Announcement PDF ASX: AR3 | MARKET ANNOUNCEMENT ASX Release: 25 June 2026 Pre-Feasibility Study and maiden Ore Reserve confirm Koppamurra as a compelling project PFS validates Koppamurra as Australia's most advanced ionic clay rare earths project: Strong returns, low capital, a clear path to production and significant growth potential A$858M Post-Tax NPV₈ 99% Post-Tax IRR 0.9 Years Post-Tax Payback (from first production) A$178M Initial CAPEX 12 Years Initial Life of Mine 1,860 t Avg. Annual TREO Production US$38.32/kg TREO All-In Sustaining Cost • Compelling economics: A$858m NPV; 99% IRR; ~1yr payback • Capital-light development: Only A$178m initial CAPEX • Highly attractive product: High-value MREO basket with exposure to constrained heavy REE markets • Low technical risk: Shallow open pit mining, simple heap leach flowsheet and rapid progressive rehabilitation • Long-term optionality: Large resource base, with clear mine life extension potential The total Life of Mine Production Target (and forecast financial information derived from the Life of Mine Production Target) referred to in this announcement is underpinned by approximately 71% Probable Ore Reserves and the remaining approximately 29% by Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the Life of Mine Production Target itself (or the forecast financial information) will be realised. Overview Australian Rare Earths Limited (AR3 or the Company) has completed a Pre-Feasibility Study (PFS) for its flagship 100%- owned Koppamurra Rare Earths Project (Koppamurra or the Project) in South Australia, delivering very strong project economics that firmly establish Koppamurra as one of the most compelling rare earth development opportunities in Australia: • Exceptional returns on attractively low capital spend: Base Case after-tax NPV₈ of A$858 million and after-tax IRR of 99% on initial capital expenditure (CAPEX) of just A$178 million — a capital efficiency ratio rarely seen in the resources sector and a clear signal of the value embedded in this asset. • Strategic exposure to high-value rare earths with rapid payback: Capital payback in just 0.9 years post-tax, with annual production of Mixed Rare Earth Oxide (MREO) feedstock containing approximately 1,860 tonnes of Total Rare Earth Oxides (TREO) including a strategically critical suite of magnet rare earths — neodymium, praseodymium, dysprosium and terbium — along with yttrium, gadolinium, samarium and lutetium. All are increasingly critical to Western supply chains, with most subject to Chinese export controls. • Significant upside beyond the PFS mine plan: The PFS draws on a maiden Ore Reserve of 26Mt at 920ppm TREO and processing capacity of 3Mtpa for an initial 12-year mine life. The broader resource and substantial Exploration Target provides potential to materially extend mine life beyond the initial PFS case in a capital efficient manner. • Processing route delivers low-cost, low-complexity operations: Koppamurra's ionic adsorption clay mineralisation supports shallow, free-dig open-pit mining combined with a proven heap leach flowsheet and rapid progressive rehabilitation — a simple, low-cost combination that is the key driver of the project's robust economics. • Tier-1 Australian Jurisdiction and Government support: Strategically located in South Australia, a Tier 1 mining jurisdiction, the critical minerals project is supported by the Australian Government through the International Partnerships in Critical Minerals Program, including a $5 million grant. • Permitting advancing to deliver new western supply at a critical time: Scoping Report published by the South Australian Department for Energy and Mining. Mining Lease Application (MLA) targeted for 2026 submission, with environmental studies well progressed. Targeting first production by 2029 when the attractive mix of rare earths within Koppamurra’s MREO is expected to be in high demand from Western producers of rare earth permanent magnets – especially so with the new G7 stipulation that at least 40% of western rare earths supply must come from non-Cina sources by 2030 • Opportunity to establish a new industry in regional South Australia and build on Australia’s sovereign capability in rare earths: A new mine in regional South Australia will support ~100 direct jobs during operations with economic benefits and opportunities flowing to the region while also enhancing Australia’s sovereign supply chain capacity, supporting the development of a reliable Western supply chain of rare earth