Diversified Critical Metals Portfolio – Sprott Boosts Stake: Resuming Coverage

• We are resuming coverage on New Age Metals/NAM. The company has assembled a portfolio targeting platinum group metals (PGM), lithium, gold, and antimony – all high interest commodities gaining significant attention from resource companies, the U.S government, and capital markets.
• Earlier this month, NAM closed a $4M equity financing, with Eric Sprott (a prominent/influential resource investor) subscribing for $2M, boosting his ownership in NAM to 30% - a strong testament to the company’s management and its portfolio.
• The PGM Division includes the flagship River Valley PGM project in Ontario and the Genesis PGM-Cu-Ni project in Alaska. River Valley hosts a large tonnage, low-grade PGM deposit with a completed Preliminary Economic Assessment. The project has resource expansion potential, as multiple targets over ~10 miles (16 km) of strike, adjacent to existing resources, remain untested. Gold is trading near record highs, up 50% YTD, while platinum and palladium have outperformed, rising 72% and 56%, respectively.

• NAM holds 11 early-stage lithium projects in Manitoba through a JV with Australian lithium producer Mineral Resources Limited (ASX: MIN/MCAP: $8B). With lithium prices up 28% in the past four months, and the U.S. government taking an equity stake in Lithium Americas’ (TSX: LAC) Nevada project, market sentiment toward lithium juniors, particularly North American projects, is strongly rebounding.
• NAM’s gold-antimony portfolio comprises of early-stage projects in Newfoundland and Ontario. The Newfoundland properties are strategically located near New Found Gold Corp. (TSXV: NFG)’s Queensway gold project, and the past-producing Beaver Brook antimony mine. Antimony is increasingly strategic for energy storage, clean energy, and high-tech applications. Supply constraints from China and Russia have pushed prices higher, while North America remains fully import-dependent.
• Near-term catalysts include efforts to enhance River Valley’s economics and advance lithium, gold, and antimony exploration.

* Qualified Person: Dr. William Stone, P.Geo., Robert M. Retherford, CPG, Consultants to New Age Metals 

* New Age Metals Inc. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions. All figures in C$ unless otherwise specified. 

Price and Volume (1-year)

NAM’s Target Metals: A Brief Overview

Lithium:

• After a two-year downturn, lithium prices are rebounding, rising 28% over the past four months to US$11,050/t, though still 87% below their late-2022 peak. We believe current prices are still below the break-even point for most new large-scale lithium projects, and a sustained price of at least US$15,000/t is needed to incentivize development.
• We expect the rebound to continue as the lithium market approaches a projected supply deficit in 2026–2027, driven by demand from EV batteries, energy storage, and rapidly growing sectors such as AI data centers, robotics, and automation

Gold: 

• Earlier this month, prices surpassed US$4,000/oz for the first time and have since pulled back slightly to US$3,940/oz.
• We maintain a positive outlook, supported by continued US$ weakness, strong demand for safe-haven assets amid economic and geopolitical uncertainties, and potential risks to global GDP growth.

PGMs, lithium, and antimony are designated as critical minerals in the U.S. and Canada, prompting a major push to build a North American supply chain amid elevated geopolitical tensions

Palladium & Platinum: 

• Platinum and palladium have outperformed gold, rising 72% and 56% YTD, respectively, compared with gold’s 50% gain
• Platinum: The recent price spike reflects a combination of robust demand, investment interest, and tight supply from South Africa (≈70% of global production) and Russia (second-largest producer). Platinum demand is primarily driven by industrial and automotive demand, with over 70% of consumption coming from these sectors. In the automotive industry, platinum is used in catalytic converters for emissions control, and while EVs reduce long-term demand, hybrid engines still require converters, keeping the auto sector a reliable source. Platinum is also a key component in hydrogen fuel cells, especially for heavy-duty transport and off-grid power, supporting new demand from the clean energy transition. 
• Palladium - Demand is almost entirely automotive, primarily for gasoline engine catalytic converters. EV adoption threatens long-term demand, but hybrid and conventional cars still provide steady consumption. Supply is limited, with Russia (~40%) and South Africa as primary sources; geopolitical risks heighten volatility. 

Antimony: 

• Antimony is gaining significant attention from junior resource companies and capital markets due to its essential role in energy storage, clean energy technologies, batteries, semiconductors, military radar systems, and high-strength alloys.
• China and Russia have historically supplied over 75% of global production. China has restricted exports amid declining domestic output, while sanctions on Russia have further tightened global availability.
• These supply constraints have driven prices higher and accelerated efforts to develop secure North American antimony projects to meet growing demand. 

NAM - Portfolio Summary

Multiple critical metal projects in North America

NAM also holds a 13% interest (19% fully diluted) in MetalQuest Mining (TSXV: MQM, MCAP: $10M), the 100% owner of the Lac Otelnuk iron ore project in Quebec

Platinum Group Metals Division

River Valley Palladium Project (100% interest)

This advanced-stage project spans 107 km² in Sudbury, a world-class Ni-Cu- PGM mining district, with major processing facilities.

Project Location

Located 100 km east of Sudbury

Water can be sourced from local freshwater bodies, and power from one of  two lines located approximately 15 km and 22 km from the project

The property hosts a large tonnage/low-grade PGM deposit, and is one of the largest undeveloped primary PGM deposits in North America

2021 Resource Estimate 

• Based on US$1,850/oz Pd, US$900/oz Pt, US$1,600/oz Au

(QP Robert M. Retherford, CPG, Consultant to New Age Metals Inc.)

Primary PGM deposits are rare outside of South Africa and Russia

A total of 733 holes (> 155,000 m) have been completed

Palladium accounts for 65%-70% of contained ounces

Resource Expansion Potential

Resources are spread across multiple targets

We believe there is potential for resource expansion, as several targets adjacent to existing resources remain untested

In 2023, NAM completed a Preliminary Economic Assessment (PEA), advancing the project toward production through a small, high-grade operation. The study was likely conservative, using only 43% of the project’s M&I resources

2023 PEA Highlights

The PEA returned an After Tax-NPV5% of $140M, and a low AT-IRR of 11%, using US$2,150/oz palladium vs the spot price of US$1,425/oz (break-even: US$1,750/oz

To improve the project’s economics, NAM is pursuing resource expansion drilling, and evaluating the potential to enhance recoveries

Management aims to improve recoveries using new and alternative technologies, and potentially upgrade/expand the resource through infill and step-out drilling at the Dana South, Lismer North, and Varley zones. Details of the next drill program are yet to be announced.

Genesis PGM-Cu-Ni Project (100% interest)

This drill-ready project, covering 4,144 hectares (10,240 acres) of mining claims, is located 460 km south of Fairbanks, Alaska.

Project Location

Located 82 km northeast of the all-weather port city of Valdez

Accessible via 3 km of an all-season paved highway, and a high-capacity power line

Past exploration has identified two styles of PGM mineralization, spanning 9 km between the Sheep Hill and Bernard Mountain prospects.

Two Prospects

Grab sampling has returned values of 2.4 g/t Pd, 2.4 g/t Pt, 0.96% Ni, and 0.58% Cu

The Sheep Hill formation is visible at the surface along a ~2 km stretch

Proposed Project Timeline

The property has never been drilled

NAM is awaiting results from recent mapping and sampling at the Sheep Hill prospect

Management is seeking a JV/option partner

Lithium Division

Lithium Projects

12 early-stage lithium projects

NAM is the largest claim holder in the Winnipeg River field (21,611 ha across 11 properties) in southern Manitoba; Australian lithium producer Mineral Resources Ltd. (MRL) can earn up to a 75% interest in these projects

Last year, NAM and MRL initiated an exploration program (fully funded by MRL), including geophysical surveys, sampling, mapping, prospecting, and 15,000 m of drilling.

2024 Drill Highlights

MRL has spent over $10M in exploration

(QP: Lynde Guillaume, Independent Consultant to New Age Metals Inc.)

Drilling on Lithium Two, Bird River, and Lithman East returned 158 pegmatite intersections from 41 of 56 holes

Gold-Antimony Division

Newfoundland Portfolio

This early-stage portfolio, covering 19,300 ha, includes 12 gold-antimony projects in Newfoundland and Labrador. The claims are strategically located near New Found Gold’s (TSXV: NFG) Queensway project, and along strike of the past-producing Beaver Brook antimony mine.

Newfoundland Properties

NAM completed a phase one exploration program to identify targets

A phase two program is planned to generate drill targets for 2026

Bonanza Gold Project (option to acquire a 100% interest)

This early-stage project, covering 2,191 ha, is located 25 km southeast of Kenora in northwestern Ontario. The Kenora mining district is known for its Archean greenstone belts and is one of Canada’s most prolific gold camps, hosting majors such as Agnico Eagle (TSX: AEM), Kinross (NYSE: KGC), Centerra (TSX: CG), and New Gold (NYSE: NGD).

NAM gained control of the project this month

Exploration has identified five prospects across 4 km of the project area. Recent sampling confirmed gold mineralization at the Triggs, Kite Lake, Stella, and Blue Star prospects.

2025 Sampling Highlights

(QP: Dr. William Stone, P.Geo., Consultant to New Age Metals Inc.)

Excellent infrastructure including access to road, and provincial grid power lines

Surface grab sampling returned high gold grades of up to 127 g/t Au 

The project is drill-ready, with permits in place

Management and Board

Share Ownership

Management and board own 5%

Eric Sprott is the largest shareholder, holding 30% of outstanding equity

Four out of five directors are independent

Financials

Strong balance sheet 

Can raise up to $0.76M from in-the-money options

FRC Valuation & Rating

NAM is trading at $7/oz PGM vs the comparables’ average of $12/oz

Using NAM’s River Valley resource and the average EV/oz, our estimated fair value is $0.50/share for the project

Early-stage lithium projects are trading at an Enterprise Value (EV) of $690/ha on average

Applying the average EV/ha to NAM’s hectares results in a fair value of $0.36/share

Using a sum-of-parts valuation, we arrive at a fair value of $0.95/share

Given their early-stage nature, we are not currently assigning a value to the company’s gold-antimony portfolio or the Bonanza project

We are resuming coverage with a BUY rating, and a fair value estimate of $0.95/share. NAM offers a diversified North American metals portfolio with exposure to PGM, lithium, gold, and antimony, supported by strong market trends and macro tailwinds. Recent developments, including an equity financing led by Eric Sprott, underscore investor confidence in the company’s management and portfolio. Near-term catalysts include efforts to enhance River Valley’s economics, and advance exploration across its other projects.

Risks 

We believe the company is exposed to the following key risks (not exhaustive):

• Commodity prices
• Exploration and development
• No guarantee NAM can improve the River Valley project’s economics
• Lithium portfolio development and timelines depend on partner funding
• Access to capital and potential share dilution

We are assigning a risk rating of 5 (Highly Speculative)