Announcement PDF SECURING AUSTRALIA'S ENERGY TRANSITION METALS 2025 Annual Report Contents Chairman’s Letter 4 Managing Director’s Letter 8 SECURING AUSTRALIA'S ENERGY TRANSITION METALS Operations Review Diversified Project Portfolio 10 Koppamurra Project 11 Koppamurra Mineral Resources Highlights 19 Koppamurra Mineral Resource Estimate 20 Koppamurra Exploration Target Estimate 22 Overland Uranium Project 25 Additional Uranium Projects 31 Australian Rare Earths Tenement Interests 32 Directors’ Report 32 Remuneration Report (Audited) 42 Auditor’s Independence Declaration 54 Financial Report Statement of Profit or Loss and Other Comprehensive Income 56 Statement of Financial Position 57 Statement of Changes in Equity 58 Statement of Cash Flows 59 Notes to the Financial Statements 60 Consolidated Entity Disclosure Statement 80 Directors’ Declaration 81 Independent Auditor’s Report 82 Additional Information 86 Corporate Directory 89 3 | Australian Rare Earths 2025 Annual Report Chairman's Letter DEAR SHAREHOLDERS, WHAT A DIFFERENCE A YEAR MAKES. OVER THE PAST 12 MONTHS, THE STRATEGIC SIGNIFICANCE OF RARE EARTHS HAS COME INTO SHARP FOCUS. WE HAVE MADE MATERIAL STRIDES IN ADVANCING AUSTRALIAN RARE EARTHS’ (AR3) VISION - TO BECOME A RELIABLE, RESPONSIBLE, AND STRATEGIC SUPPLIER OF CRITICAL MINERALS IN SUPPORT OF THE WORLD’S ENERGY TRANSITION. AND WHILE CAPITAL MARKETS CONDITIONS REMAIN CHALLENGING FOR SMALL-CAP EXPLORERS, THE POLICY, GEOPOLITICAL AND MARKET FORCES NOW AT PLAY ARE ALIGNING IN A WAY THAT STRENGTHENS OUR CONVICTION IN AR3’S LONG-TERM OPPORTUNITY AND OUR ABILITY TO DELIVER VALUE FOR SHAREHOLDERS. 4 We have made material strides in advancing Australian Rare Earths’ (AR3) vision - to become a reliable, responsible, and strategic supplier of critical minerals in support of the world’s energy transition. While capital markets conditions remain challenging for small-cap explorers, the policy, geopolitical and market forces now at play are aligning in a way that strengthens our conviction in AR3’s long-term opportunity and our ability to deliver value for shareholders. The Strategic Context The rare earths sector sits at the intersection of the two mega-trends of our times: geopolitics and decarbonisation. China’s recent export restrictions on the key magnet rare earths – Dysprosium (Dy) and Terbium (Tb) - underscores the urgency for diversified supply chains. In parallel, we have seen the United States move decisively. The long-term offtake agreement between MP Materials and the U.S. Department of Defense, which embeds a price floor for Neodymium and Praseodymium (NdPr) and provides underwriting for supply, is a watershed moment. It demonstrates that governments are now prepared to intervene directly to support strategic minerals supply chains. Importantly, while that agreement secures NdPr supply, the US still has a gap on the supply of heavy rare earths, Dysprosium and Terbium - materials that are indispensable for high-temperature magnets and today supplied almost exclusively by ionic-clay hosted deposits in China. This underscores the opportunity for projects like Koppamurra to be part of the solution. Australia too has stepped up. The Federal Government has signalled its intent to establish National Offtake Agreements under a Critical Minerals Strategic Reserve. These initiatives are designed to catalyse new projects, underwrite investor confidence and ensure Australia contributes to the secure, diversified supply chains our allies are urgently seeking. Rare earths has moved moved from being a niche concern to a central plank of national industry policy. These policy tools, together with tax incentives, funding programs and bilateral/multilateral partnerships, are reshaping what is possible for projects like ours. HAVE NO DOUBT THE KOPPMAURRA PROJECT IS ON THE AUSTRALIAN GOVERNMENT’S RADAR: In December 2024 we secured a $5 million grant under the Australian Government’s International Partnerships in Critical Minerals Program. In September 2025, I represented AR3 on a Australian Government sponsored select delegation of critical minerals companies handpicked to meet US Government officials and agencies in Washington DC, as the US seeks to fill their identified supply gaps in critical minerals such as rare earths. And we are now actively working to make sure Koppamurra’s potential is equally well recognised among Australia’s other friends and allies. Positioning for Policy Tailwinds We have also taken deliberate steps to ensure AR3 is positioned to benefit from the growing policy momentum behind the rare earths sector. Our engagement with Governments both in Australia and abroad and abroad has raised awareness of Koppamurra’s unique attributes: Where many larger projects face long lead times, higher capex and complexity, Koppamurra offers a potential time-to-market advantage. Its