press release

Magna Mining Reports Results of Crean Hill Pre-Feasibility Study With Construction to Begin in 2027

2026-10-21

TSX - Toronto Stock Exchange · Technical Studies

SUDBURY, Ontario, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Magna Mining Inc. (TSX: NICU) (OTCQX: MGMNF) (FSE: 8YD) (“Magna” or the “Company”) is pleased to announce the results of a Pre-Feasibility Study (“PFS”) prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) for the 100% owned Crean Hill Project (“Crean Hill”), located in the South Range of the Sudbury Basin, northeastern Ontario. All amounts are expressed in Canadian dollars unless otherwise indicated.

Crean Hill PFS Highlights:

Twelve-year commercial mine life with over 11 million tons of probable reserves: The Crean Hill PFS contemplates underground mining of 11.4 million tons of probable reserves at an average mining rate of approximately 2,400 tons per day during the twelve-year commercial mine life. Robust production profile with significant precious metals byproduct credits: Average annual payable copper equivalent (“CuEq”)1,2production of 35.5 million pounds (“lbs”) during commercial production at all-in sustaining costs (“AISC”) of US$3.55 per CuEq payable lb, including 42 thousand ounces of precious metals (platinum + palladium + gold) on average per year which contribute approximately 38.9% of revenues during this time. Attractive base case economics with strong commodity price leverage: Assuming base case commodity prices1, the Crean Hill PFS estimates payback in 1.5 years with an after-tax Internal Rate of Return (“IRR”) of 43.4% and an after-tax NPV7% of $251.0 million. Pre-tax cash flows average approximately $65.2 million per year and increase to $96.2 million per year using September 2026 average commodity prices1, while the after-tax NPV7% increases to $406.1 million, the IRR improves to 65.4%, and the payback period falls to 0.8 years. Manageable initial capital spread over a three-year pre-commercial production period:Initial capital costs from January 1, 2027 are estimated to be $127.0 million. This initial capital is expected to be offset by refundable tax credits3of $17.2 million and pre-commercial production operating cash flow of approximately $37.4 million using base case price assumptions, leaving a calculated net initial funding requirement of $72.4 million. Construction spending is expected to ramp up gradually over a three-year period with first ore sales in late 2027 and commercial production achieved in early 2030. Positive potential impact from the recently announcedProductivity Mega Deduction:Incorporation of the Productivity Mega Deduction (“PMD”)4could reduce the estimated federal taxes payable over the life of mine, especially during the early years of commercial production. By accelerating the utilization of certain tax deductions via the PMD, the Crean Hill PFS after-tax NPV7% would improve by $5.7 million to $256.7 million and the IRR would increase to 45.5%.

Crean Hill construction to commence in 2027:Based on the results of the PFS (summarized in Table 1), the Company’s Board of Directors has approved construction of the Crean Hill project, which will commence in 2027. In the interim, the Company will continue with detailed engineering work, surface site preparations including installation of grid power and recruitment of additional personnel.

Crean Hill exploration drilling now underway:In addition, an exploration diamond drill rig has been mobilized to the Crean Hill Project and has started drill testing new targets for additional footwall copper and precious metals-rich mineralization.

1 Base case price assumptions: US$5.10/lb Cu, US$8.00/lb Ni, US$20.00/lb Co, US$3,600/oz Au, US$1,500/oz Pt, US$1,200/oz Pd, US$45.00/oz Ag; CAD/USD $1.385. Illustrative spot price case assumptions based on September 2026 average prices: US$6.55/lb Cu, US$7.50/lb Ni, US$24.90/lb Co, US$4,320/oz Au, US$1,785/oz Pt, US$1,310/oz Pd, US$64.50/oz Ag; CAD/USD $1.370. 2Payable CuEq production considers base case price assumptions and modeled recovery and payabilities for each metal. 3Assumes $17.2 million in refundable tax credits via the Clean Technology Manufacturing Investment Tax Credit (CTM-ITC). 4On September 15, 2026, the Canadian federal government announced the Productivity Mega Deduction (“PMD”), allowing businesses to immediately deduct the cost of a broad range of capital assets, rather than claiming those deductions over time. The PMD is subject to legislative approval.

