Clean Air Metals PEA Delivers C$219.4 M pre-tax NPV, 39% IRR for the Thunder Bay North Project
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Clean Air Metals PEA Delivers
C$219.4 M pre-tax NPV, 39% IRR
for the Thunder Bay North Project
THUNDER BAY, ON, October 9, 2025 - Clean Air Metals Inc. ("Clean Air
Metals" or the "Company") (TSXV: AIR) (FRA: CKU) (OTCQB: CLRMF) is pleased
to announce results from an independent Preliminary Economic Assessment
(PEA) and updated resource that was completed for its Thunder Bay PGE-Cu-Ni
Project near Thunder Bay, Ontario, Canada. The PEA outlines an 11-year mine
life (+ 2 years of pre-production activities) producing 2,500 tonnes per day from
a near-surface, ramp-access underground operation.
All figures are in Canadian Dollars, unless specified otherwise.
Highlights
• The project has a $219.4M1 pre-tax NPV8 against a project capital cost of $89.5M.
After-tax NPV of $157.5M
• The pre-tax internal rate of return (IRR) is 39%, and the after-tax IRR is 32%
• At spot pricing1, pre-tax NPV8 totals $316M with pre-tax IRR of 52%
• The asset is designed from the ground up as a low-cost, high-margin producer
with access to the first seven months from collaring the ramp portal. The project
maximizes the use of temporary infrastructure and utilizes toll milling at a nearby
facility
• The capital payback is 2.5 years from the start of production through healthy
operating margins of 45%
• Baseline environmental studies are primarily completed to support future
permitting of the project
• The Project is near the City of Thunder Bay, Canada, where key highway and
electrical infrastructure and support are located
• The Company has positive relationships and is working closely with nearby
Indigenous communities to allow full and meaningful participation in the project
• The resource has been updated with additional drilling and new pricing,
highlighting a 14.9M tonne indicated resource grading 2.66 g/t 2PGE2, 0.40%
Cu and 0.24% Ni
• Additionally, there are 2.49M tonnes of inferred resource grading 1.62 g/t
2PGE2, 0.31% Cu and 0.19% Ni. There are no reserves
Notes:
1. Study pricing and Spot pricing are outlined in Table 7
2. 2 PGE = Platinum + Palladium
3. Resource table which shows indicated and inferred material is outlined in Table 9
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CEO Mike Garbutt P.Eng, MBA stated that "The PEA is a critical step in advancing
the Thunder Bay North Project and more importantly, it adds to the list of
significant critical mineral opportunities in this province and has the potential to
provide long-term economic opportunities for Northwestern Ontario. We intend
to move this project forward and continue exploration efforts on the Escape
down-plunge through a follow-up to the successful resource expansion hole
recently drilled within this area.”
The PEA was independently prepared by Mr. Denis Decharte, P. Eng of SLR, Mr.
Michael Selby, P. Eng of Technica Mining, Mr. Charlie Buck, P. Eng of XPS and
Mrs. Maria Story of Story Environmental, who are considered independent
"Qualified Persons" under National Instrument 43-101 Standards of Disclosure
for Mineral Projects. The technical disclosure in this news release is based upon
the information in the PEA prepared by or under the supervision of Mr.
Decharte, Mr. Selby, Mr. Buck, and Mrs. Story. The Company will file the
complete PEA report on Sedar+ at www.sedarplus.ca within 45 days of this press
release.
Table 1. PEA Summary of Key Project Metrics
Project Metric Units Value
Pre-tax NPV 8% $ M 219.4
After-tax NPV 8% $ M 157.5
Pre-tax IRR % 39
After-tax IRR % 32
Payback period from production
start
years 2.5
Initial CAPEX $ M 89.5
Sustaining CAPEX $ M 162.7
Maximum Production Rate Mtpa 0.91
Mine Life years 11
Total Mill Feed ktonnes 8,705
LOM Feed Grade Pt (g/t) eq1 4.92
Total Revenue (net of royalties) $ M 1,584
Total Operating Costs $ M 874
Pre-Tax Operating Cashflow $ M 453
Net Smelter Return (NSR) $ / tonne feed 189
Operating Margin % 45
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Operating Costs
Mine Operating Cost $ / tonne feed 66.80
Transportation and Toll-Milling $ / tonne feed 33.60
Total Site Operating $ / tonne feed 100.40
Royalties $ / tonne feed 6.80
Note: Values have been rounded
1. Pt..eq Platinum equivalent are calculated as follows: Pt.eq = (Pt grade/31.1035 x $1425 + Pd grade x 31.1035
x 86.0% x $1,225 + Cu grade x 2204 x 94% x $4.80 + Ni grade x 2204 x 57% x $6.60 + Au grade/31.1035 x
85% x $2,800 + Ag grade/31.1035 x 65% x $30) / $1225
The project cash flows were modelled using a simple discounted cash flow model, with
an 8% discount rate. The project cash flow is scheduled annually and uses an exchange
rate of 1.37 CAD to USD. Taxes were evaluated for federal and provincial corporate tax
rates, as well as the Ontario Mining tax rates, subject to appropriate deductions for CEE,
CDE, and depreciation allowances.
