GENM.TO · 2025-03-27 12:00:00

Generation Mining Announces Feasibility Study Report Update for the Marathon Copper-Palladium Project

Economic Studies

Generation Mining Announces Feasibility Study Report Update for the

Marathon Copper-Palladium Project

Highlights:

 Robust Base Case economics1: An after-tax NPV6% of $1.07 billion, IRR of 28% and

1.9 year payback period based on the 3-yr trailing average metal prices at the

effective date2

 Strong critical mineral production during pre-production and the first three years

of commercial operation: 151 Mlbs of payable copper, 720 koz of payable palladium

and 156 koz of platinum

 Initial Capital: C$992 million3

 Attractive AISC: Life of mine (“LOM”) all-in sustaining costs (“AISC”) of

US$2.05/CuEq lb or US$781/PdEq oz3

 At recent long-term consensus prices2: An after-tax NPV6% of $876 million, IRR of

24% and 2.2 year payback period, with 41% of payable metal revenues attributable

to copper and 41% attributable to palladium

 At recent spot prices2: An after-tax NPV6% of $749 million, IRR of 21% and 2.4 year

payback period, with 44% of payable metal revenues attributable to copper and

37% attributable to palladium.

 Average annual payable metals: 42 Mlbs copper, 168 koz palladium, 38 koz

platinum, 12 koz gold and 240 koz silver over approximately 13 years of mine life

 Jobs: Creation of over 800 jobs during construction and over 400 direct permanent

jobs during operations

 The Next Critical Mineral, Shovel-Ready Project: Fully Permitted for Construction

federally and waiting for approval on last permit from the Government of Ontario.

TORONTO--(BUSINESS WIRE)--March 27, 2025--Generation Mining Limited (TSX: GENM;

OTCQB: GENMF) (“Gen Mining” or the “Company”) is pleased to announce positive results on

the updated Feasibility Study (“2025 FS” or the “Feasibility Study”) for the Marathon Copper-

Palladium Project (the “Project”) located near the Town of Marathon in Northwestern Ontario.

All dollar amounts are in Canadian dollars (“$” or “C$”) unless otherwise stated. All references

to “Mlbs” are to millions of pounds and “Moz” are to millions of troy ounces and “koz” are to

thousands of troy ounces.

The 2025 FS incorporates the results of the Project optimization work reported by the Company

in a news release entitled “Generation Completes Optimization Work for the Marathon Project

with Improved Mine Plan and Reduced Capex” issued on November 20, 2024, which focused on

two key aspects: 1) optimization of the mine plan to maximize metal production and defer waste

stripping in the early years of operations in order to improve early cash flows and reduce the

payback period (“Mine Plan Optimization”); and 2) optimization of the process plant design and

layout, including sizing of key equipment, plant footprint and foundations, in order to reduce the

initial Project capital costs (“Initial Capital Optimization”, and together with the Mine Plan

Optimization, the “Optimization Work”).

The Optimization Work has now been further updated to incorporate changes to Mineral

Resources, Mineral Reserves, the Life-of-Mine (LOM) mining plan and operating and capital

costs, using the same metal price assumptions which formed the basis of the November 20, 2024

news release.

The 2025 FS was prepared by Ausenco Engineering Canada ULC (“Ausenco”), along with

contributions from Moose Mountain Technical Services (“MMTS”), Knight Piésold Ltd. (“KP”),

P&E Mining Consultants Inc. (“P&E”), and JDS Energy and Mining, Inc (“JDS”).

The 2025 FS outlines the operation of an open pit mine and process plant over a mine life of 12.5

years and replaces the Company’s previous feasibility study entitled “Amended Feasibility Study

Update, Marathon Palladium & Copper Project, Ontario, Canada” dated May 31, 2024.

Jamie Levy, President and CEO of the Company, commented, “The updated Feasibility Study

for the Marathon Copper-Palladium Project clearly underscores its potential to be Ontario’s next

producing critical mineral mine. The project not only benefits from a strong commodity mix of

critical metals but also stands as a strategic Canadian response to growing threats in the global

mineral supply chain.