ionic clay host, together with potential for heap-leach processing, relatively lower capex, short build time and low technical risk, plus its presence in the low sovereign risk jurisdiction of Australia, all underpin its attraction. Through registering with U.S. procurement frameworks, joining official Australian Government backed industry delegations abroad and selective participation in industry conferences, AR3 is attracting increasing recognition. This positioning matters: It is what will help us secure the offtakes, funding and partnerships that can transform Koppamurra from a promising deposit into a producing project of national and international significance. Furthermore, the evolving policy architecture Government offtake agreements, strategic reserves, loan programs and critical minerals tax incentives - are no longer abstract promises: they are real tailwinds that enhance the viability of projects like ours and materially shift investor, customer, and partner interest. With supportive policy in Australia, rising offtake interest abroad, and growing global demand, we believe AR3 can be in the vanguard of companies that delivers the next wave of supply for both light and heavy magnet rare earths. 5 | Australian Rare Earths 2025 Annual Report Chairman’s Letter Outlook With thanks Over the next year, our priorities are clear: Through a year of volatility in investor sentiment across rare earths and uranium sectors, AR3 has remained disciplined. We have advanced our projects, managed our costs, and secured additional funding through shareholder support and government grants. We have focused on the things within our control, so that as the cycle turns in our key commodities – as they always do, and now seem to be - we are well placed to capitalise. Complete the Pre-Feasibility Study for Koppamurra. Build and operate a demonstration plant to process Koppamurra ore through to mixed rare earth carbonates. Submit our mining lease application, working in close consultation with our local landowner partners. Continue engagement with government and industry to ensure AR3 is well-positioned under the new National Offtake Agreements and Critical Minerals Reserve framework. Progress our exploration drilling at Overland to test a range of compelling targets. Maintain strong stewardship of capital, community, and environmental obligations; governance, transparency, and responsible development are central to our identity and essential to delivering long-term shareholder value. I acknowledge the hard work and creativity of our team, led by our Managing Director, Travis Beinke. Our staff’s ability to progress the technical, regulatory and strategic dimensions of our projects in this environment is proving a real strength. I also thank you - our shareholders - for your continued support and belief. When we made the decision to raise capital this year – and this came just prior to the re-ignition of investor interest in the rare earths sector flowing from the Chinese export bans – we made a conscious decision to prioritise our existing shareholders and provide them the first opportunity to consider investing additional funds for the Company’s development via a rights issue. We were immensely grateful that our shareholder base responded with exceptional take up amidst general market turmoil in April this year, and I thank our shareholders for the strong show of support. Conclusion The themes that were nascent a year ago are now undeniable: Governments are back in the business of industry policy, and critical minerals are at the forefront. Export controls, tariffs, national reserves and offtake agreements are reshaping the landscape. In that context, AR3 is growing in strength. Koppamurra’s combination of light and heavy rare earths, potential low-capex development pathway and time-to-market edge make it a strategic asset. Overland provides diversification and additional growth potential. As geopolitics, policy shifts, and market responses all underscore what is at stake, we are well-placed to seize the opportunity ahead. Yours sincerely, Angus Barker Chairman Australian Rare Earths Limited 6 7 | Australian Rare Earths 2025 Annual Report MD's Letter DEAR SHAREHOLDERS, IN 2025, AUSTRALIAN RARE EARTHS MADE SIGNIFICANT OPERATIONAL PROGRESS ACROSS OUR PORTFOLIO, ADVANCING BOTH OUR FLAGSHIP KOPPAMURRA RARE EARTHS PROJECT AND OUR EMERGING URANIUM PROJECT AT OVERLAND. 