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New Age Metals Drills 2.92 g/t Pd+Pt+Au Over 6 m at Banshee Zone

Press Release

April 20, 2022 Rockport, Ontario – New Age Metals Inc. (TSX.V: NAM; OTCQB: NMTLF; FSE: P7J.F) (“NAM” or “Company”) is pleased to announce that drilling intersected Pd+Pt+Au (“3E”) mineralization in all four drill holes completed in 2021 at the Banshee Zone of the River Valley Palladium Deposit near Sudbury, Ontario. The Banshee Zone is located in the northern area of the Deposit, between the key Dana Zones to the north and the Lismer Zones to the east (Figure 1).

Drilling Highlights

  • BZ1-3: 2.92 g/t Pd+Pt+Au (”3E”) over 6 m from 251 m downhole and 0.88 g/t 3E over 4 m from 348 m downhole
  • BZ1-1 intersected 1.47 g/t 3E over 4 m from 118 m downhole
  • Pd mineralization at Banshee Zone appears open to expansion by drilling down-dip

NAM’s Chairman and CEO, Harry Barr, Chairman stated, “Drilling continues to demonstrate strength and continuity of the palladium mineralization at River Valley. This is the first drilling completed at Banshee Zone since 2004. Intersecting the palladium mineralization after almost 20 years is very encouraging, as we plan to expand the Banshee Zone by drilling multiple down-dip and footwall targets in 2022.”

Banshee Zone 2021 Drilling Program

Four of 13 planned holes (totalling 4,175 m) at the Banshee Zone were completed in the summer of 2021. The drill program was designed to expand the Zone by stepping-out distances of 25 m to 50 m below the base of the 2021 Updated Mineral Resources at Banshee Zone. The drilling was paused on completion of the fourth hole, in order for NAM to focus on completion of the site investigation work for the ongoing Pre-Feasibility Study at the River Valley Project.

The four holes (totalling 1,295 m) completed were drilled at the south end of the Banshee Zone. Three of the drill holes (BZ1-1, BZ1-2 and BZ1-3) were completed on the southernmost cross-section and the fourth drill hole (BZ2-1) was completed on the next cross-section 50 m to the north (Figure 1 and Table 1). All four holes intersected palladium mineralization. Assay results have been received from SGS Canada (Table 2) and the highlights are described below:

  • BZ1-1: Intersected 1.47 g/t 3E and 0.16% Cu or $87.58/t NSR over 4 m of disseminated and blebby sulphide mineralization from 118 m downhole. This hole was drilled 25 m above historical hole BL-12 and confirmed that strong Pd mineralization extends towards surface (i.e., overburden/bedrock interface). This hole also intersected four additional,
    lower-grade, mineralized intervals all within the favourable Breccia Unit of the
    River Valley Intrusion.
  • BZ1-2: Intersected 0.33 g/t 3E and 0.09% Cu or $21.59/t NSR over 9 m of disseminated and blebby sulphide mineralizationfrom 154 m downhole. Six additional similar grade intervals ranging from 3 m to 13 m in downhole thickness were encountered before the hole was completed, all in the Favourable Breccia Unit. This hole was drilled below historical hole BL-12.
  • BZ1-3: Intersected 2.92 g/t 3E and 0.06% Cu or $153.91/t NSR over 6 m of disseminated and blebby sulphide mineralization from 251 m downhole and 0.88 g/t 3E and 0.04% Cu over 4 m from 348 m downhole. This was the deepest hole completed on the drill section and extends mineralization for 30 m below the 2021 Updated Mineral Resources (Figure 2); and
  • BZ2-1: Intersected 0.40 g/t 3E and 0.04% Cu over 11 m of disseminated sulphide mineralization from 204 m downhole. Two additional, similar grade intervals 7 m and
    20 m in downhole thickness of disseminated and blebby sulphide mineralization were also encountered, again all in the favourable Breccia Unit. Moreover, BZ2-1 also intersected 3.09 g/t 3E and 0.02% Cu over 2 m from 194 m downhole, including 5.28 g/t 3E and 0.01% Cu over 1 m. These assay results extend mineralization 25 m below the 2021 updated Mineral Resources (Figure 2).
Figure 1. Location and traces of the 4 (labelled) drill holes completed at Banshee Zone in August 2021.
The drill plan in its entirety consists of 13 holes totalling 4,175 m along 10 cross-sections of Banshee’s 700 m strike-length. The deepest hole is designed to penetrate to 300 m vertically below surface. Details of the Banshee Zone Mineral Resource Estimate, including the NSR formula, are available on the Company website (www.newagemetals.com) and under the Company profile on SEDAR.
Figure 2. View looking north at the mineralized assay intervals in the Banshee Zone 2021 drill holes. The assay results indicate that the Banshee Zone is open to expansion by drilling down-dip. Surface (top of the red body) at approximately 300 m above sea level. Red body = wireframed domains for the 2021 updated Mineral Resource Estimate of Banshee Zone. Black = historical drill hole collar locations and traces.
*Coordinates NAD83 Zone 17NTable 1:
Table 2:

