Allied Critical Metals Inc. press release

Allied Critical Metals Delivers Robust Initial PEA at the Borralha Project

2026-03-02

CSE - Canadian National Stock Exchange · Tungsten · Tin · Copper · Silver · Molybdenum · Zinc · Bismuth · Lead · Rare Earth Elements · Uranium · Thorium · Gold · Canada · Technical Studies

After-Tax NPV(8%) of $473M and IRR of 49% at USD $1,000/mtu WO3; Fully funded 20,000m Drill Program Underway to Expand Scale of the Borralha Project

Key Highlights:

Robust Economics:After-tax NPV(8%)1of $473.4 million (USD $346.6 million)and IRR2of 48.8%at USD $1,000/mtu WO₃3.

Capital Efficient Development:Initial capital4of approximately $124.2 million (USD $91 million)with 4.2-year payback5.

Strong Base Case:After-tax IRR2of 27.2%and NPV(8%)1of $182.7 million (USD $134.0 million)at ~USD $704/mtu WO₃ (Argus long-term forecast).

Significant Upside Leverage:After-tax IRR2of 78.4%and NPV(8%)1of $963.8 million (USD $706.4 million)at USD $1,500/mtu WO₃.

Resource Growth Just Beginning:Fully funded 20,000-metre drill program underwayat the Borralha Project targeting resource expansion and potential mine life extension well beyond the initial 11-year mine plan.

Vila Verde Project:PEA does not include the Company's other tungsten project at Vila Verde.

All amounts in Canadian dollars unless stated otherwise.

Vancouver, British Columbia--(Newsfile Corp. - March 2, 2026) - Allied Critical Metals Inc. (CSE: ACM) (OTCQB: ACMIF) (FSE: 0VJ0) ("Allied" or the "Company") is pleased to announce the results of its initial Preliminary Economic Assessment ("PEA") for its 100%-owned Borralha Tungsten Project ("Borralha" or the "Project") in northern Portugal.

"The completion of the PEA marks another important milestone for the Company. In addition to the significant tailwinds provided by the significant increase in the price of tungsten, which has surged to more than USD $1,900/mtu [Source: Fastmarkets], we are very pleased to see have been able to receive support from idD Portugal Defence, the Portuguese public entity overseeing the nation's Defence Industry, which has endorsed the Borralha Project as a strategic initiative of national importance. We have also received a favourable Environmental Impact Declaration, subject to standard regulatory conditions (Declaração de Impacte Ambiental Favorável Condicionada – "DIA") from the Portuguese Environment Agency (Agência Portuguesa do Ambiente, I.P. - APA)," commented Roy Bonnell, CEO and Director of Allied. "We could not be more pleased with the considerable advancement of the Borralha Project and look forward to continuing to more progress at the Borralha Project and the Vila Verde Project, which are both strategic critical mineral tungsten assets well positioned within the EU."

The PEA outlines a technically robust and capital-efficient underground tungsten development project within the European Union, delivering strong economics across a range of pricing assumptions. Importantly, the study reflects only the Santa Helena Breccia deposit and an initial 11-year mine plan. The Company is committed to long term expansion of the current resource estimate and as such has recently commenced a fully funded 20,000-metre drill program designed to expand the current resource and enhance long-term project scale.

Initial PEA Economic Summary (After-Tax) for the Borralha Project

Notes: 1. NPV is a Non-GAAP measure; see notes below for additional information regarding NPV. 2. IRR is a Non-GAAP measure; see notes below for additional information regarding IRR. 3. Payback is a Non-GAAP measure. see notes below for additional information regarding payback. 4. Canadian dollar (CAD) equivalents calculated used a foreign exchange rate of CAD $1.3658/USD.

Mine design and cut-off grade selection were developed using a conservative USD $659/mtu WO₃ assumption. Recent reported tungsten market prices have reached approximately USD $1,998/mtu [Source: Fastmarkets; February 27, 2026], demonstrating meaningful leverage to current market conditions.

Initial Mine Plan – Strong Base with Expansion Potential

Mine life: 11 years

Average annual production: ~1,708 tonnes WO₃

Peak annual production: 2,388 tonnes WO₃

Processing rate: 1.4 million tonnes per annum

Average mill feed grade: 0.20% WO₃

All-in sustaining cost (AISC)6estimate: ~USD $303/mtu WO₃ (CAD $413.84/mtu WO₃)

The PEA mine plan incorporates Measured, Indicated and Inferred Mineral Resources from the Santa Helena Breccia deposit. Mineralization remains open along strike and at depth.