The Marathon Project’s significant exposure to copper and palladium positions it as a uniquely

attractive opportunity in the critical mineral space in North America. With copper facing long-

term supply constraints and persistent supply risks from the primary palladium producers in

Russia and South Africa, the Marathon Project is well positioned to support North American and

European smelters. The Project’s advanced development and permitting is also a key

differentiator, which positions us to bring metal to market faster than any other North American

copper project not yet in construction.”

Kerry Knoll, Executive Chairman of the Company commented, “Anticipating the final permit

approvals from the provincial government in the near future, the Marathon Project is on track to

become the next major shovel-ready critical metal project in Ontario and Canada. The potential

backing from provincial and national critical metal funds, combined with support from banks,

private equity, institutional investors, and retail shareholders, provides a strong foundation for

securing full financing in the near term.”

Economic Analysis

The updated Feasibility Study underscores the continued economic robustness of the Marathon

Project with an after-tax NPV6% of $1.07 billion, IRR of 28% and 1.9 year payback period based

on the 3-yr trailing average metal prices as of November 1, 2024.

The following table presents the key outputs of the economic analysis for the 2025 FS using 3-

year trailing average metal prices, together with the same analysis performed using spot and

consensus metal prices, and foreign exchange rate assumptions:

Item Units 2025 FS(c) March 25, 2025

Spot(d)

March 2025 long-term

consensus(e)

Key Assumptions

Exchange rate (C$/US$) C$/US$ 1.35 1.44 1.37

Palladium Price US$/oz 1,525 965 1,133

Copper Price US$/lb 4.00 4.43 4.52

Platinum Price US$/oz 950 1,003 1,240

Gold Price US$/oz 2,000 2,983 2,511

Silver Price US$/oz 24.00 33.68 31.19

Revenue Split (a)

Palladium % 52 37 41

Copper % 34 44 41

Platinum % 7 9 10

Gold % 5 9 7

Silver % 1 2 2

Economic Results (b)(f)

Pre-Tax Cash Flow (undiscounted) $M 3,009 2,291 2,576

Pre-Tax NPV6% $M 1,660 1,189 1,375

Pre-Tax IRR % 1.7 2.0 1.8

Pre-Tax Payback years 35.1% 27.6% 30.6%

After-Tax Cash Flow

(undiscounted) $M 2,032 1,554 1,744

After-Tax NPV6% $M 1,070 749 876

After-Tax IRR % 1.9 2.4 2.2

After-Tax Payback years 27.6% 21.4% 23.8%

Notes:

(a) Totals may not add to 100% due to rounding. Splits presented before adjustments for the impact of the Precious

Metals Purchase Agreement (“PMPA”) with Wheaton Precious Metals Corp. (“Wheaton”).

(b) The economic analysis was carried out in real terms (i.e., without inflation factors) in Q4 2024 Canadian dollars,

assuming no project construction financing but inclusive of mining equipment leasing.

each of the metals. The 3-year averages are as follows: Palladium - US$1,523/oz, Copper at U$4.02/lb, Platinum at

US$964/oz, Gold at US$1,995/oz and Silver at US$24.02/oz.

(d) March 25, 2025 spot prices of US$965/oz palladium, US$4.58/lb copper US$981/oz platinum, US$3,020/oz

gold, US$33.68/oz silver and exchange rate of C$1.43 : US$1.00, source: Bloomberg

(e) Long-term consensus pricing provided by Haywood Securities as of March 24, 2025.

(f) See Non-IFRS Financial Measures, below, for additional information on Pre -Tax and After-Tax Cash Flows.

Sensitivities

The Project has significant leverage to palladium and copper prices. The after-tax valuation

sensitivities for the key metrics are shown below.

After-Tax NPV6%

Results

Palladium Price Sensitivity (US$/oz)

800 1,000 1,250 1,500 1,525 1,750 2,000 2,200

Copper

Price

Sensitivity

(US$/lb)

2.50 (291) (9) 308 612 643 916 1,214 1,466

3.00 (120) 145 452 758 788 1,057 1,368 1,606

3.50 41 296 598 899 929 1,211 1,509 1,746

4.00 194 438 741 1,040 1,070 1,352 1,649 1,886

4.50 337 582 883 1,195 1,225 1,492 1,788 2,023

5.00 484 723 1,023 1,335 1,365 1,632 1,927 2,165

5.50 625 866 1,178 1,475 1,505 1,771 2,067 2,306

After-Tax IRR

Results

Palladium Price Sensitivity (US$/oz)

