Borealis Mining Announces Updated Ni 43 -101 Preliminary Economic Assessment FOR the Sandman GOLD Project Highlighting Strong Stand-Alone Economics, Adr-Enabled Capital Efficiency and Substantial Leverage to GOLD Prices
Borealis Mining Company Limited.
410 West Georgia Street, 5th Floor
Vancouver, BC V6B 1Z3
TSXV: BOGO
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BOREALIS MINING ANNOUNCES UPDATED NI 43 -101 PRELIMINARY ECONOMIC ASSESSMENT FOR
THE SANDMAN GOLD PROJECT HIGHLIGHTING STRONG STAND-ALONE ECONOMICS, ADR-ENABLED
CAPITAL EFFICIENCY AND SUBSTANTIAL LEVERAGE TO GOLD PRICES
Base Case NPV(6%) of US$203 million with 105% IRR at US$2,600 gold
Vancouver, British Columbia – February 19, 2026 – Borealis Mining Company Limited (TSXV: BOGO)
(OTCpink: BORMF) (FSE: L4B0) (“Borealis” or the “ Company”) is pleased to announce the results of an
updated preliminary economic assessment (“ PEA”) for the Sandman Gold p roject (“Sandman” or the
“Project”) located in Humboldt County, Nevada, USA. All dollar amounts in this press release are in United
States dollars unless indicated otherwise.
The updated National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI 43 -101”)
technical report reflects updated economic assumptions following Borealis’ acquisition of the Project in
March 2025 for approximately C$8.9 million and demonstrates substantial improvement in the
economics of the Project relative to the 2023 PEA, while maintaining the same underlying mineral
resource reported in 2021, which forms the basis of the updated PEA, together with the same mine plan,
production profile, processing approach and metallurgical framework.
Figure 1. Project location relative to Winnemucca, major transportation corridors, and nearby mines and
infrastructure projects.
The updated PEA outlines a conventional open -pit, heap-leach gold operation with an approximately
nine-year mine life, average annual production of approximately 38,000 ounces of gold, total life-of-mine
production of approximately 340,000 ounces of gold a nd a low strip ratio of approximately 2.2 to 1. The
Borealis Mining Company Limited.
410 West Georgia Street, 5th Floor
Vancouver, BC V6B 1Z3
TSXV: BOGO
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Project is designed as a phased, capital -efficient development with rapid payback and operating
characteristics consistent with similar Nevada heap-leach operations.
The economic analysis contained in the updated PEA is based on the Mineral Resource Estimate for the
Sandman Project originally reported in 2021. The PEA 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, and there is no certainty that the PEA will be realized.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
“Our updated economic assessment reinforces our operating vision for Sandman’s potential as a
conventional, low -strip, heap -leach gold project capable of delivering strong production and rapid
payback,” said Andreas Steckenborn, Chief Operating Officer of Borealis. “Because the geology, mine plan
and recoveries remain unchanged from the prior study, the improved economics directly demonstrate
the strength of the asset in today’s gold price environment.”
“The updated PEA clearly illustrates the scale of value created since Borealis acquired Sandman for
approximately C$8.9 million,” said Kelly Malcolm, President and Chief Executive Officer of Borealis .
“Advancing the Project to an updated study demonstrating more than US$200 million in base-case NPV
and substantial leverage to higher gold prices underscores Sandman’s importance within our Nevada
portfolio. Equally important, the ability to leverage Borealis’ existing ADR infrastructure provides a
credible, capital-efficient pathway toward potential future production and cash flow.”
Updated PEA Base-Case Results (Post-Tax) at US$2,600 Gold:
• Internal Rate of Return of approximately 105%
• Net Present Value at a 6% discount rate of approximately US$203 million
• Average annual cash flow of approximately US$36 million
• Undiscounted cumulative cash flow of approximately US$290 million
• Payback period of approximately 1.1 years from first production
• All-in sustaining cost of approximately US$1,823 per ounce
• Initial capital of approximately US$36 million and total life -of-mine capital of approximately
US$57 million
• Total life-of-mine gold production of approximately 340,000 ounces
Borealis Mining Company Limited.
410 West Georgia Street, 5th Floor
Vancouver, BC V6B 1Z3
TSXV: BOGO
____________________________________________________________________________________
Table 1. Summary of updated Sandman PEA base -case economics including NPV, IRR, payback, AISC,
capital intensity, annual production and mine life.
The updated PEA uses a base -case gold price of US$2,600 per ounce compared to US$1,800 per ounce
in the 2023 study and incorporates updated capital and operating cost assumptions reflecting current
industry conditions. Despite cost inflation, Sandman continues to demonstrate strong margins, rapid
payback and meaningful free cash flow generation. The updated PEA demonstrates strong leverage to
gold price. At a gold price of US $4, 550 per ounce, the sensitivity analysis indicates a post -tax NPV of
approximately US$696 million and an IRR of approximately 289%, while maintaining the same mine plan
and operating assumptions.
Metric
Economic Analysis
Internal Rate of Return (IRR) 105%
N
PV @6% $203,101,374 USD
Average Annual Cashflow $36,272,541 USD
Undiscounted Cumulative Cashflow $290,205,365 USD
Pay-Back Period 1.1 years
Gold Price Assumption $2,600 per ounce
All-in Sustaining Cost $1,823 per ounce
Capital Costs
Initial Capital $36,247,500 USD
Working Capital (included in above) $6,300,000 USD
LOM Sustaining Capital $20,700,000 USD
Total LOM Capital $56,947,500 USD
Contingency (Included in Total) $6,370,000 USD
Operating Costs (Average LOM)
Mining $11.11 per mm tonne
Processing & Support $8.48 per mm tonne
General & Administration (G&A) $2.92 per mm tonne
Other Costs $6.59 per mm tonne
Total Operating Cost $29.10 per mm tonne
Production Data
Life of Mine 9 years
Mineralized Material Production Rate 2,157,667 tonnes per annum
Total Tonnes of Mineralized Material Processed 19,419,000 tonnes
Grade Au (Average) 0.73 g/t Au
Contained Gold 455,000 ounces
Metallurgical Recovery Au (Overall) 75%
Average Annual Gold Production 37,917 ounces per annum
Total Gold Produced 341,250 ounces
LOM Strip Ratio (Waste Tonnes : mm Tonnes) 2.2 : 1
Outcome (post-tax)
Borealis Mining Company Limited.
410 West Georgia Street, 5th Floor
Vancouver, BC V6B 1Z3
TSXV: BOGO
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Value Uplift Relative to the 2023 PEA
Compared to the 2023 PEA, the updated study demonstrates:
• Increase in post-tax IRR of approximately 24 percentage points
• Increase in NPV (6 %) of approximately US$82 million
• Increase in average annual cash flow of approximately US$13 million
• Increase in undiscounted cumulative cash flow of approximately US$115 million
• Faster capital payback by approximately 0.2 years
Table 2. Comparison of key post -tax economic metrics between the 2023 PEA and the updated 2026
PEA, along with a “spot case” from the 2026 sensitivity study, comparable to recent gold prices.
This improvement is driven primarily by updated economic inputs and gold price assumptions rather
than changes to geology, mine design or metallurgical recovery.
Operating and Capital Cost Profile
Average life-of-mine operating cost is estimated at approximately US$29 per tonne processed. Total life-
of-mine capital is estimated at approximately US$57 million , including sustaining and working capital.
While higher than the 2023 study, capital intensity remains modest relative to projected cash flow and
payback.
Full Post-Tax Sensitivity Analysis
The updated PEA demonstrates strong leverage to gold price and moderate sensitivity to operating and
capital costs across a wide range of assumptions.
Borealis Mining Company Limited.
410 West Georgia Street, 5th Floor
Vancouver, BC V6B 1Z3
TSXV: BOGO
____________________________________________________________________________________
Table 3. Post-tax sensitivity of NPV(6%) and IRR to changes in gold price, capital cost and operating cost
assumptions.
The updated PEA base case assumes a gold price of US$2,600 per ounce. Recent market prices for gold
have traded materially above this level, including spot prices exceeding US$5,000 per ounce during early
2026. While such prices are not assumed in the base- case economic analysis, the sensitivity results
indicate that at a gold price of US$4, 550 per ounce the Project would generate a post- tax NPV of
approximately US$696 million and an IRR of approximately 289 %, highlighting Sandman’s significant
leverage to higher gold prices.
ADR-Enabled Capital Efficiency and Strategic Integration
The Borealis Mine hosts an active adsorption –desorption–recovery (“ ADR”) processing facility with
available capacity to process loaded carbon from Sandman, consistent with development scenarios
contemplated in both the 2023 and updated 2026 PEAs. Utilization of this existing infrastructure has the
potential to materially red uce Sandman’s standalone capital requirements, enhance overall capital
efficiency and accelerate the pathway toward production and cash flow.
Next Steps
Borealis is now focused on advancing Sandman through the technical work required to support a
construction decision, with an emphasis on timelines, execution readiness, and capital -efficient
development.
The Company is in the final stages of selecting an independent engineering firm to support rapid
progression toward project advancement . This work is expected to include detailed mine planning,
infrastructure design, and refinement of capital and operating cost estimates, together with targeted
trade-off studies aimed at optimizing development sequencing and maximizing integration with
existing Borealis infrastructure.
Sunstone Environmental Solutions of Reno, Nevada, has been contracted to advance environmental
baseline programs to support future permitting and position the Project along an efficient regulatory
pathway in Nevada. These programs are being advanced in par allel with engineering activities to help
reduce overall development timelines.
Variance % -25% Base 25% 50% 75% 100%
Gold Price $1,950 $2,600 $3,250 $3,900 $4,550 $5,200
NPV $38,738,039 $203,101,374 $367,464,710 $531,828,045 $696,191,381 $860,554,717
IRR 32.2% 104.9% 168.2% 229.3% 289.6% 349.4%
Variance % -25% Base 25% 50% 75% 100%
Capital Costs $42,710,625 $56,947,500 $71,184,375 $85,421,250 $99,658,125 $113,895,000
NPV $215,622,499 $203,101,374 $190,580,249 $178,059,125 $165,538,000 $153,016,875
IRR 140.5% 104.9% 82.8% 67.6% 56.4% 47.8%
Variance % -25% Base 25% 50% 75% 100%
Operating Costs $21.83 $29.10 $36.38 $43.65 $50.93 $58.20
NPV $304,168,242 $203,101,374 $102,034,507 $967,640 ($100,099,228) ($201,166,095)
IRR 142.2% 104.9% 64.9% 7.1% 0.0% 0.0%
Borealis Mining Company Limited.
410 West Georgia Street, 5th Floor
Vancouver, BC V6B 1Z3
TSXV: BOGO
____________________________________________________________________________________
Additional metallurgical testwork is planned to confirm recovery assumptions and optimize heap -leach
performance, with the objective of improving operating efficiency and further strengthening the
Project’s capital profile ahead of potential development.
At the same time, Borealis intends to continue evaluating exploration upside across the broader
Sandman land package. The Project benefits from an existing, property -wide Exploration Plan of
Operations, providing a clear regulatory framework to support future drilling, target expansion, and
resource growth efforts alongside development planning. The Company is well financed to advance
these exploration initiatives following the C$23 million financing completed in January 2026.
Collectively, these initiatives are intended to position Sandman for a timely, disciplined path toward
potential construction.
Qualified Person and Technical Disclosure
The scientific and technical information contained in this news release is based on, and fairly represents,
information prepared by Jerod Eastman, President of DJ 6E Consulting LLC , an independent Qualified
Person as defined under NI 43- 101. Mr. Eastman is responsible for the entirety of the updated PEA and
has reviewed and approved this news release.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too
speculative geologically to have economic considerations applied that would enable them to be
categorized as mineral reserves. There is no certainty that the PEA will be realized. Mineral resources that
are not mineral reserves do not have demonstrated economic viability.