The ongoing 20,000-metre drill program is targeting:

Expansion of the current 13.0 Mt Measured & Indicated resource

Conversion of Inferred resources into higher-confidence categories

Potential extension of mine life beyond 11 years

Evaluation of throughput optimization and scale growth

The Company views this initial PEA as a foundational step in what is expected to be a multi-stage growth strategy at the Borralha Project.

Roy Bonnell, CEO & Director commented,"This initial PEA confirms the Borralha Project as a high-return, capital-efficient tungsten development project in a Tier-1 European jurisdiction. At USD $1,000 per mtu (significantly below current reported market pricing) the Borralha Project generates a 48.8% after-tax IRR with modest initial capital of approximately USD $91 million.

Importantly, this PEA reflects only the Santa Helena Breccia and an initial 11-year mine plan. With future exploration work and the 20,000 meters of drilling currently underway, we are focused on expanding resources, extending mine life and enhancing overall project scale. We believe we are at the beginning of unlocking the Borralha Project's full potential.

Combined with a favourable Environmental Impact Declaration, we believe that this PEA opens the door to project level financing for both our industrial scale plant and our pilot plant at the Vila Verde Project."

Introduction

This initial PEA contemplates development of an underground mining operation at the Santa Helena Breccia deposit within Borralha with a nominal processing capacity of 1.4 million tonnes per annum, utilizing conventional crushing, grinding and gravity concentration to produce a saleable Wolframite concentrate grading approximately 65% WO₃.

The Borralha Project has received a favourable Environmental Impact Declaration ("DIA"), materially advancing permitting and reducing development risk relative to many global tungsten projects.

Economic Summary

This initial PEA was developed using three pricing frameworks: (i) Low/Base Case: Argus long-term forecast (variable annually) averaging approx. USD $704 per mtu WO₃; (ii) USD $1,000 per mtu WO₃; and (iii) USD $1,500 per mtu WO₃.

Mine design and cut-off grade selection were developed using a conservative price assumption of USD $659 per mtu WO₃.

Table 1 — Economic Results (After-Tax)

Notes: 1. Prices based on Argus Media Group price forecasts. Canadian dollar (CAD) equivalents calculated used a foreign exchange rate of CAD $1.3658/USD. 2. NPV is a Non-GAAP measure; see notes below for additional information regarding NPV. M = million. 3. IRR is a Non-GAAP measure; see notes below for additional information regarding IRR. 4. Payback is a Non-GAAP measure. see notes below for additional information regarding payback.

The results highlight significant sensitivity to tungsten price while maintaining positive economics under conservative long-term assumptions.

For reference, current reported tungsten market prices are materially above the $1,365 per mtu (USD $1,000 per mtu) sensitivity case presented herein, reaching recently $2,729 per mtu (USD $1,998 per mtu) as at February 27, 2026 [Source: Fastmarkets.]

1. Project Overview

The Borralha Tungsten Project is located in the parish of Salto, municipality of Montalegre, district of Vila Real, Portugal. The project comprises a continuous exploitation concession area of approximately 382.48 hectares (3.82 km²).

This initial PEA has been prepared in accordance with National Instrument 43-101 - _Standards of Disclosure for Mineral Projects_("NI 43-101") and is based on the updated Mineral Resource Estimate for the Santa Helena Breccia, effective December 30, 2025. See Company's current technical report on Borralha (the "Technical Report") entitled "Technical Report on the Borralha Property, Parish of Salto, District of Vila Real, Portugal", dated effective December 30, 2025, which is published on the Company's website at www.alliedcritical.comand under its profile on SEDAR+ at www.sedarplus.ca.

Borralha represents one of the largest undeveloped tungsten resources within the European Union and benefits from gravity-dominant processing, reducing metallurgical risk relative to flotation-dependent systems. The project aligns with European critical raw material supply objectives.

2. Mineral Resource Estimate

This initial PEA is based on the updated Mineral Resource Estimate ("MRE" or "2025 MRE") for the Santa Helena Breccia, which were presented in accordance with NI 43-101 in the Company's current Technical Report.

