pt, Pd, and Au are by fire assay (30 grams nominal sample weight) with an ICP-AES finish (PGM-ICP23).

Assays on the Selkirk Project were completed on five 2016 drill holes that were drilled immediately prior to the closure of Tati Operations and were previously unsampled. Drill core samples (HQ: 63.5 millimeters) were cut in half by a diamond saw at the core processing facility in Phikwe, with select intervals cut into quarter core. The remaining half or three-quarters of the core is retained for reference purposes. Samples are generally 1.0 to 1.5 metre intervals or less at the discretion of the site geologists.
Selected samples from DSLK278 were sent for metallurgical testing at SGS Canada.

For the metallurgical testwork samples sent to Canada, each of SGS Canada in Lakefield, Ontario, Canada and ALS Global in Vancouver, British Columbia, Canada reported on select intervals between 63 metres to 177 metres. While the reliability of such assays cannot be confirmed as no QA/QC protocols were adopted, the results of two independent labs (both testing for copper and nickel) have subsequently been confirmed by Sharon Taylor, VP Exploration of the Company, to be consistent. For the
remaining samples, sample preparation and lab analysis was completed at the ALS Global in Johannesburg, South Africa. The samples submitted to the South African branch had commercially prepared Blank samples and certified Cu/Ni sulphide analytical control standards with a range of grades inserted in every batch of 20 samples or a minimum of one set per sample batch. Analyses for Ni, Cu and Co are completed using a peroxide fusion preparation and ICP-AES finish (ME-ICP81).

Analyses for Pt, Pd, and Au are by fire assay (30 grams nominal sample weight) with an ICP-AES finish (PGM-ICP23). In 2024, the Company assayed samples from a total of seventeen historical drill holes (47.75mm NQ) extracted by the former operator, Tati Nickel Mining Company (“TNMC”), to obtain additional cobalt and platinum group elements analyses and for data verification required for the MRE on the Selkirk deposit.

Samples are generally 1.0 metres in length and sample preparation and lab analysis was completed at the ALS Global in Johannesburg, South Africa. Commercially prepared Blank samples and certified Cu/Ni sulphide analytical control standards with a range of grades are inserted in every batch of 20 samples or a minimum of one set per sample batch. Analyses for Ni, Cu and Co are completed using a peroxide fusion preparation and ICP-AES finish (ME-ICP81). Analyses for Pt, Pd, and Au are by fire assay (30 grams nominal sample weight) with an ICP-AES finish (PGM-ICP23).

SGS Minerals Lakefield and ALS Geochemistry sites are accredited and operate under the requirements of ISO/IEC 17025 for specific tests as listed on their scope of accreditation, including geochemical, mineralogical, and trade mineral tests. To view a list of the accredited methods, please visit the following website and search SGS Lakefield: https://www.scc.ca/en.

Qualified Persons

All scientific and technical information in this article has been reviewed and approved by Sharon Taylor, VP Exploration of the Company, MSc, P.Geo, whom is a “qualified person” for the purposes of NI 43-101.

Paid Article

This article is a paid article for NexMetals Mining Corp. (NEXM) to enhance public awareness of NEXM, its recent developments, its industry and as a potential investment opportunity. The OGIB Corporate Bulleti (“Service Provider”), and their owners, managers, employees, and assigns were paid by NEXM to create, produce and distribute this article. This compensation should be viewed as a major conflict with Service Provider’s ability to be unbiased.

This communication is not intended as, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor NEXM purport to provide a complete analysis of NEXM or its financial position. NEXM is not, and does not purport to be, a broker-dealer or registered investment adviser.

This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about NEXM.

Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in NEXM’s public disclosure documents available on SEDAR+ (www.sedarplus.ca) under the NEXM profile and/or other government filings. Investing in securities is speculative and carries a high degree of risk.

Cautionary Note Regarding Forward-Looking Statements

This article contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause NEXM’s actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.

Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Forward-looking statements in this article include, among others: prospects, projections and success of the Company and its projects, estimates related to future global copper supply and demand and related macroeconomic conditions, the ability of the Company to further delineate and increase NI 43-101 compliant mineral resource estimates and the use of historical data in evaluating the Company’s Selebi and Selkirk mines and related infrastructure (the
“Selebi Project” and the “Selkirk Project”, respectively) located in Botswana, the Company’s planned exploration programs, drilling programs, development and redevelopment goals, plans to advance updated technical reports, preliminary economic assessments and pre-feasibility studies related to the potential of re-developing, on an accelerated basis, the Selebi and Selkirk mines including the potential restart of the mines and commencement of production, under NI 43-101 on its properties, the Company’s potential use of XRT ore sorting, and future opportunities for
exploration and growth of additional mineral projects and other statements that are not historical facts.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: uncertainty and variation in the estimation of mineral resources; risks related to exploration, development, and
operation activities; exploration and development of the Selebi and Selkirk Projects will not be undertaken as anticipated; the Selebi Main and Selebi North deposits may not be connected; the Selebi and Selkirk Projects may never be restarted or enter production; NEXM may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; the fluctuating price of copper; unknown liabilities in connection with acquisitions; compliance with extensive government regulation; delays in obtaining or failure to obtain governmental permits, or non-compliance with permits; environmental and other regulatory requirements; domestic and foreign laws and regulations could adversely affect NEXM’s business and results of operations; risks related to natural disasters, terrorist acts, health crises, and other disruptions and dislocations; global financial conditions; uninsured risks; climate change risks; competition from other companies and individuals; conflicts of interest; risks related to compliance with anti-corruption laws; intervention by non-governmental organizations;
outside contractor risks; the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of NEXM’s securities, regardless of its operating performance; and other risks associated with executing NEXM’s objectives and strategies as well as those risk factors discussed in NEXM’s continuous disclosure documents filed under NEXM’s SEDAR+ profile at www.sedarplus.ca.

The forward-looking information in this article is based on NEXM management’s reasonable expectations and assumptions, and the Service Provider’s understanding of those reasonable expectations and assumptions, as of the date of this article. Certain material assumptions regarding such forward-looking statements were made, including without limitation, assumptions regarding: the future price of copper; anticipated costs and NEXM’s ability to fund its programs; NEXM’s ability to carry on exploration, development and mining activities; prices for energy inputs, labour, materials, supplies and services; the timing and results of drilling programs; mineral resource estimates and the assumptions on which they are based; the discovery of mineral resources and mineral reserves on NEXM’s mineral properties; the timely receipt of required approvals and permits; the costs of operating and exploration expenditures; NEXM’s ability to operate in a safe, efficient, and effective manner; NEXM’s ability to obtain financing as and when required and on reasonable terms; that NEXM’s activities will be in accordance with NEXM’s public statements and stated goals; and that there will be no material adverse change or disruptions affecting NEXM or its properties.

The forward-looking information contained in this article represents the expectations of NEXM, and the Service Provider’s understanding of those expectations, as of the date of this article and, accordingly, is subject to change after such date. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. NEXM and Service Provider undertakes no obligation to update these forward-looking statements in the event that NEXM management’s beliefs, estimates or opinions, or other factors, should change.

Note: NEXMETALS MINING CORP has reviewed and sponsored this article. The information in this newsletter does not constitute an offer to sell or a solicitation of an offer to buy any securities of a corporation or entity, including U.S. Traded Securities or U.S. Quoted Securities, in the United States or to U.S. Persons. Securities may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of securities in the United States may only be made by means of a prospectus containing detailed information about the corporation or entity and its management as well as financial statements. No securities regulatory authority in the United States has either approved or disapproved of the contents of any newsletter.

Keith Schaefer is not registered with the United States Securities and Exchange Commission (the “SEC”): as a “broker-dealer” under the Exchange Act, as an “investment adviser” under the Investment Advisers Act of 1940, or in any other capacity. He is also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity.