Announcement PDF 23 July 2024 AR3 progresses Uranium strategy with Exploration License Application at Hamilton Creek Securing strategic 200 km² tenure to explore Uranium Potential in the Callabonna Sub-basin Highlights: • Exploration License Application: South Australian Exploration License Application (ELA) 2024/00045 has been submitted, adding ~200km2 of prospective tenure targeting uranium mineralisation within the Callabonna Sub-basin. • Untested Uranium Potential: Includes the Hamilton Creek Prospect, where strong indications of uranium mineralisation have been identified from historic borehole gamma logging worthy of follow-up. • Namba Formation Sediments: Anomalous gamma responses in the upper Namba formation, a known uranium-bearing formation hosting the nearby Beverly uranium deposit located less than 50 Km from the Hamilton Creek Prospect. • Rapidly Growing Uranium Portfolio- The Hamilton Creek ELA adds to the Company’s uranium portfolio, now totaling ~3,400km2 when combined with the Overland and Triggs Bore projects (see AR3 ASX Announcements7 May 2024 and 16 July 2024). • Fast-tracked Exploration: On-ground exploration will occur once the EL is granted, with planning for specific work programs already underway. • Click here to watch a short video on this from our MD, Travis Beinke, or ask us any questions. Australian Rare Earths (ASX: AR3) is pleased to announce the Company’s application for tenure in South Australia, adding to the inventory of prospective ground targeting uranium mineralisation amenable to in-situ recovery mining. ELA 2024/00045 was lodged by AR3 in the prospective Callabonna Sub-basin to pursue an anomalous downhole gamma response identified in previous drilling. AR3 Managing Director and CEO, Travis Beinke, said: “The submission of our South Australian Exploration License Application for the Hamilton Creek Prospect bolsters our prospective uranium tenure to 3,400 km². The Callabonna Sub-basin, with its strong indications of uranium mineralisation and historical data pointing to anomalous gamma responses in the Namba formation, represents an encouraging opportunity for AR3. Our strategic expansion into this area is the latest step in our strategy of securing ground in South Australia that is prospective for uranium resources. The proximity to the Beverly uranium mine underscores the prospectivity of Hamilton Creek. We anticipate an early start toon-ground exploration once the license is granted, with planning for our work programs already underway. We look forward to advancing our uranium exploration efforts and through it, delivering value to our shareholders." The Hamilton Creek ELA is located approximately 165km northwest of Leigh Creek and covers an area of ~200km2 within the Callabonna Sub-basin (Cenozoic) and is less than 50 km east of the Beverly and Four Mile uranium mines (Figure 1). The Callabonna Subbasin and Frome Embayment (Mesozoic) contain South Australia’s richest sandstonehosted uranium deposits including the Beverly, Four Mile, and Honeymoon deposits and is arguably the most prospective region in Australia for sandstone hosted uranium 1. The addition of this prospective tenure will increase AR3’s uranium portfolio to ~3,400 km2 when combined with the Overland project located in the Murray Basin and Triggs Bore Prospect, also within the Callabonna Sub-basin. Sediment-hosted uranium mineralisation in the Callabonna Sub-basin is hosted by the Tertiary aged Namba and Eyre Formations (Beverley, Pepegoona and Four Mile East deposits), and Cretaceous aged Bulldog Shale time-equivalent sediments (Four Mile West). In the southeastern portion of the Callabonna Sub-basin, the Eyre Formation also hosts the Honeymoon and Gould’s Dam deposits. The upper Namba Formation is considered to be the main target horizon for the Hamilton Creek prospect based on the anomalous gamma intersected in previous drilling and proximity of the Beverly uranium mine, also hosted in the Namba Formation. A secondary target testing the underlying Eyre Formation will also be investigated. Uraniferous source rocks in the region are well known and include the Mesoproterozoic rocks of the Moolawatana Suite and Mount Neill Granite which outcrop west of Hamilton Creek in the Northern Flinders ranges and below the Mesozoic cover in the region. Uranium source rocks shedding into the basing from the West and faults in the basement rocks underlying the tenure provides multiple potential pathways for ore bearing fluids. 