NWI.CN · 2022-05-31 12:00:00

Nuinsco Announces Initial Mineral Resource Estimate on the Prairie Lake Critical Minerals & Phosphate Project

Resource Estimates

Nuinsco Announces Initial Mineral Resource Estimate on the

Prairie Lake Critical Minerals & Phosphate Project

HIGHLIGHTS:

 871.8 million tonne Inferred Mineral Resource including 2.01 kg/t TREO, plus niobium and phosphate.

 15.6 million tonne Indicated Mineral Resource including 1.67 kg /t total rare earth oxides (“TREO”), plus

niobium and phosphate.

 Substantial potential remains to expand and upgrade the initial Mineral Resource Estimate.

 S i t u a t e d i n O n t a r i o , C a n a d a , a s t a b l e , m i n i n g f r i e n d l y , j u r i s d iction – a potential key North American

source of Critical Minerals to meet an anticipated enormous expansion in demand for such products.

 Project is exceptionally close to the TransCanada Highway, rail, power and shipping infrastructure.

 Preliminary Economic Assessment to commence shortly.

 Further drilling to increase quantity and quality of the initial Mineral Resource is planned.

Toronto, May 31, 2022 – Nuinsco Resources Limited (“ Nuinsco” or the “ Company”) (CSE: NWI) today announced

an initial Mineral Resource Estimate (“ MRE”) on its Prairie Lake Critical Minerals and Phosphate Project located

near Terrace Bay, Ontario (“Prairie Lake” or the “Project”).

As tabulated below, the pit constrained MRE consists of a 15.6 million tonne Indicated Mineral Resource and a very

large 871.8 million tonne Inferred Mineral Resource in accordance with National Instrument 43‐101. The MRE also

includes niobium and phosphate in oxides which, along with the TREO, are expected to be key drivers of a

Preliminary Economic Assessment on the Project that will commence shortly.

“We are of course delighted with this initial MRE,” said Paul J ones, Nuinsco’s CEO. "It has been clear to us for a

long time that the Prairie Lake Project contains an exceptional endowment of sought after commodities, many of

which have been identified as Critical Elements defined under t he Canadian Minerals and Metals Plan. Combined

with outstanding technical and logistical attributes, Prairie L ake has the potential to be an enormously significant

asset to the Company. The suite of economically significant min eralization identified in the MRE includes

neodymium, praseodymium, niobium, scandium, and phosphate; dema nd for all is projected to steeply increase

over the coming years through expanding electrification and imp lementation of “green” technologies to combat

climate change, and to sustain and improve agricultural product ivity globally. Although this initial MRE

demonstrates the scope of the mineralization present on the pro ject, we regard it as a starting point. The surface

expression of the MRE encompasses approximately 46% of the total surface area of the Prairie Lake Complex; other

work conducted by the Company external to the MRE has identified extensive domains with grades similar to those

of the MRE. Given that more than 50% of the surface area of the Project lies outside of the Resource Estimate and

that mineralization is known to occur at surface throughout the extent of the property expansion of the initial

Mineral Resource is a distinct and realistic possibility.”

Prairie Lake Project Pit Constrained Mineral Resource Estimate(1‐6)

Rare Earth Oxides Niobium Phosp

hate

Class Cut‐Off Tonnes Nd 2O3 P r 6O11 S c 2O3 C e O 2 L a 2O3 S m 2O3 T a 2O5 Y 2O3 T R E O N b 2O5 P 2O5

NSR C$/t M g/t g/t g/t g/t g/t g/t g/t g/t kg/t % %

Indicated 30 15.6 344 96 15 754 300 58 28 100 1.67 0.16 3.71

Inferred 30 871.8 409 82 18 905 388 79 17 127 2.01 0.10 3.39

*TREO = Total Rare Earth Oxides: neodymium, Nd2O3 ; praseodymium, Pr6O11; scandium, Sc2O3; Cerium, CeO2; lanthanum, La2O3; samarium,

Sm2O3; tantalum, Ta2O5; yttrium, Y2O3.

1. 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, title, taxation, socio‐

political, marketing, or other relevant issues.

3. 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 potentially be upgraded to an Indicated Mineral Resource with continued exploration.

4. The Mineral Resources were estimated in accordance with 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 Reserve Definitions and adopted by the CIM Council.

5. US$ Metal prices used were $80/Kg Nd 2O3, $80/Kg Pr6O11, $1,500/Kg Sc2O3, $50/Kg Nb2O5, $250/t P2O5, $1.35/Kg CeO2,

$1.35/Kg La2O3, $3.50/Kg Sm2O3, Nil$/t Ta2O5 and $13.00/kg Y 2O3, 0.78 FX all with combine d process recoveries and

payables of 50%, except P2O5 at 75%.

