press release

Magna Mining Reports Results of Levack Mine Preliminary Economic Assessment and Approves Restart of Production

2026-10-08

TSX - Toronto Stock Exchange · Technical Studies

SUDBURY, Ontario, Oct. 08, 2026 (GLOBE NEWSWIRE) -- Magna Mining Inc. (TSX: NICU) (OTCQX: MGMNF) (FSE: 8YD) (“Magna” or the “Company”) is pleased to announce the results of a Preliminary Economic Assessment (“PEA”) prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) for the restart of the fully-permitted Levack Mine (“Levack”), located in the North Range of the Sudbury Basin, northeastern Ontario, Canada. All amounts are expressed in Canadian dollars unless otherwise indicated.

Levack PEA Highlights:

Solid production profile and short time frame to commercial production:The Levack PEA contemplates underground mining of 5.75 million short tons with 7.3 years of commercial production and average annual payable copper equivalent (“CuEq”)1,2production of 36.8 million pounds (“lbs”) at all-in sustaining costs (“AISC”) of US$3.71 per CuEq payable pound2and commercial production anticipated in mid-2028. Low initial capital and robust pre-commercial production operating cash flows:Initial capital costs from January 1, 2027 to the start of commercial production are estimated to be $70.1 million, after incorporating equipment financing timing effects. This initial capital is estimated to be offset by refundable tax credits3of approximately $5.6 million and expected pre-commercial production operating cash flow of approximately $55.9 million using base case price assumptions1, leaving a calculated net initial funding requirement of $8.6 million. Rapid payback and robust base case economics: Assuming base case commodity prices, the Levack PEA estimates payback in 0.6 years with a base case after-tax Internal Rate of Return (“IRR”) of 92.4% and an after-tax NPV7% of $227.0 million. Pre-tax cash flows in 2028 and 2029 are estimated to be approximately $96.5 million per year. Using September 2026 average commodity prices1, the after-tax NPV7% increases to $313.6 million and the IRR improves to 115.8%, with average pre-tax cash flows of approximately $120.6 million per year in 2028 and 2029. 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. The Levack PEA after-tax NPV7% improves by $5.1 million to $232.1 million and the IRR increases to 99.2%, by reducing total federal taxes paid by $1.6 million and accelerating the utilization of certain tax deductions.

Additional opportunities:The potentially mineable resources in the Levack PEA are a subset of the updated Levack Mine Mineral Resource Estimate (MRE) which include additional resources within the No.7 Contact Zone and additional mineralization in the Morrison Footwall Cu-PGE Deposit compared to the Levack Mine MRE announced on November 18, 2025. The PEA does not include any potential production from the R2 Footwall Zone. See the news release dated September 17, 2026for the most recent exploration results from the R2 Footwall Zone.

Formal approval to restart Levack Mine:Based on the results of the PEA (summarized in Table 1), and while acknowledging that there are no supporting mineral reserves with demonstrated economic viability, the Company’s Board of Directors has formally approved the plan to restart the Levack Mine, with underground development and surface construction activities expected to ramp up significantly over the coming months.

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 $5.6 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, stated, “The PEA demonstrates Levack Mine’s potential as a low capital cost, high IRR project with a clear pathway to a rapid ramp-up to commercial production. The low capital intensity reflects the significant capital previously invested in the mine, as well as the current state of its existing infrastructure. The mine plan outlined in the study prioritizes higher-grade copper-precious metal footwall zones early in the mine life, generating meaningful pre-production revenue and supporting a strong IRR.

The Levack team embodies Magna’s core value of the Relentless Pursuit of Excellence, and I am confident we will continue to optimize the mine plan while incorporating new mineralized zones, including the R2 Zone, with the objective of extending mine life and further enhancing project economics. Given the strong IRR and operating cash flows demonstrated in the PEA, together with Magna’s treasury position, the Board of Directors has approved the investment to formally restart the Levack Mine. This represents an important next step in Magna’s growth toward becoming a mid-tier producer.”

