Alaska Energy Metals | Q1 2025 Research Report

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Alaska Energy Metals: A Secure & Domestic Source of Strategic Metals

Alaska Energy Metals (TSXV: AEMC | OTC: AKEMF) presents a compelling investment opportunity with its flagship Nikolai Project in Alaska. The recently updated NI 43-101 Mineral Resource Estimate (MRE) has significantly expanded the project’s scale, with indicated nickel resources increasing 45% to 5.61 billion pounds and inferred resources surging 122% to 9.38 billion pounds. The introduction of chromium and iron further boosts nickel equivalent resources to 11.03 billion pounds (indicated) and 17.98 billion pounds (inferred), making Nikolai the largest nickel deposit in the U.S. and comparable in scale to Canada Nickel’s Crawford Deposit—yet trading at just a fraction of its valuation. Additionally, AEMC’s carbon sequestration research with leading institutions adds an ESG angle that could enhance long-term economic and environmental value.

AEMC’s strategic position within the U.S. critical minerals supply chain is crucial as the country remains nearly 100% dependent on nickel imports, with China and Indonesia projected to control 71% of global production by 2030. The growing risk of supply chain disruptions, combined with increasing demand for nickel in EV batteries, defense, and infrastructure, underscores the necessity of a domestic source. The Trump administration’s pro-mining policies and recent Executive Order prioritizing Alaska’s resource development create a favorable regulatory environment. At the same time, potential grant funding from the U.S. Department of Defense under the Defense Production Act could accelerate Nikolai’s path to production.

With its vast resource base, strong geopolitical positioning, and significant valuation gap relative to peers, Alaska Energy Metals offers an attractive investment in the shift toward U.S. resource independence. As the global competition for critical minerals intensifies, AEMC is well-positioned to capitalize on policy tailwinds and rising demand, making it one of the most overlooked yet promising opportunities in the sector today.

Business Catalysts

Transformational Resource Expansion: AEMC’s updated NI 43-101 MRE significantly expands the Nikolai Project’s nickel resource by 45% (indicated) and 122% (inferred), reinforcing its position as one of NA’s largest nickel sulfide deposits. With a growing critical minerals portfolio—including newly introduced chromium and iron—and a strategic U.S. location, it is poised for substantial revaluation.

U.S.-Based Supply Chain Advantage: Unlike Canada Nickel, AEMC stands to benefit from strong federal support for domestic critical minerals production, particularly under policies that favor U.S. mining independence.

Strategically Critical Project: As China and Indonesia tighten their grip on global nickel production the U.S. faces a severe supply chain risk for this critical mineral essential to defense, clean energy, and advanced technology. AEMC’s Nikolai Project offers a strategic, tariff-free, domestic solution to this growing crisis, positioning itself as a key pillar in America’s independence.

Project Overview

The Nikolai Project

Location: 80 kilometers (50 miles) south of the town of Delta Junction, Alaska
Size: 10,683 hectares between Eureka and Canwell prospects
Ownership: 100% ownership
Commodities: Nickel, Copper Cobalt, Gold, Palladium, Platinum, Chromium, & Iron

Alaska Energy Metals Corp. (AEMC) is redefining the North American nickel landscape with its flagship Nikolai Project, a vast, bulk-tonnage, disseminated nickel sulfide deposit locatedthe stable, pro-mining jurisdiction of Alaska. With the release of its updated NI 43-101 Mineral Resource Estimate (MRE), the project has emerged as one of the largest nickel sulfide deposits in the United States, with major increases in both indicated and inferred resources.

2025 MRE: A Transformational Expansion

AEMC’s 2025 MRE highlights a 46% (indicated) and 133% (inferred) increase in total tonnage, with indicated nickel resources surging to 5.61 billion pounds (+45%) and inferred nickel resources jumping 122% to 9.38 billion pounds.

Beyond nickel, the expanded polymetallic resource also includes key critical minerals like cobalt (+47% indicated, +130% inferred), copper (+38% indicated, +134% inferred), platinum group metals (PGMs), and newly introduced iron and chromium resources. The addition of 7.88 billion pounds of chromium and 117 million tons of iron in the indicated category further enhances the project’s strategic importance, particularly given the increasing demand for these metals in the global clean energy and industrial sectors.

Crucially, despite the significant increase in total metal content, the nickel equivalent grade has remained stable at 0.30% (w/o Cr, Fe), demonstrating that resource expansion has not diluted the quality of the deposit. When accounting for the new iron and chromium resources, the nickel equivalent grade jumps to 0.42% for indicated resources and 0.39% for inferred resources—dramatically improving the project’s economic viability.

This update significantly strengthens the Nikolai Project’s economic potential, as higher resource estimates typically translate to improved project feasibility, longer mine life, and greater attractiveness to investors and strategic partners. Moreover, Alaska Energy Metals was able to sustain a small strip ratio of 1.6:1, adding to this project’s economic attractiveness.

