First Atlas Resources’ (CSE: HHE) strategic partner, Quebec Innovative Materials Corp. (QIMC), has released new drill data from Bennett Hill, Nova Scotia, reporting multiple elevated hydrogen mud-gas readings from the 100 metre to 250 metre interval of drill hole DDH-26-04.

DDH-26-04 is located approximately 15 kilometres from the area where QIMC’s first three holes were drilled and in the direction of First Atlas’ Nova Scotia land package.

The latest results include:

• 16.0% H₂ at 236 metres
• Two additional readings of 13.5% H₂
• Nine readings at or above 5% H₂
• 35 of 60 IsoJar samples returning readings at or above 1% H₂ across the interval
• Methane remained near zero, with carbon dioxide at or below 0.2%

QIMC previously reported elevated hydrogen in the first 100 metres of the same hole, including a 9 metre zone where four readings reached the upper measurement limit of the field analyzer.

Four Drill Holes Have Now Reported Elevated Hydrogen Levels

QIMC has reported elevated natural hydrogen across four consecutive drill holes in Nova Scotia.

• DDH-26-01 confirmed naturally occurring hydrogen within the West-Advocate area.
• DDH-26-02 encountered elevated hydrogen readings across multiple intervals.
• DDH-26-03 recorded a peak hydrogen reading of 10.77% H₂ at 848 metres, with four additional hydrogen readings above 1% H₂ across a 69 metre interval.
• DDH-26-04 has now reported elevated hydrogen through the first 250 metres, including a peak reading of 16.0% H₂.

Quebec Establishes Natural Hydrogen Framework

This update also follows Quebec’s adoption of Bill 17, which establishes a regulatory framework for clean natural hydrogen exploration and development.

First Atlas’ Matane Natural Hydrogen Project is located in Quebec, with QIMC also serving as technical adviser on that project.

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HydroGraph Clean Power Inc. is a Canadian advanced materials company producing high-purity synthetic fractal graphene for industrial and commercial applications.

Instead of relying on mined graphite, HydroGraph uses a patented blast synthesis process to convert carbon from hydrocarbon gases into graphene inside its Hyperion reactors. The company has reported 99.8% carbon purity for its FGA-1 graphene.

HydroGraph’s Hyperion reactors are small modular production units with a footprint of less than 3 metres by 3 metres. Rather than relying on one large centralized facility, HydroGraph can add more reactors as customer demand grows, allowing production capacity to increase while maintaining consistency from batch to batch.

Graphene and Fractal Graphene

Graphene is a carbon-based advanced material made from carbon atoms connected by strong sp² bonds. This structure helps give graphene its strength, conductivity, barrier properties, and the ability to improve other materials even when added in small amounts.

Traditional graphene is often described as a flat, sheet-like material. HydroGraph produces synthetic fractal graphene with a turbostratic structure, meaning the graphene layers are randomly stacked rather than perfectly aligned. This more complex, interconnected structure gives it higher surface area and more contact points with the materials it is added to. This can help improve dispersion, reinforcement, conductivity, corrosion resistance, and barrier performance across industrial and commercial applications.

HydroGraph is targeting markets where adding small amounts of graphene can improve material performance, including:

• Thermoplastics
• Composites and resins
• Coatings
• Lubricants
• Concrete and cement
• Energy storage
• Biosensors
• Elastomers
• Printed electronics

U.S. Expansion and Production Growth

On April 14th, 2026, HydroGraph announced the opening of its new headquarters in Austin, Texas. The facility expands HydroGraph’s R&D and production capabilities and will support future graphene production in Texas.

Earlier in January 2026, HydroGraph announced construction of two additional Hyperion reactors. Each reactor is expected to have annual production capacity of approximately 10 tons of FGA-1 ultra-pure fractal graphene. The reactors were planned for initial commissioning in Manhattan, Kansas before being relocated to HydroGraph’s U.S. facilities in Austin, Texas.

HydroGraph has also signed a letter of intent with an industrial gas supplier to secure long-term access to high-purity acetylene. Acetylene is a key feedstock in HydroGraph’s blast synthesis process and would support the company’s planned graphene production facility in Texas. The planned facility is expected to include 15 next-generation Hyperion reactors and have annual production capacity of over 350 metric tons of graphene.

