Hennes Bay & Swan Lake Project

Projects Overview

Arctic Minerals has two projects located in Sweden, one of Europe’s major mining economies. The country has a long mining history and is home to one of Europe’s largest copper producers (Boliden), with proximity to end markets.

Sweden has extensive infrastructure network (roads, rail, ports, air, communications) and hydro and nuclear base load power.

The country ranks in the Top 10 mining jurisdictions globally, with the government supportive of mining, low taxes (20.6% corporate tax rate) and royalties (0.2%). The government has a stated ambition to be a leader in the Green Industrial Revolution with an acceptance that mining is required to provide critical metals.

In terms of exploration potential, Sweden has massive metal endowment and little to no modern exploration has been undertaken outside of known deposits. Arctic Minerals’ first-class team of explorers and developers have extensive operating experience and recent success in Sweden.

Hennes Bay Project

The Company’s 100% owned Hennes Bay copper-silver project is located in the Dalsland region of southwest Sweden. It comprises 14 granted exploration permits covering approximately 414 km2 (Figure 1).

Key project milestones:

The Project is located in a largely unexplored part of the Grenville Orogeny – mountain building system which gave rise to world class sediment-hosted copper deposits including Kamoa-Kakula and Tenke-Fungurumi (Democratic Republic of Congo) and White Pine (USA) (Figure 2).

Hennes Bay Mineral Resource Estimate

Arctic Minerals AB announced the maiden JORC compliant Inferred Mineral Resource Estimate (“MRE”) for its 100% owned Hennes Bay copper-silver project in March 2025.

The maiden MRE for Hennes Bay is 55.39Mt at 1.0% CuEq (0.8% Cu & 20.8g/t Ag) for a total 543,000t CuEq contained metal (above a 0.8% CuEq cut-off). The total metal content comprises 447kt of copper and 36.99Moz of silver.

The Company engaged Cube Consulting, a highly regarded Australian independent consulting firm, to prepare and report the maiden MRE for Hennes Bay in accordance with the JORC Code (2012).

The MRE is based solely on the Dingelvik prospect where 62 drill holes for 8,822m of drilling were completed by 1984 by SGAB. Arctic Minerals has completed detailing relogging and reassaying of the drill core, and resurveying of drill hole collars, for a representative subset of historical drill holes to demonstrate the veracity of the historical data.

Table 1. Hennes Bay Maiden JORC Compliant Mineral Resource Estimate and cutoff grade sensitivity

**Note:** The MRE is reported at 0.8% CuEq. cut-off. Refer to the following sections of this release and Appendix ‘JORC Table 1’ for further details on the MRE. Totals may vary due to rounding. Refer to the compliance statements for details on parameters used to calculate metal equivalents. The table above is prepared on the basis of the assumptions referred to under Hennes Bay Resource Cut Off Grade and Modifying Mining and Metallurgical Factors.

Growth Potential

Whilst the release of a maiden MRE for Hennes Bay is a significant milestone, the Project has immense resource growth and exploration upside potential and the Company believes the opportunity to significantly expand on the MRE in the near to medium term is substantial.

The maiden MRE is based solely on the Dingelvik prospect, where mineralisation remains open in all directions. Extensive zones of mineralisation defined by historical drilling at several other prospects, namely Asselbyn, Henneviken, Baldersnäs, Åsnebo and Härserud Norra, have not been included in the maiden MRE. With limited further drilling, these prospects have the potential to be upgraded to the Inferred Resource category and added to the Hennes Bay MRE (Figure 3).

The zones of mineralisation drilled at prospects, located in the northern portion of the Company extensive ground holding at Hennes Bay, are interpreted to represent the distal part of a sediment-hosted stratiform copper mineral system (“SSC”).

SSC mineral systems favor the formation of very large deposits and mineral districts with consistent mineralisation (Figure 5 and Figure 6), represent the most important source of copper produced in the world after porphyry copper deposits, and account for 20-25% of the global production and reserves.