Mineral Resources are reported in situ and undiluted and do not incorporate modifying factors such as mining dilution, mining recovery, metallurgical recovery, capital costs, operating costs, or economic analysis. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

MRE Cut-off Grade: 0.09% WO₃

The cut-off grade was selected based on reasonable prospects for eventual economic extraction under conceptual underground mining and gravity-dominant processing assumptions, including a very conservative tungsten price of USD$ 550/mtu WO₃ and assumed recovery of approximately 80% (for MRE cut-off determination only). The 2025 MRE reflects a material increase in tonnage and geological confidence relative to the previous mineral resource estimate published in March 2024.

Under the 2025 MRE, the Santa Helena Breccia has been tested by 41 drill holes and surface trenching over approximately 400 meters of strike length and to depths exceeding 350 meters below surface. Mineralization remains open along strike and at depth.

Table 2 — 2025 MRE for Borralha(see also Technical Report for further details)

| Classification | Tonnes (Mt) | Grade (% WO3) | | Measured + Indicated | 13.0 | 0.21 | | Inferred | 7.7 | 0.18 |

3. Mining Method and Production Plan

3.1Selected Mining Method

The planned mining method for the Santa Helena Breccia involves using mostly long-hole open stoping with cemented paste backfill. This method was selected based on: (i) steeply dipping geometry of the breccia-hosted mineralization; (ii) demonstrated geological continuity; (iii) favorable rock mass conditions; (iv) productivity and operating cost advantages; and (v) reduced surface footprint.

Drift-and-fill mining is incorporated locally in narrower high-grade zones to enhance resource recovery. Open-pit mining and alternative underground methods were evaluated during the conceptual study stage and were not selected due to environmental constraints, scale suitability, and relative operating efficiency.

3.2Mine Production Schedule

Key operating parameters:

Nominal processing rate: 1.4 million tonnes per annum Estimated mine life: approximately 11 years Total life-of-mine processed tonnes: approximately 13.4 million tonnes Average life-of-mine mill feed grade: approximately 0.20% WO₃

The production schedule supports consistent mill feed and stable concentrate production throughout the mine life.

Table 3 — LoM Totals and Averages

Table 4 — Life-of-Mine Schedule Summary

| Year | Ore Processed (t) | Avg. WO₃ Grade (%) | Recovered WO₃ (t) | | 2028 | 876,304 | 0.19 | 1,249 | | 2029 | 988,042 | 0.20 | 1,482 | | 2030 | 1,387,624 | 0.18 | 1,873 | | 2031 | 1,339,273 | 0.19 | 1,908 | | 2032 | 1,362,177 | 0.18 | 1,839 | | 2033 | 1,373,856 | 0.23 | 2,370 | | 2034 | 1,444,646 | 0.21 | 2,275 | | 2035 | 1,447,061 | 0.22 | 2,388 | | 2036 | 1,236,886 | 0.20 | 1,855 | | 2037 | 1,226,553 | 0.20 | 1,840 | | 2038 | 585,701 | 0.26 | 1,142 | | 2039 | 167,917 | 0.22 | 277 |

3.3 Dilution and Recovery Assumptions

The mine plan incorporates Measured, Indicated, and Inferred Mineral Resources within a stope optimization framework consistent with long-hole open stoping methods.

Applied modifying factors include:

Mining dilution: approximately 8%(average between primary and secondary stopes) Mining recovery: approximately 89% ~90% for primary stopes ~88% for secondary stopes

Drift-and-fill: approximately 7.5% dilution and 95% recovery

After application of these factors, the projected average life-of-mine mill feed grade is approximately 0.20% WO₃.

The PEA 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 results of the PEA will be realized.

Inferred material represents less than approximately 40% of the life-of-mine stope inventory on a volumetric basis and is predominantly located along the margins and outer extents of the deposit.

4. Metallurgy and Processing

4.1 Metallurgical Test Work

Metallurgical test work completed to date indicates that Santa Helena Breccia mineralization is amenable to gravity-dominant processing.

The initial metallurgical program (2023–2024) evaluated crushing, grinding, sulfide flotation, gravimetric concentration, and magnetic separation. Subsequent optimization reduced reliance on flotation by incorporating dense media separation ("DMS") pre-concentration and enhanced gravity recovery.