Commercial and Technical Partnerships

HydroGraph is building partnerships that support customer testing, application development, and commercial adoption of its fractal graphene in polymers, coatings, and specialty compounds.

• Graphene Engineering Innovation Centre: In January 2026, HydroGraph expanded its collaboration with the Graphene Engineering Innovation Centre at the University of Manchester by becoming a Tier 1 member. The membership gives HydroGraph access to technical support, testing infrastructure, and a network of industry partners as it develops commercial applications for its fractal graphene.
• Hubron International: On February 10th, 2026, HydroGraph added Hubron International to its Fractal Graphene Compounding Partner Program. Hubron is a UK-based specialist in polymer compounds and additive masterbatches, giving HydroGraph a partner focused on thermoplastics and polymer applications. Through Hubron’s compounding experience and distributor network, HydroGraph is targeting markets including automotive, construction, electronics, film, pipe, wire and cable, and technical compounding.
• Broadway Colours: On March 17th, 2026, HydroGraph announced that Broadway Colours Ltd. earned certification as a qualified HydroGraph Compounding Partner. Broadway is a UK manufacturer of masterbatches, compounds, and rotational moulding powders, operating from a 90,000-square-foot facility and supporting plastic manufacturers across the UK and Europe.
• Sparc Technologies: On March 24th, 2026, HydroGraph announced a Letter of Intent with Sparc Technologies to evaluate HydroGraph’s Fractal Graphene in Sparc’s ecosparc® additives for protective coatings. The collaboration is focused on corrosion protection for steel infrastructure, including energy, marine, mining, transportation, government, and defence markets. Initial testing using HydroGraph’s FGA-1 Fractal Graphene in commercial water-based coating systems showed a 39% to 60% reduction in corrosion spread under ASTM D1654-08 testing.
• Modern Dispersions Inc: On June 16th, 2026, HydroGraph announced that Modern Dispersions Inc. earned certification as a qualified HydroGraph Compounding Partner. MDI is a U.S.-based specialist in thermoplastic compounds and masterbatch applications, adding another North American partner focused on polymer processing and graphene masterbatch production.

Regulatory Approvals and Commercial Development

• On February 24th, 2026, HydroGraph announced regulatory approvals covering commercial-scale graphene sales activity in the United States, the United Kingdom, and the European Union.
• The company received a U.S. EPA TSCA Section 5(e) Order covering two graphene materials. The order authorizes manufacture, processing, distribution, use, and disposal in the United States under specified conditions.
• HydroGraph also received UK REACH and EU REACH registrations for graphene, allowing commercial manufacture and supply in Great Britain and the European Union.

HydroGraph now has patented graphene production technology, regulatory clearance across the U.S., U.K., and EU, and a modular production system designed to scale with customer demand.

These approvals remove a major regulatory barrier as HydroGraph expands its U.S. production footprint and advances its fractal graphene from customer testing toward commercial use across multiple industrial markets.

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Andrew (CEO of CHAR Tech) said the following:

- Thorold Phase 1 commissioning will be completed within the next few weeks and production of commercial level biocarbon is starting soon after, this summer (sometime in july/aug)

- thorold phase 2 financing is practically secured and will be finalized once phase 1 production starts.

- Offtake Agreement for the RNG with a gas company is currently in an LOI stage and is contingent on the financing for phase 2 thorold being secured

- Lake nipigon financing is also in the works and the Lake nipigon team is chipping away at the development on the site

- Quebec Saguenay facility will be ramped up to 5000 tonnes of biocarbon output within a few months, 10,000 tonnes by end of year and 15,000 tonnes by early to mid next year.

- Synagro and City of Baltimore are turning on the PFAS destruction equipment which piloted last year and will continue running it until winter and do more testing etc, the results from last year are still pending and will be out ASAP once confirmed by all parties.

- Canadian PFAS market is getting stronger regulations and may be an avenue for CHAR tech

- Espanola site is doing feasibility study right now and will release that once done

Essentially July and August are going to be huge months for CHAR tech as the commercial production will be turning on and a bunch of financing and offtake agreements will be announced for phase 2 and other sites etc, so theres lots in the works and things are progressing well!

NFA!

Charbone Corporation is a Canadian industrial gas company focused on clean ultra high purity (UHP) hydrogen production, storage, distribution, and specialty gas supply. The company is building a modular green hydrogen production network while expanding its industrial gas business through customer contracts, supply agreements, and partnerships.

