CIRCLE VALLEY RARE EARTH PROJECT

A thick saprolitic clay horizon shown to be enriched in magnet rare earth elements neodymium and praseodymium was identified in drilling at Circle Valley in early 2022.

Following the identification of this mineralisation, the Company secured 2,269km2 of additional tenure in Albany-Fraser Mobile Belt, the Cascade Rare Earth Project. Cascade is located 50km southwest of Circle Valley and 35km west from the regional centre of Esperance.

The Company views the rare earth opportunity across both Circle Valley and Cascade as a single province scale opportunity spanning a combined 2,491km2. The province benefits significantly from access to infrastructure including a port at Esperance, abundant renewable wind and solar power, local resident workforce and an existing road network.

Drilling at Circle Valley during 2022 intersected a thick saprolitic clay horizon blanketing a large part of the tenure. Drilling was assayed for rare earth elements (REE) and scandium, in addition to gold. Results showed high levels of the high value magnet rare earths being neodymium (Nd2O3) and praseodymium (Pr6O11), together NdPr.  Notable REE intersections included:

• 12m @ 2,690ppm TREO (26% NdPr) and 26g/t Scandium from 20m (22CVAC250)
• 8m @ 2,245ppm TREO (28% NdPr) and 61g/t Scandium from 12m (22CVAC188)
• 8m @ 1,432ppm TREO (29% NdPr) and 15g/t Scandium from 28m (22CVAC237)
• 8m @ 1,236ppm TREO (23% NdPr) and 43g/t Scandium from 20m (22CVAC251)
• 8m @ 1,003ppm TREO (29% NdPr) and 19g/t Scandium from 16m (22CVAC240)
• 4m @ 1,269ppm TREO (29% NdPr) and 61g/t Scandium from 12m (22CVAC030)
• 16m @ 1,098ppm TREO (18% NdPr) and 15g/t Scandium from 12m (22CVAC029)
• 8m @ 1,102ppm TREO (22% NdPr) and 15g/t Scandium from 12m (22CVAC252)
• 8m @ 1,433ppm TREO (26% NdPr) and 21g/t Scandium from 16m (22CVAC244)

An initial rare earth metallurgical test program was commissioned in May 2022 with samples received by Australian Nuclear Science and Technology Organisation (“ANSTO”) in New South Wales. Initial results from the preliminary ANSTO metallurgically program, received in July 2022, were positive. Main findings included:

• Total rare earth extraction up to 82%, averaging 76%; and
• Extraction of high value magnet rare earths up to 86%, averaging 82%.

Further test work is underway to refine and improve the metallurgical processes. Upstream mineral processing techniques are also being evaluated to upgrade mineralisation and remove non-target elements prior to extraction.

Forward Strategy

The Company’s strategy is to continue to conduct regional discovery drilling across high-quality targets while building a rare earth Mineral Resource base and confirming a processing and recovery flow sheet which will deliver a saleable product.