Exploration Co. Has a a Potentially World-Class Discovery
Research Report

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Disclosures for Canaccord Genuity, Q2 Metals Corp., February 24, 2025

Analyst Certification Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research, and (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer. Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity LLC and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. Sector Coverage Individuals identified as “Sector Coverage” cover a subject company’s industry in the identified jurisdiction, but are not authoring analysts of the report. Investment Recommendation Date and time of first dissemination: February 23, 2025, 14:30 ET Date and time of production: February 21, 2025, 00:12 ET Target Price / Valuation Methodology: Q2 Metals Corp - QTWO We value Q2 using a sum-of-the-parts with a risked Resource multiple (of US$2/t) applied to our Resource estimate for Cisco, net of exploration, corporate costs and cash. Risks to achieving Target Price / Valuation: Q2 Metals Corp - QTWO Financing risks: As a pre-production company with no material income, Q2 Metals is reliant on equity and debt markets to fund development of its assets and progress its regional exploration pipeline. Total development and working capital requirements are subject to establishment of resources and completion of mining studies. There are no guarantees that studies will result in a positive investment decision. Further, we can make no assurances that accessing these markets will be done without further dilution to shareholders. Exploration risks: Exploration is subject to a number of risks and can require a high rate of capital expenditure. Risks can also be associated with conversion of inferred resources and lack of accuracy in the interpretation of geochemical, geophysical, drilling and other data. No assurances can be given that exploration will delineate further mineral resources nor that the company will be able to convert the current mineral resource into minable reserves. Land access due to the potential presence of Aboriginal heritage sites is also a consideration. Operating risks: If and when in production, the company will be subject to risks such as plant/equipment breakdowns, metallurgical (meeting design recoveries within a complex flowsheet), materials handling and other technical issues. An increase in operating costs could reduce the profitability and free cash generation from the operating assets considerably and negatively impact valuation. Further, the actual characteristics of an ore deposit may differ significantly from initial interpretations which can also materially impact forecast production from original expectations. Commodity price and currency fluctuations: As with any mining company, Q2 Metals is directly exposed to commodity price and currency fluctuations. Commodity price fluctuations are driven by many macroeconomic forces including inflationary pressures, interest rates and supply and demand factors. These factors could reduce the profitability, costing and prospective outlook for the business. Environmental, social and governance: Canadian projects must consider indigenous populations and potential impacts. Q2 Metals will be required to engage with these communities in the permitting process which may present timeline and approval risks.

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Q2 Metals Corp Rating History as of 02/20/2025 C$1.60 C$1.40 C$1.20 C$1.00 C$0.80 C$0.60 C$0.40 C$0.20 C$0.00 Apr 20Jul 20 Oct 20Jan 21Apr 21Jul 21 Oct 21Jan 22Apr 22Jul 22 Oct 22Jan 23Apr 23Jul 23 Oct 23Jan 24Apr 24Jul 24 Oct 24Jan 25 Closing Price Price Target Buy (B); Speculative Buy (SB); Sell (S); Hold (H); Suspended (SU); Under Review (UR); Restricted (RE); Not Rated (NR) Past performance In line with Article 44(4)(b), MiFID II Delegated Regulation, we disclose price performance for the preceding five years or the whole period for which the financial instrument has been offered or investment service provided where less than five years. Please note price history refers to actual past performance, and that past performance is not a reliable indicator of future price and/or performance. Online Disclosures Q2 Metals Corp Initiation of Coverage Speculative Buy Target Price C$2.00 | 24 February 2025 EV Materials 22 Up-to-date disclosures may be obtained at the following website (provided as a hyperlink if this report is being read electronically) http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx; or by sending a request to Canaccord Genuity Corp. Research, Attn: Disclosures, P.O. Box 10337 Pacific Centre, 2200-609 Granville Street, Vancouver, BC, Canada V7Y 1H2; or by sending a request by email to disclosures@cgf.com. The reader may also obtain a copy of Canaccord Genuity’s policies and procedures regarding the dissemination of research by following the steps outlined above. 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On February 24, 2025, Canaccord Genuity initiated coverage of Q2 Metals Corp. (QTWOTSX-V; OTCQB:QUEXF) with a Speculative Buy rating and a CA$2.00 price target, highlighting the company's Cisco lithium project in Quebec's James Bay region as a potentially world-class discovery with significant scale potential.

The Cisco project has delivered exceptional drill intercepts, including a standout 347.1m at 1.35% Li₂O hole that ranks as the third-highest reported grade interval globally when measured by meters × grade. Other impressive results include 215.6m at 1.69% Li₂O, 188.6m at 1.56% Li₂O, and 120.3m at 1.72% Li₂O. These wide intercepts place Cisco among elite global deposits such as Greenbushes, Manono, PAK, and Shaakichiuwaanaan.

Based on drilling data from 17 holes, Canaccord has modeled an estimated resource of 207 million tonnes at 1.3% Li₂O, with the potential to exceed this estimate as exploration continues. Despite drilling only approximately 6,400 meters to date, Q2 has achieved results comparable to Azure Minerals' Andover project, which led to a US$1 billion acquisition by SQM and Hancock Prospecting after 30,000 meters of drilling.

The Cisco project benefits from advantageous infrastructure, being located just 10km from the Billy Diamond Highway and approximately 150km from a railhead at Matagami. A planned rail extension would further enhance the project's logistics, providing Q2 with significant transportation advantages over other James Bay lithium projects.

For 2025, Q2 plans to continue drilling with a 6,000-8,000 meter winter program focusing on extending the deposit to the east and southwest, where it remains open. The company will also begin environmental monitoring and regional exploration as weather permits while continuing early-stage metallurgical test work. Initial mineralogical analysis shows spodumene as the primary lithium-bearing mineral, with coarse grain sizes that may be amenable to dense media separation processing.

Key risks for Q2 include financing requirements for continued exploration and development, inherent exploration uncertainties, potential operational challenges, commodity price and currency fluctuations, and environmental and social governance considerations, particularly regarding consultation with Indigenous communities.

With the share price at the time of the report at CA$0.96, the CA$2.00 target price represents a potential return of approximately 108%. Canaccord's valuation is based on a risked enterprise value to resource multiple of US$2.00 per tonne, applied to their estimated resource and exploration potential, plus net cash position.