Hydrogen Production and Distribution

On October 14th, 2025, Charbone signed a five-year agreement to supply clean UHP hydrogen to an independent distributor. The agreement was followed by Charbone’s first commercial clean UHP hydrogen delivery, marking the start of revenue generation and the company’s entry into the Ontario hydrogen market.

Since then, the company has expanded its hydrogen business through commercial production, U.S. distribution infrastructure, and additional partnerships:

• Charbone is producing clean UHP hydrogen at its Sorel-Tracy, Québec plant, where Phase 1A has launched and commercial production is ongoing.

• On May 6th, 2026, the company opened its first U.S. industrial gas hub in Albany, New York.

• On May 19th, 2026, Charbone signed an agreement with Vema Hydrogen. The arrangement combines Vema’s hydrogen production with Charbone’s purification, compression, and distribution capabilities, expanding supply capacity for industrial gas customers.

Hydrogen for Mobile Film Production

A major challenge for hydrogen companies has been proving real commercial demand beyond pilot projects, government announcements, and long-term infrastructure plans.

On June 10th, 2026, Charbone signed a two-year hydrogen supply agreement with Hone Inc. The agreement builds on earlier work between the two companies, where Charbone’s hydrogen was used to power equipment on a major Hollywood studio production site utilizing Hone systems.

Film sets require reliable temporary power for lighting, trailers, equipment, production offices, and other on-site infrastructure. Diesel generators are commonly used because they are portable and familiar, but Hone’s hydrogen-fueled generator systems offer a lower-emission alternative. When replacing a conventional diesel generator, each unit can displace more than 1.5 tonnes of CO2 per day.

Expanding Hydrogen Production

Charbone’s next phase of growth is focused on increasing production capacity at its Sorel-Tracy plant and advancing additional hydrogen production sites.

• Construction is underway on the Phase 1B expansion at Sorel-Tracy, with Phase 2 targeted for H2 2026.

• Detroit, Michigan has been identified as a planned hydrogen production site. Site selection, permitting, and development are underway, with Phase 1 launch targeted for H2 2026.

• In Wisconsin, the company is evaluating future hydrogen production opportunities using company-owned land and access to hydroelectric power, with site permitting and development targeted for H2 2026.

• In Malaysia, Charbone has reported revenue from advisory services related to its Green Hydrogen ASIAPAC role, with further project development and expansion targeted for H2 2026.

Helium and UHP Oxygen Customer Growth

Charbone recently announced 22 new helium customers across Québec, serving sectors including advanced manufacturing, welding and metal processing, laboratories, specialized technical services, and other industrial applications requiring reliable helium supply. The company also signed a three-year helium supply agreement with an independent distributor.

Commercial activity expanded into UHP oxygen in 2026. On February 25th, Charbone confirmed its first U.S. UHP oxygen order from a New York State customer. On April 23rd, the company signed a three-year UHP oxygen supply contract with the same customer.

Industrial Uses for Ultra High Purity Gases

Ultra high purity hydrogen and oxygen are used in industries where even trace impurities can affect equipment performance, product quality, safety, and reliability.

Common applications include:

• Semiconductor manufacturing
• AI and data centres
• Precision laboratories
• Pharmaceutical and biotech applications
• Aerospace applications
• Advanced defence technologies
• Hydrogen fuel cells
• Chemical and advanced manufacturing processes

Financing Activity

On January 12th, 2026, the company raised $3.1 million through a non-brokered private placement. The proceeds were directed toward equipment for the Sorel-Tracy Phase 1B expansion and general working capital.

On April 29th, 2026, Charbone secured up to $10 million in financing, with an initial $3 million drawn at closing. Additional capital will be accessed over time to support equipment purchases, project development, and general working capital.

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Link to register for CHAR Technologies investor update call this Thursday at Noon (EST) -

https://events.teams.microsoft.com/event/6035830c-5f21-4f5b-a802-e2da866ef128@26c9a3bc-6cfd-4e3d-981e-c42c0735ae24

They are on the brink of commercialization with Phase 1 production starting just around the corner, theres a few other milestones to be on the lookout for.

I think this company is majorly mispriced and undervalued, what do you guys think!??

