Temas Announces La Blache Titanium-Vanadium-Iron Project PEA Demonstrates CAD $6.8B NPV8 55.1% IRR Post-Tax Return

Strong Economics Supported by $23.1B EBITDA over a 14-year Mine Life in Canada's Mining Friendly Jurisdiction of Quebec

VANCOUVER, BC / ACCESSWIRE / February 7, 2024 / Temas Resources Corp. ("Temas" or the "Company") (CSE:TMAS) is pleased to report positive results of an Independent Technical Report and Preliminary Economic Assessment ("PEA") for the wholly-owned La Blache Ti-V-Fe Project located in the Cote Nord region of Quebec.

Project economics were estimated assuming market demand supports constant prices of USD $2,200/tonne ("t") for titanium dioxide (97.8% purity TiO₂), USD $14,200/t for vanadium pentoxide (V₂0₅) and USD $125/t iron oxide (Fe₂O₃). The PEA to be filed on SEDAR will present a complete description and list of assumptions. Capital and operating cost estimates were prepared based on current and expected long-term pricing assumptions and to a PEA level +/- 35% level of accuracy.

Tim Fernback, President of Temas Resources comments, "We are extremely pleased with the strong economics presented in this PEA on the La Blache Titanium-Vanadium-Iron Project in Quebec. Titanium has been trading well above our assumptions of USD $2,200 per tonne for over three years at over USD $3,000 per tonne since August 2022, and we believe this trend will continue due to the increasing demand for TiO₂, major global supply coming to end of life, and lack of both brownfield expansion and new projects coming online in North America. The PEA further increases our confidence in the Project and showcases our proprietary, environmentally friendly extraction technology. With a current market cap of CAD $5M, I am excited to engage with all our stakeholders to unlock the value of this highly robust Project as we advance the asset forward."

PEA HIGHLIGHTS

Note:
All values in this news release are reported in CAD unless otherwise noted.
Assumed prices for LOM: USD $2,200/t TiO_2, USD $14,200/t V₂O₅, USD $125/t Fe₂O₃.
Units expressed in metric tonnes.

MINERAL RESOURCES

The basis for the PEA is the Mineral Resource Estimate ("MRE") prepared by Samer Hmoud, (P.Geo. PGO), currently holding Special Authorization from OGQ, under the supervision of QP Jacques Dumouchel, P.Geo., OGQ.

The updated Mineral Resource Statement generated for La Blache is as follows:

Reported at a cut-off grade of 4.9 % TiO₂, at a minimum mining block size of 10x10x10 meters ("m"), considering 3.51:1 strip ratio, bench height 5m, pit slope of 45° processing and selling technical parameters and costs benchmark against similar projects and a selling price of USD $2,200/t (TiO₂), USD $14,200/t (V₂O₅) and USD $125/t (Fe₂O₃). All figures are rounded to reflect the relative accuracy of the estimates. Mineral Resources are not Mineral Reserves and do not have a demonstrated economic viability. The contained TiO₂ represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery and may have discrepancies due to rounding.

An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated based on limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that most of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

SUMMARY OF PRELIMINARY ECONOMIC ASSESSMENT

Project economics were estimated assuming a constant price of USD $2,200/t for titanium dioxide (97.8% purity), USD $14,200/t for vanadium pentoxide and USD $125/t iron oxide. The PEA will present a complete description and list of assumptions. Capital and operating cost estimates were prepared based on current and expected long-term pricing assumptions and to a PEA level +/- 35% level of accuracy.

In summary, the Project has a post-tax LOM net project cashflow (pre-finance) of CAD $15.9 billion which returns a pre-tax NPV₈ of CAD $9.4 billion, post-tax NPV₈ of CAD $6.8 billion and an IRR of 55.1%. The following table presents the summary LOM cash flow resulting from the Technical Economic Model.

Exchange Rate: 1.35 CAD : 1.00 USD

SENSITIVITIES

The following table shows the pre-tax and post-tax NPV₈ at varying discount rates.

The base case discount rate of 8% returns a pre-tax NPV₈ of CAD $9.4 billion (USD $7.0 billion) and post-tax NPV₈ CAD $6.8 billion (USD $5.0 billion) post-tax.

Exchange Rate: 1.35 CAD : 1.00 USD

The following table and figure show the effect on the post-tax NPV₈ at varying revenue, Opex, Capex, and material price levels (from -50% to +50%):