1 Bernd H Michaelsen, Adrian J Fabris, John L Keeling, David M McKirdy, Laszlo F Katona and Les R Tucker 2016. Organic facies of the Frome Embayment and Callabonna Sub-basin: what and where are the uranium reductants? MESA Journal 81 October- December 2016. Geological Survey of South Australia, Department of State Development Figure 1- AR3’s Hamilton Creek ELA relative to the Overland and Triggs Bore Projects (left) and regional geology (right). Hamilton Creek Prospect Minimal exploration drilling has been conducted over the Hamilton Creek region since the 1970s. Despite limited drilling, indications of anomalous uranium mineralisation has been noted from historic reporting. Drillholes LC2 and LC7 intersected an anomalous downhole gamma response within the Namba sequence, which hosts the nearby Beverly uranium deposit, at quite shallow depths ~70m (Figure 2). Commentary from open file reports describing this anomalous gamma responses within drill holes LC2 an LC7 include; • Anomalous radioactivity was found in the “M” sand in drillholes LC 2 and LC 7. The radioactivity in LC 2 is associated with a very fine silty sandstone section. In LC 7 the radioactivity appears to be spikes or “rabbit ears” top and bottom of a sandstone unit after the uranium leaching fluids have passed through 2. • The anomalously high uranium appears to be associated with lensing out of the “M” sand along the edge of a channel and was probably deposited due to the change in permeability2. 2 Open File Envelope No. 1440, PROGRESS REPORTS FOR THE PERIOD Administration Pty Ltd, 1970. 11/6/70 TO 10/6/71, Submitted by Mines While initial reviews have identified indications of anomalous uranium, additional geological review of the Hamilton Creek prospect is ongoing and will continue during the coming months while the ELA progresses. Subsequent approvals and work programs will be undertaken once the tenement is granted, expected later in 2024. Figure 2- Local geology and select drillholes on Hamilton Creek ELA. Hole LC2 and LC7 contained anomalous downhole gamma response. The announcement has been authorised for release by the Board of Australian Rare Earths Limited. For further information please contact: Australian Rare Earths Limited Travis Beinke Managing Director T: 1 300 646 100 Media Enquiries Jessica Fertig Tau Media E: jessica@taumedia.com.au Engage and Contribute at the AR3 investor hub: https://investorhub.ar3.com.au/ Competent Person’s Statement The information in this report that relates to Exploration results is based on information compiled by Australian Rare Earths Limited and reviewed by Mr Rick Pobjoy who is the Chief Technical Officer of the Company and a member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Pobjoy has sufficient experience that is relevant to the style of mineralisation, the type of deposit under consideration and to the activities undertaken to qualify as a Competent person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Pobjoy consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. About Australian Rare Earths Limited Australian Rare Earths is committed to the timely exploration and development of its 100% owned, flagship Koppamurra Project, located in the new Koppamurra rare earths Province in southeastern South Australia and western Victoria. Koppamurra is a prospective ionic clay hosted rare earth deposit, uniquely rich in all the elements required in the manufacture of rare earth permanent magnets which are essential components in electric vehicles, wind turbines and domestic appliances. In addition, AR3 is actively reviewing other potential prospective areas which may also host uranium and ionic clay hosted rare earth deposits throughout Australia. The Company is focused on executing a growth strategy that will ensure AR3 is positioned to become an independent and sustainable source of energy transition metals, playing a pivotal role in the global transition to a green economy. APPENDIX 1 - HISTORIC DRILL HOLE DETAILS SARIG DH ID Drill Hole ID Easting GDA_2020 Northing GDA_2020 MGA zone APPROXIMATE ELEVATION DIP EOH Drill method Operator Date Completed Target SARIG Open File Envelope No. 150185 COO 1 407523 6661380 54 23 -90 123 Afmeco Pty Ltd. 24-Oct-80 Uranium ENV03840 plan 3840-3 141549 EF02-013 410023 6658380 54 37 -90 4.5 Rotary Auger (Mechanised) Aberfoyle Resources Ltd. 1-Jan-89 Heavy Minerals ENV08013 App 1 153677 LC 2 396823 6677680 54 35 -90 289 Rotary Mines Administration Pty Ltd. 1-Jan-70 Uranium ENV01440 N/A LC7 396782 6677363 54 33 -90 85 Rotary Mines Administration Pty Ltd. 20-Jul-70 Uranium ENV01440 220448 LKDH-06-108 393451 6680809 54 43 -90 49 Rotary Red Metal Ltd. 14-Jun-06 Uranium ENV11224 Approximat location based on historic drill reports On CD: PACE DPY2-11, Lake Blanche region Quaternary Palaeochannel/Paleolake margin calcrete-hosted or roll-front uranium mineral prospects. Final report. 