Q2 Metals Announces PEA with C$13.5 Billion After-Tax NPV₈ for 1.7 Mtpa Cisco Lithium Project in Québec, Canada

(OTCQB:QUEXF, FSE:458) Q2 Metals Corp. announced the results of a Preliminary Economic Assessment (PEA) for the Cisco Lithium Project. The PEA is the first conceptual assessment of the economics of the staged development of the Cisco Project and outlines its potential to be among the largest and lowest cost spodumene concentrate producers globally. Alicia Milne, President and CEO of Q2 Metals, stated that the Cisco Project has advanced from discovery to PEA-stage in two and a half years and was recognized as 'Discovery of the Year' by the Association de l’Exploration Minière du Québec in November 2026. The PEA was prepared by BBA Consultants and describes a two-phase open-pit mining operation reaching 10 million tonnes per annum (Mtpa) of plant feed. The initial capital (CAPEX) is estimated at C$2,926 million, with a life-of-mine (LOM) operating cost of C$11,913 million and an all-in sustaining cost (AISC) of C$454/tonne of spodumene concentrate grading 5.5% Li₂O (SC5.5). The mine is expected to operate for approximately 28 years, processing 264.2 million tonnes of material and producing 46.5 million tonnes of SC5.5. The PEA assumes a long-term SC6.0 price of US$1,900/t (CIF China), a long-term SC5.5 price of US$1,742/t (CIF China), and an exchange rate of US$1.00 = C$1.39. The pre-tax NPV8 is C$23,052 million with a pre-tax IRR of 48.5%, and the after-tax NPV8 is C$13,490 million with an after-tax IRR of 38.7%. The after-tax payback period is 3.0 years from the start of production. Total gross revenue over the LOM is estimated at C$106,441 million, with pre-tax cash flow of C$81,216 million and after-tax cash flow of C$46,879 million. Other costs include sustaining capital of C$589 million, concentrate transportation cost of C$8,486 million, royalty cost of C$1,064 million, and closure and reclamation cost of C$141 million. The project comprises 801 Exclusive Exploration Rights totaling 41,253 hectares in the Eeyou Istchee James Bay region of Quebec, Canada, and is located 6.5 km from the Billy Diamond Highway and ~150 km from Matagami. The updated Inferred Mineral Resource Estimate (May 26, 2026) is 297,377,000 tonnes at 1.36% Li₂O (4,059,000 tonnes Li₂O, 10,037,000 tonnes LCE), with open-pit and underground components. The mine plan includes seven phases over 28 years, with a strip ratio of 2.44:1 and a metallurgical cut-off grade of 0.50% Li₂O. The PEA is preliminary in nature, based solely on Inferred Mineral Resources, and there is no certainty that the results will be realized. The technical report supporting the PEA and the May 2026 MRE will be filed on SEDAR+ within 45 days of the news release. The company maintains ongoing dialogue with the Cree Nation Government, Cree Nations of Nemaska and Waswanipi, local tallymen, the Town of Matagami, and the Eeyou Istchee James Bay Regional Government, and has developed partnerships with Cree-owned and regional businesses.

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