8 Operational Overview Financial Overview At Koppamurra, we expanded the Mineral Resource Estimate by a further 27% to 236 million tonnes at 748ppm Total Rare Earth Oxides (TREO), including a high-grade subset of 68 million tonnes grading above 1,000ppm. In May, we completed a $3.6 million rights offer with strong participation from both shareholders and directors. This resource contains over 25% magnet rare earth content, including the key heavy elements dysprosium and terbium. Importantly, this estimate represents only around 2% of our total tenement holding, highlighting the potential scale of the opportunity. In December 2024 we secured a $5 million matched funding grant from the Australian Government’s International Partnerships in Critical Minerals Program. This is a significant milestone for the Koppamurra project and further validation of the project potential and strategic importance in building a diverse, resilient and sustainable supply chain. The funding is supporting additional metallurgical testwork, completion of a Pre-Feasibility Study (PFS), and the construction and operation of a Demonstration Plant during 2025 and 2026 to advance the project and significantly derisk the development pathway. Operationally, our focus during the first half of 2025 has been on progressing our low-impact, scalable development pathway. This includes advanced metallurgical testwork to optimise our heap leach process and commencement of early works towards the Pre-Feasibility Study. Our partnership with Neo Performance Materials continues to be a strategic advantage. In addition to being a founding shareholder, Neo brings valuable downstream expertise and alignment on offtake strategy. This relationship supports our ambition to play a key role in a transparent, traceable and independent mine-tomagnet supply chain. We have also made meaningful progress on the Overland Uranium Project in South Australia. Following a strategic farm-in agreement and the addition of new applications, our footprint now covers over 7,000 square kilometres of highly prospective ground. This non-renounceable rights issue was fully allocated with 93% raised through acceptances by existing AR3 shareholders with the balance allocated to new sophisticated and professional investors. I would like to sincerely thank our shareholders for their continued confidence in AR3 and our long-term strategy. Your support has enabled us to maintain our momentum as we continue to advance both Koppamurra and Overland. Outlook Looking ahead, our focus will remain firmly on execution and creating value. At Koppamurra, we are aiming to complete the Pre-Feasibility Study, refine our flowsheet, and commence demonstration plant activities. At Overland, we will expand our exploration efforts to better understand the mineralised systems and the projects exploration potential. I thank the AR3 team for their commitment and professionalism over the past year. Their work continues to drive our progress and shape our path forward. I also thank our shareholders for your ongoing support. We are energised, focused and confident in our ability to deliver value through responsible and innovative project development. Yours sincerely, Travis Beinke Managing Director Australian Rare Earths Limited Our inaugural drilling campaign quickly provided compelling evidence supporting our geological model for In-situ Recoverable (ISR) amendable deposits while drilling in early 2025 intersected near-surface calcretehosted mineralisation providing a second distinct uranium mineralisation style at Overland. These early results reinforce the project's prospectivity and have laid the foundation for follow-up drill programs. 9 | Australian Rare Earths 2025 Annual Report Operations Review DIVERSIFIED PROJECT PORTFOLIO Rare Earths Uranium Copper/Gold Massie Creek Oaky Valley Sandy Tate Forty Mile Scrub Dalrymple Hamilton Creek Triggs Bore Overland Koppamurra 10 RARE EARTHS ELEMENTS PORTFOLIO KOPPAMURRA PROJECT Project Overview The Koppamurra Project, located in South-Eastern South Australia and Western Victoria, continues to grow as a significant ionic clay-hosted rare earth deposit. The latest Mineral Resource Estimate (MRE) increased by 27% over the period to 236 million tonnes at 748 ppm Total Rare Earth Oxide (TREO) and also revealed a higher-grade subset of 68 million tonnes grading over 1000ppm. Location ~300km SE of Adelaide, in South Australia and Victoria Scale/Size 7,400km2 Ownership 100% Partner Neo Performance Materials (Non-binding MOU for 50% offtake of stage 1) Commodity Valuable Magnet Rare Earth ~25% of TREO with all four key Rare Earth Element (REE) present including strategically valuable heavy REE’s Dysprosium and Terbium ~3% Stage Exploration and Development Drilling ~64,000 metres drilled since 2021 Resource 236Mt @ 748ppm TREO - Includes higher-grade subset of 68Mt grading over 1000ppm Growth Potential Compelling scope for ongoing Mineral Resource growth with mineralisation open to the north and south and the current 236 Mt Mineral Resource covers only ~2% of total Koppamurra tenure 11 | Australian Rare Earths 2025 Annual Report Operations Review KOPPAMURRA PROJECT Australian Government International Partnerships in Critical Minerals Grant In December 2024, AR3 was awarded a $5 million