137056 MINAD LC 1A 397293 6673559 54 30 -90 347.4700012 Rotary Mines Administration Pty Ltd. 31-Oct-70 Uranium ENV01440 Eyre Formation type section (now supplementary reference section- see FROME explanatory notes 1981) 301353 NM001 398564 6668846 54 24 -90 174 Rotary - Mud Giralia Resources NL. 29-Jul-03 Uranium ENV09455 150414 WO 18 397123 6674980 54 31 -90 208 Rotary Marathon Petroleum Australia Ltd. 30-May-80 Uranium ENV05120 150415 WO 19 397123 6676080 54 31 -90 214 Rotary Marathon Petroleum Australia Ltd. 30-May-80 Uranium ENV05120 p.17-87 150416 WO 20 397023 6677180 54 31 -90 184 Rotary Marathon Petroleum Australia Ltd. 31-May-80 Uranium ENV05120 p.17-87 150417 WO 21 397023 6677980 54 34 -90 184 Rotary Marathon Petroleum Australia Ltd. 1-Jun-80 Uranium ENV05120 p.17-87 150418 WO 22 397023 6678780 54 35 -90 184 Rotary Marathon Petroleum Australia Ltd. 2-Jun-80 Uranium ENV05120 p.17-87 150419 WO 23 396723 6676980 54 33 -90 104 Rotary Marathon Petroleum Australia Ltd. 2-Jun-80 Uranium ENV05120 p.17-87 150420 WO 24 396723 6676680 54 32 -90 88 Rotary Marathon Petroleum Australia Ltd. 2-Jun-80 Uranium ENV05120 p.17-87 150421 WO 25 397223 6674080 54 28 -90 86 Rotary Marathon Petroleum Australia Ltd. 2-Jun-80 Uranium ENV05120 p.17-87 150422 WO 26 398323 6674980 54 30 -90 104 Rotary Marathon Petroleum Australia Ltd. 3-Jun-80 Uranium ENV05120 p.17-87 150423 WO 27 398323 6675980 54 31 -90 96 Rotary Marathon Petroleum Australia Ltd. 3-Jun-80 Uranium ENV05120 p.17-87 150424 WO 28 398323 6674080 54 27 -90 96 Rotary Marathon Petroleum Australia Ltd. 3-Jun-80 Uranium ENV05120 p.17-87 150425 WO 29 398423 6672880 54 26 -90 96 Rotary Marathon Petroleum Australia Ltd. 3-Jun-80 Uranium ENV05120 p.17-87 150426 WO 30 397223 6672980 54 29 -90 80 Rotary Marathon Petroleum Australia Ltd. 3-Jun-80 Uranium ENV05120 p.17-87 Reference Notes p.17-87 APPENDIX 2 - JORC Table 1 Criteria Sampling techniques Section 1 Sampling Techniques and Data Explanation Comment Nature and quality of • The WO Series holes were completed by sampling (e.g., cut Marathon Petroleum Australia Ltd in 1980 channels, random chips, or and have been geophysical logged with a specific specialised composite probe for Gamma, S.P and industry standard Resistivity. measurement tools • The LC Series holes were completed by appropriate to the Mines administration Pty Ltd in 1970 and minerals under have been geophysical logged upon investigation, such as completion with Resistivity, SP and natural down hole gamma sondes, gamma. or handheld XRF instruments, etc). These • The NM series hole was completed by examples should not be Giralia Resources in 2003 and has been taken as limiting the broad geophysical logged with neutron, SP, point meaning of sampling. resistivity, sixteen-inch resistivity and Include reference to gamma. measures taken to • The COO series hole was completed by ensure sample Afmeco Pty Ltd in 1980 and has been representivity and the geophysical with Gamma and Neutron appropriate calibration probes. of any measurement tools or systems used. • The EF series hole was completed by Aspects of the Aberfoyle Resource Ltd in 1989. determination of • The LKDH series hole was completed by mineralisation that are Red Metal Ltd in 2006. Material to the Public Report. In cases where • Possible uranium mineralization was ‘industry standard’ work identified using the gamma logs, has been done this would highlighting and correlating the be relatively simple (e.g., anomalous gamma peaks between these ‘reverse circulation drilling holes. was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g., submarine nodules) may warrant disclosure of detailed information. Drilling techniques Drill sample recovery Logging Drill type (e.g., core, • Drill type and details of the holes reverse circulation, openpresented in this release are shown hole hammer, rotary air within “Appendix 1- Historical Drill hole blast, auger, Bangka, Details” including