Powermax Minerals Inc. (CSE: PMAX) (OTCQB: PWMXF) Key to Helping Address China’s Stranglehold on Rare Earth Elements

Disseminated on behalf of Powermax Minerals Inc. (CSE: PMAX) (OTCQB: PWMXF) and may include paid advertising.

• Powermax Minerals is building a portfolio of rare earth element (“REE”) exploration assets across Canada and the United States.
• Global REE demand is projected to triple by 2035, driven by a variety of growing defense and commercial needs, including electric vehicles, wind power, and AI semiconductor growth.
• China controls roughly 60% of global REE mining and 90% of processing, creating serious supply chain vulnerabilities for Western economies.
• North American governments are deploying over $1 billion in funding and incentives to develop domestic REE supply chains.
• Powermax’s projects in Ontario, British Columbia, and Wyoming offer promising opportunities in multiple deposit types and jurisdictions.

The rare earth elements (“REE”) market has moved from a niche segment of the mining industry to a strategic focal point for governments and investors. Against that backdrop, Powermax Minerals (CSE: PMAX) (OTCQB: PWMXF), a Canadian mineral exploration company focused on rare earth projects across North America, is positioning itself as a key exploration-stage participant seeking exposure to a supply chain increasingly shaped by geopolitics and industrial demand.

REEs, a group of 17 elements used in magnets, batteries and electronics, are essential inputs for defense systems, as well as electric vehicles, wind turbines, and semiconductors, the latter growing due to increased AI demand. Their role in these sectors has turned them into a critical link between energy transition policies and advanced manufacturing.

Industry forecasts suggest that global REE demand could rise from approximately 59,000 tonnes in 2022 to 176,000 tonnes by 2035. That trajectory is largely tied to accelerating electric vehicle adoption and expansion in renewable energy infrastructure. Market data compiled by industry analysts indicates the global REE market was valued at about $3.95 billion in 2024 and is expected to reach $6.3 billion by 2030, implying an annual growth rate near 8.6%.

At the same time, supply remains highly concentrated. China accounts for roughly 60% of global REE production and close to 90% of processing capacity. That imbalance has prompted policy responses in North America and Europe, where governments are seeking to reduce reliance on Chinese supply chains.

Recent measures include export controls from China and countermeasures from the United States, including funding initiatives and minimum pricing mechanisms aimed at encouraging domestic production. Canada has also updated its Critical Minerals List in 2024, placing REEs among its priority resources, while bilateral agreements such as the Energy Resource Governance Initiative are designed to align supply chain development across allied nations.

Eligibility for such programs could provide non-dilutive funding opportunities for exploration companies operating in these jurisdictions. At the same time, regulatory changes are tightening supply chains. For example, U.S. Department of Defense rules set to take effect in 2027 will restrict sourcing of certain rare earth magnets from countries including China and Russia, potentially reshaping procurement strategies.

Powermax’s approach reflects a portfolio model rather than a single-asset bet. The company holds interests in several REE exploration projects across North America, including the Atikokan project in Ontario, the Cameron project in British Columbia, and the Ogden Bear Lodge project in Wyoming. It has also outlined exploration plans for the Pinard project in northern Ontario. This geographic spread offers exposure to multiple geological settings and regulatory regimes, while also aligning with jurisdictions considered supportive of mining development.

The Atikokan REE project in northwestern Ontario represents one of the company’s more data-rich assets. Geochemical analysis from the Ontario Geological Survey, based on a dataset of more than 48,000 samples, identified several REE anomalies in the 99th percentile. Notably, multiple samples exceeding 500 parts per million of total rare earth elements were concentrated within the White Otter target area. These anomalies are supported by additional indicators, including radiometric and magnetic data, as well as the presence of pathfinder elements such as niobium, yttrium and zirconium.

The geological interpretation points toward REE-rich pegmatite systems associated with the White Otter Batholith. The distribution of anomalies across a broad area suggests district-scale potential, though the project remains at an early exploration stage.

In British Columbia, the Cameron REE project has undergone more recent fieldwork. Exploration activities conducted in 2023 included geological mapping, geochemical sampling and airborne geophysical surveys. Rock samples returned total REE values ranging from 12.46 parts per million to 1,426.83 ppm, with cerium emerging as the dominant element.

The identification of multiple areas of interest through geophysical surveys has led to the delineation of potential drill targets. Infrastructure access is relatively favorable, with proximity to highways and established mining communities in the Kamloops region. While the grades observed in early sampling vary widely, the presence of REE mineralization across multiple zones provides a basis for further exploration.

Powermax’s Ogden Bear Lodge project in Wyoming offers a different type of strategic positioning. The property borders the Bear Lodge Critical Rare Earth Project being advanced by Rare Element Resources, which has received significant financial backing, including more than $24 million from the U.S. Department of Energy and a potential $553 million financing package from the Export-Import Bank of the United States.

That adjacent development has already attracted over $170 million in investment and includes ongoing work on REE processing capabilities. For Powermax, proximity to a project with federal funding and established exploration data may reduce geological uncertainty while increasing the potential relevance of its own land position.

For more information, visit the company’s website at www.PowermaxMinerals.com.

NOTE TO INVESTORS: The latest news and updates relating to PWMXF are available in the company’s newsroom at https://nnw.fm/PWMXF

Exploration Target Cautionary Statement

The exploration targets discussed are conceptual, and there is currently not enough data to confirm a mineral resource. Further exploration may not yield successful results.

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