Quarterly Activities/Appendix 5B Cash Flow Report

Highlights

Significant steps forward at Koppamurra Rare Earths Project

• AR3 confirmed as the first industry partner to access ANSTO’s new pilot-scale rare earth processing facility providing both time and cost savings to advance the Koppamurra Project and positioning AR3 at the forefront of Australia’s emerging group of ionic clay-hosted rare earths producers.

• South Australia’s Department for Energy and Mining (DEM) approved a scoping report for the Koppamurra Project that streamlines approvals by defining required environmental, social and technical studies, setting a clear Environmental and Social Impact Assessment (ESIA) framework, reducing duplication, and improving certainty around timeframes, expectations and potential costs.

  • The Koppamurra Project Scoping Report is available on the DEM website (link).

• Advanced Pre-Feasibility Study, with pilot operations scheduled for Q2 2026 and Definitive Feasibility Study to follow later in 2026.

Post quarter end, established a viable process to produce a high-purity Mixed Rare Earth Oxide, using

conventional low-risk technology.

Drilling completed at Overland Uranium Project

• Total of 45 drill holes for 5,090 metres has been completed under the 2025 Overland drilling program - marking the second phase of AR3’s drilling for the year.

• ISR Uranium Target Identified: Assay, gamma, and pXRF results confirm the presence of a permeable sand unit located beneath a clay and lignite horizon at the base of oxidation. This defines a compelling ISR-amenable uranium target in the north-western region of EL7001.

• New exploration license granted (EL7079) with uranium confirmed in assay results from historic core hole. Extensive new uranium target zones identified.

Corporate

• Cash position: $2.3 million cash as at 31 December 2025. Funds received during the quarter included $0.8million from the exercise of 8.3m options and a $0.6 million R&D tax refund for the 2025 financial year.

• A further $3.25 million is scheduled to be received during 2026 under AR3’s $5 million Australian Government International Partnerships in Critical Minerals program, subject to AR3 achieving agreed milestones.

• ~18 million AR3 unlisted options with a 10-cent exercise price and expiring 30 March 2029 available for shareholders to exercise as at 30 January 2026.

• $6 million cash raised via a placement post quarter end with strong institutional and professional investors.

• Strong ongoing investor engagement: AR3 received strong support for all resolutions at its November Annual General Meeting, hosted an investor focused webinar following attendance at key Rare Earth industry events across the US, Canada and Europe and attended the Noosa Mining Conference.

• Engage with this announcement at the AR3 Investor Hub

  Travis Beinke, Managing Director and CEO, commented:

  “We were pleased to close out the 2025 calendar year strongly, with the confirmation of our pilot-scale operations in collaboration with ANSTO and the publication of Koppamurra’s scoping report by the Department of Energy and Mining streamlining the approvals process. Additionally, following the recent testwork announcement on the production of a Mixed Rare Earth Oxide as an end product we are set for substantial progress over the next 12 months.

  Post quarter end we successfully raised ~$6 million via a placement adding to the $2.3 million cash at the end of December 2025 with a further $3.25 million Australian Government grant scheduled to be received during 2026, providing a robust runway to execute our near-term milestones.

  Our priorities are clear: complete the Pre-Feasibility Study for Koppamurra, establish our pilot program with

  ANSTO and advance the regulatory approvals process to enable the potential supply of near-term light and

  heavy rare earths.

  Additionally, we are continuing to explore strategic partnerships, offtake agreements, and financing options,

  and advocating for supportive policy settings that recognise the strategic importance of Australian sourced

  critical minerals. Our near-term focus is on our Koppamurra project however we will continue to advance our

  uranium exploration at Overland and our broader exploration portfolio.”