Strategic Implications for AEMC

Enhanced Project Economics: A larger resource base and low strip ratio improve the potential for economies of scale, reducing per-unit mining and processing costs.
Critical Minerals Hub: The inclusion of chromium and iron expands the project’s marketability beyond battery metals, positioning AEMC as a key supplier for the steel and aerospace industries.
Carbon Sequestration Potential: The company’s research with the Colorado School of Mines and Virginia Tech to assess the ability of ultramafic rocks at Nikolai to naturally capture CO₂, opens an additional door for carbon-negative mining operations—an attractive feature for ESG-focused investors.

With a growing resource base and continued investment, AEMC is on track to solidify its position as the leading U.S. nickel developer.

AEMC vs. Industry Peers: An Undervalued Contender

Despite the transformative growth in its MRE, AEMC remains severely undervalued compared to its North American peers. The Nikolai Project now rivals Canada Nickel’s Crawford Deposit, a globally recognized nickel asset, yet trades at a fraction of the valuation.

Key Comparisons

Nickel Resource Size: AEMC’s updated MRE places Nikolai’s total nickel content on par with Crawford, reinforcing its global significance.
Nickel Equivalent Grade: The inclusion of chromium and iron resources has elevated Nikolai’s nickel equivalent grade to 0.41% (indicated) and 0.39% (inferred), making it competitive with or superior to leading nickel sulfide deposits.
Market Valuation Disparity: Despite comparable resource size and grade, AEMC is valued at just $18 million—less than 12% of Canada Nickel’s market cap, presenting a compelling value proposition for investors.

The Bottom Line

AEMC is trading at a deep discount relative to its asset base and peers. The company controls one of the largest nickel sulfide deposits in North America, yet its market valuation does not reflect the scale, quality, and strategic importance of its resources. As demand for nickel accelerates with the global clean energy transition and U.S. government policies incentivize domestic mining, AEMC is uniquely positioned for a major revaluation.

Notable Updates in Q1 2025

03/24/2025 Alaska Energy Metals welcomed the Immediate Measures to Increase American Mineral Production Executive Order, which directs the Department of Defense to boost investment in critical minerals, expands financing options, and prioritizes expedited permitting. The company sees this as a positive development for its Nikolai Project, the largest known nickel resource in the U.S.

03/11/2025: Alaska Energy Metals reported a significant resource update for its Eureka deposit at the Nikolai Nickel Project in Alaska, now the largest nickel resource in the U.S., with a 46% increase in Indicated resources and a 122% increase in Inferred resources, totaling 17.98 billion pounds of nickel equivalent.

02/19/2025: Alaska Energy Metals entered into shares-for-debt agreements to settle $132,328.15 in debts by issuing 1,202,500 common shares at $0.11 each. The debt settlements include a portion to non-arm’s length parties and are aimed at conserving cash while advancing the Nikolai Project and seeking strategic partners.

01/31/2025: Alaska Energy Metals entered into an equity distribution agreement with Haywood Securities to sell up to $10 million in common shares through an at-the-market offering. The net proceeds will fund metallurgical studies, a resource estimate update, and efforts to attract joint venture partners for the Nikolai Project.

01/21/2025: Alaska Energy Metals welcomes a new Executive Order aimed at boosting Alaska’s resource development, including mining, oil, gas, and forestry. The company expects strong support for its Nikolai project, a major nickel and critical metals resource, as the administration prioritizes domestic metal supply chain security and infrastructure expansion.

01/21/2025: Alaska Energy Metals’ 2024 exploration program at the Angliers-Belleterre project in Quebec identified multiple undrilled copper-nickel and VMS prospects through soil sampling, rock sampling, geological mapping, and VTEM surveys. The company plans follow-up drilling and geophysical modeling to test these targets, which suggest significant mineralization potential in an underexplored region.

12/10/2024: Alaska Energy Metals’ final drill results from the 2024 Eureka resource expansion program confirm a 1.8 km extension of the deposit, bringing its total drilled strike length to approximately 5.5 km and reinforcing its continuity.

12/03/2024: Alaska Energy Metals’ latest drill results confirm a 600-meter extension of the higher-grade core zone at the Eureka Deposit, increasing its total strike length to approximately 2.0 km and supporting a potential resource expansion. Notably, coarse-grained magmatic sulfides were intersected for the first time, suggesting additional exploration targets for future development.

11/21/2024: Alaska Energy Metals announced assay results from its 2024 drilling program at the Canwell claim block, confirming significant nickel-equivalent mineralization across the Emerick, Odie, and Upper Canwell prospects. The results highlight district-wide potential and provide justification for further drilling to expand disseminated sulfide zones and test for higher-grade mineralization.

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