6. The constraining pit optimization parameters were C$2.50/t m ining cost for all material, C$25/t process cost, C$5/t

G&A cost and 45‐degree pit slopes with a C$30/t NSR cut‐off.

The Prairie Lake MRE was conducted in accordance with National Instrument 43‐101 (" NI 43‐101") standards of

disclosure and the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014). The Project

benefits from a location in a politically stable jurisdiction; is exceptionally well located near available rail, road,

shipping, and power infrastructure; and is ideally placed in North America with respect to current supply chain

concerns for critical minerals.

The most significant drivers to economic viability at the Prairie Lake project and their main uses are listed below:

Neodymium (Nd) – currently trading at circa US$140‐145/kg (Nd‐oxide 99.5% pure). This element is central to the

development and production of permanent magnets used in traditional, electric and hybrid vehicles and wind

turbines. Demand for these applications is projected to expand substantially with the electrification of the global

vehicle fleet and expansion of the capacity for renewable electric‐power generation worldwide.

Praseodymium (Pr) – currently trading at circa US$140‐145/kg (Pr‐oxide 99.5% pure). This element can be used as

a substitute for neodymium in fabrication of permanent magnets and consequently, as with neodymium, demand

is projected to expand substantially. It also has uses in alloys with magnesium in aircraft engines. It has additional

use in colouring glass and ceramics.

Scandium (Sc) – currently trading at circa US$1,500/kg (Sc‐oxide 99.9% pure). Scandium has applications in fuel‐

cell technology, lighting components, and is alloyed with alumi num to impart heat‐resistance and strength where

it is used in aerospace components. Greatly expanded use in ae rospace and automobile sectors is projected with

the expansion of supply.

Niobium (Nb) – currently trading at circa US$50/kg (Nb 205 in concentrate). By far the greatest use of this element

is in applications in structural steel and in the transportatio n sector. Nb added to steel produces lightweight and

strong alloys that reduce vehicle and aircraft weight and mater ial requirements in buildings and structures, thus

improving energy efficiency and reducing adverse environmental emissions. Ceramics con taining niobium oxide

can be used to make capacitors and have wide application in electronics product (e.g. cell phones).

Tantalum (Ta) – currently trading at circa $250/kg (Ta 205 in concentrate). The most significant use for tantalum is

in the production of electronic components used in mobile phones, computers, and automobiles. It is also used to

produce alloys with applications in aerospace, processing equipment, and medicine.

Phosphate (P2O5) – currently trading at circa US$250/t (phosphate concentrate >30%). This compound has

enormous agricultural applications as a fundamental component of fertilizers (it is the P in the N‐P‐K rating of

fertilizer). As such it is central to global food production. Global phosphate shipments (all applications) are

approximately 72Mt per annum and are expected to expand as the global population increases and greater food

production is required.

The mineralization of economic interest contained within the Pr airie Lake complex occurs at surface and extends

to unknown depths below the deepest drilling yet conducted (cir ca 525 metres vertically). There is no indication

that mineralization diminishes with depth and is known to occur at surface throughout the extents of the complex.

Prairie Lake Project Mineral Resource Estimate Sensitivity to NSR Cut‐Off

The Prairie Lake project consists of 46 mineral claims covering an area of ~630 ha and is superbly located, easily

accessed by an all‐weather road from the TransCanada Highway lo cated 28 kilometres to the south. The MRE for

the Prairie Lake project is based on 73 inclined diamond drill holes performed between 1969 and 2010 totalling

12,180 metres. Additionally 2,068 metres of surface trenching is included in the Mineral Resource Estimate. A total

of 5,409 drill core samples and 1,042 channel samples are incor porated into the MRE, excluding QA/QC samples.

A length of 1.5 metres was used for composites and they were ca pped as follows: 1,850 g/t Nd2O3, 250 g/t Pr6O11,

n o c a p S c2O3, 1% Nb 2O5, 14% P 2O5, 3,700 g/t CeO 2, 1,700 g/t La 2O3, 520 g/t Sm 2O3, no cap Ta 2O5 and

570 g/t Y2O3. Grade interpolation was undertaken with the ID2 method on 10m x 1 0 m x 1 0 m b l o c k s . I n d i c a t e d

Mineral Resources were classified within a 55m x 55m x 40m sear ch ellipse and three drill holes while Inferred

Mineral Resources were classified in two passes with a 110m x 1 10m x 80m search ellipse with two drill holes and

subsequently a 220m x 220 m x 160m search ellipse with one drill hole.

