Magna Mining Inc. announce the successful completion of its Preliminary Economic Assessment by Stantec on its 100% owned Crean Hill Nickel Project located in Sudbury, Ontario, Canada. The Base Case scenario for the PEA envisions a combination of open pit and underground mining, with Life of Mine potential mineable resource being sold to a third-party existing mill in Sudbury. Initial underground mining would be accessed from a new ramp developed from surface, prior to rehabilitation of the existing shaft to access and hoist from the lower elevations.

Resources are mined, crushed, and sampled onsite, then trucked to the third-party mill for processing. An alternative milling scenario was studied comparing the economics of the Base Case with an Alternative Processing scenario through a future mill at the Company's Shakespeare Project. Both the Base Case and Alternative Processing use metal prices of USD 9.50/lb nickel, USD 3.50/lb copper, USD 22.00/lb cobalt, USD 1000/oz platinum, USD 1800/oz Palladium, USD 1700/oz gold, and a 1.3 C$/USD exchange rate.

The Base Case generates a pre- tax NPV (8%) of $290.4 million and an Internal Rate of Return of 23.9%, after-tax NPV (8%) is $230.4 million, with an IRR of 23.4%. The Alternative Processing generates a pre- tax NPV (8%) of $668.8 million and an IRR of 39.6%, after-tax NPV (8%) is $516.1 million, with an IRR of 38.4%. The Study was prepared in accordance with National Instrument 43-101 (NI 43-101 of the Canadian Securities Administrators).

Operating costs assume contractor surface mining and project period underground development, with owner operated underground development and production during the operating period. Previous mining activity at the Crean Hill site makes this project particularly favorable for revitalization. The site is located near the Trans-Canada Highway, approximately 35km from Sudbury with access to a well-established supply and service sector focused on the mining industry.

The PEA envisions both surface open pit and underground mining. The open pit surface mining has been constrained to not interfere with the existing main shaft to the south and water control dam north of the mineralized zones. Initially underground mining areas will be accessed from a newly developed ramp from surface, and dewatering and rehabilitation of the existing main shaft and selected infrastructure will be completed as mining progresses to lower levels.

Surface mining will consist of conventional truck and shovel mining, and underground mining will utilize a combination of conventional longhole and cut and fill stoping. Power lines capable of supporting mining activities are in close proximity to the project, and heating requirements are to be fueled by propane. Mined resource crushing and sampling activities will occur on site prior to shipment to the processing facility.

Water treatment is managed onsite utilizing the existing third-party treatment facility. The Crean Hill project is a brownfield site with existing disturbance and a Closure Plan that has been filed by Vale. Vale retains surface rights to the property and responsibility for the permitting of surface activities.

All surface infrastructure for new operations will be captured in an amended closure plan. Other permits that may be required for new future operations would include a new or amended Environmental Compliance Approval for air and noise related to crushing and transportation, and for drilling and blasting in a future open pit scenario. An additional ECA will be required for domestic sewage along with a regional health authority authorization.

As currently designed in the PEA, there are no requirements for a federal or provincial environmental assessment on site. The PEA assumes that all relevant permits for the commencement of advanced exploration at Crean Hill will be received in fourth quarter 2023.