Updated PEA For The Crean Hill Project

SUDBURY - Magna Mining Inc. reported the successful completion of its Updated Preliminary Economic Assessment (PEA) on its Crean Hill Project located in Sudbury, Ontario, Canada.

The PEA envisions an underground only mining operation, with Life of Mine ("LOM") potentially mineable resource being sold to a third-party existing mill in Sudbury. Underground mining would be initiated with a 15-month Advanced Exploration (AdEx) program followed by a 12-month pre-production ramp-up period and 13 years of commercial production. Initial mining will be done with ramp access via a new surface portal with the eventual rehabilitation and re-establishment of the historic #2 shaft for personnel access and hoisting as mining progresses deeper.

COO, Jeff Huffman, said, "This updated Preliminary Economic Assessment focuses efforts on a high margin, underground-only mine plan. A low capital approach of establishing a new surface portal will provide quick access to the resource, allowing us to offset capital costs with early revenues. This PEA also benefits from increased certainty on third party processing terms. The project timeline has been derisked by having environmental permits approved and in-hand, as well as more detailed stope planning and sequence optimization. The PEA metal pricing assumptions have been updated to reflect a more conservative long term nickel price. We are excited and encouraged by the results of this PEA and look forward to continuing to advance the Crean Hill Project.”

The primary feed is designed to ensure rapid payback and minimize upfront capital requirements while simultaneously mitigating the potential impact of low metal prices. The lower cut-off grade of incremental material allows more complete extraction of the resource and the two-pronged nature of the mining sequence facilitates lower-cost extraction of the incremental material.