grant from the Australian Government's International Partnerships in Critical Minerals Program for Koppamurra. Under the program, AR3 will match the grant funding, bringing the total planned expenditure to $10 million spread over 2025 and 2026. Bulk leach test work 12 Key deliverables planned and enabled by the grant funding at Koppamurra include: Metallurgical Testwork and Flowsheet Development: Metallurgical processing testwork to optimise and enhance the Project’s process flowsheet, including heap leach engineering deliverables and equipment selection. PFS Study: Evaluation of the progressive heap leach and rapid rehabilitation flowsheet from the mine through to a Mixed Rare Earth product, including social, environmental, and economic assessments. • Metallurgical testwork commenced in April 2025 to refine progressive heap leach and rapid rehabilitation methods, supporting the PreFeasibility Study (PFS) and enhancing project value. A ~3 tonne bulk leach trial at Brisbane Met Labs was completed delivering magnet rare earth recoveries of >60%. Demonstration Plant Construction: Selection and optimisation of demonstration-scale equipment, along with the construction of process infrastructure based on design inputs from the flowsheet development and PFS. • Ongoing optimisation testwork focusing on optimising rare earth recovery, impurity removal, and Mixed Rare Earths Carbonate (MREC) precipitation. Demonstration Plant Operation: Full-scale demonstration operation to validate process design, supporting the pathway to commercialisation. The Agreement is between the Commonwealth of Australia, represented by the Department of Industry, Science and Resources and Australian Rare Earths Limited. Managing Director, Travis Beinke with Chantelle Bardadyn (WGA) at BML for bulk leach testwork 13 | Australian Rare Earths 2025 Annual Report Operations Review KOPPAMURRA PROJECT Exploration and Resource Growth AR3 continued to expand and upgrade the Koppamurra resource during the year. A Mineral Resource estimate update was released in September 2024 which incorporated results from a comprehensive drilling program completed in December 2023. With the additional drilling (694 holes for 8,742m) and through the application of industry-standard geological interpretation methods, the total Mineral Resource estimate across the Koppamurra Project area increased by 27% to 236 Mt, with an average TREO grade of 748 ppm. The updated Mineral Resource estimate included 68 Mt grading over 1000ppm TREO, representing a 70% increase on the previous estimate, highlighting the potential for an initial higher-grade project development plan. The current Mineral Resource estimate is set out in the table below (updated September 2024): JORC Tonnes TREO Magnet Rare Earths Praseodymium Neodymium Terbium Dysprosium Category Mt ppm ppm % TREO ppm % TREO ppm % TREO ppm % TREO Measured 0.8 813 37 4.6 140 17.3 3.8 0.5 21 2.6 Indicated 112 750 34 4.6 132 17.6 3.6 0.5 20 2.7 Inferred 123 747 35 4.6 132 17.6 3.4 0.5 19 2.6 Total 236 748 35 4.6 132 17.6 3.5 0.5 20 2.6 Rounding may cause differences in the last significant figure Koppamurra Resource Growth 250 Million Tonnes 200 150 100 Measured Indicated 50 Inferred 0 14 Apr-21 Jul-22 Mar-23 Sep-23 Sep-24 AR3 continues to advance a high-grade progressive heap leach and rapid rehabilitation development pathway at Koppamurra. This approach aligns with AR3's commitment to developing a sustainable alternative supply of rare earths essential for the clean energy transition. Key design features and advantages of the progressive heap leach pathway compared to a slurry leach are as follows: Design Features: Design Advantages: • High-grade satellite mine sites with temporary heap pads located at the edge of the satellite mine void. • Significantly lower capital and operating costs. • Topsoil and overburden material set aside for rapid and progressive land rehabilitation after rare earths have been harvested. • Environmentally sustainable characteristics, including lower water consumption, reduced power consumption, and rapid, progressive rehabilitation techniques. • Intermediate MREO precipitate significantly reducing solution volumes and equipment sizes for downstream IR and MREC production and facilitates the efficient recycling of water in the process flowsheet. • Easy expansion and scaling up of production over time across the multi-generational province. • Lower gangue/impurity profile with higher rare earth in solution characteristics through column leach, resulting in lower capital and operating costs. 