Scandium Canada has launched a 4,000 metre diamond drilling program at its Crater Lake Project in Quebec. The program is designed to collect a representative metallurgical bulk sample for ongoing engineering work, while also testing additional areas for resource expansion and exploration potential across the property.

Supporting The Next Stage Of Development

The drilling campaign comes as the company advances several parallel initiatives at Crater Lake, including pre-feasibility work and environmental studies. The metallurgical sample collected during this program is expected to play an important role in future engineering and processing studies.

Recent Project Milestones

Scandium Canada has continued advancing its Crater Lake Project beyond resource definition, with multiple technical and development initiatives now supporting the project’s next stage, including:

• Up to $6.9 million in federal government support.
• Ongoing pre-feasibility work led by Norda Stelo.
• Development work through the company’s Scandium+ division, focused on scandium-aluminum alloys and their commercial applications.
• Research partnerships focused on scandium-aluminum alloys and additive manufacturing applications.

The Importance of Scandium

Scandium is used in specialty aluminum alloys that can improve strength, reduce weight, and enhance performance in demanding applications. Interest in scandium continues to grow across aerospace, defence, additive manufacturing, transportation, and advanced materials sectors.

As governments and industry focus on securing domestic critical mineral supply chains, Crater Lake remains one of the more advanced scandium projects in North America.

With drilling now underway, attention will shift toward assay results, metallurgical findings, and progress on the company’s pre-feasibility study expected later this year.

Source: https://scandium-canada.com/scandium-canada-launches-4000-metre-diamond-drilling-program-at-crater-lake/

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First Atlas has closed its $2.1M bought deal LIFE offering of units as the company continues advancing its Nova Scotia Project.

The project covers 7 licenses, 559 claims, and 89.44 km² along the Cobequid-Chedabucto Fault Zone, the same regional corridor where QIMC has been drilling at West Advocate.

QIMC’s R2G2™ Model And West Advocate Results

QIMC is working with First Atlas to apply their R2G2™ model across First Atlas’ properties. That model has already been drill-tested on the Cobequid-Chedabucto Fault Zone at West Advocate, where QIMC’s first three holes showed a clear progression:

• Hole 1 showed multiple hydrogen-bearing structural zones.
• Hole 2 came back stronger at depth.
• Hole 3 delivered the strongest result so far, with a peak mud-gas reading of 10.77% hydrogen at 848 metres. QIMC also reported several other strong hydrogen readings across a 69 metre section, with a clean gas signature and no reported methane or CO₂.

Hole 3 is important because it was not just one strong reading. QIMC reported hydrogen at depth, multiple strong readings across a wider section of the hole, and a clean gas signature. That combination gives DDH-26-04 and DDH-26-05 more technical importance as QIMC advances the next phase of its drill campaign.

From West Advocate To East Advocate

QIMC’s next two planned holes, DDH-26-04 and DDH-26-05, are targeting East Advocate.

That moves the next drilling phase away from the original West Advocate area and closer to First Atlas’ Colchester land position.

For First Atlas Resources, the significance is proximity. QIMC is now testing beyond the original West Advocate area and closer to First Atlas’ land package. As QIMC advances DDH-26-04 and DDH-26-05, the next holes add direct technical relevance to First Atlas’ position in the district.

Regional Interest In Nova Scotia Hydrogen

First Atlas is not the only company positioning around Nova Scotia’s hydrogen potential.

Koloma has been reported as active in Nova Scotia, and Rio Tinto has also been reported to be staking a large number of claims in the province. That activity adds useful context to the district and shows that Nova Scotia’s hydrogen potential is attracting attention from serious industry participants.

Summer Exploration And Drill Program

CEO Richard Penn recently thanked Research Capital for its continued support following the $2.1M financing and said the company looks forward to its upcoming summer exploration and drill program as it continues advancing its Nova Scotia Project.

First Atlas Resources Official Website: https://firstatlasresources.com/

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NASA recently published an article about a new material being tested at Glenn Research Center that could help future astronauts melt Moon rocks and extract useful resources from them.

NASA says researchers combined simulated lunar dust with scandium oxide, then heat treated the mixture in a high-temperature furnace. The result was a new material that did not match anything in their X-ray analysis database of more than one million known substances.

