Clean Air Metals Inc. announced new magnetic inversion results from the company's Thunder Bay North Critical Minerals Project near Thunder Bay, Ontario, Canada (the "Project"). The Thunder Bay North Critical Minerals Project hosts an indicated resource of 13.8Mt containing 1.2M ounces of 2PGE (Pt+Pd), 56,800 tonnes of Cu and 33,800 tonnes of Ni between the twin magmatic intrusions (chonoliths) known as the Current and Escape deposits. The Escape deposit contains 5.8Mt grading 2.6g/t 2PGE (Pt+Pd), 0.52% Cu and 0.22% Ni, as announced May 3rd, 2023.

The bulk of this mineralization is hosted in the high-grade zone (HGZ) occurring in the south-eastern portion of the currently drill defined intrusion. Mineralization remains open to the southeast. A magnetic inversion case study was executed along the trend of the Escape chonolith and the intersection of the Escape fault to the southeast, to model the potential down plunge extension of the deposit.

The study was successful in identifying a volume of material with high magnetic susceptibility at depth, along the plunge of the Escape intrusion. The magnetic inversion model has an estimated top of ~650m below surface with a vertical extent of ~800m and estimated width of 500m and centred ~2000m ESE of the most eastern intersection of peridotite from the Escape drill program (ELR20-034). The entirety of this plunge potential is currently untested.

A larger geophysical inversion program using existing datasets has recently been initiated. Joint inversions of the magnetic, magnetotelluric (MT) and Z-TEM data will be completed for an area of ~80km2 which covers the Thunder Bay North Intrusive complex. The magnetic susceptibility and conductivity products from these inversions will be utilized to target the intrusions and potential mineralization hosted within at depth.

Methodology: Two magnetic inversion models were completed by EarthEX utilizing data from a 2010 ground survey and a 2008 airborne magnetic survey data. The 2008 airborne survey was completed by UTS Geophysics, utilizing a fixed wing PAC-750XL plane with three Geometrics G822A cesium vapour total field magnetometers in conjunction with a fluxgate three component vector magnetometer. The survey was carried out on 40m spaced lines and a nominal sensor height of 30m.

Magnetic inversions were run on both data sets as unconstrained and generated similar results which identified a volume of material with high magnetic susceptibility at depth, along the plunge of the Escape intrusion. On August 22nd the Company received the final report from Base Metallurgical labs for the completed Phase Two metallurgical test program. The test program was completed using large diameter core samples from both the Current and Escape deposits to produce 3 composites and 17 variability samples.

The test program comprised a suite of 80 open circuit development tests, 8 locked cycle flotation tests and follow-up variability tests. Modelled recoveries are shown in Table 1 (below). These were generated using estimated head grades and the recovery curves derived from the Phase Two test program.

Near Surface High Grade Zones (Early Years Mining) Pt Pd Cu Ni Au Ag % Recovery 80.6% 86.2% 95.9% 57.0% 85.0% 65.2% Head Grade 1.58 g/t 1.61 g/t 0.45 % 0.24 % 0.11 g/t 2.77 g/t Remaining Zones (Later Mining) Pt Pd Cu Ni Au Ag % Recovery 77.6% 85.0% 95.4% 55.5% 85.0% 65.2% Head Grade 1.18 g/t 1.30 g/t 0.41 % 0.23 % 0.10 g/t 2.52 g/t Optimal results were achieved with bulk flotation, followed by a copper-nickel separation process which resulted in a simple flowsheet and improved overall recovery of metals in two concentrates. The modelled concentrate grade outlined the potential for a clean copper concentrate grading 22% Cu, 38 g/t Pt+Pd and a PGE Ni-rich concentrate grading 50 g/t Pt+Pd and 3.75% Ni. In addition, the results of three multi-element scans of the concentrates did not identify problematic abundances of deleterious elements.

A preliminary assessment of concentrate marketability was completed and identified that the projected concentrates produced, were marketable with interest and indicative terms received from several domestic and overseas smelters.