Within Arctic Minerals’ tenement package at Hennes Bay, which covers 414km², less than 5% of the aerially extensive sediment-hosted stratiform copper target horizon has been drill tested to date (Figure 4).

As mentioned above, the mineralisation at Dingelvik and the other known prospects is interpreted to represent the distal part of a SSC mineral system. This interpretation is due to the uniform mineralisation grades observed over a large area, together with preliminary geological reconstruction of the original rift basin and the setting of the known mineralisation within this framework. Identifying the proximal parts of the SSC mineral system is an exploration priority given the potential for these target areas to host higher grade mineralisation (Figure 4 and Figure 5).

Surface outcrops of the same mineralised contact have been mapped and sampled (grab sample results including 1.78% Cu & 40 g/t Ag) up to 17km from the MRE further highlighting the scale potential of the Project (Figure 6).

In the Company’s view, the detailed relogging and reassaying of historical core, extensive fieldwork, and reprocessing of available geophysical data conducted over the past two years has confirmed the potential for substantial resource growth and new discoveries through further targeted drilling at Hennes Bay.

Interpretation of historical and recent airborne geophysical data over the Dalsland formation has provided substantial insights to the stratigraphy and structural evolution in the region which have been incorporated into the Company’s conceptual geological model and exploration targeting criteria for Hennes Bay. Interpretation of rock lithogeochemistry from drill core and outcrops was completed to aid in distinguishing key stratigraphic markers, as well as to give a preliminary assessment of vectoring methodologies.

Geophysical CampaignS

2025 MMT Survey Results

An initial airborne MMT survey covering Asselbyn, Dingelvik and Stora Strand was completed in August 2025. The survey covered 135km² which represents ~34% of the overall 414km² tenement package at Hennes Bay.

The survey outcomes included:

Highly successful geophysics campaign generated multiple high-priority targets, including extensions to known prospects and new near surface and at depth anomalies (Figure 10).
The combined area of the new targets is 10 times larger (by surface extrapolation) than the area of the existing 55Mt MRE at Dingelvik.
Integration of MMT and magnetic vector inversion (“MVI”) data delivered high confidence targeting.

The seven high-priority targets identified include:

Henneviken – Asselbyn: A continuous shallow magnetic high and conductive trend links Henneviken to Asselbyn, suggesting a southern and depth extension of the Cu bearing horizon beyond the mineralisation intersected by historic drilling.
Henneviken East (North & South): A newly detected and untested ~6km NW–SE magnetic corridor located ~2km east of Henneviken follows mapped faults that may have controlled Cu mineralisation. The southern end overlaps a strong MMT conductor, forming a coincident magnetic–conductive zone. A separate and untested conductive anomaly appears to trace a fold in the Cu bearing horizon.
Baldersnäs: A strong conductive trend (MMT) NE of Dingelvik aligns with the edge of the original Baldersnäs prospect, the Dingelvik MRE, and a mapped NW–SE fault which coincides with shallow magnetic highs larger than those seen within the current Dingelvik footprint.
Dingelvik South: A newly detected, large, deep magnetic feature with feeder-like structures, a potential source zone for the Dingelvik MRE.
Ravarp: A newly detected target that hosts a deep magnetic high located at the apex of a folded magnetic belt adjacent to the Cu bearing horizon. This feature forms part of a broader north-trending magnetic-high corridor that mirrors the orientation of the Cu bearing horizon within favourable host rocks.
Stora Strand: A NW-SE conductive corridor intersects a deep magnetic high that rises toward surface, creating a clear overlap of conductivity and magnetics which aligns with the historic Stora Strand Cu mine.
Dingelvik MRE Extension: Magnetic and conductivity anomalies representing potential extensions to the known MRE.

Interpretation of the 2025 MMT geophysical data showed a clear correlation between conductive anomalies and known Cu mineralisation at Dingelvik. This relationship provided a strong “Proof of Concept” for the MMT technology, confirming it as an effective exploration tool within the Hennes Bay sediment-hosted Cu mineral system. The results gave the Company confidence that MMT can successfully detect and map Cu mineralisation in this geological setting.

