The Thor Project is a greenfield project that demonstrates very good potential for advancement to development. The PEA results are positive and support the rapid advancement of the project. However, the PEA is just the first in a series of many de-risking steps.

‍

Note that PEA financial results are neither definitive, nor do they represent the valuation of the Thor Project or the Company. They do not provide the same level of detail and assurance as prefeasibility or feasibility studies, which are the next steps for CEM.

‍

The next steps to de-risking the project are to complete a Prefeasibility Study and the design engineering for a commercial demonstration plant. This includes constant evaluation of project scenarios, sensitivities and risks identified, along with the assumptions applied, to further optimize decisions to advance the Thor Project.

‍

In 2026, CEM’s key milestones include:

‍

• Updating the mineral resource estimate to incorporate the 2025 drill program;
• Preparing a Prefeasibility Study; 
• Identifying the potential for other metals, including Smelter Grade Alumina (“SGA”), scandium and vanadium; and
• Pursuing opportunities to advance, finance and monetize the Thor Project for its shareholders for maximum value.

No. The PEA does not represent the current enterprise value of the Company. Market valuations are based on stage of development, capital requirements, timeline to production and risk expectations, which are all highly variable and subject to judgement. The PEA provides a preliminary estimate of long-term project economics under specific assumptions. The positive results demonstrated by our PEA firmly justified continuing the evaluation of the Thor Project.

‍

The Company’s primary objective is to advance the project through de-risking milestones to bridge intrinsic project value and realized enterprise value.

The demonstration plant is designed to validate process scalability and confirm product quality at a larger scale. Commercial production of alumina from a polymetallic shale deposit is a significant de-risking step for the Thor Project. For specialty products such as High Purity Alumina (HPA) and Chemical Grade Alumina (CGA), commercial validation is also a key value catalyst.

‍

Demonstrated scalability:

‍

• Reduces technical risk;
• Supports future offtake negotiations;
• Improves financing optionality; and
• Enhances credibility with the industry and strategic partners.

‍

While the results of the PEA are encouraging, the Thor Project remains in the development stage and is subject to risks typical of large-scale resource projects, including:

‍

• Study and Engineering Risk — Further work through a PFS is required to refine capital costs, operating assumptions and project design. Future studies may differ from PEA assumptions.
• Capital and Financing Risk — The Project will require significant capital investment.
• Permitting and Regulatory Risk — Development will require environmental approvals and permits, which may affect timelines and costs.
• Metallurgical and Scale Risk — While pilot work has confirmed production of HPA and CGA, further validation is required to demonstrate commercial scalability.
• Execution Risk — Construction of a large open-pit mine involves cost, schedule and operational performance risks.

‍

Please refer to detailed risk factors in the PEA:

‍

• Technical Report, Thor Project, Tisdale, Saskatchewan, Canada, dated January 15, 2025; and
• Technical Report, Thor Project, Tisdale, Saskatchewan, Canada, dated May 7, 2026.

‍

Any greenfield project at this stage has numerous risks, both known and unknown. In order to successfully advance the Thor Project, the Company intends to de-risk the known constraints and identify challenges not currently known, and to address them to increase value for all our stakeholders.

‍

Specific project risks are also identified in the Technical Reports filed on SEDAR+ (www.sedarplus.ca).

‍

CEM is a private resource development company. CEM has raised more than C$50 million since inception. The Company will continue to require funding to advance the Thor Project to development. As a result, the Company continues to have an active dialogue with strategic and financial partners for the next financing steps as part of its overall business plan.

The Company approaches financing decisions with an emphasis on:

‍

• Protecting long-term valuation;
• Aligning with global strategic or institutional partners;
• Minimizing unnecessary dilution; and
• Sequencing capital raises to match de-risking milestones.

‍

No financing decisions are finalized without Board review and external advisors.

Project valuation in the mining and resource sector reflects both intrinsic value and the current stage of development.

‍

A mining project typically has the following lifecycle path:

Prospecting → Exploration → Drilling, Testing and Piloting → Feasibility assessments → Environmental and social assessments → Planning and development → Regulatory and government permit approval → Project financing → Construction and commissioning → Production → De-commissioning.

‍

Feasibility assessments begin with a Preliminary Economic Assessment (PEA), followed by a Prefeasibility Study (PFS) and then a Feasibility Study (FS). De-risking at each of these milestone steps (PEA → PFS → FS) leads to increased value.

‍

While the PEA confirms substantial long-term potential, enterprise value at any given time reflects the level of technical, financing, permitting and market risk remaining in the lifecycle.

‍

As the Company advances through engineering, validation, permitting and strategic engagement milestones, risk is reduced and valuation will typically improve accordingly.

‍

Through acid leaching and calcination, with a focus on minimizing waste and non-economic residue.

Alumina (aluminum oxide) is the intermediate material from which aluminum metal is extracted. Alumina is a hard, ceramic compound made of aluminum and oxygen.

‍

Aluminum is a lightweight, silvery metal used in products like cans, aircraft and wiring because it conducts electricity and resists corrosion.

They are two spellings of the same metal (chemical symbol Al). There is no difference in the material itself. “Aluminum” is the standard spelling in North America, while “aluminium” is used across most of the rest of the world and is the form adopted by the International Union of Pure and Applied Chemistry (IUPAC).

‍

CEM uses “aluminum,” consistent with North American convention.

Canada is a major aluminum producer with one alumina refinery and numerous smelters.

‍

Aluminum is essential for the industries driving global growth — everything from EVs and clean energy to construction and aerospace.

‍

The world’s current aluminum supply is heavily concentrated in a few regions, creating vulnerability in global supply chains. This exposes manufacturers to geopolitical risk, while Canada offers a secure, low-carbon supply supported by stable governance and strong environmental standards. Canada is a leader in energy-focused and advanced materials industries.

‍

Aluminum represents a cornerstone of Canada’s critical minerals strategy. The opportunity to deepen its resource self-reliance and increase its share of processing value-added is a fundamental tenet of Saskatchewan’s and Canada’s economic objectives.

‍