Table 1: Key Levack PEA Project Metrics

| Production Profile | | Unit | | Commercial production life | 7.3 | years | | Mining rate1 | 2,141 | tons per day | | Total mining inventory | 5,747,819 | tons | | CuEq head grade1,5 | 3.42 | % | | Avg. annual copper production1 | 12.9 | million payable lbs | | Avg. annual nickel production1 | 10.9 | million payable lbs | | Avg. annual precious metals production1 | 21.4 | koz Pt+Pd+Au | | Avg. annual CuEq production1,5 | 36.8 | million payable lbs | | Operating Costs | | Unit | | Production costs LOM | $157.80 | C$ per ton processed | | Cash costs | US$3.23 | US$ per CuEq payable lb | | All-in sustaining costs | US$3.71 | US$ per CuEq payable lb | | Capital Costs | | | | Initial capital2 | $70.1 | C$ million | | LOM Sustaining capital | $168.0 | C$ million | | Project Economics | Base Case3 | Spot Price Case4 | | Avg. annual operating cash flow (C$ million) | $91.2 | $114.1 | | Pre-tax NPV(7%) (C$ million) | $312.1 | $438.3 | | After-tax NPV(7%) (C$ million) | $227.0 | $313.6 | | After-tax IRR | 92.4% | 115.8% | | After-tax cash flow LOM (C$ million) | $326.9 | $446.0 | | After-tax payback | 0.6 years | 0.4 years | | After-tax NPV(7%) with PMD6(C$ million) | $232.1 | $318.6 | | After-tax IRR with PMD6 | 99.2% | 122.3% | | | | |

1Production averages cover commercial production from mid-2028 to 2035. 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). 2January 2027-June 2028 pre-commercial production capital, after equipment financing timing effect; before operating cash flow and refundable tax credits. Payback is measured from January 1, 2028. 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 Levack Mine and Key Sudbury Infrastructure

PEA Overview

The Levack Mine project, located in the North Range of the Sudbury Basin (Figure 1), is a brownfield redevelopment of the past-producing nickel-copper-precious metals (platinum, palladium, gold, silver) Levack Mine which was last operated in 2018. Topics covered in the PEA include the mining design basis, geotechnical design basis, hydrogeology and dewatering, mine access and design, mining method and stope design, development, production schedule, mobile fleet, workforce, ventilation, backfill, material handling and grade control. The PEA was prepared by AGP Mining Consultants Inc. with the assistance of Magna’s Projects team, as well as insights from current operations at the Company’s adjacent McCreedy West Mine. The PEA incorporates geological information collected by the Company as well as historic information from the previous underground mining operations at Levack.

Mine Plan and Production Schedule

The Levack PEA mine plan (summarized in Table 1) assumes go-forward capital spending begins on January 1, 2027 and ramps up over the first two years of production with commercial production anticipated in mid-2028 (Figure 2). At a target commercial production rate of approximately 2,200 short tons per day, the mine plan includes 5.75 million short tons and 7.3 years of commercial production.

The mineralized zones incorporated in the mine plan include the Footwall Copper zones, the Contact Nickel zones (the former Main, East and No.7 block models), and the Morrison Footwall Cu-PGE deposit (Figure 6). The 5.75 million short tons include diluted Indicated and Inferred mining inventory derived from the current Levack Mineral Resource Estimate. The R2 Footwall Zone is excluded from the PEA inventory and economics, as mineral resources have not yet been defined

The PEA is preliminary in nature and includes 2.1 million short tons of Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. The location and extent of historic mined-out stopes and voids remain uncertain, the effect on resource depletion, dilution, recovery and ground stability adjacent to historic workings remains a risk. There is no certainty that the PEA will be realised. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Figure 2 shows annual mill feed by zone and contained CuEq head grade. Contained CuEq head grade uses base case metal prices, without recovery, payability, stream or cost deductions. Figure 3 shows payable metal production expressed as CuEq, using the modeled recoveries and payabilities. Precious metal head grades in Figure 2 are in troy ounces per short ton.

Figure 2: Levack PEA 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 | | | | Material shipped (short tons) | 82,372 | 620,640 | 776,880 | 775,408 | 780,343 | 775,307 | 786,211 | 797,453 | 353,205 | | | | Contained Grades | CuEq (%) | 4.19 | 4.24 | 3.64 | 3.60 | 3.06 | 3.18 | 3.29 | 3.07 | 3.29 | | | Cu (%) | 1.11 | 1.15 | 0.90 | 1.14 | 0.90 | 0.86 | 1.00 | 0.88 | 0.97 | | | | Ni (%) | 0.93 | 1.16 | 1.13 | 0.81 | 0.94 | 1.08 | 1.05 | 1.04 | 1.00 | | | | Co (%) | 0.023 | 0.034 | 0.035 | 0.021 | 0.029 | 0.033 | 0.032 | 0.032 | 0.028 | | | | Au (ozt) | 0.012 | 0.009 | 0.004 | 0.008 | 0.004 | 0.002 | 0.002 | 0.002 | 0.003 | | | | Pt (ozt) | 0.031 | 0.024 | 0.021 | 0.025 | 0.013 | 0.013 | 0.014 | 0.012 | 0.017 | | | | Pd (ozt) | 0.052 | 0.037 | 0.032 | 0.034 | 0.018 | 0.018 | 0.018 | 0.016 | 0.024 | | | | Ag (ozt) | 0.125 | 0.084 | 0.060 | 0.101 | 0.063 | 0.031 | 0.033 | 0.031 | 0.040 | | | | | | | | | | | | | | | |