2026 Airborne Magneto-Telluric (“MMT”) Survey

A second regional-scale airborne MMT survey commenced in 2026 to cover 150km2 of the Company’s ground
holding immediately to the north and south of the initial survey completed in 2025.

Positive Underground (“UG”) Mining Conceptual Study

The findings of the UG Conceptual Study at Dingelvik announced in September 2025, have clearly demonstrated the potential for a large-scale UG mining operation at Hennes Bay. The Study has confirmed the technical viability of mining the Dingelvik MRE via decline access and UG Room and Pillar stoping, with an estimated haulage rate of between 3.0 Mtpa and 4.0 Mtpa for at least ten years.

The Study has presented the Company with the opportunity to develop the “Underground Mine of the Future” utilising a combination of proven technologies and modern energy efficient equipment, and maintaining very high standards in safety, energy and cost efficiency.

The conceptual mining study is a critical component of the PEA work program which is ongoing and includes several technical studies including metallurgical testwork, geotechnical and hydrogeological studies.

The Study was conducted on the maiden Hennes Bay MRE, with the objective to confirm the technical viability of UG mining of the Dingelvik deposit utilising modern, readily available mining equipment, a proven mining method, and with the application of technologies aimed at setting a new benchmark for the “Underground Mine of the Future”.

Deswik Mining Consultants (“Deswik”), a highly regarded Australian independent consulting firm, were engaged to undertake the Study based upon the following Scope of Work:

Select an appropriate UG mining method that allows the maximisation of mining rate and minimisation of mining dilution through the use of modern and energy efficient UG mining equipment
Design stopes based on the Hennes Bay MRE (Dingelvik deposit) and a realistic cut-off grade benchmarked against other UG mining operations in the Nordic region
Design the decline and ventilation access with the aim of maximising capital development inside of the orebody that can be developed with the stope mining fleet
Sub-divide the MRE into independent mining areas that could either be mined concurrently or one after another • Design the size of decline that matches the stoping capabilities of each independent mining area

The design process followed by Deswik was to initially analyse the Dingelvik MRE, with a focus on the dip and thickness of the mineralisation and decide on where to subdivide the deposit into independent mining areas. Based upon these initial findings, the mining, orebody access, and ventilation methods were chosen.

Stoping design followed, with a focus on the cut-off grade determined through the benchmarking of other Nordic UG mining operations.

A cut-off grade was estimated (Table 2) with UG mining costs of 203 SEK/tonne of ore mined based upon benchmarking against similar scale UG mining operations in the Nordic region. Costs for processing and administration were also derived from benchmarking of similar sized projects within the Nordic region. A 21% contingency was applied to the costs to allow for potential uncertainties in long-term metal prices, mining costs, metallurgical recoveries, and state royalties.

Copper and silver prices of US$9,500/tonne and US$28/oz respectively (representing the spot prices on the London Metal Exchange on 31 July 2025) were used. These assumptions are significantly below the current spot metal prices (~US$12,700/tonne and US$77/oz for copper and silver respectively as at 18 February 2026).

Overall metallurgical recovery of 90% was assumed based upon historical results from the Stora Strand mine. On the basis of these assumptions, the cut-off grade was estimated at 0.56% CuEq and rounded up to 0.6% CuEq for the purpose of the Study.

Note that no modern investigations into geotechnical properties of the Dingelvik orebody have been undertaken to date, although indications from historical mining at Stora Strand suggested solid rock conditions, the proof of which can be observed in UG stopes that have been open since the early 1900’s and containing little to no rock reinforcement.

Diamond Drilling underway

The Phase 1 – Diamond Drilling Program (“DP-01”) commenced in March 2026. By the end of June quarter, 2,905m of drilling has been completed, with the program scheduled to be completed by the end of August 2026.