Strategic Intent
The Thunder Bay North project contains several critical minerals and therefore
is ideally positioned to meet the priority goals of both the Federal and Provincial
governments including advancing meaningful economic reconciliation with
several Indigenous communities.
The toll milling scenario contemplated in the Thunder Bay North PEA looks to
take advantage of the significant processing capability in the region, specifically
the Lac-des-Iles (LDI) Mine and Mill situated 65 km north of the Thunder Bay
North project. The recent announcement from Impala Canada about the
pending closure of the LDI mine presents a potential new opportunity. Clean Air
Metals has a significant interest in working through unexplored options to utilize
infrastructure at LDI, up to and including the possible acquisition of the assets
and continued operation LDI with supplementary higher-grade feed from
Thunder Bay North. There can be no certainty that any business arrangement
with Impala Canada can be reached for the processing of ores from the Thunder
Bay North Project.
Path Forward for the Project
Based on the strong initial economics and the current dynamic metals market,
the Board of Clean Air Metals has given management approval to fast-track the
project towards a final production decision. The key steps to reaching this
milestone are as follows:
• Advancing appropriate NI 43-101 studies, engineering, environmental and
permitting activities
• Continued consultation with local Indigenous communities
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• Exploring all available processing opportunities
• Raising capital to fund the above work
• Begin assembling the construction financing plan, including support from the
federal and provincial governments as well as the private sector
Clean Air Metals Chair Jim Gallagher, P.Eng. stated: "The Board is quite pleased
with the results of the study. The project features high-grade material very close
to the surface with minimal infrastructure requirements, given its proximity to
Thunder Bay. This results in a low-risk, quick-payback project. Recent drill results
demonstrate the continuation of the mineral zones at depth, suggesting the
potential for a significantly longer mine life. Given the very strong government
support for critical mineral projects and the recent improvement in metal prices,
there has never been a better time to move this project forward.”
Capital and Operating Costs Summary
The initial project capital cost is estimated at $89.5M, including a 25%
contingency allowance for all capital items. The duration of the construction
phase of the project is estimated at 24 months. The capital cost estimates are
detailed in Table 2. Operating costs average $100.40 per tonne, driven by
maximizing stope size and efficient operating development designs for near-
surface, underground bulk mining. The operating cost summary is shown in
Table 3.
Table 2: Project and Sustaining Capital Cost Estimates
Category Unit Initial
Project
Sustainin
g
Total
Capital Development $ M 19.8 64.1 83.9
Underground Infrastructure $ M 2.0 19.1 21.1
Mobile Equipment Lease $ M 4.8 72.0 76.8
Sample Tower and Pads $ M 2.3 - 2.3
Access Road / Prep /
Ditching
$ M 3.5 - 3.5
Site Power $ M 3.4 2.3 5.7
Ventilation Fans and
Heating
$ M 2.5 4.5 7.0
Other Surface Infrastructure $ M 9.8 0.7 10.5
Pre-Production Indirect $ M 18.7 - 20.8
Mine Closure $ M 5.0 5.0
Engineering and
Procurement
$ M 4.8 - 4.8
Project Contingency $ M 17.9 - 17.9
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Table 3: Operating Cost Summary
Category LoM Cost
($M)
Average
($/t prod)
Mine Production 110.0 12.60
Operating Development 61.1 7.00
Haulage 65.7 7.50
Indirect Costs 280.1 32.20
Transportation and
Processing
292.4 33.60
General and Administration 64.5 7.40
Total 874.7 100.40
Note: values have been rounded
Sensitivity
The sensitivity analysis identified that project economics are most sensitive to
changes in operating costs and metal pricing. Results are shown in Tables 4
through 6.