Figure 3: Levack PEA Copper Equivalent Payable Metal Production

| Year | Y 1 | Y 2 | Y 3 | Y 4 | Y 5 | Y 6 | Y 7 | Y 8 | Y 9 | | | | Payable Metal | CuEq (million lb) | 4.86 | 38.27 | 40.05 | 39.35 | 33.16 | 34.33 | 36.27 | 33.83 | 16.17 | | | Cu (million lb) | 1.60 | 12.58 | 12.13 | 15.42 | 11.86 | 11.37 | 13.63 | 11.81 | 5.75 | | | | Ni (million lb) | 1.03 | 10.31 | 12.46 | 8.28 | 9.92 | 11.56 | 11.31 | 11.29 | 4.81 | | | | Co (million lb) | 0.008 | 0.100 | 0.128 | 0.070 | 0.099 | 0.120 | 0.115 | 0.116 | 0.045 | | | | Au (koz) | 0.655 | 3.752 | 1.532 | 4.208 | 1.947 | 0.776 | 0.630 | 0.539 | 0.492 | | | | Pt (koz) | 1.458 | 8.486 | 8.992 | 10.922 | 5.478 | 5.480 | 6.002 | 5.016 | 3.251 | | | | Pd (koz) | 2.929 | 16.128 | 16.972 | 17.968 | 9.431 | 8.987 | 9.319 | 8.257 | 5.694 | | | | Ag (koz) | 3.067 | 21.476 | 16.722 | 28.241 | 17.855 | 8.177 | 6.388 | 6.385 | 6.729 | | | | | | | | | | | | | | | |

Capital and Operating Costs

The Levack Mine benefits from significant pre-existing surface and underground infrastructure, much of which has been well-maintained since operations ceased in 2018 given Levack Mine provides secondary egress for the Company’s adjacent McCreedy West Mine, and more recently for other adjacent underground mining operations. Pre-existing infrastructure as well as capital invested prior to the end of 2026 is treated as sunk capital for the purposes of the PEA.

Estimated initial capital is C$70.1 million, including C$12.6 million of contingency. The estimate comprises capital expenditure from January 1, 2027 to June 30, 2028, 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. 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. The mitigation from pre-production revenue and the benefit of refundable tax credits do not reduce the initial capital required but do help to decrease the net cash outlay at the end of the ramp-up period to an estimated C$8.6 million.

Estimated sustaining capital from commercial production on July 1, 2028 onward is C$168.0 million.

Table 2: Levack PEA Initial Capital Costs

| Initial Capex | | C$ million | | Underground Capital | | | | Underground development | | $27.8 | | Mobile fleet (after financing timing effects) | | $10.3 | | Leasing interest expense | | $0.6 | | Underground infrastructure | | $5.7 | | Subtotal | | $44.4 | | Surface Infrastructure Capital | | | | Water, waste management & closure | | $4.1 | | Power distribution & ventilation | | $4.0 | | Surface building upgrades | | $1.5 | | Backfill plant & reticulation | | $1.8 | | Shaft activation & hoist | | $1.7 | | Subtotal | | $13.1 | | Contingency | | $12.6 | | Total initial capital (Jan 2027-Jun 2028) | | $70.1 | | Refundable tax credits | | -$5.6 | | Pre-commercial production operating cash flow | | -$55.9 | | Net initial funding | | $8.6 | | | | |

The Company’s adjacent McCreedy West Mine provides an operating cost and productivity benchmark. Average life-of-mine operating costs in the Levack PEA are C$157.80 per short ton processed (Table 3). Cash costs are US$3.23/lb payable CuEq and all-in sustaining costs are US$3.71/lb payable CuEq. Cash costs use the commercial production periods and exclude stream costs, which are already deducted from revenue. AISC adds estimated sustaining capital. These are non-GAAP measures and may not be comparable with similarly named measures used by other companies.