The DP-01 drilling program, which comprises a total of ~4,000m, is focused on the potential upgrading of mineralisation defined by historical drilling at several prospects (Asslebyn, Henneviken, Baldersnäs, Åsnebo) to the Inferred resource category, as well as increasing the current MRE through step out drilling at the Dingelvik prospect.

The drilling is being undertaken by leading Nordic focussed diamond drilling company Protek Norr who were awarded the contract for the DP-01 drilling program.

Permitting programme

The project requires two sequential regulatory approvals before mining can commence: (1) an Exploitation Concession (“EC”) from the Swedish Mining Inspectorate (“Bergsstaten”) and (2) an Environmental Permit from the Land and Environment Court (Mark- och miljödomstolen). The main policy instruments are the Minerals Act (1991:45), the Environmental Code (1998:808), and the Planning and Building Act (2010:900). Both a Municipal Detailed Plan and a Power Line Concession are parallel processes with potentially long lead times and must be initiated well in advance.

Experienced Specialist Consultants Engaged

The Company’s permitting programme has been designed and the comprehensive scope of work allocated across five specialist consulting groups:

Geosyntec consultants: Lead in-country environmental consultant. EIA project management, hydrology and geohydrology, extended surface water monitoring, waste rock characterisation, and stakeholder consultation execution.
EnviroPlanning: Terrestrial habitat, vertebrate fauna surveys, Jönköping Method watercourse survey and eDNA sampling.
Pelagia: Aquatic biology, water chemistry, and ecological status surveys.
Geovista: Preparation of the formal EC application and Stakeholder Consultation document.
Rapallo: International engineering and environmental consultancy. Client Representative to ensure effective overall project, schedule and cost management.

Indicative Timeline

2026: Ecological and aquatic baseline surveys; hydrology and surface water monitoring; waste rock sampling and characterisation.

2027: Completion of EIA and supporting technical studies; formal application drafting; stakeholder consultation. Target exploitation concession submission: Late 2027.

Ground Gravity Survey

A gravity survey measures small variations in the Earth’s gravitational field and is used to map subsurface rock densities, delineate fault structures and detect mineral deposits. It is a passive measurement not sending out any energy to the ground and is mostly used for larger scale features.

Recent technological advancements in the development of gravity instrumentation are now resulting in fast and efficient readings in the field. Historically instruments have been fragile, individually made and costly with cumbersome setups in the field. New technology with vibrating beam accelerometers built inside gyroscopes, has resulted in a totally different way of working with in-house geological teams able to access the required equipment, undertake field work on their own, and have instant results report back to their computers.

For the current gravity survey at Hennes Bay, a portable GAIA-FIELD instrument has been leased from SMG Gravity in UK and is being operated by the Company’s field crew (Figure 12). The survey includes test profile traverses across the Dingelvik main thrust structure and Cu mineralised horizon, as well as increasing the available gravity data points in the wider project area.

The objective of the gravity survey is to investigate large scale tectonic thrusting structures potentially concealing mineralised strata at depth beneath granites.

Historical Metallurgical Testing

Preliminary metallurgical testwork was undertaken on drill core samples from the Dingelvik and Henneviken Cu–Ag deposits at the Minpro testing facility (Stråssa, Sweden) in 1982–1983. The objectives of the testwork programme were to evaluate the amenability of the materials to conventional sulphide flotation and to provide an indication of achievable concentrate quality relative to typical smelter requirements.

On the basis of the reported results, Dingelvik is interpreted to have the potential to produce a Cu concentrate grading ~30% Cu with 400–500 g/t Ag at an estimated ~90% Cu recovery and ~75% Ag recovery. Henneviken is interpreted to have the potential to produce a Cu concentrate grading ≥30% Cu with ~500g/t Ag at an estimated >90% Cu recovery and ≥85% Ag recovery.

The available historical testwork was based on limited sample mass and spatial coverage. Accordingly, additional variability testwork is planned to assess representativity and to refine comminution and flotation parameters.