reference to the sonic, etc) and details original report. (e.g., core diameter, triple • All data is publicly available and or standard tube, depth of sourced online from the South diamond tails, faceAustralian Resources Information sampling bit, or other Gateway type, whether core is (https://map.sarig.sa.gov.au/) oriented and if so, by what between July 11th and July 22nd 2024. method, etc). Method of recording and • No sample recovery information was assessing core and chip reported in historical reports. sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Whether core and chip • All drillholes were logged qualitatively for samples have been major and minor lithologies by previous geologically and explorers. geotechnically logged to a • No geotechnical logging was completed by level of detail to support previous explorers. appropriate Mineral • The detail of logging is not sufficient to support Resource estimation, consideration of resource estimation, mining, mining studies and or metallurgical studies. metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. Sub-sampling techniques and sample preparation Quality of assay data and laboratory tests If core, whether cut or • No additional detail on gamma logging or sub sawn and whether sampling techniques is available from quarter, half or all cores previous reports. taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality, and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the insitu material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. The nature, quality and • Down hole gamma tools measure the gamma appropriateness of the radiation emitting from radioactive decay assaying and laboratory daughter products. No U3O8 grades have procedures used and been reported from down hole gamma in this whether the technique is report. considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Verification of sampling and assaying Nature of quality control procedures adopted (e.g., standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e., lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. • • • • • • • • • Location of data points Data spacing and distribution Accuracy and quality of surveys used to locate drill holes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Data spacing for reporting of Exploration Results. Whether the data spacing, and distribution is sufficient to establish the All data is historical and open file data through the South Australian Dept of Energy and Mining (DEM), on the South Australian Resources Information Gateway (SARIG). Including: Open File Envelope ENV05120, Marathon Petroleum Australia Ltd, 1983. Open File Envelope ENV01440, Mines Administration Pty Ltd, 1970. Open File Envelope ENV09455, Giralia Resources, 2003. Open File Envelope ENV01440, Red Metal, 2006. Open File Envelope ENV03840, Afmeco Pty Ltd, 1980. Open File Envelope ENV08013, Aberforyle Resources Pty Ltd, 1989. A complete list of all reports included in Appendix 1. No Significant intersections were reported in the drillholes within this release. • All maps are in GDA2020/MGA zone 54. • Locations of historical drill holes reported in this ASX release are detailed in Appendix 1 and maps/figures within this release. • Locations of historical drill holes reported in this ASX release are detailed in Appendix 1. • No geological or grade continuity estimations are being determined from Orientation of data in relation to geological structure Sample security Audits or reviews Criteria Mineral tenement and land tenure status degree of geological and the historical data. grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. Whether the orientation of • All drill holes were drilled vertically as sampling achieves detailed in Appendix 1 of this release. unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The measures taken to • Australian Rare Earths was not present ensure sample security. during the handling of the samples and cannot verify sample security. All sample information is from historical reports detailed in Appendix 1. The results of any audits • No Audits have been carried out. or reviews of sampling techniques and data. Section 2 Reporting of Exploration Results Explanation Comment Type, reference • Australian Rare Earths Hamilton Creek name/number, location project is comprised of ELA2024/00045. and ownership including • ELA2024/00045 is under application by agreements or material WRDBD