EDM ANNOUNCES SUCCESSFUL RESULTS OF DENSE MEDIA SEPARATION STUDY ON HIGH-GRADE ORES OF THE SCOTIA MINE

Halifax, Nova Scotia, January 6, 2025 – EDM Resources Inc. (TSX-V: EDM; FSE: P3Z) (“EDM” or the “Company”) is pleased to announce the initial Heavy Liquid Separation (“HLS”) test results on high-grade zinc and lead composite samples from its Scotia Mine. The initial tests indicate that it may be possible to pre-concentrate crushed run-of-mine high-grade material using Dense Media Separation (“DMS”) prior to flotation, thereby potentially reducing the overall cost of mineral processing at the Scotia Mine.

The results of the initial HLS tests at 3.00 SG on the high-grade samples resulted in:

1. Test T1 (12.7mm crushed size): Increase in grades by 35% for Zinc and 26% for Lead while retaining 97.3% of the Zinc and 99.4% of the Lead.

2. Test T2 (6.3mm crushed size): Increase in grade by 28% for Zinc and 13% for Lead while retaining 97.6% of the Zinc and 99.4% of the Lead.

“EDM is very encouraged by the results of the high-grade HLS test work, which indicated almost full recoveries of both zinc and lead mineralization using the HLS bench-scale analyses, with a strong separation of the non-mineralized material from the total processing feed,” said Mr. Mark Haywood, President & CEO. “In addition, DMS test work continues on the blended mineralized materials as part of our ongoing optimization of the Scotia Mine,” he added.

DMS Processing and HLS Testwork Details

A Dense Media Separation plant utilizes a gravity separation process that relies on the differences in density between mineralized rock and non-mineralized rock, and uses a non-toxic slurry of heavy media and water to effect a separation. HLS testing is a bench-scale process that is used to simulate the full-scale DMS process. It utilizes a bath of organic heavy liquid at various densities to incrementally split out the heavier mineralization (which sinks in the liquid) and the lighter waste (which floats to the top of the liquid).

On an industrial scale, a DMS plant at the Scotia Mine would be designed to pre-process a crushed run-of-mine stream and to significantly reduce the amount of sub-economic (waste) material that would otherwise be processed through the Scotia Mine’s mill. As a relatively simple, environmentally friendly, and cost-efficient metallurgical process, a DMS plant can significantly reduce the overall processing costs at the Scotia Mine, which would also allow a lowering of the cut-off grade and access to otherwise uneconomic areas of the deposit.

The HLS tests were performed on material from two 10-kilogram samples that were collected from the high-grade mineralized zones of the Scotia Mine. One sample was 100% crushed to 12.7mm (1/2”) in preparation for “Test T1.” On completion of Test T1, the sample was then crushed to 6.3mm (1/4”) for “Test T2.” The minus 0.85mm size fraction was removed prior to HLS testing.

The head grades of the high-grade sample are shown in Table 1, with the results of Test T1 and Test T2 shown in Tables 2 and 3 below:

Table 1 - Sample Head Grades

Table 2: Test T1 Results

Table 3: Test T2 Results

The following two charts show these results on a cumulative basis (excluding fines) and highlight how the incremental recovery of mass and metal drops slightly towards the higher HLS “cut point” densities.

The recoveries shown in these figures do not include fines. Figure 1 illustrates the results of Test T1, and Figure 2 illustrates the results of Test T2.

SGS selected an optimal SG of 3.00 for recoveries of zinc and lead, as well as the mass recovered:

For Test T1: At an optimal SG of 3.00, 76.5% of mass is retained, along with 97.3% of zinc and 99.4% of lead.

For Test T2: At an optimal SG of 3.00, 80.2% of mass is retained, along with 97.6% of zinc and 99.4% of lead.

Figure 1: Test T1 Results (Recovery vs Density)

Figure 2: Test T2 Results (Recovery vs Density)

The Blended Sample HLS and DMS Pilot Plant test results are expected in early January 2025.

About Dense Media Separation (DMS)

Dense Media Separation (“DMS”) is a relatively simple and inexpensive method of pre-concentrating mineralization before it enters the Grinding and Flotation Circuits at the Scotia Mine. It has been used extensively worldwide on many types of minerals, including projects similar to the Scotia Mine.

After crushing, the material is processed through cyclones, typically using a ferro-silicon media that allows non-mineralized rock to “float” and be collected as waste, while mineralized material will “sink” and be directed to the grinding circuit as higher-graded mill feed.

EDM already has a 2,700 tonnes-per-day mill concentrator on site at the Scotia Mine, so a DMS plant could be added prior to the Flotation Circuit in the existing processing building.

Mr. Curtis Mohns, P.Eng., Senior Metallurgist for SGS Laboratories and a Qualified Person as defined under NI43-101, has approved the technical information contained in this news release related to the HLS test work.