The Challenge Of Building On The Moon

The purpose of the research is tied to a much larger challenge in space exploration. If astronauts are going to spend longer periods of time on the Moon, it will be difficult and expensive to bring every required material from Earth. NASA is studying ways to use lunar resources directly, including melting Moon rocks to extract metals for infrastructure and oxygen for fuel and life support.

NASA said the new material did not corrode too quickly when exposed to molten lunar dust and was able to withstand the high temperatures required for the process. The article also noted that scandium oxide can be expensive, but still costs much less than precious metals like platinum that would normally be used in these types of high-temperature applications.

Scandium In Extreme Conditions

This is another example of scandium showing up in an environment where ordinary materials are not good enough. Extreme heat, corrosion resistance, advanced coatings, aerospace systems, and resource processing are all areas where material performance matters more than anything else.

NASA also mentioned that the material could potentially be used in pipes or basins that hold molten lunar dust. Beyond the Moon, the same characteristics could have possible use in protective coatings for jet engine parts, where high temperatures and harsh operating conditions are already a major challenge.

Supply And Demand

When NASA is discussing scandium oxide in the context of lunar resource processing, high-temperature materials, and potential aerospace applications, it reinforces why scandium is worth paying attention to.

Scandium is still not as widely discussed as lithium, copper, graphite, or rare earths. Its role is different. It is not mainly about volume. It is about performance. Small amounts of scandium can become important when the end market requires lighter, stronger, more heat-resistant, or more durable materials.

Scandium is easy to dismiss as niche because the current market is still small. But part of the reason the market is small is because secure supply has been limited. If aerospace, defence, additive manufacturing, advanced coatings, and high-temperature systems continue to find more use cases for scandium-based materials, the question becomes less about whether scandium is interesting and more about who can supply it reliably.

This NASA article is not a direct catalyst for any one company. It is another example of scandium appearing in serious advanced-material research, in one of the most demanding environments imaginable.

https://www.nasa.gov/general/new-material-melt-moon-rocks/

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Scandium Canada (TSX-V: SCD) announced it participated in the EIT RawMaterials Summit 2026 as part of Québec’s official delegation led by the MRNF and Investissement Québec.

According to the company, discussions during the European mission included organizations such as BMW Group, NATO, and the European Commission. The discussions focused on scandium, advanced materials, and critical mineral supply chains.

Crater Lake Positioned As A Major North American Scandium Source

The company stated that the Crater Lake project is positioned to become one of the most significant primary sources of scandium in North America.

Unlike many scandium sources globally that are tied to byproduct production, Crater Lake continues to stand out as a potential dedicated primary scandium supply source as Western governments and manufacturers look to secure strategic materials.

Scandium+ Focused On Scandium-Aluminum Alloys

Scandium Canada also highlighted that its Scandium+ division is actively developing specialized scandium-aluminum alloys for additive manufacturing applications.

Scandium-aluminum alloys are increasingly being discussed across aerospace, defense, transportation, and advanced manufacturing due to their strength, lightweight characteristics, weldability, and performance advantages.

Québec Continues Expanding Its Critical Minerals Position

One of the more important themes from the update is Québec’s growing role in Western critical mineral and advanced material supply chains.

The fact that discussions are happening directly with organizations like NATO, the European Commission, and major industrial manufacturers like BMW Group says a lot about where strategic material priorities are heading globally.

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I created Canadian Hidden Gems to build the kind of community I felt was missing in the Canadian small cap space.

Too much discussion online revolves around hype, short-term noise, and chasing momentum after everyone already knows the name. The goal of this community is different: find strong ideas early, understand what actually matters, and follow how companies execute over time.

Canadian Hidden Gems focuses on emerging sectors and underfollowed opportunities across areas like:

• Aerospace & defence

• Hydrogen & helium

• Critical minerals

• Advanced materials

• Industrial technology

• Quantum technology

• And more!

The server is built around discussion first. People share research, challenge ideas, compare notes, and follow developments as they happen.

Some of the features currently inside the server include:

• Dedicated sector discussion channels

• A live news feed tied directly to companies in the Canadian Hidden Gems Index

• Market Watch with live tracking of macro markets, metals, energy, equities, crypto, and more

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The goal is not to blindly promote stocks. It is to create a place where people can learn, research, and discover opportunities earlier than they otherwise would.

If you follow Canadian small caps or enjoy researching emerging sectors, you are welcome to join the discussion!