Table 4: Cost Sensitivities for Post-Tax NPV8
Variables
Change Unit Initial Capital Sustaining
Capital
Operating
Cost
20% $ M 144 141 77
10% $ M 151 149 118
5% $ M 154 153 138
-0% $ M 158 158 158
-5% $ M 161 162 177
-10% $ M 164 166 197
-20% $ M 171 174 235
Note: Values have been rounded
Total $ M 89.5 167.7 257.2
Note: Values have been rounded
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Table 5: Metal Price Sensitivities for Pre-Tax NPV8
Variable
s
Change Unit All
Metals
10% $ M 320
SPOT $ M 316
5% $ M 270
-0% $ M 219
-5% $ M 169
-10% $ M 118
Note: Values have been rounded
Table 6: Metal Payable Sensitivities for Pre-Tax NPV8
Variables
Change Unit Platinum
Payable
Palladium
Payable
Copper
Payable
10% $ M 250 251 246
5% $ M 235 235 233
-0% $ M 219 219 219
-5% $ M 204 204 206
-10% $ M 189 188 193
Note: Values have been rounded
Ramp-up of Market Interest in Platinum and Palladium
The Company is also encouraged by recent market dynamics, particularly with
platinum and palladium pricing. The fundamentals for platinum, in particular,
have been steadily improving, with increased deficits expected to continue for
the next 5-10 years. Key market drivers that are fueling this price recovery
include:
• Despite recent improvements, spot prices for PGEs continue below the marginal
cost of supply for many primary PGE operations worldwide and thus are
operating at a loss. This is resulting in production curtailments worldwide
• A significant volume of the world supply of PGEs originates in Russia and South
Africa, which have aging infrastructure that is prone to disruptions, and have
been generally heavily undercapitalized during this recent downturn
• Supply deficits have existed for 10 of the last 11 years
• Future growth in demand for PGEs will be driven in part by slowing battery
electric vehicle growth, that is taken up by hybrid and plug-in hybrids that have
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significant PGE loadings. This is further supported by recent US policy changes
regarding EVs
• Recycling has not picked up and is plagued by a lack of interest and investment
• Platinum is increasingly seen as a lower-cost store of value in the face of rising
gold prices
Following nearly four years of a declining outlook for PGEs, the Company
believes that the strong results and timing of this study, in conjunction with
recent exploration success in the Escape down-plunge, provide a solid platform
for the Company to move forward. Table 7 shows the price deck for the study
in comparison to the spot price on October 7th, 2025. Table 8 illustrates the
potential impact on project metrics resulting from the increased interest in the
platinum and palladium markets and associated changes in spot prices.
Table 7: Study Price Deck and Spot Pricing
Metal Unit Study Price1 Spot Price
(October 7, 2025)
Platinum $ US/oz 1425 1629
Palladium $ US/oz 1225 1323
Gold $ US/oz 2800 3692
Silver $ US/oz 30 48.47
Copper $ US/lb 4.80 5.04
Nickel $ US/lb 6.60 7.02
1. Study prices are based on a combination of recent information from various financial institutions and long-term
metal forecasts.
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Table 8: Impact of Recent Improvement to PGE Markets
Project Metric Study Price
Deck
Spot
(Oct 7, 2025)
Pre-tax NPV - 8% $ M
219 316
After-tax NPV 8% $ M 158 225
Pre-tax IRR % 39 52
After-tax IRR % 32 44
Payback period from production start years 2.5 2.0
Operating Margin % 45 50
Note: subject to rounding
Note on Mineral Reserves, Mineral Resources and PEA
There are no Mineral Reserves for the Thunder Bay North Project currently. The
information reported in the PEA for the Project is preliminary in nature. It
includes Inferred Mineral Resources that are considered too speculative
geologically to have economic considerations applied to them that would
enable them to be categorized as Mineral Reserves. Inferred Mineral Resources
are based on limited geological evidence and sampling. The tonnage and grade
of Inferred Mineral Resources are subject to significant uncertainty regarding
their existence and whether they can be mined economically. There is no
certainty that the results for the PEA for the Project will be realized.
Updated Mineral Resource
The Updated Mineral Resource Estimate was prepared by SLR Consulting Ltd.
("SLR") and is based on an underground constrained resource model using a
Net Smelter Return (NSR) cut-off value of US$46/tonne and consensus metal
pricing.
The Current Deposit contains an Indicated Mineral Resource of 8.8 million
tonnes grading 2.7 g/t 2PGE ("Pt + Pd"), 0.32% copper and 0.22% nickel and
an Inferred Mineral Resource of 1.7 million tonnes grading 1.7 g/tonne 2PGE,
0.32% copper, 0.21% nickel.
The Escape Deposit contains an Indicated Mineral Resource of 6.0 million
tonnes grading 2.6 g/t 2PGE, 0.52% copper, 0.28% nickel and an Inferred
Mineral Resource of 0.8 million tonnes grading 1.4 g/tonne 2PGE, 0.27%
copper, 0.17% nickel.
Summaries of resource grades and contained metals are presented in Tables 9
and 10 below.