Historical analyses were performed by Xray Assay Laboratories (Don Mills, Ontario) and Bondar Clegg and Company

Ltd (Ottawa, Ontario). All analyses since 2007 have been performed at Activation Laboratories in Ancaster, Ontario

(ISO/IEC 17025:2005); samples were delivered to the Activation Laboratories facility in Thunder Bay (ISO/IEC

17025:2005), Ontario for preparation and onward delivery to Ancaster.

Eugene Puritch, P.Eng., FEC, CET acts as Nuinsco's Qualified Pers on under National Instrument 43 ‐101.

Mr. Puritch has reviewed and approved the technical contents of this news release.

About Nuinsco Resources Limited

Nuinsco Resources has over 50 years of exploration success and is a growth‐oriented, multi‐commodity mineral

exploration company focused on prospective opportunities in Can ada and internationally. Currently the Company

has four properties in Ontario – the high‐grade Sunbeam gold property near Atikokan, the Dash Lake gold property

near Terrace Bay, the large multi‐commodity (rare‐earths, niobium, tantalum, phosphate) Prairie Lake project near

Terrace Bay, and the Zig Zag Lake property (lithium, tantalum) near Armstrong. In addition, Nuinsco has an

agreement for gold exploitation at the El Sid project in the Eastern Desert of Egypt.

Cautionary Note Regarding Forward‐Looking Information

This press release contains forward‐looking statements or infor mation (collectively, “FLI”) within the meaning of

applicable Canadian securities legislation. FLI is based on exp ectations, estimates, projections and interpretations

as at the date of this press release.

All statements, other than statements of historical fact, inclu d e d h e r e i n a r e F L I t h a t i n v o l v e v a r i o u s r i s k s ,

assumptions, estimates and uncertainties. Generally, FLI can be id e n ti f i e d b y th e us e o f s tat e me n ts t ha t i n c l u de

words such as “seeks”, “believes” , “anticipates”, “plans”, “con tinues”, “budget”, “scheduled”, “estimates”,

Class Cut‐Off Tonnes Nd 2O3 P r 6O11 S c 2O3 C e O 2 L a 2O3 S m 2O3 T a 2O5 Y 2O3 T R E O * N b 2O5 P 2O5

NSR

C$/t M g/t g/t g/t g/t g/t g/t g/t g/t kg/t % %

Indicated

50 14.5 358 100 16 787 306 60 28 101 1.73 0.17 3.75

40 15.2 349 98 15 766 302 59 28 101 1.69 0.17 3.73

30 15.6 344 96 15 754 300 58 28 100 1.67 0.16 3.71

20 15.7 343 96 15 751 300 58 27 100 1.66 0.16 3.70

10 15.7 343 96 15 751 300 58 27 100 1.66 0.16 3.70

Inferred

50 815.1 419 83 19 930 394 81 17 127 2.06 0.10 3.43

40 860.1 412 82 19 911 389 80 17 128 2.02 0.10 3.40

30 871.8 409 82 18 905 388 79 17 127 2.01 0.10 3.39

20 873.4 409 82 18 904 387 79 17 127 2.01 0.10 3.38

10 873.5 409 82 18 904 387 79 17 127 2.01 0.10 3.38

“expects”, “forecasts”, “intends”, “projects”, “predicts”, “pro poses”, "potential", “targets” and variations of such

words and phrases, or by statements that certain actions, events or results “may”, “will”, “could”, “would”, “should”

or “might”, “be taken”, “occur” or “be achieved.”

FLI herein includes, but is not limited to: future drill results; the Company’s ability to convert Inferred Mineral

Resources into Measured and Indicated Mineral Resources; enviro nmental matters; stakeholder engagement and

relationships; parameters and methods used to estimate the Mine ral Resource Estimates (each an “MRE”) at the

Fenelon and Martiniere properties (collectively the “Deposits”); the prospects, if any, of the Deposits; future drilling

at the Deposits; and the significance of historical exploration activities and results.