15 | Australian Rare Earths 2025 Annual Report Operations Review KOPPAMURRA PROJECT Koppamurra Conceptual Project Flow Sheet A simple process with low technical risks and environmentally sustainable. RECLAIMED SOLUTION RECYCLED WATER & LEACHING SOLUTION WASHING SOLUTION CLAY PREPARATION RARE EARTHS IN SOLUTION 4-10m TEMPORARY HEAP RAPID REHABILITATED MINE VOID SOIL / SUBSOIL OVERBURDEN PLACEMENT NEUTRALISED CLAY WATER TREATMENT Looking Ahead AR3 remains focused on advancing Koppamurra as a strategic and secure source of light and heavy rare earths, helping to create new and diversified supply chains vital to the world’s clean energy transition. 16 IMPURITY REMOVAL MIXED RARE EARTH PRODUCT MIXED RARE EARTHS CARBONITE TO MARKET 17 | Australian Rare Earths 2025 Annual Report Operations Review 18 KOPPAMURRA MINERAL RESOURCES Highlights Mineral Resource estimate increased 27% to 236 Mt at 748 ppm TREO (up from 186 Mt at 712 ppm TREO relative to the September 2023 Mineral Resource estimate). Higher-grade component: 68 Mt grading over 1,000 ppm TREO, a 70% increase on the previous Mineral Resource estimate. Measured and Indicated categories increased to 113 Mt, representing a 14% uplift in higher confidence resources relative to the previous Mineral Resource estimate. Geographic extension added 25 Mt in the northern area. Mineralisation remains open to the north and south, with the current 236 Mt Mineral Resource covering only ~2% of the total Koppamurra tenure. The updated Mineral Resource incorporates results from 8,742 m of drilling (694 holes) completed between October and December 2023, bringing the total drilling to over 64,700 m across 5,977 holes. Interpretation of the geological samples and assays using relevant industry standard methods has resulted in a 27% increase to a total Mineral Resource estimate of 236 Mt at an average TREO grade of 748 ppm. This includes 113 Mt in the Measured and Indicated categories, representing a 14% increase compared to the September 2023 estimate. The interpretation also resulted in a revised Exploration Target, which now ranges from 500 Mt at 780 ppm TREO to 3.2 Bt at 520 ppm TREO. The potential quantity and grade of the Exploration Target is conceptual in nature, as there has been insufficient exploration undertaken to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. 19 | Australian Rare Earths 2025 Annual Report Operations Review KOPPAMURRA MINERAL RESOURCE ESTIMATE KOPPAMURRA MINERAL RESOURCE ESTIMATE - September 2024 JORC Tonnes TREO Magnet Rare Earths Praseodymium Neodymium Terbium Dysprosium Category Mt ppm ppm % TREO ppm % TREO ppm % TREO ppm % TREO Measured 0.8 813 37 4.6 140 17.3 3.8 0.5 21 2.6 Indicated 112 750 34 4.6 132 17.6 3.6 0.5 20 2.7 Inferred 123 747 35 4.6 132 17.6 3.4 0.5 19 2.6 Total 236 748 35 4.6 132 17.6 3.5 0.5 20 2.6 Rounding may cause differences in the last significant figure. The updated Mineral Resource estimate incorporates results from the drilling program conducted between October and December 2023. The overall program added 8,742m (694 holes) to the existing 55,979m (5,283 holes) drilled for the previous Mineral Resource estimate announced September 2023. Interpretation of geological samples and chemical assay data using relevant industry standard methods resulted in a significant increase in overall resource tonnes, contained metal, and continuity of mineralisation. The updated resource continues to expand with a 27% increase in the MRE and a 70% boost in the higher-grade subsets. Drill spacings to satisfy the Indicated and Measured JORC Resource Categories are at 120 m and 60 m respectively. The drilling which informs the Exploration Target is at line spacings of at least 1 km, and sometimes 2 km apart. Drill hole spacings along the lines are typically 100m to 400m apart. The updated September 2024 Mineral Resource estimate is set out in the above table. This Resource has been reported using a cut-off grade of 325 ppm TREO-CeO2. 20 KOPPAMURRA RESOURCE GROWTH A summary of Mineral Resource estimates over time, demonstrating the progressive increase in resource. 250 200 Million Tonnes Interpretation of the geological samples and assays using relevant industry standard methods has resulted in an increase of 27% to 236 Mt of total Mineral Resource estimate with an average TREO grade of 748 ppm. This includes 113 Mt in the Measured and Indicated categories. 150 100 50 0 Apr-21 Measured Indicated Inferred Jul-22 Mar-23 Sep-23 Sep-24 GLOBAL KOPPAMURRA PROJECT JORC CLASSIFICATION (>325 PPM TREO-CEO2) 21 | Australian Rare Earths 2025 Annual Report Operations Review KOPPAMURRA EXPLORATION TARGET ESTIMATE The Exploration Target across the entire Koppamurra project has increased the lower range of the Exploration Target, which now spans from 500 Mt to 3.2 Bt with average grades ranging from 520 ppm to 780 ppm TREO, marking an improvement from the previous range of 330 Mt to 3.1 Bt. The potential quantity and grade of the Exploration Target is conceptual in nature, as there has been insufficient exploration undertaken to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The updated September 2024 Exploration Target estimate is set out in below table. The Exploration Target has been reported using a cut-off grade range of 225 ppm and 425 ppm TREO-CeO2. EXPLORATION TARGET - September 2024 Tonnes TREO Total MAGNET RARE EARTHS Praseodymium Neodymium Terbium Dysprosium Mt ppm ppm % TREO ppm % TREO ppm % TREO ppm % TREO 500-3,200 520 - 780 20 - 40 90 - 140 3-4 13 - 20 3.8 - 5.1 17 - 18 0.5 - 0.6 1.9 - 2.6 The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. 