800 1,000 1,250 1,500 1,525 1,750 2,000 2,200

Copper

Price

Sensitivity

(US$/lb)

2.50 - 5.7% 13.5% 19.9% 20.5% 25.5% 30.7% 34.5%

3.00 2.8% 9.6% 16.4% 22.4% 23.0% 27.8% 32.7% 36.4%

3.50 7.0% 12.9% 19.2% 24.8% 25.4% 30.0% 34.7% 38.3%

4.00 10.5% 15.8% 21.7% 27.1% 27.6% 32.1% 36.6% 40.1%

4.50 13.6% 18.5% 24.1% 29.3% 29.8% 34.1% 38.5% 41.9%

5.00 16.4% 21.0% 26.4% 31.4% 31.9% 36.0% 40.3% 43.6%

5.50 19.0% 23.5% 28.6% 33.4% 33.8% 37.8% 42.1% 45.3%

After-Tax Payback Palladium Price Sensitivity (US$/oz)

800 1,000 1,250 1,500 1,525 1,750 2,000 2,200

Copper

Price

Sensitivity

(US$/lb)

2.50 - 7.8 4.3 2.5 2.5 2.0 1.8 1.5

3.00 10.4 5.6 3.3 2.3 2.2 1.9 1.5 1.4

3.50 6.8 4.9 2.9 2.1 2.1 1.8 1.5 1.4

4.00 5.6 4.2 2.4 2.0 1.9 1.6 1.4 1.3

4.50 5.0 3.0 2.1 1.9 1.8 1.5 1.4 1.3

5.00 4.2 2.4 2.0 1.6 1.6 1.4 1.3 1.2

5.50 3.0 2.2 1.9 1.5 1.5 1.4 1.3 1.2

After-Tax Results OPEX Sensitivity

+30% +15% 0% -15% -30%

NPV6% ($M) 669 871 1,070 1,282 1,479

Payback (yrs) 2.3 2.1 1.9 1.8 1.6

IRR (%) 21.2% 24.6% 27.6% 30.5% 33.1%

After-Tax Results CAPEX Sensitivity

+30% +15% 0% -15% -30%

NPV6% ($M) 860 966 1,070 1,173 1,277

Payback (yrs) 3.0 2.3 1.9 1.5 1.2

IRR (%) 19.6% 23.1% 27.6% 33.8% 42.7%

After-Tax Results FX Sensitivity

1.25 1.30 1.35 1.40 1.45

NPV6% ($M) 840 955 1,070 1,199 1,313

Payback (yrs) 2.2 2.0 1.9 1.9 1.6

IRR (%) 23.7% 25.7% 27.6% 29.5% 31.3%

Capital Costs

The initial capital costs for construction and ramp-up, together with expected sustaining capital

and closure costs, are presented in the table below:

Capital Area 2025 FS

($M)

Mobile Equipment for Construction (a) 74

Processing Plant 280

Infrastructure 88

TSF, Water Management and Earthworks 97

EPCM, General and Owners Cost 198

Preproduction, Startup, Commissioning 169

Contingency 87

Initial Capital 992

Preproduction revenue(b) (184)

Total 809

Sustaining Capital 565

Closure and Reclamation Costs 72

Notes:

(a) Mobile equipment acquired for Construction is presented as the cost of equipment deposits and lease payments

during the construction and pre-production period. The remainder of the equipment leasing costs are incurred during

operations and included in sustaining capital.

(b) Revenue net of Related Off-Site Costs (Transport, Smelter, and Royalties) and working capital adjustments. See

Economic Analysis, above, for additional information on the metal price assumptions used in the 2025 FS.

Operating Costs

The Project operating costs have been updated and are reflected in the table below.

Description Units Operating Cost

Mining(a) $/t processed 12.93

Processing $/t processed 8.57

General & Administration $/t processed 2.62

Concentrate Transport Costs $/t processed 1.96

Treatment & Refining Charges $/t processed 2.38

Royalties $/t processed 0.10

Total Operating Costs $/t processed 28.56

Average Operating Cost US$/oz PdEq(c) 663

Average All-in Sustaining Cost (b) US$/oz PdEq(c) 781

Average Operating Cost US$/lb CuEq(c) 1.74

Average All-in Sustaining Cost (b) US$/lb CuEq(c) 2.05

Notes:

(a) Mining cost per tonne mined is C$3.49/t .