Jason Jessup, CEO of Magna Mining, stated, “We are pleased to announce the results of the Crean Hill PFS, which demonstrates robust economics and a clear path toward construction. The base case delivers an after-tax IRR of 43.4% and a 1.5-year payback period. Crean Hill also benefits from a balanced mix of copper, nickel and precious metals production, providing meaningful exposure to seven payable metals without an overreliance on any single commodity.

The PFS outlines a 12-year commercial mine life and C$72.4 million of net initial funding after refundable tax credits and pre-commercial production operating cash flow. The development plan builds on the core approach established in the 2024 Crean Hill PEA—advancing a new ramp from surface before re-establishing shaft hoisting—and leverages the project’s brownfield setting and existing infrastructure. On the strength of these results, our Board has approved moving forward with construction in 2027. In the interim, our team will continue detailed engineering and design, advance procurement of long-lead items, site preparation and recruitment of the additional people needed to execute the plan. We are also excited to have initiated exploration drilling at Crean Hill for the first time since 2024. I would like to thank everyone whose work and commitment have advanced the project to this important milestone.”

| | | | | Table 1: Key Crean Hill PFS Project Metrics | | | | | | | | Production Profile | | Unit | | Commercial Mine Life | 12.0 | years | | Mining rate1 | 2,397 | tons per day | | Total mined ore (Probable Reserve) | 11,358,861 | tons | | CuEq head grade1,5 | 2.99% | | | Avg. annual copper production1 | 9.5 | million payable lbs | | Avg. annual nickel production1 | 7.5 | million payable lbs | | Avg. annual precious metals production1 | 42.0 | koz Pt+Pd+Au payable | | Avg. annual CuEq production1,5 | 35.5 | million payable lbs | | Operating Costs | | Unit | | Production costs LOM | $152.62 | C$ per ton processed | | Total cash costs LOM | US$3.10 | US$ per CuEq payable lb | | All-in sustaining costs LOM | US$3.55 | US$ per CuEq payable lb | | Capital Costs | | | | Initial capital2 | $127.0 | C$ million | | Refundable tax credits | -$17.2 | C$ million | | Pre-commercial production operating cash flow | -$37.4 | C$ million | | Net initial funding | $72.4 | C$ million | | LOM sustaining capital | $261.7 | C$ million | | Project Economics | Base Case3 | Spot Price Case4 | | Avg. annual operating cash flow1(C$ million) | C$87.3 M | C$118.3 M | | Pre-tax NPV7% (C$ million) | C$329.7 M | C$554.3 M | | After-tax NPV7% (C$ million) | C$251.0 M | C$406.1 M | | After-tax IRR | 43.4% | 65.4% | | After-tax cash flow LOM (C$ million) | C$507.8 M | C$779.2 M | | After-tax payback period | 1.5 years | 0.8 years | | After-tax NPV7% with PMD6(C$ million) | C$256.7 M | C$412.4 M | | After-tax IRR with PMD6 | 45.5% | 68.0% |

1Production averages cover commercial production from Years 4-15. CuEq head grade is on a contained basis covering Life of Mine, CuEq determined using base case metal price assumptions. Tons are short tons (2,000 lb). 2Year 1-3 pre-commercial production capital, after equipment financing timing effect; before operating cash flow and refundable tax credits. Payback is measured from end of Year 3. 3US$5.10/lb Cu, US$8.00/lb Ni, US$20.00/lb Co, US$3,600/oz Au, US$1,500/oz Pt, US$1,200/oz Pd, US$45.00/oz Ag; CAD/USD $1.385. 4Illustrative spot-price case based on September 2026 average prices: US$6.55/lb Cu, US$7.50/lb Ni, US$24.90/lb Co, US$4,320/oz Au, US$1,785/oz Pt, US$1,310/oz Pd, US$64.50/oz Ag; CAD/USD $1.370. 5See Tables included with Figures 2 and 3 for grades and contribution of specific metals. 6On September 15, 2026, the Canadian federal government announced the proposed Productivity Mega Deduction (“PMD”), which would permit the immediate deduction of certain eligible capital expenditures for income tax purposes. As the PMD has not yet been enacted into law, the benefit has been excluded from the base-case economic analysis and is presented separately as a sensitivity.