About Borealis
Borealis Mining is a gold mining and exploration company focused on exploration and the resumption
of production of the Borealis Gold Mine in Nevada and the advancement of its Sandman project also in
Nevada. The Borealis Gold Mine is a fully permitted mine site , equipped with active heap leach pads, an
ADR facility, and all necessary infrastructure to support a heap leach gold mining operation. In addition
to the mine, the property, comprised of 815 unpatented mining claims of approximately 20 acres each
totaling approximately 16,300 acres and one unpatented mill site claim of about five acres located in
western Nevada, is highly prospective for additional high -sulfidation gold mineralization. The Sandman
project, recently acquired through the acquisition of Gold Bull Resources Inc., is an advanced exploration
project with a recently completed (2021) NI 43 -101 compliant resource and a recent (2023) Preliminary
Economic Assessment which indicates compelling economics, particularly in light of the increase in
commodity prices since publication of the study. Borealis is led by a strong board and management team,
many of whom have founded, managed, and sold highly successful mining and exploration companies.
For further information, please contact:
Kelly Malcolm
President and Chief Executive Officer
Office: (289) 371-3371
Certain statements in this news release, including statements regarding the results of the Sandman
PEA and the Company’s ongoing production decision and operations at the Borealis Gold Mine,
constitute forward -looking statements within the meaning of appli cable securities legislation. Such
forward-looking statements are based on the opinions and estimates of management and are subject
Borealis Mining Company Limited.
410 West Georgia Street, 5th Floor
Vancouver, BC V6B 1Z3
TSXV: BOGO
____________________________________________________________________________________
to a variety of risks and uncertainties and other factors that could cause actual events or results to differ
materially from those projected in the forward -looking statements. Forward-looking statements are
often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan",
"continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or
statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks
associated with the mining industry (including operational risks in exploration development and
production; delays or changes in plans with respect to exploration or development projects or capital
expenditures; the uncertainties involved in the discovery and delineation of mineral deposits, resources
or reserves; the uncertainty of resource and reserve estimates and the ability to economically exploit
resources and reserves; the uncertainty of estimates and projections in relation to production, costs and
expenses; the uncertainty surrounding the ability of the Company to obtain all permits, consents or
authorizations required for its operations and activities; and health and safety and environmental risks),
the risk of commodity price and foreign exchange rate fluctuations, the ability of the Company to fund
the capital and operating expenses necessary to achieve the business objectives of the Company, t he
uncertainty associated with commercial negotiations and negotiating with foreign governments and
risks associated with international business activities, as well as those risks described in public disclosure
documents filed by the Company. Due to the risks, uncertainties and assumptions inherent in forward-
looking statements, prospective investors in securities of the Company should not place undue reliance
on these forward-looking statements.
Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive.
The forward-looking statements contained in this press release are made as of the date hereof and the
Company undertakes no obligation to update publicly or revise any forward -looking statements
contained in this press release or in any other documents filed with Canadian securities regulatory
authorities, whether as a result of new information, future events or otherwise, except in accordance
with applicable securities laws. The forward- looking statements contained in this press release are
expressly qualified by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
The decision to increase production at the Borealis Gold Mine and the Company's ongoing mining
operations as referenced herein (the " Production Decision and Operations ") are based on internal
models prepared by the Company in conjunction with management's knowledge of the property. The
Production Decision and Operations are not based on a preliminary economic assessment, a pre -
feasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability.
Accordingly, there is increased uncertainty and economic and technical risks of failure associated with
the Production Decision and Operations, in particular: the risk that mineral grades will be lower than
expected; the risk that ongoing mining operations are more difficult or more expensive than expected;
and production and economic variables may vary considerably, due to the absence of a detailed
economic and technical analysis in accordance with NI 43-101.