Notes:

1 Core length intervals are apparent, not true.
2 Mineralized intervals calculated at 0.2 g/t 3E cut-off and 3 m minimum width.
3 NSR formula given in NAM press release dated October 5, 2021. For more details, see the Technical Report
dated November 19 and filed under the Company’s profile on SEDAR.

Next Steps

The next steps at the Banshee Zone are to complete the nine drill holes (totalling 2,875 m on eight cross-sections) remaining from the 2021 planned program. First though, the drill hole plan will be revisited for adjustment in view of the 2021 surface IP survey at Banshee Zone (see NAM press release dated October 26, 2021), the results of which were unavailable in time to influence the original plan. In addition to the expansion drilling, three in-fill drill holes are to be completed in 2022 on a single cross-section, in order to advance Inferred to Indicated Mineral Resources in the centre of the Banshee Zone. The Banshee Zone program in 2022 would be in addition to
follow-up drilling of the new, higher-grade mineralization recently exposed 700 m to the north near the Dana South Zone (see press release dated March 9, 2022).

Assay Procedures & QA/QC

The four Banshee Zone holes were drilled under the supervision of NAM geologists. The core samples were sent to the SGS Canada Inc. Laboratory in Lakefield, Ontario, for initial sample preparation, and then to SGS Laboratory in Burnaby, BC for assay analysis. The sample preparation involved crushing of 3 kg of each sample to 90% passing 1.25 mm, and then pulverizing a representative subsample of ~0.1 kg to 85% passing 75 µm. Palladium, platinum and gold were analyzed by fire assay with ICP-AES finish (GE-FAI30V5). Copper, nickel and 32 additional elements were assayed by two-acid digestion and ICP-OES finish (GE-ICP21B20). Blanks and blind certified standard samples were submitted at regular intervals for assay with the core samples, as part of NAM’s rigorous Quality Assurance/Quality Control program.

About Banshee Zone

The Banshee Zone was drilled between 2002 and 2004 and is currently defined in 22 diamond drill holes totaling 4,274 m together with surface outcrop exposures. The Banshee Zone measures 700 m long and up to 100 m wide, is drilled to an average depth of 134 m vertically below surface (maximum depth = 261 m), strikes N-NW, and dips vertically to steeply to the east (i.e., overturned). The mineralization appears to be truncated to the north and south by steeply-dipping conjugate faults, but may be transposed into the structures before pinching out.

At a CDN$15 NSR/t cut-off, the 2021 updated Mineral Resource Estimate of the Banshee Zone is 2.44 Mt grading 0.29 g/t Pd, 0.17 g/t Pt, 0.03 g/t Au, 0.06% Cu, 0.01% Ni, or CDN$30.11 NSR/t for 39 koz of 3E in the Indicated classification and 3.51 Mt grading 0.29 g/t Pd, 0.16 g/t Pt, 0.06% Cu, 0.01% Ni or CDN$29.28 NSR/t for 53 koz of 3E in the Inferred classification. The Banshee Zone remains open to expansion by drilling, particularly at depth.

The Banshee Zone is located between the core Dana Zones to the North and the Lismer Zones to the east and south (Figure 1), which collectively are the focus of the ongoing Pre-Feasibility Study of the River Valley Project. Due to its central location, Banshee could therefore be of strategic interest to any potential future mining-processing operation at the Project.

Pre-Feasibility Study Update

A Pre-Feasibility Study of the River Valley Palladium Project was announced in a Company press release dated April, 2021, and a progress update was announced press release dated November 10, 2021. At this point, recipes for the Dana Zone and Lismer Zone composites have been delivered by DENM Engineering to SGS Lakefield and grind and flotation work is underway. The geomechanical-hydrogeological and geotechnical site investigation studies by Knight Piésold Ltd. are completed. Story Environmental continue baseline environmental studies of the River Valley Property and establishing meaningful relationships with local Indigenous Communities. In a press release dated January 26, 2022, NAM announced that a Memorandum of Understanding (“MOU”) had been signed with Nipissing First Nation. This MOU is in addition to that signed with Temagami First Nation in 2014 and renewed in 2017.