22 Infill Drilling The infill drilling area was specifically targeted for detailed comparison with the previous Mineral Resource estimation due to its location within the current proposed mining lease application area. This area provides a clear example of how the recent model improvements, driven by additional drilling, have improved the Mineral Resource model. By focusing on this zone of infill drilling, it demonstrated the positive impact of the updated model and its potential for future mining operations. The Mineral Resource estimation subset within the infill drilling area increased by 2.8 million tonnes with additional infill drilling. The key magnet rare earth elements Neodymium, Praseodymium, Dysprosium, and Terbium either increased slightly or remained unchanged in their contribution to the increased resource in this area. This is a positive outcome as the drilling density increased to closer spacings, providing increased confidence in the continuity of the resource and of a higher-grade component within it. The closer spaced infill drilling improved the definition of geological domain contacts, including an overall thickening of the REE bearing clay (Zone 3) which resulted in an increase in tonnes. This result enhances confidence in the Resource, as the grade remained stable while the improved domain control contributed to a higher overall tonnage. COMPARISON OF THE INFILL DRILLING AREA RESOURCE CUT-OUT Showing the September 2023 Mineral Resource model (left) and revised 2024 Mineral Resource model (right). The additional drilling within the infill drilling area informing the updated model has defined continuous, higher-grade NW-trending zones, leading to an increase in overall tonnage within this area. 23 | Australian Rare Earths 2025 Annual Report Operations Review URANIUM PORTFOLIO 24 OVERLAND URANIUM PROJECT Project Overview AR3 has made substantial strides in establishing the multi-commodity potential of its Overland Project in South Australia. What began as a frontier uranium play has evolved into a dual-pathway strategy encompassing both uranium and copper-gold mineralisation. Location South Australia, ~200km south of Honeymoon Mine Scale/Size ~7,000km2 Ownership ~6,000km2 100% and ~1,000km2 AR3 Farm-In for 100% sedimentary hosted uranium rights Commodity Uranium, Copper, Gold Stage Greenfields exploration targeting In-Situ Recovery (ISR) amenable and near surface calcrete-hosted uranium deposits Strategic review reveals Cu-Au potential in basement rocks complementing sedimentary hosted uranium exploration Drilling Active drill program following up new surficial uranium and deeper, ISR-amendable exploration targets Initial Results Discovery of widespread near surface calcrete hosted uranium mineralisation ISR-amenable geological model confirmed with a north/south trending palaeovalley setting defined, providing for the accumulation of thick sequences of prospective stratigraphy; interbedded sands, clays and lignite horizons Growth Potential Frontier uranium region, limited prior exploration Multiple high-priority targets to test Copper and Gold potential in basement rocks; Delamerian region emerging as highly prospective for multiple mineralised styles including porphyry, skarn, orogenic gold, VMS and sediment-hosted mineralisation 25 | Australian Rare Earths 2025 Annual Report Operations Review OVERLAND URANIUM PROJECT Exploration The inaugural drilling campaign at the Overland Project commenced in October 2024, and included 25 Air Core drill holes totalling 3,271 meters. Initial results provided compelling evidence supporting AR3’s geological model for ISR amenable deposits. Drilling confirmed thick sequences of Murray group stratigraphy containing sands and clays, with identified permeability pathways crucial for uranium-bearing groundwater migration. The program also revealed a north/south trending palaeovalley with lignite horizons on the western margin, highlighting strong mineralisation potential and setting up key follow-up targets for 2025. During 2025, AR3 confirmed two distinct uranium mineralisation styles at Overland: Roll-Front Uranium System: A drilling program in May 2025 identified a clear roll-front gamma signature in permeable sands at the base of the sedimentary sequence. The setting— within a sinuous basement low—is ideally suited for in-situ recovery (ISR)-amenable uranium deposition. Calcr