Figure 1: Location of Crean Hill and Key Sudbury Infrastructure

PFS Overview

The Crean Hill project, located in the South Range of the Sudbury Basin (Figure 1), is a brownfield redevelopment of the past-producing nickel-copper-precious metals (platinum, palladium, gold, silver) Crean Hill Mine. Since 1906, the Crean Hill mine site underwent multiple phases of open-pit and underground mining with the most recent operations having ceased in 2002. During this period, approximately 20.4 million tonnes of ore were produced at an average grade of 1.31% nickel, 1.09% copper, and 1.56 g/t total precious metals (platinum + palladium + gold). The underground workings have subsequently flooded, and all surface infrastructure dismantled. In November 2022, the Company acquired Lonmin Canada Inc., including the past-producing Crean Hill Mine. The Company holds the mining rights from the top of the existing concrete capped Shaft #2 (former historic Crean Hill Mine production shaft) to a depth of 4,500 feet (1,372 metres). Vale Canada Limited (Vale) continues to hold all Mining Rights below 4,500 feet. Topics covered in the PFS include the mining design basis, geotechnical design basis, hydrogeology and dewatering, mine access and design, mining method and stope design, development, production schedule, metallurgy, mobile fleet, workforce, ventilation, backfill, material handling and grade control. The PFS was prepared by SGS Geological Services (SGS) with the assistance of Magna’s Projects team, as well as insights from current operations at the Company’s McCreedy West Mine in Sudbury. The PFS incorporates geological information collected by the Company including 199 diamond drill holes for a total of 44,895 metres of drilling between November 2022 and December 2024, the results from the 20,000 tonne bulk sample program executed in the second half of 2024, as well as historic information from the previous underground mining operations at Crean Hill.

Mine Plan and Production Schedule

The Crean Hill PFS mine plan (summarized in Table 1) envisions an underground mining operation, with the probable reserves being hauled and sold to an existing third-party mill in Sudbury. Initial mining is contemplated by ramp access via a new surface portal with the eventual rehabilitation and re-establishment of the historic Shaft #2 for ore hoisting as mining progresses deeper. The PFS assumes go-forward capital spending begins on January 1, 2027 and ramps up over the first three years with initial ore generated towards the end of Year 1 and commercial production anticipated at the end of Year 3 (Figure 2). At the target commercial production rate of approximately 2,400 short tons per day, the mine plan includes 11.4 million short tons over a 12.0 year mine life.

The mineralized zones incorporated in the PFS mine plan include both contact ore (including the Main, Intermediate, 99 and 9400 Zones) as well as footwall ore (the 109 FW Zone). The 11.4 million short tons of probable reserves are derived from the current Crean Hill Mineral Resource Estimate.

Figure 2 shows annual mill feed by ore type and contained CuEq head grade. During commercial production (Years 4-15), ore shipped and processed averages 875,000 tons per year. The contained CuEq head grade uses base case metal prices, without recovery, payability, or cost deductions and averages 2.99% CuEq over the twelve-year commercial mine life. Figure 3 shows payable metal production expressed as CuEq, using the modeled recoveries and payabilities. Precious metal head grades in Figure 2 are in grams per tonne. Annual payable metal production during the twelve-year commercial mine life averages 35.5 million lbs CuEq, comprised of 9.5 million lbs copper, 7.5 million lbs nickel, 6,400 oz gold, 15,600 oz platinum, and 19,900 oz palladium.