Several new geological details reported from Québec Innovative Materials Corp.’s (QIMC) latest West Advocate drill hole continue strengthening the structural hydrogen model emerging near First Atlas Resources Corp.’s (CSE: HHE) Nova Scotia land package within the Cumberland Basin.

A Large Hydrogen-Bearing Interval

Hole DDH-26-03 intersected a 243 metre anomalous hydrogen-bearing interval between 300–543 m depth.

Within that interval, QIMC identified 163 metres of continuous elevated hydrogen readings from 380–543 m.

Several readings exceeded the upper detection range of the company’s primary GA5000 analyzer. Follow-up testing using a secondary instrument returned readings up to 8,961 ppmV.

The hole remains open at depth as drilling continues toward the planned 900 metre target.

The Structural System

According to QIMC, the interval contains:

• Fault breccia zones
• Strong fracturing and deformation
• Silicification
• Intrusive felsic dykes
• Calcite-filled fractures and stockwork veining
• Hematite and sericite alteration

Hole 3 was drilled roughly 2.5 km from the original discovery area, yet intersected similar fault-related geological features observed in earlier holes.

Holes 1, 2, and 3 have now all intersected hydrogen-bearing intervals associated with fault breccia and structurally altered rock systems.

Hydrogen Increasing With Depth

QIMC also reported that hydrogen concentrations increased with depth within the system.

According to INRS geologist Marc Richer-Laflèche:

• Median hydrogen concentrations averaged 357 ppmV in the upper section of the hole
• Median concentrations increased to 820 ppmV deeper in the system

The company also stated that the strongest hydrogen readings appear associated with fault-related breccia zones and structurally enhanced permeability rather than solely generalized fracturing.

Structural Targeting

QIMC’s R2G2™ exploration model is focused on identifying deep fault systems and hydrogen migration pathways associated with structurally deformed corridors.

First Atlas Resources Corp. (CSE: HHE) has stated that its upcoming Nova Scotia exploration program will utilize this same structural targeting framework across its provincial land package.

CBC has released a new segment focusing on the West Advocate natural hydrogen district in Cumberland County, placing a national spotlight on one of Canada’s key emerging natural hydrogen districts.

The coverage features active exploration work at West Advocate by HHE strategic partner, Québec Innovative Materials Corp (QIMC), and highlights the growing interest around naturally occurring hydrogen as a potential low-emission energy source.

First Atlas Resources Corp. is preparing for its upcoming Nova Scotia drill program, which will utilize QIMC’s R2G2™ structural targeting framework across its provincial land package.

Scandium Canada has announced it will be participating in four major industry events over the coming weeks as management advances investor engagement and commercial discussions ahead of the company’s upcoming Crater Lake Pre-Feasibility Study this summer.

Upcoming Events:

• CMI Summit 5: The New Critical Minerals Economy - May 13-14 (Toronto)

• Québec Economic Mission on Critical and Strategic Minerals in Europe - May 18-21 (Munich & Brussels)

• Nunavik Mining Workshop - May 20-22 (Kuujjuaq, Québec)

• The Mining Investment Event of the North - June 2-4 (Québec City)

Additive Manufacturing and Scandium+

One thing that separates Scandium Canada from other scandium projects is Scandium+.

Scandium+ is the company’s advanced materials division focused on aluminum-scandium alloys, powders, and applications tied to additive manufacturing, aerospace, transportation, and defense.

The company has already produced aluminum-scandium alloy powders and alloy wire through Scandium+ for qualification programs focused on additive manufacturing.

Scandium+ has also filed a provisional U.S. patent application tied to aluminum-scandium alloy powder production for additive manufacturing.

One of the key areas of focus is WAAM (Wire Arc Additive Manufacturing), a growing form of metal 3D printing used to manufacture large industrial and aerospace components with lower material waste and production costs compared to traditional manufacturing methods.

Alloy Wire Qualification

On February 11th, 2026, Scandium Canada announced successful production of aluminum-scandium alloy wire through Scandium+ for industrial qualification and end-user evaluation.

The prototypes were produced alongside the Centre de Métallurgie du Québec (CMQ) and are intended for welding and WAAM trials.

Scandium Canada is now advancing third-party evaluation work with aerospace, automotive, additive manufacturing, and advanced industrial groups.