4.2 Process Flow Sheet

The proposed process plant includes:

Three-stage crushing to approximately 6 mm DMS pre-concentration on the 6–2 mm fraction (rejecting approximately 40% of mass) Grinding of DMS product and -2 mm fraction to 1 mm Gravimetric concentration using spirals and shaking tables Magnetic and electrostatic separation for final concentrate upgrading Flotation circuit for copper and tin recovery Filtered tailings with dewatering and partial paste backfill return underground

4.3 Recovery and Concentrate Grades

Preliminary metallurgical recovery estimates:

Tungsten: 75% Copper: ~60% Tin: 30%

Expected concentrate specifications:

Tungsten concentrate: ~65% WO₃ Copper concentrate: ~21% Cu Tin concentrate: ~50% Sn

Silver credits may partially report to the copper concentrate, subject to further test work confirmation.

5. Infrastructure and Site Requirements

The Borralha Project benefits from:

Regional road access Grid power availability Underground mining configuration minimizing surface disturbance Filtered dry-stack tailings concept Closed-loop water management system

6. Environmental and Permitting

In January 2026, the Portuguese Environment Agency issued a Favourable Environmental Impact Declaration ("DIA") for the Borralha Project, subject to standard regulatory conditions.

This milestone confirms environmental acceptability of the proposed development and enables progression to the RECAPE stage and subsequent construction permitting.

The Borralha Project aligns with European Union critical raw material strategy and contributes to regional economic development objectives.

7. Economic Framework

7.1 Pricing Framework

The life-of-mine design, cut-off grade selection and production schedule were developed using a conservative tungsten price assumption of USD $659 per metric tonne unit ("mtu") WO₃, consistent with the Argus long-term base case forecast. The Base Case economic model applies the Argus high-case long-term forecast on a year-by-year basis, ranging from approximately USD $763 per mtu in 2028 and gradually declining toward approximately USD $677 per mtu by 2040, for an average price of approximately USD $704 per mtu. [Source: Argus Media Group.]

This approach maintains a conservative technical design basis while allowing the economic analysis to reflect updated long-term market expectations without re-optimizing mine geometry.

Flat price sensitivity scenarios at USD $1,000/mtuand USD $1,500/mtu WO₃are presented for comparative purposes.

7.2 Operating Cost Summary

The Borralha Project is based on conventional underground mining and gravity-dominant processing, resulting in a competitive cost structure.

Life-of-mine average operating costs7are estimated at:

US$49 per tonne processed Equivalent to approximately USD $245 per mtu WO₃ produced(based on a 0.20% average mill feed grade and 75% metallurgical recovery)

Operating cost components include:

Underground mining Processing and plant operations General and administrative costs Site services and infrastructure support

The cost structure incorporates modifying factors of approximately 8% mining dilution, 89% mining recovery, and 75% metallurgical recovery.

7.3All-In Sustaining Cost (AISC)

The Project's estimated all-in sustaining cost8, inclusive of sustaining capital and site-level costs, is approximately: USD $303 per mtu WO₃.

This positions the Borralha Project competitively within the global tungsten cost curve.

7.4 Capital Costs

The PEA estimates capital costs9as follows:

Initial capitalcost: approximately USD $91 million (CAD $124.3 million) Sustaining capital: approximately USD $87 million (CAD $118.8 million) Totallife-of-mine capital: approximately USD $178 million (CAD $243.1 million)

Capital estimates are preliminary in nature and carry an accuracy range of ±35%, consistent with PEA-level studies.

7.5 Economic Metrics (After-Tax)

7.6 Sensitivity Analysis

Sensitivity analysis demonstrates that Project economics are most sensitive to: (i) tungsten price; (ii) capital costs; (iii) operating costs; and (iv) metallurgical recovery.

The Project retains positive economics across a range of tungsten price assumptions. At the Base Case price assumption, the Project generates robust operating margins, with significant leverage to higher tungsten price scenarios.

The Project demonstrates strong leverage to tungsten price. The following sensitivity analysis illustrates the post-tax IRR and NPV (8%) across a flat tungsten price range of USD $500 to USD $1,700 per mtu WO₃.

[](https://images.newsfilecorp.com/files/11632/285820_ede9ceca64ea6a8e_001full.jpg)

Figure 1 — After-Tax NPV (8%) and IRR Sensitivity to Tungsten Price

Earlier from Allied Critical Metals Inc.

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