(b) All-in sustaining cost excludes the impact of the Wheaton PMPA.

Mine Plan

The life of mine plan has been updated and the production details are summarized in the table

below.

Units 2025 TR

LOM Throughput

Peak Process Plant Throughput tpd 27,700

Mt/year 10.1

Peak Mining Rate tpd 164,000

Mt/year 60

Mine Production (LOM)

Total Mined Mt 489.7

Total Waste Mined Mt 361.4

Total Ore Mined Mt 128.3

Strip Ratio waste:ore 2.8

Payable Metal (LOM)

Palladium koz 2,161

Copper Mlbs 532

Platinum koz 488

Gold koz 160

Silver koz 3,051

Mineral Resources

The Mineral Resource Estimate below is for the combined Marathon, Geordie and Sally

Deposits. The Mineral Resource Estimates for Marathon, Geordie and Sally were prepared by

P&E.

Pit Constrained Combined Mineral Resource Estimate for the Marathon, Geordie and

Sally Deposits (Effective date November 1, 2024)

Mineral

Resource

Classification

Tonnes Pd Cu Pt Au Ag

Mt g/t koz % Mlbs g/t koz g/t koz g/t koz

Marathon Deposit

Measured 164.0 0.56 2,973 0.20 712 0.18 970 0.07 358 1.7 9,089

Indicated 38.1 0.39 476 0.18 153 0.13 159 0.06 71 1.6 1,896

Meas. + Ind. 202.0 0.53 3,449 0.19 865 0.17 1,129 0.07 429 1.7 10,985

Inferred 2.9 0.36 34 0.16 10 0.13 12 0.06 6 1.2 112

Geordie Deposit

Indicated 17.3 0.56 312 0.35 133 0.04 20 0.05 25 2.4 1,351

Inferred 12.9 0.51 212 0.28 80 0.03 12 0.03 14 2.4 982

Sally Deposit

Indicated 24.8 0.35 278 0.17 93 0.2 160 0.07 56 0.7 567

Inferred 14.0 0.28 124 0.19 57 0.15 70 0.05 24 0.6 280

Total Project

Measured 164.0 0.56 2,973 0.20 712 0.18 970 0.07 358 1.7 9,089

Indicated 80.1 0.41 1,066 0.21 379 0.13 339 0.06 152 1.5 3,814

Meas. + Ind. 244.1 0.51 4,039 0.20 1,091 0.17 1,309 0.06 510 1.6 12,903

Inferred 29.8 0.39 370 0.22 147 0.10 94 0.05 44 1.4 1,374

Notes:

a. Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM),

CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019)

prepared by the CIM Standing Committee on Rese rve Definitions and adopted by CIM Council.

b. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of

Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant

issues. Mineral Resources are reported inclusive of Mineral Reserves.

c. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated

Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the

Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

d. The Marathon Mineral Resource is reported within a constrained pit shell at a NSR cut -off value of $13.6/t.

e. Marathon NSR ($/t) = (Cu % x 111.49) + (Ag g/t x 0.73) + (Au g/t x 80.18) + (Pd g/t x 56.02) +(Pt g/t x 36.49) –

2.66

f. The Marathon Mineral Resource Estimate was based on metal prices of US$1,550/oz Pd, US$4.250/lb Cu,

US$1,100/oz Pt, US$2,300/oz Au and US$27/oz Ag, and a C$:US$ exchange rate of C$1.35 to US$1.00.

g. The Sally and Geordie mineral resources are reported within a constraining pit shell at a NSR cut -off value of

$13/t.

h. Sally and Geordie NSR ($/t) = (Ag g/t x 0.48) + (Au g/t x 42.14) + (Cu % x 73.27) + (Pd g/t x 50.50) + (Pt g/t x

25.07) – 2.62

i. The Sally and Geordie Mineral Resource Estimate was based on metal prices of US$1,600/oz Pd, US$3.00/lb Cu,

US$900/oz Pt, US$1,500/oz Au and US$18/oz Ag, and a C$:US$ exchange rate of 1.30 C$ to 1.00 US$.

j. Contained metal totals may differ due to rounding.