Figure 2: Crean Hill PFS Production Schedule & Contained Copper Equivalent Grade

| Year | | Y 1 | Y 2 | Y 3 | Y 4 | Y 5 | Y 6 | Y 7 | Y 8 | Y 9 | Y 10 | Y 11 | Y 12 | Y 13 | Y 14 | Y 15 | | Ore shipped (short tons) | | 8,139 | 401,572 | 450,372 | 887,305 | 887,056 | 887,533 | 888,744 | 887,497 | 887,557 | 888,088 | 887,387 | 832,259 | 887,188 | 888,906 | 789,259 | | Contained Grades | CuEq (%) | 2.05 | 3.12 | 2.96 | 3.04 | 3.34 | 3.78 | 2.87 | 2.56 | 2.92 | 2.82 | 2.76 | 3.13 | 2.81 | 3.18 | 2.67 | | Cu (%) | 0.49 | 0.77 | 0.71 | 0.68 | 0.56 | 0.53 | 0.60 | 0.57 | 0.69 | 0.69 | 0.68 | 0.68 | 0.51 | 0.57 | 0.57 | | | Ni (%) | 0.59 | 1.01 | 0.80 | 0.70 | 0.59 | 0.52 | 0.68 | 0.68 | 0.79 | 0.81 | 0.76 | 0.56 | 0.57 | 0.58 | 0.56 | | | Co (%) | 0.02 | 0.03 | 0.03 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.02 | 0.02 | 0.02 | 0.02 | | | Au (gpt) | 0.21 | 0.25 | 0.33 | 0.39 | 0.61 | 0.68 | 0.32 | 0.22 | 0.27 | 0.24 | 0.22 | 0.59 | 0.47 | 0.66 | 0.31 | | | Pt (gpt) | 0.43 | 0.57 | 0.74 | 0.87 | 1.31 | 1.93 | 0.96 | 0.73 | 0.66 | 0.62 | 0.65 | 1.00 | 1.09 | 1.20 | 0.92 | | | Pd (gpt) | 0.39 | 0.35 | 0.61 | 1.09 | 1.69 | 2.30 | 1.04 | 0.80 | 0.94 | 0.68 | 0.78 | 1.30 | 1.09 | 1.17 | 1.16 | | | Ag (gpt) | 0.96 | 0.87 | 1.31 | 0.74 | 1.07 | 2.84 | 0.83 | 0.57 | 0.99 | 1.05 | 1.23 | 0.58 | 0.55 | 1.46 | 0.97 | | | | | | | | | | | | | | | | | | | |

Figure 3: Crean Hill PFS Copper Equivalent Payable Metal Production

| Year | | Y 1 | Y 2 | Y 3 | Y 4 | Y 5 | Y 6 | Y 7 | Y 8 | Y 9 | Y 10 | Y 11 | Y 12 | Y 13 | Y 14 | Y 15 | | Payable Metal | CuEq (million lb) | 0.21 | 17.33 | 18.09 | 36.92 | 40.90 | 46.60 | 34.35 | 29.88 | 35.16 | 33.77 | 32.84 | 35.76 | 33.46 | 38.53 | 27.96 | | Cu (million lb) | 0.07 | 5.51 | 5.69 | 10.78 | 8.93 | 8.37 | 9.57 | 9.05 | 10.97 | 10.85 | 10.73 | 10.10 | 8.11 | 9.07 | 8.06 | | | Ni (million lb) | 0.06 | 5.92 | 5.06 | 8.42 | 6.62 | 5.63 | 8.04 | 8.13 | 9.70 | 10.10 | 9.26 | 5.84 | 6.38 | 6.60 | 5.61 | | | Co (million lb) | 0.001 | 0.060 | 0.051 | 0.084 | 0.068 | 0.058 | 0.088 | 0.088 | 0.092 | 0.102 | 0.092 | 0.060 | 0.064 | 0.067 | 0.064 | | | Au (koz) | 0.024 | 1.458 | 2.472 | 6.102 | 10.366 | 11.844 | 4.642 | 2.654 | 3.537 | 2.942 | 2.680 | 9.436 | 7.626 | 11.376 | 3.982 | | | Pt (koz) | 0.041 | 3.109 | 5.156 | 13.511 | 22.553 | 34.929 | 15.251 | 10.115 | 8.636 | 7.853 | 8.596 | 15.124 | 17.983 | 20.282 | 12.937 | | | Pd (koz) | 0.038 | 1.500 | 4.223 | 18.343 | 31.352 | 43.774 | 17.256 | 12.274 | 15.145 | 9.746 | 11.897 | 21.892 | 18.767 | 20.659 | 18.034 | | | Ag (koz) | - | - | - | - | - | 27.941 | - | - | - | - | - | - | - | - | - | | | | | | | | | | | | | | | | | | | |

Capital and Operating Costs

The Crean Hill Project is a former operating mine site with existing infrastructure such as year-round access, nearby electrical power line grid, and available water sources. Pre-existing infrastructure as well as capital invested prior to the end of 2026 is treated as sunk capital for the purposes of the PFS.