VP Business Development

In addition, the Company announces the resignation of Mr. Cody Hunt as VP Business Development effective April 14, 2022.  Mr. Hunt has been an extremely valuable member of the New Age Metals team.  The board of directors and management would like to thank Mr. Hunt for his years of service and wish him well with his future endeavours.

About River Valley

The River Valley Palladium Project is located 100 road-km east from the City of Sudbury.
The Project area is linked to Sudbury by a network of all-weather highways, roads and rail beds and is accessible year-round with hydro grid and natural gas power nearby. River Valley enjoys the strong support of local communities, like the village of River Valley, 20 km to the south.
Fully executed Memorandum of Understandings are in place with local First Nations, environmental baseline studies re-commenced in 2020, and archeological studies were completed in 2021.

The current Mineral Resource Estimate was announced in a press release dated October 5, 2021. At cut-offs of CDN$15/t NSR (pit constrained) and CDN$50/t NSR (out-of-pit), the Mineral Resource Estimate consists of: 89.9 Mt grading 0.54 g/t Pd, 0.21 g/t Pt, 0.04 g/t Au and 0.06% Cu, or CDN$47.58/t NSR in the Measured and Indicated classifications; and 94 Mt grading 0.35 g/t Pd, 0.16 g/t Pt, 0.04 g/t Au and 0.06% Cu, or CDN$31.69/t NSR in the Inferred classification. Contained metal contents are 2.3 Moz Pd+Pt+Au in the Measured and Indicated classifications and 1.6 Moz Pd+Pt+Au in the Inferred classification.

The 2019 PEA results for the River Valley Palladium Project were announced in a press release dated June 27, 2019, and are based on the updated 2019 Mineral Resource Estimate for River Valley. The 2019 PEA outlines a 20,000 t/day open pit mine and processing plant operation producing an average of 119,000 ounces of PdEq per year over a mine life of 14 years. Using base case metal prices of US$1,200/oz Pd, $1,050/oz Pt and $3.25/lb Cu, the PEA showed a pre-tax NPV5% of US$261 million and a pre-tax IRR of 13%. At a +20% palladium price of $1,440/oz Pd, the pre-tax NPV5% increases to $501M and the pre-tax IRR to 19%. Note that as of March 7, 2022, the palladium price hit a new all-time high of $US 3,499/oz (Kitco).

The 2021 updated Mineral Resource Estimate will form a basis for the ongoing Pre-Feasibility Study of the River Valley Palladium Project.

About NAM

New Age Metals is a junior mineral exploration and development company focused on the discovery, exploration and development of green metal projects in North America. The Company has two divisions; a Platinum Group Metals division and a Lithium/Rare Element division.

The PGM Division includes the 100% owned, multi-million-ounce, district scale River Valley Project, one of North America’s largest undeveloped Platinum Group Metals Projects, situated 100 km by road east of Sudbury, Ontario. The Company completed a positive Preliminary Economic Assessment on the Project in 2019 and, is fully financed to complete a Pre-Feasibility Study on the Project in 2022. In addition to River Valley, the Company owns 100% of the Genesis PGM-Cu-Ni Project in Alaska, and has plans to complete a surface mapping and sampling program in 2022.

The Lithium Division is one of the largest mineral claim holders in the Winnipeg River Pegmatite Field, where the Company is exploring for hard rock lithium and various rare elements such as tantalum and rubidium. In 2021 drone geophysics were completed on at least five of the Company’s seven projects and in March 2022 the maiden drill results on the Company’s Lithium Two Project were announced. On September 28th, 2021, the Company announced a partnership with Mineral Resource Limited (MRL, ASX: MIN), the world’s fifth largest lithium producer to explore and develop the Company’s lithium project portfolio. NAM is currently finalizing the 2022 exploration budget and management believes that 2022 will include the most aggressive exploration on the projects to date.]

Our philosophy is to be a project generator with the objective of optioning our projects with major and junior mining companies through to production. The Company is actively seeking an option/ joint venture partner for its road-accessible Genesis PGM-Cu-Ni project in Alaska.

Investors are invited to visit the New Age Metals website at www.newagemetals.com where they can review the company and its corporate activities. Any questions or comments can be directed to [email protected] or Harry Barr at [email protected] call 613 659 2773.

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Qualified Persons

The contents contained herein that relate to the scientific and exploration results for the River Valley Project is based on information compiled, reviewed or prepared by Dr. Bill Stone, P.Geo., a consulting geoscientist for New Age Metals. Dr. Stone is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical content of this news release.

On behalf of the Board of Directors

“Harry Barr”

Harry G. Barr

Chairman and CEO

IBF4

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