Developments Pty Ltd, a wholly issues with third parties owned subsidiary of Australian Rare such as joint ventures, Earths. partnerships, overriding royalties, native title Exploration done by other parties interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. • The ELA covers an area of approximately 200km2. Acknowledgment and appraisal of exploration by other parties. • Exploration activities by other exploration companies extends back to the 1970’s. • There are no Conservation Parks or Regional Reserves in the Application areas. • Registered Native Title Determination SAD6001/1998 overlaps ELA 2024/00045. • Registered Native Title Determination Application NSD525/2021 overlaps ELA 2024/00045. • Historically the area has been explored for Uranium, Heavy Minerals and Water. • A detailed list of historic exploration is provided in Appendix 1. Geology Deposit type, geological setting and style of mineralisation. • The Hamilton Creek project is targeting Paleochannel Uranium within the Eyre Formation sediments of the Callabonna Sub-Basin. • Sedimentary hosted uranium deposits occur in medium to coarse-grained sedimentary sequences deposited in a continental fluvial or marginal marine sedimentary environment. Impermeable shale/mudstone units are interbedded in the sedimentary sequence and often occur immediately above and below the mineralised sediments. Uranium is precipitated under reducing conditions caused by a variety of reducing agents within the permeable sediments including carbonaceous material (detrital plant debris, amorphous humate, marine algae), sulphides (pyrite, H2S), and hydrocarbons. • Sediment-hosted uranium mineralisation in the Drill hole Information Data aggregation methods A summary of all • information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: - easting and northing of the drill hole collar - elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar - dip and azimuth of the hole - down hole length and interception depth - hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. In reporting Exploration • Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be Frome Embayment is hosted by the Tertiary aged Namba and Eyre Formations (Beverley, Pepegoona and Four Mile East deposits), and Cretaceous aged Bulldog Shale time-equivalent sediments (Four Mile West). In the southeastern Frome Embayment, the Eyre Formation also hosts the Honeymoon and Goulds Dam deposits. The Eyre Formation is considered the main target horizon. The material information for drill holes relating to this report are contained within Appendix 1. No data aggregation methods were used in reporting of this release. Relationship between mineralisatio n widths and intercept lengths Diagrams Balanced reporting stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. These relationships are • particularly important in the reporting of Exploration Results. If the geometry of the • mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). Appropriate maps and • sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Where comprehensive • reporting of all Exploration Results is not practicable, representative All down hole lengths of geological intervals are interpreted to be true widths as the geology in the region is relatively flat lying and the holes are vertical. No mineralization/assays have been reported downhole. Diagrams are included in the body of this release. This release contains all drilling results that are consistent with the JORC guidelines. Where data may have been excluded, it is considered not material. reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other substantive exploration data Further work Other exploration data, if • meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. The nature and scale of • planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly • highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. All known relevant exploration data has been reported in this release. Additional work will consist of (but not limited to) reviewing/reprocessing historical geophysical and geological data, spectral surveys for pathfinder elements related to U mineralization and review of available drill cores at the state core library. Field work will be contingent on successful granting of the Hamilton Creek ELA. Once granted, field work will consist of (but not limited to) drilling, targeting the Namba and Eyre Formations for Uranium mineralization.