Estimated initial capital is $127.0 million, including $17.9 million of contingency. The estimate comprises capital expenditure from January 1, 2027 to the start of commercial production at the end of Year 3, reflecting the timing of equipment financing (Table 2). Estimated initial capital is presented after equipment financing timing effects. Deferred equipment purchase payments are included in subsequent years. Initial capital is estimated to be $33.0 million in Year 1, $35.0 million in Year 2, and $59.0 million in Year 3. The after-tax cash flow model incorporates the Clean Technology Manufacturing investment tax credits. Eligibility and receipt of those credits remain subject to the applicable requirements and the Company's tax review. While pre-commercial production operating cash flow and the benefit of refundable tax credits does not reduce the initial capital required, it does help to decrease the net cash outlay at the end of the ramp-up period to an estimated $72.4 million.

Estimated sustaining capital from commercial production at the end of Year 3 onward is $261.7 million.

| | | | Table 2: Crean Hill Initial Capital Costs | | | | | | Initial Capex | C$ million | | Mining Capital | | | Underground development | $35.0 | | Mobile fleet (after financing timing effects) | $38.9 | | Underground infrastructure | $8.7 | | Subtotal | $82.6 | | Surface Infrastructure Capital | | | Ventilation | $2.9 | | Water management | $3.3 | | Power distribution & substation | $2.9 | | Backfill plant & reticulation | $4.4 | | Other surface facilities | $1.9 | | Subtotal | $26.4 | | Contingency | $17.9 | | Total initial capital (Year 1-3)1 | $127.0 | | Refundable tax credits | -$17.2 | | Pre-commercial production operating cash flow | -$37.4 | | Net initial funding | $72.4 |

_ 1Figures may not sum exactly due to rounding_

The Company’s producing McCreedy West Mine is also located in Sudbury and provides an operating cost and productivity benchmark. Average life-of-mine operating costs in the Crean Hill PFS are $152.62 per short ton processed (Table 3). Cash costs are US$3.10/lb payable CuEq and AISC are US$3.55/lb payable CuEq. Cash costs and AISC use the commercial production periods and AISC includes estimated sustaining capital. These are non-GAAP measures and may not be comparable with similarly named measures used by other companies.

| | | | | Table 3: Crean Hill PFS Operating Costs | | | | | | | | Operating Costs | LOM | Unit | | Mining costs | $77.47 | C$/ton shipped | | Surface & processing costs | $57.04 | C$/ton shipped | | General & site administration costs | $18.11 | C$/ton shipped | | Total Operating Costs | $152.62 | C$/ton shipped | | Total Cash Costs | US$3.10 | US$/lb CuEq payable | | AISC | US$3.55 | US$/lb CuEq payable |

Project Economics & Sensitivity

At the base-case prices in Table 4, recovered payable metal value comprises the following revenue share 27.3% copper, 34.4% nickel, 12.4% gold, 12.5% platinum, 12.5% palladium, 0.9% cobalt, 0.1% silver. The average annual revenue during commercial production is $223.4 million while pre-tax cash flows average approximately $65.2 million per year (Figure 4). The Crean Hill PFS base case pre-tax NPV7% is $329.7 million and the after-tax NPV7% is $251.0 million, with an after-tax IRR of 43.4% and payback of 1.5 years. The after-tax NPV7% incorporates the Company’s current tax assumptions, including an estimated benefit of $40.0 million LOM from the Clean Technology Manufacturing investment tax credit. The realization of this tax benefit remains subject to the Company’s ability to satisfy the applicable legislative and tax filing requirements.

An illustrative spot-price case scenario based on average metal prices during September 2026 returns a pre-tax NPV7% of $554.3 million, an after-tax NPV7% of $406.1 million, an after-tax IRR of 65.4% and payback of 0.8 years. The average annual revenue during commercial production in the spot-price case scenario is $255.1 million while pre-tax cash flows would average approximately $96.2 million per year. Tables 4 and 5 and Figure 5 show fixed mine plan sensitivities. Price-only sensitivities hold the base exchange rate constant; the illustrative spot case applies USD/CAD 0.730 to revenue and U.S. dollar milling charges, with other cost translations held at the base case rate.

The base case after-tax economic results exclude any benefit associated with the PMD tax incentive. For illustrative purposes, a separate tax sensitivity was completed assuming the Company is eligible to claim available PMD deductions on qualifying expenditures. Under this scenario, the base case after-tax NPV7% increases to $256.7 million and the after-tax IRR increases to 45.5%. This legislation remains subject to approval.