ABOUT PRISM DIVERSIFIED

Through three diamond core drilling programs, a resource of 557 million tonnes of mineralized material has been defined (182 million tonnes contained iron and 2.45 billion pounds of contained vanadium pentoxide), with the results reported in a NI 43-101 technical resource report (July 2012) released by SRK Consulting (Canada) Inc. on behalf of Ironstone Resources.

The company has also excavated a bulk sample pit and extracted 11,000 tonnes of mineralized material for metallurgical evaluations and process development.

The overlying overburden is comprised of bentonite-rich expandable clays for potential use in the production of light-weight expandable clay aggregates (LECA), or which can be manufactured into a variety of environmentally-friendly building and road construction products.

A History of Continued Resource and Technology Development

The Clear Hills iron resource was discovered in the early 1920’s and since then the ore body has been continuously assessed for scale and mineralogy.

From a resource perspective the definitive achievement was the comprehensive drilling campaign during 2008-2012 which resulted in a National Instrument compliant resource report (NI43-101).

On the technology and processing theme, the timeline shown below also shows the considerable process and technology research commissioned by PRISM (denoted with a * in the image below) and conducted by a host of leading companies and organizations such as Hatch, Hazen, FLSmidth, SGS, SRK Consulting.

A significant breakthrough was achieved during the 1980’s by Edward Bertram of the Alberta Research Council. His process for reductive chlorination demonstrated the viability of liberating the iron from the ore. Subsequently a host of other tests by other teams achieved increasingly impressive Fe recovery grades - always identifying and overcoming existing or emergent issues - impurities, insufficient segregation, excessive costs, chemical control. We are very proud to have Dr. Bertram as a valued ongoing technology advisor to our project team.

Continued project developments, particularly between 2008 and 2012, have increased understanding, particularly regarding process flows and the resulting operating and capital expenses. The scale and associated technology readiness level (TRL) has advanced continuously over time achieving TRL level 5 during the Hatch and Hazen tests. Unfortunately, and despite these continued technological advances a combination of poor market outlook and lack of investment necessitated a pause in spending on the project.

PRISM staff didn’t stop working however, and their exploration, development and subsequent sale of a lithium asset provided funding for iron liberation tests by Dr. Dmitri Terekhov at TCM Research. TCM’s excellent results confirmed reductive chlorination as the optimum underlying technology. This good news coincides with greatly improved market sentiment and significant demand for low emission iron, critical minerals and REE. Further, the positive macro climate is supported by increased local competency in advanced chemical processing, an emergent clean hydrogen industry and the region’s unrivalled carbon capture-based low emission energy reserve. These converging factors have acted as a catalyst to re-ignite the project in 2025.

PRISM’s planned Pilot Plant at the Innotech Alberta laboratories in Edmonton and co-managed by its engineering partner, Demir Engineering, will generate data to produce a NI43-101 compliant Preliminary Economic Assessment (PEA). The resource report will concurrently be updated to accommodate minor changes to permit area since the 2012 version.