Koppamurra emerges as a globally significant critical rare earths project with 104% increase in Mineral Resource

Expanded Mineral Resource inventory, which includes more than 50% in the Indicated Resource category, paves way for strategic discussions with critical minerals end-users

Australian Rare Earths Limited ASX: AR3 is pleased to advise that its strategy to establish a globally significant, long-life rare earths business at its 100%-owned Koppamurra Project in South Australia- Victoria has taken a pivotal step forward with a substantial increase in the Mineral Resource Estimate.

This outstanding result also opens the door for the Company to commence strategic discussions with end-users and government representatives related to potential development, downstream processing, funding, and off-take arrangements.

The Company has completed two significant drilling programs since October 2021, establishing the potential for the Koppamurra deposit as a shallow, low cost, long-life resource.

The consistent nature of the deposit enables expedient drilling and rapid Resource growth as well as the ability to undertake progressive rehabilitation, all of which continues to distinguish Koppamurra as a unique rare earth business opportunity.

Australian Rare Earths Managing Director Don Hyma said: "This outstanding result is a game- changer because it elevates Koppamurra to the stage where its future as a significant project is now clear. Koppamurra is one of only three advanced ionic clay-hosted rare earth deposits outside China/Myanmar, and it is now emerging as a project of both scale and quality.

"Its key attributes include its Tier-1 jurisdiction location, a rare earth element suite that offers the potential to supply both the light and heavy rare earths required for high-strength permanent magnets, the shallow, free-digging nature of the mineralisation and a low-CAPEX development pathway that offers the potential for a modular, staged approach.

"Significantly, the updated Mineral Resource and adjoining Exploration Targets are based on just 5 per cent of our exploration tenure, highlighting the potential for what could become a generational- sized deposit.

"This exceptional result is a credit to our team for the outstanding work they have done to advance Koppamurra so rapidly to this point. The inclusive and proactive approach we have adopted to engagement with our key stakeholders is fundamental to the way we work, and in particular I would like to acknowledge the support of the local communities and landowners during the recent drilling programs.

"We will now continue drilling to grow the resource in parallel with ongoing technical and metallurgical studies with the aim of advancing Koppamurra towards development as a new critical minerals project in south-eastern Australia.

"Our vision is to progress down a pathway that will see Koppamurra in production by 2025/26, perfectly timed to take advantage of surging demand for rare earths.

"Demand for Neodymium Iron Boron (NdFeB) high-strength permanent magnets in EV's and wind turbine generators is the key demand driver for the four key rare earth elements contained in the Koppamurra Resource - Neodymium, Praseodymium, Dysprosium and Terbium.

"Shortages of NdFeB are forecast as early as 2023, with the global market almost totally reliant on supply from China. Koppamurra is ideally placed to capitalise on the strong forecast growth in demand by building a new source of critical rare earths for the burgeoning global EV and wind turbine industries.

"Importantly, this landmark resource update and the ongoing work we are undertaking to confirm the viability of the Koppamurra Project gives us added confidence in our discussions with potential strategic downstream partners."

The updated June 2022 Mineral Resource estimate is set out in the table below, together with the Exploration Target for the extensional areas:

Koppamurra Mineral Resource Estimate - July 2022

Mineral Resources reported at a cut-off grade of 325 ppm TREO-CeO2, consistent with the previous MRE.

1 - The potential quantity and grade of the Exploration Target is conceptual in nature. Further exploration is required to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Quality TREO Deposit in Tier-1 Location

Koppamurra is located in South Australia, home to world-class mining operations and recognised as a Tier-1 jurisdiction for innovation and resources development.

Figure 1 - Koppamurra Rare Earths Project Location

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Australian Rare Earths Ltd. published this content on 03 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 July 2022 00:02:03 UTC.