Mineral Reserves

The Mineral Reserve estimate for the Project includes only the Marathon Deposit. The Mineral

Reserve Estimate was prepared by MMTS.

Marathon Project Open Pit Mineral Reserve Estimates

(Effective Date of November 1, 2024)

Tonnes Pd Cu Pt Au Ag

Mineral

Reserves Mt g/t koz % M lb g/t koz g/t koz g/t koz

Proven 115.5 0.66 2,434 0.22 549 0.20 754 0.07 264 1.7 6,242

Probable 12.7 0.47 193 0.20 56 0.15 61 0.06 26 1.6 635

P & P 128.3 0.64 2,627 0.21 605 0.20 815 0.07 291 1.8 6,877

Notes:

a. The mineral reserves estimate were prepared by Marc Schulte, P.Eng., who is also an independent Qualified

Person, reported using the 2014 CIM Definition Standards, and have an effective date of November 1, 2024.

b. Mineral reserves are a subset of the Measured and Indicated Mineral Resources Estimate that has an effective

date of November 1, 2024. Inferred class Mineral Resources are treated as waste.

c. Mineral Reserves are based on the 2024 Marathon Project Feasibility Study Update mine plan.

d. Mineral Reserves are mined tonnes and grade; the reference point is the process plant feed at the primary

crusher. Process Plant feed tonnes and grade include consideration of mining operational dilution and recovery.

e. Mineral Reserves are reported at a cutoff grade of $16/t NSR. The NSR cut-off assumes Pd Price of US$1,525/oz,

Cu price of US$4.00/lb, Pt Price of US$950/oz, Au price of US$2,000/oz, Ag price of US$24/oz, at an exchange rate

of 0.74 US dollar per 1.00 Canadian dollar; payable percentages of 95% for Pd, 96.5% for Cu, 93% for Pt, 93.5%

for Au, 93.5% for Ag; refining charges of US$24.5/oz for Pd, US$0.079/lb for Cu, US$24.5/oz for Pt, US$0.50/oz

for Ag; minimum deductions of 2.875 g/t for Pd, 1.1% for Cu, 2 .875 g/t for Pt, 1.0 g/t for Au, 30.0 g/t for Ag;

treatment charges of US$79/t and transport and off- site costs of US$125/t concentrates, concentrate ratio of 90.9%;

metallurgical recoveries are based on variable grade dependent metallurgical recovery curv es.

f. The NSR cut off-value covers process costs of $8.27/t, general and administrative (G&A) costs of $2.63/t,

sustaining and closure costs of $3.13/t, ore mining differential costs of $0.57/t, and stockpile rehandle costs of

$1.40/t.

g. Numbers have been rounded, which may result in summation differences. Canadian Institute of Mining,

Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (CIM (2014)

definitions) were used for Mineral Reserve classification.

Qualified Persons

The news release has been reviewed and approved by Daniel Janusauskas, P.Eng., Technical

Services Manager of Generation PGM Inc., a wholly-owned subsidiary of the Company, and a

Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101

Standards of Disclosure for Mineral Projects.

The 2025 FS was prepared through the collaboration of the following consulting firms and

Qualified Persons, each of whom has reviewed and approved the technical information in this

news release which was within their primary area of responsibility:

Consultant Company Primary Area of Responsibility Qualified Persons

Ausenco Engineering

Canada ULC

Overall integration, capital cost estimation

compilation, process plant capital and operating

costs, economic analysis, recovery methods,

mineral processing and metallurgical testwork

Tommaso Roberto Raponi, P.

Eng.

JDS Energy and Mining,

Inc.

Infrastructure, and earthworks capital cost

estimates, and project execution plan

Jean-Francois Maille, P.Eng.

Knight Piésold Ltd.

Tailings Storage Facility, water balance,

geotechnical studies (mine rock storage piles, open

pit and local infrastructure and foundations)

Craig N. Hall, P.Eng.

Moose Mountain Technical

Services

Mineral Reserves, mining methods, mining

operating and capital cost estimate

Marc Schulte, P. Eng.

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