FLI is designed to help you understand management’s current vie ws of its near‐ and longer‐term prospects, and it

may not be appropriate for other purposes. FLI by their nature are based on assumptions and involve known and

unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of

the Company to be materially different from any future results, performance or achievements expressed or implied

by such FLI. Although the FLI contained in this press release i s based upon what management believes, or believed

at the time, to be reasonable assumptions, the Company cannot assure shareholders and prospective purchasers of

securities of the Company that actual results will be consisten t with such FLI, as there may be other factors that

cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person

assumes responsibility for the accuracy and completeness of any such FLI. Except as required by law, the Company

does not undertake, and assumes no obligation, to update or rev ise any such FLI contained herein to reflect new

events or circumstances, except as may be required by law. Unle ss otherwise noted, this press release has been

prepared based on information available as of the date of this press release. Accordingly, you should not place undue

reliance on the FLI or information contained herein.

Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying

assumptions prove incorrect, actual results may vary materially from those described in FLI.

Assumptions upon which FLI is based, without limitation, includ e: the ability of exploration activities to accurately

predict mineralization; the accuracy of geological modelling; the ability of the Company to complete further

exploration activities; the legitimacy of title and property interests in the Deposits; the accuracy of key assumptions,

parameters or methods used to estimate the MREs; the ability of the Company to obtain required approvals; the

results of exploration activities; the evolution of the global economic climate; metal prices; environmental

expectations; community and non‐governmental actions; and any i m p a c t s o f C O V I D ‐ 1 9 o n t h e D e p o s i t s , t h e

Company’s financial position, the Company’s ability to secure r equired funding, or operations. Risks and

uncertainties about the Company’s business are more fully discussed in the disclosure materials filed with the

securities regulatory authorities in Canada, which are available at www.sedar.com.

Information Concerning Estimates of Mineral Resources

The disclosure in this press release and referred to herein was prepared in accordance with NI 43‐101 which differs

significantly from the requirements of the U.S. Securities and E x c h a n g e C o m m i s s i o n ( t h e " S E C " ) . T h e t e r m s

"Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred mineral Resource" used in this press

release are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum

Standards (the "CIM Definition Standards"), which definitions have been adopted by NI 43‐101. Accordingly,

information contained in this press release providing descriptions of our mineral deposits in accordance with NI 43‐

101 may not be comparable to similar information made public by other U.S. companies subject to the United States

federal securities laws and the rules and regulations thereunder.

Investors are cautioned not to assume that any part or all of Mineral Resources will ever be converted into reserves.

Pursuant to CIM Definition Standards, "Inferred Mineral Resourc es" are that part of a Mineral Resource for which

quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Such

geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred

Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not

b e c o n v e r t e d t o a M i n e r a l R e s e r v e . H o w e v e r , i t i s r e a s o n a b l y e xpected that the majority of Inferred Mineral

Resources could be upgraded to Indicated Mineral Resources with continued exploration. Under Canadian rules,

estimates of Inferred Mineral Resources may not form the basis of Feasibility or Pre‐Feasibility studies, except in

rare cases. Investors are cautioned not to assume that all or any part of an Inferred Mineral Resource is economically

or legally mineable. Disclosure of "contained ounces" in a Mineral Resource is permitted disclosure under Canadian

regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute

"reserves" by SEC standards as in place tonnage and grade without reference to unit measures.

Canadian standards, including the CIM Definition Standards and NI 43‐101, differ significantly from standards in the

SEC Industry Guide 7. Effective February 25, 2019, the SEC adopted new mining disclosure rules under subpart 1300

of Regulation S‐K of the United States Securities Act of 1933, as amended (the "SEC Modernization Rules"), with

compliance required for the first fiscal year beginning on or a fter January 1, 2021. The SEC Modernization Rules

replace the historical property disclosure requirements included in SEC Industry Guide 7. As a result of the adoption

of the SEC Modernization Rules, the SEC now recognizes estimate s of "Measured Mineral Resources", "Indicated

Mineral Resources" and "Inferred Mineral Resources". Information regarding Mineral Resources contained or

referenced in this press release may not be comparable to similar information made public by companies that report

according to U.S. standards. While the SEC Modernization Rules are purported to be "substantially similar" to the

CIM Definition Standards, readers are cautioned that there are differences between the SEC Modernization Rules

and the CIM Definitions Standards. Accordingly, there is no assurance any Mineral Resources that the Company may

report as "Measured Mineral Resources", "Indicated Mineral Resources" and “Inferred Mineral Resources" under NI

43‐101 would be the same had the Company prepared the Mineral Resource Estimates under the standards adopted

under the SEC Modernization Rules.

To learn more, please visit www.nuinsco.ca or contact:

Paul Jones, CEO Sean Stokes, Executive VP Cathy Hume, Consultant Instagram:

@nuinscoresources

[email protected] [email protected] [email protected]

Twitter:

@NWIResources

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