Magna Mining Provides Update on Activities

Sudbury, January 22, 2024 - Magna Mining Inc. (TSXV: NICU) (OTCQB: MGMNF) (FSE: 8YD) ("Magna" or the "Company") is pleased to provide an update on the 2024 exploration activities and corporate initiatives.

2024 Exploration Plan and Resource Update

Magna resumed diamond drilling on January 3, 2024, after a brief pause over the holiday season. Currently there are two drills turning at the Crean Hill Project, with one of the drills testing deep footwall targets (see Fig. 1). Two geophysical platform holes (MCR-23-053 & MCR-23-059), totalling 2895 m have now been completed and both holes have intersected favourable footwall stratigraphy, including Sudbury Breccias containing minor sulphides. Borehole geophysical surveys have subsequently been completed and any geophysical anomalies identified will be targeted once interpretations are complete.

The second drill at Crean Hill is drilling in the upper portion of the 109 FW zone, where drilling in 2023 intersected a high-grade core within the 109 FW Zone (see April 2023 News Release). Drilling is intended to further define the continuity of this high-grade mineralization and will assist Advanced Exploration planning. The budgeted and board-approved drill program at Crean Hill in 2024 is 20,000 metres.

A third drill will commence drilling on regional targets at the Shakespeare Project in February. Initially, this drill will probe untested areas of the Palladium Valley target located approximately 8.5 km northeast of the Shakespeare mine. At Palladium Valley a 2022 Induced Polarization (IP) geophysical survey has identified a number of anomalies associated with gabbroic intrusive units similar to the Shakespeare gabbro (see Fig. 2), with coincident Pd-Pt-Au-Ni-Cu mineralization known at surface. Surface samples taken by Magna include sample 355584 which graded 9.59 g/t Pd, 1.24 g/t Pt, 0.35 g/t Au, 0.23% Ni and 0.45% Cu. The initial phase of drilling at Palladium Valley will consist of 2000 m of drilling and will be completed in the first half of 2024.

Magna has commenced the process to incorporate recent drilling into an updated geological model and Mineral Resource Estimate. More than 21,000 m of drilling has been completed by the Company since acquiring Crean Hill in November 2022, and much of this drilling was focused above the 1000 ft level, within the 101, 105 and 109 FW zones, as well as portions of the Intermediate and Main ore zones. The geological understanding of these zones has been enhanced by Magna's 2023 drilling program, which will allow a complete mineral wireframe update of these zones, as well as new wireframes for other areas of the deposit. Magna expects to have the updated Mineral Resource estimate completed in Q3 of 2024.

Magna currently has a fully funded 25,000 m drill program budgeted for 2024. As of September 30, 2023, Magna had $15.5 million in the treasury.

Government Grant Applications and Funding Opportunities

Magna's two Sudbury, Ontario based projects are both eligible to apply to multiple critical mineral funding opportunities and grants that have recently been launched by the Canadian and US Governments. Magna is analysing and pursuing all relevant funding opportunities, the most significant of which are outlined below:

1) Investment Tax Credit for Clean Technology Manufacturing: The 2023 Canadian Federal Budget introduced a refundable investment tax credit for critical mineral extraction and processing, equal to 30% of the capital cost of eligible property (where eligible property is depreciable property such as machinery, equipment, and industrial vehicles used in critical mineral extraction). Certain capital expenditures at both the Crean Hill and Shakespeare would be eligible for these tax credits under the current definitions. While the Crean Hill PEA (July 2023, Stantec) incorporated these credits, the January 2022 Shakespeare Feasibility Study Technical report preceded this program and did not include the credits in its economic analysis.

2) Critical Mineral Infrastructure Fund (CMIF): The CMIF is a program ran by Natural Resources Canada and will make $1.5 billion available over 7 years to develop strategic infrastructure projects that support Canadian critical mineral production. Magna will be submitting applications to the first Call for Proposals which opened in November 2023 and is requesting submissions by the end of February 2024. Magna will be making applications for grants to fund both pre-construction and construction activities for grid power access and road infrastructure improvements at both the Crean Hill and Shakespeare Projects.

3) Canada Growth Fund: The Canada Growth Fund (CGF) is an investment fund that will be capitalised with $15 billion, and who's objectives include the deployment of capital to encourage further investment in low carbon natural resource development. Magna has made an initial application to the CGF and is currently awaiting a response.