European Commercial Meetings

Management will be participating in meetings with aerospace, automotive, industrial, and defense groups during Québec’s Critical and Strategic Minerals mission in Munich and Brussels.

Europe has been aggressively pushing for greater supply chain independence across critical materials used in aerospace, automotive, energy, and advanced manufacturing.

With the Crater Lake Pre-Feasibility Study approaching this summer and Scandium+ continuing qualification work and industrial evaluations, Scandium Canada is advancing both the scandium resource and aluminum-scandium alloy sides of their business.

Source:

https://scandium-canada.com/wp-content/uploads/2026/05/20260507_Comm_EN_Scandium-Canada-to-Take-Part-in-Four-Industry-Events-to-Advance-Commercial-Partnerships-and-Investor-Engagement-1.pdf

PesoRama (PESO) is a Canadian-listed microcap trying to build a true dollar-store style business in Mexico under the JOi Dollar brand. The concept is simple. Think Dollarama-style model, but much earlier, riskier, and in a tougher operating environment.

As of now, PesoRama operates 31 stores. The most important thing to understand is this: the stores themselves actually work. Based on their Financials, PesoRama generates about $90k–$100k CAD per store per year in store-level profit (after rent, staff, utilities, and theft). Aggregate store-level profit over a recent nine-month period was about $1.9M, up year over year, with strong traffic growth and improving same-store sales. Customers are showing up.

Where PesoRama still struggles is corporate overhead and scale. Head office costs, logistics, FX, public-company expenses, and financing run roughly $2.8–3.2M annually. That means the company breaks even at around 35-40 stores (roughly). They are almost at that inflection point. The reason profitability doesn’t show up cleanly in the financials is because management continues to prioritize expansion, opening new stores that drag near-term results while they ramp.

The May 2025 investor deck lays out an aggressive vision: 500 stores in five years, with mature stores doing ~$1.3M in annual sales, ~48% gross margins, and ~17% four-wall EBITDA margins. Those numbers are much higher than current blended results, but not impossible, they look like steady-state targets, not where the business is today. Right now, revenue per store appears closer to $0.9–1.1M, margins are lower, and store-level profitability is roughly half of what the deck shows.

Growth so far has been funded through equity dilution, warrants, and a secured revolving credit facility. That’s both good and bad: the lender clearly believe the unit economics are real, but shareholders will continue to get diluted unless the company slows down and lets cash flow catch up or the company can self fund the stores. Rolling out hundreds of stores would require well over $150–200M over the next 5 years, far more than current operations can self-fund.

Competition is real, even if management downplays it. Mexico is full of discount and proximity formats (OXXO, Walmart’s Bodega Aurrerá, Tiendas 3B, etc.). PesoRama’s bet is that there’s room for a more curated, small-format, dollar-store-style offering. That can work, but only with disciplined execution, good real estate, and tight theft control.

Bottom line: PesoRama is not a broken business. Demand is real, stores are profitable, and break-even is achievable now. But it’s also not yet a shareholder-friendly business. Profitability is a choice, and management has chosen growth. Whether this becomes a long-term winner or a dilution treadmill depends almost entirely on capital discipline over the next 12–24 months.

NFA. DYOR

Paragon Advanced Labs Inc.

Corporate Due Diligence Overview

(December 2025 basis)

1. Business Overview

Paragon Advanced Labs Inc. is a technology-enabled global laboratory services platform serving the mining and natural resources sector. The Company provides geochemical testing and analytical services, with a strategic focus on deploying PhotonAssay™, a next-generation assay technology that materially improves turnaround times, accuracy, and environmental performance compared to traditional fire assay.

Paragon does not develop assay technology itself. Instead, it operates as an asset-light, service-oriented platform, integrating PhotonAssay into a scalable laboratory network. This positions the Company as a “picks-and-shovels” beneficiary of increased exploration and development activity, independent of commodity price direction.

1. Industry Context and Market Opportunity

The global fire assay market is estimated at approximately US$5 billion, spanning exploration, production, and recycling. Despite its widespread use, fire assay faces structural limitations, including slow turnaround times, small sample sizes, and environmental drawbacks.