Table 3: Levack PEA Operating Costs

| Operating Costs | LOM | Unit | | | Mining Costs | | $88.51 | C$/ton shipped | | Surface & Processing Costs | | $54.27 | C$/ton shipped | | General & Site Administration Costs | | $15.02 | C$/ton shipped | | Total Operating Costs | | $157.80 | C$/ton shipped | | Total Cash Costs | | US$3.23 | US$/lb CuEq payable | | AISC | | US$3.71 | US$/lb CuEq payable | | | | | |

Project Economics & Sensitivity

At the base-case prices in Table 4, recovered payable metal value comprises the following revenue share 34.8% copper, 46.0% nickel, 3.7% gold, 5.9% platinum, 8.1% palladium, 1.1% cobalt, 0.4% silver. The Levack PEA base case pre-tax NPV7% is C$312.1 million and the after-tax NPV7% is C$227.0 million, with an after-tax IRR of 92.4% and payback of 0.6 years. The after-tax NPV7% incorporates the Company’s current tax assumptions, including an estimated benefit of C$20.4 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 C$438.3 million, an after-tax NPV7% of C$313.6 million, an after-tax IRR of 115.8% and payback of 0.4 years. 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 US 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 C$232.1 million and the after-tax IRR increases to 99.2%. This legislation remains subject to approval.

Figure 4: Levack PEA Pre-Tax Cash Flow

Table 4: Levack PEA Economic Summary & Sensitivity Analysis

| Price Deck | Unit | -10% | Base Case | +10% | Spot Price Case | | Copper | US$/lb | $4.59 | $5.10 | $5.61 | $6.55 | | Nickel | US$/lb | $7.20 | $8.00 | $8.80 | $7.50 | | Gold | US$/oz | $3,240 | $3,600 | $3,960 | $4,320 | | Platinum | US$/oz | $1,350 | $1,500 | $1,650 | $1,785 | | Palladium | US$/oz | $1,080 | $1,200 | $1,320 | $1,310 | | Silver | US$/oz | $40.50 | $45.00 | $49.50 | $64.50 | | Cobalt | US$/lb | $18.00 | $20.00 | $22.00 | $24.90 | | USD/CAD | US$ | $0.722 | $0.722 | $0.722 | $0.730 | | LOM Economics | | | | | | | Revenue LOM | C$ million | $1,405.2 | $1,597.1 | $1,788.9 | $1,768.9 | | Operating cash flow | C$ million | $498.2 | $690.0 | $881.9 | $864.0 | | Pre-tax cash flow LOM | C$ million | $254.1 | $445.9 | $637.8 | $619.8 | | After-tax cash flow LOM | C$ million | $195.2 | $326.9 | $458.4 | $446.0 | | Annual averages (commercial production) | | | | | | | Revenue | C$M/year | $186.3 | $211.9 | $237.4 | $234.5 | | Operating cash flow | C$M/year | $65.6 | $91.2 | $116.7 | $114.1 | | Pre-tax cash flow | C$M/year | $40.6 | $66.2 | $91.7 | $89.1 | | After-tax cash flow | C$M/year | $31.8 | $49.3 | $66.7 | $64.9 | | Net Present Value & IRR | | | | | | | Pre-tax NPV(7%) | C$ million | $174.3 | $312.1 | $449.9 | $438.3 | | After-tax NPV(7%) | C$ million | $132.3 | $227.0 | $321.6 | $313.6 | | Pre-tax IRR | % | 73.8% | 107.7% | 137.4% | 136.6% | | After-tax IRR | % | 65.1% | 92.4% | 116.3% | 115.8% | | Payback | years | 0.8 | 0.6 | 0.4 | 0.4 | | After-tax NPV(7%) / Initial Capex | x | 1.9x | 3.2x | 4.6x | 4.5x | | After-tax NPV(7%) with PMD | C$ million | $136.8 | $232.1 | $326.7 | $318.6 | | After-tax IRR with PMD | % | 70.9% | 99.2% | 122.8% | 122.3% | | | | | | | |

Table 5: Base case After-tax NPV(7%) Sensitivity Analysis (C$ million)

| Change | -20% | -10% | 0% | 10% | 20% | | Copper | $160.3 | $193.6 | $227.0 | $260.3 | $293.7 | | Nickel | $139.5 | $183.3 | $227.0 | $270.7 | $314.4 | | Metal prices | $35.9 | $132.3 | $227.0 | $321.6 | $416.1 | | Operating costs | $315.7 | $271.4 | $227.0 | $182.5 | $138.0 | | Capital costs | $251.2 | $239.1 | $227.0 | $214.9 | $202.8 | | | | | | | |

Figure 5: Sensitivity Analysis

Mining, Processing and Infrastructure

As illustrated in Figure 6, existing infrastructure at Levack includes the No. 2 production shaft from surface to the 2,900 Level, an internal No. 3 shaft connecting the 1,500 Level to the 3,600 Level, and an internal ramp from the 1,800 Level to the 5,300 Level at historic gradients of up to 18%. Historic lateral development typically used 10 ft × 10 ft track-drift profiles in waste areas and 15 ft × 16 ft profiles in ramps and access ways. The current Levack ramp standard is 15 ft × 15 ft, which is the design basis for new lateral development in the PEA mine plan.