Key Findings

Flotation response: Dingelvik and Henneviken composite samples were reported to have responded favourably to conventional sulphide flotation, producing Cu concentrates of potentially saleable quality.
Projected recoveries: Reported outcomes indicate Cu recovery of ~90% for Dingelvik and >90% for Henneviken under the testwork conditions. Ag recovery is indicated at ~75% for Dingelvik and ≥85% for Henneviken.
Concentrate quality: Cu concentrate grades of ~30% (Dingelvik) and ≥30% (Henneviken) were reported. Ag grades in concentrate were typically reported in the range 400–500 g/t.
Comminution sensitivity: Improved Cu and Ag recoveries for Dingelvik were observed at finer grind sizes (down to P₉₀ ~70 µm), suggesting potential sensitivity to liberation.
Penalty elements and marketability (indicative): Multi-element assays reported for selected final concentrates indicate low to moderate levels of common penalty elements (e.g. As, Sb and Bi) and base metal impurities (e.g. Pb and Zn). The reported impurity levels would not be expected to preclude concentrate saleability under many modern custom smelter terms; however, penalty schedules are smelter- and market-dependent. Additional assays (often including Hg, F and Cl, and in some cases Se/Te) are typically required for a modern marketing assessment.
Limitations: The reported testwork is based on small composite sample masses (15kg) and limited drillhole coverage. Accordingly, the resulted values should be considered preliminary and indicative only. Metallurgical variability and representativity are key uncertainties that will be addressed in future planned metallurgical testwork programmes.

Planned and ongoing Work Program

The planned and ongoing work program at Hennes Bay comprises five workstreams over the next two years with the aim of rapidly advancing the project’s development and realising its immense resource growth and exploration upside potential:

Stakeholder Engagement
Community Liaison Office has been established to manage effective ongoing communication with stakeholders at a local, kommun, and federal level. The Liaison office work will be ongoing throughout the life of the project.

Permitting:
Desktop and fieldwork to determine the current baseline status of the Flora and Fauna, Water, Sediments, Historical and Cultural sites within the potentially affected areas.

Preliminary Economic Analysis (“PEA”):

Planned PEA workstreams include:

– Preliminary metallurgical testwork and process flowsheet design studies to confirm historical recoveries, ore characteristics and process equipment requirements
– Geotechnical and hydrogeological studies to enable detailed mine design and water management requirements
– Preliminary infrastructure studies to define corridors for road, rail, power, communications, and water
– Tailings storage facility design and location studies

Resource Expansion:
Drill testing of the peripheries of the Dingelvik prospect, which remains open in multiple directions

Infill and extension drilling at the other five prospects with extensive zones of mineralisation defined by historical drilling. With limited further drilling, the Asselbyn, Henneviken, Baldersnäs, Åsnebo and Härserud Norra prospects may be added to the MRE

Regional Exploration:
Further refinement of the Exploration Model through the application of modern geophysics and discovery drilling:

Additional MMT surveys covering areas of interest along the prospective copper horizon
Generation and drill testing of regional targets to discover higher grade zones of mineralisation in the proximal parts of the SSC mineral system

Swan Lake Project

The Swan Lake Project, comprising two granted exploration permits covering approximately 218km2, is located in the Southern Norrbotten region in northern Sweden (Figure 14). Arctic Minerals holds an initial 51% interest in the Project and has the right to earn up to 80% pursuant to an earn-in agreement.

Important progress:

Epithermal Gold-Silver and Porphyry Copper-Gold Potential, February 2026

About the project
Northern Sweden has a well-established mining industry, with multiple base and precious metal mines currently operating in the Northern Norrbotten and Skellefte Field ore districts. The Swan Lake project is located between these two historic ore districts, 20km northwest of the emerging industrial town of Boden.

Access to the project is excellent through a network of sealed and well-maintained forest roads. Notably, the ore train connecting the mining operations in Kiruna and Gällivare with all-year port facilities in the coastal city of Luleå runs through the centre of the Project area.