4) US Department of Defence Production Act Title III program. Magna has received notification that the Shakespeare project would be eligible to apply for funding under the Title III program and is currently awaiting further notifications from the US Department of Defence.

Paul Fowler, Senior Vice President of Magna commented, "Along with the existing flow-through share financing mechanisms for critical mineral explorers and developers in Canada, there are now multiple new government funding initiatives for which Magna is eligible to apply. If we are successful in securing funding from any or all of these programs, it is likely to have a significant positive impact on the project economics at both Crean Hill and Shakespeare. It is also worth re-iterating that Magna still retains 100% of our offtake, we have no debt on our balance sheet, and we have not yet consummated any strategic investments from mining companies, or any other entities involved in the nickel supply chain. We also have significant and valuable potential future by-product credits at both of our projects, which allows for potential by-product metal streams to assist with project financing. Overall, we consider ourselves very well placed to be able to fund the development and exploration of both of our projects over the coming years. In the short-term, we are fully funded for a robust exploration program and are excited about the exploration targets we will be testing in 2024."

Crean Hill - Advanced Exploration Update

Permit applications have been submitted to commence advanced exploration at Crean Hill. All relevant permits, approvals and commercial agreements to begin the surface bulk sample at Crean Hill are expected to be received in Q1 2024, despite taking slightly longer than originally anticipated. The goal of advanced exploration is to test mine the 101 FW and 109 FW areas, as well as areas of the Intermediate deposit.

• Closure Plan: In August, Magna supported the submission of the Crean Hill closure plan for review by the Ministry of Mines. Following this review and the resolution of subsequent comments, Magna now expects the closure plan to be filed by the end of Q1 2024.

• Permit to Take Water (PTTW): The PTTW at Crean Hill has been submitted, subsequent comments have been received and addressed, and Magna expects to have the permit approved in Q2, although it could be sooner. This will allow Magna to dewater the underground workings at Crean Hill, which is required to commence the underground advanced exploration program.

• Ore-selling agreement: Throughout the second half of 2023 Magna has been in advanced discussions with the owners of the local mills, and excellent progress has been made on terms for ore selling. A signed definitive agreement is now expected before the end of Q1 2024.

Figure 1. Crean Hill 3150 level plan section showing interpreted geology & favourable breccia trends in the footwall of the Main Zone.

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Figure 2. Simplified regional geology of the Palladium Valley area with surface sampling

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https://images.newsfilecorp.com/files/8002/195091_1b494f7674eb08ec_003full.jpg

Qualified Person

The technical information in this press release has been reviewed and approved by Mynyr Hoxha, Ph.D., P.Geo., the Company's Vice President of Exploration. Dr. Hoxha is a qualified person under Canadian National Instrument 43-101.

QA/QC

Sample QA/QC practices for Magna have been designed to meet or exceed industry standards. Samples are collected from outcrop, placed into plastic bags, and then transported to the Magna Mining core facility. Samples are then placed into rice bags for transport to SGS Laboratories in Sudbury Ontario. QAQC samples for surface sampling include a known certified reference material sample and blank material sample that are submitted within every 20 samples.

About Magna Mining Inc.

Magna Mining is an exploration and development company focused on nickel, copper and PGM projects in the Sudbury Region of Ontario, Canada. The Company's flagship assets are the past producing Shakespeare and Crean Hill Mines. The Shakespeare Mine is a feasibility stage project which has major permits for the construction of a 4,500 tonne per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km2 prospective land package. Crean Hill is a past producing nickel, copper and PGM mine with a technical report dated August 2022. Additional information about the Company is available on SEDAR (www.sedar.com) and on the Company's website (www.magnamining.com).

For further information, please contact:
Jason Jessup
Chief Executive Officer
or
Paul Fowler, CFA
Senior Vice President
Email: info@magnamining.com

Cautionary Statement

This press release contains certain forward-looking information or forward-looking statements as defined in applicable securities laws. Forward-looking statements are not historical facts and are subject to several risks and uncertainties beyond the Company's control, including statements regarding the production at the Shakespeare and Crean HIll Mines, the economic and operational potential of the Shakespeare and Crean Hill Mines, potential acquisitions, plans to complete exploration programs, potential mineralization, exploration results and statements regarding beliefs, plans, expectations, or intentions of the Company. Resource exploration and development is highly speculative, characterized by several significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this press release.

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