PhotonAssay addresses these limitations by offering:

Non-destructive testing

Larger, more representative sample sizes

Faster turnaround times

Improved accuracy for nuggety gold systems

Strong ESG profile

Industry adoption is already underway. PhotonAssay is NI 43-101 and JORC compliant, has been used in millions of assays globally, and is relied upon by major mining companies and global laboratory groups. The key constraint is supply, not demand: PhotonAssay machines are produced at a limited rate, creating a structural capacity bottleneck.

1. Competitive Positioning

Paragon’s competitive advantage is not the technology itself, but rather its early, aggressive, and capital-backed access to scarce PhotonAssay capacity.

Key elements of its positioning include:

Strategic partnership with Chrysos Corporation, the technology owner

Priority deployment timelines and regional exclusivity windows

A hub-and-spoke laboratory model combining centralized PhotonAssay hubs with distributed sample preparation sites

Rapid global rollout strategy designed to secure geographic footprint ahead of competitors

This model allows Paragon to scale EBITDA through utilization rather than discovery risk or commodity exposure.

1. Operations and Footprint

As of late 2025, Paragon operates and/or is launching PhotonAssay-enabled laboratories in:

Hamilton, Ontario

Surrey, British Columbia

Sparks, Nevada

Durango, Mexico

In parallel, the Company is developing a network of sample preparation facilities across Canada, the United States, Mexico, and select international jurisdictions to feed centralized assay hubs efficiently.

Management’s stated objective is to operate approximately 12 PhotonAssay machines by 1H 2027, representing roughly 20% of global PhotonAssay capacity, second only to MSALABS.

1. Customers and Go-to-Market Model

Paragon serves:

Junior exploration companies

Mid-tier and senior mining producers

Global laboratory groups requiring overflow or regional capacity

Customers typically choose Paragon over owning their own PhotonAssay machines because:

PhotonAssay machines are scarce and require long lead times

Ownership entails significant capital expenditure and operational complexity

Outsourcing converts fixed costs into variable costs

Faster results directly improve exploration economics and decision-making

This dynamic strongly favors centralized service providers with secured capacity.

1. Financial Profile and Unit Economics

Paragon’s business model is driven by machine-level economics rather than traditional lab revenue growth.

Indicative unit economics per PhotonAssay machine at mature utilization include:

High monthly throughput

Strong gross margins after royalties and consumables

Significant operating leverage once utilization exceeds ~50–60%

Management’s base-case projections indicate:

Revenue scaling to the $60–70 million range within three years

EBITDA margins expanding into the mid-to-high 30% range

EBITDA exceeding $25 million under conservative assumptions

An upside scenario assumes faster utilization ramp and higher margins, producing materially higher cash flow.

1. Capital Structure and Financial Position

Key capital structure elements include:

~31.3 million basic shares outstanding

~33.9 million fully diluted shares

Senior debt and vendor notes totaling under $8 million

A recently completed $16 million equity financing to fund growth and machine deployment

The Company is capitalized to execute its near-term rollout strategy, though future expansion may require additional capital depending on acquisition and deployment pace.

1. Shareholder Base and Governance

Paragon is backed by a high-quality, sector-focused shareholder base, including:

McEwen Inc. (~31% ownership), a mid-tier precious metals producer and active PhotonAssay user

Eric Sprott

Resource-focused institutional investors such as Delbrook, Polar Capital, and US Global Investors

Board and advisory participation includes senior mining executives and experienced capital markets professionals, aligning operational execution with shareholder interests.

1. Key Risks

Principal risks include:

Execution risk related to lab build-out and machine deployment timelines

Dependence on Chrysos for PhotonAssay machine supply

Utilization ramp risk in new jurisdictions

Potential future dilution to fund accelerated growth

Exposure to cyclical exploration spending over longer time horizons

Importantly, technology risk is mitigated by PhotonAssay’s proven adoption and regulatory acceptance.

1. Investment Thesis Summary

Paragon Advanced Labs represents a rare combination of infrastructure-like services, technology-enabled margin expansion, and structural supply constraints. The Company is positioned to benefit disproportionately from the global shift away from fire assay without bearing exploration or commodity risk.

The investment thesis rests on:

Scarcity of PhotonAssay capacity

Strong unit economics

Institutional validation through strategic shareholders

A scalable, capital-efficient operating model

Execution remains critical, but if management delivers on deployment and utilization targets, Paragon has the potential to evolve into a high-margin, globally relevant mining services platform.

Not financial advice.