The Project is located within the Proterozoic Norrbotten volcanic belt surrounded by granitic intrusions that hosts the giant Aitik and Laver porphyry copper-gold deposits owned by Boliden (Figure 14). The Aitik mine, which has been in operation since 1968, is one of Europe’s largest copper producers.

The copper deposit at Aitik was discovered in the 1930s. Mining began in 1968 when technology was sufficiently advanced to profitably extract the metal. Aitik is famous for being one of the most efficient open pit copper mines in the world.

The Aitik deposit consists of chalcopyrite and pyrite yielding copper, gold and silver. Approximately 40Mt of ore is mined and concentrated per annum, with the current dimensions of the open pit being 3km in length, 1.1km in width and 450m in depth. The current Mineral Reserve Estimate for Aitik is 1.091Bt @ 0.23% Cu, 0.16 g/t Au and 1.3 g/t Ag. In addition to the Mineral Reserves, the current MRE totals 0.905Bt @ 0.17% Cu, 0.10 g/t Au, 0.7 g/t Ag.

Laver is an advanced stage bulk open pit copper-gold-silver-molybdenum project with a MRE of 0.961Bt @ 0.23% Cu, 0.13 g/t Au, 3.9 g/t Ag and 35 g/t Mo.

Regional and Prospect Scale Geological Setting and Style of Mineralisation
Based on the interpretation of geological mapping, rock-chip and soil sampling, and geophysical surveys completed by the Company to date, the Project area is considered highly prospective for epithermal altered lithocap Au-Ag and PGC style mineralisation (Figures 15, 16 and 17). On a local scale, the Project is characterised by a large-scale alteration system that has been delineated over tens of km2 and contains a historic occurrence of Cu-AuAg-Mo mineralisation, as well as high-grade boulders of similar metal assemblage.

A dumortierite-quartzite occurrence, previously drilled and trial mined to investigate its potential use as ornamental stone or gemstone, is now interpreted to represent the upper parts of a porphyry-epithermal system, directly linked to stockwork Cu-Au-AgMo mineralisation. Recent fieldwork has uncovered polyphase quartz sulphide stockwork veining in the area.

The results of 125 line kms of ground magnetic surveys conducted in the area have outlined a more than 2km long, low magnetic anomaly in parts associated with strong alteration and brecciation. Multiple outcrops have been located with mineralisation grading up to 0.7% Cu, 0.16 g/t Au and 55 g/t Ag.

Recent and Planned Work Program

Exploration at Swan Lake during 2025 included additional regional and prospect scale field mapping, sampling, and geophysical surveys.

Several known alteration zones within the northern part of the Project area were followed up with more detailed mapping and sampling.

Gradient array and pole-dipole induced polarisation (“IP”) geophysical surveys were undertaken, targeting the previously defined low-magnetic anomaly associated with dumortierite alteration and anomalous gold-silver-tellur-bismuth rock chip analyses (Au-Ag-Te-Bi association), as well as the mapped hydrated quartz vein systems with Cu and Au mineralisation.

IP is a geophysical technique that measures how the subsurface stores and releases charge over time, as well as the resistivity of the bedrock. It typically detects disseminated sulphide mineralisation in the bedrock where other electromagnetic (“EM”) techniques used for more massive style sulphide mineralisation fail. It can also outline areas void of sulphides which, in epithermal gold systems, can sometimes be associated with the highest-grade mineralisation.

At Swan Lake a “negative IP anomaly” associated with the previously outlined low magnetic anomaly would be considered highly significant from an epithermal gold potential perspective. High IP anomalies are typically associated with the core of PCG mineralisation or at its outer fringes.

In February 2026, results confirming Epithermal Gold-Silver and Porphyry Copper-Gold Potential were announced. The Induced Polarisation (“IP”) geophysical survey data supported previous results and further refined priority targets for drill testing.

Swan Lake Epithermal Gold-Silver and Porphyry Copper-Gold Potential, February 2026

Sweden

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