products. • Offtake discussions to accelerate: Offtake discussions with strategic partners will now accelerate as pilot- scale operations deliver MREO samples to potential customers, especially for those seeking to secure rare earth feedstock rich in heavy rare earths from Australia, with the PFS outlining product volumes, timing and quality to be delivered. Pilot-scale operations commencing imminently at ANSTO’s new world-class piloting facility in Sydney, marking a first-of-its-kind piloting program for an Australian ionic clay rare earths project. Management Commentary "The PFS reflects years of careful, methodical work across drilling, environmental studies, metallurgical testwork and engineering, and I'm proud to share these results. We have been deliberate and strategic at every step — designing the project and positioning the business for long-term success. Today's results are the validation of that approach, and I express my thanks to everyone who contributed. On the numbers themselves: an after-tax NPV₈ of A$858 million and an IRR of 99% on A$178 million of initial capital, with payback in 0.9 years — these are exceptional results and the hallmark of a project designed with simplicity in mind. The continued evolution of the project flowsheet has culminated in a low complexity design, resulting in capital light development, at an exceptionally competitive capex position globally. Beyond the numbers, the Koppamurra MREO basket assemblage could not be more relevant or strategically critical to Western customers today. With China’s export controls covering not only dysprosium and terbium but also expanded across yttrium, samarium, gadolinium and lutetium, Koppamurra is poised to fill the growing Western need to secure sustainable and reliably sourced rare earth feedstock. This urgent need is now being addressed by concerted policy action globally, most notably through the recent G7 declaration. This aims to reduce dependencies on a single supplier outside the G7 and partner countries for rare earths and permanent magnets to under 60 per cent by 2030 and continuing to decrease further over time, with an ambition to reach 50 per cent as soon as possible. The challenge is significant, and so too the opportunity. AR3 will be the first company in Australia to process ionic clay rare earth ore through a continuous pilot-scale circuit — at ANSTO's new facility in Sydney, backed by the Australian Government because it recognises the same strategic value we do. That pilot is generating real product samples, real engineering data, and real conversations with potential customers and partners. The work that sits behind this PFS — the environmental studies progressing toward our Mining Lease Application, the government relationships, the ANSTO partnership, five years of disciplined drilling and engineering — has been building steadily toward this point. The path ahead is clear: Detailed Feasibility Study initiation, Mining Lease submission, product qualification, adding more tonnes through the drill bit and advancing offtake and funding discussions. We have the study, the resource, the government support, and now a compelling set of results to underpin every conversation we walk into." Travis Beinke, Managing Director and CEO, Australian Rare Earths Limited Table 1: Key Financial and Production Metrics — PFS Base Case The PFS economic evaluation is as at Financial Investment Decision (“FID”) and payback period is from first production. * Base Case pricing using the average of two highly regarded independent market analysts, Adamas Intelligence and Argus Media Q2’2026 long term Western forecasts to 2040. While some elements of their forecasts differ materially, both are considered credible and reflect the uncertainty in a maturing western sourced rare earth pricing market. Metric Unit PFS Base Case Processing Capacity Mtpa 3 Life of Operation (PFS mine plan) Years 12 Ore Reserve Mt 26 Average TREO Feed Grade ppm 924 TREO Recovery % 68 MREO Recovery % 68 Average Annual Production (TREO) t 1,860 Average NdPr Production t 435 Average Dy and Tb Production t 57 Average Y Production t 238 Average Sm Production t 69 Average Gd Production t 67 Average Lu Production t 4 Basket Price TREO* US$/kg TREO 139 Operating Costs (ex-Royalties) US$/kg TREO 34.14 All-In Sustaining Cost (AISC) US$/kg TREO 38.32 Initial CAPEX A$M 178 Pre-Tax NPV₈ A$M 1,196 Pre-Tax IRR % 113% Post-Tax NPV₈ A$M 858 Post-Tax IRR % 99% Post-Tax Payback Period Years 0.9 Cautionary Statement The Pre-Feasibility Study (“PFS” or “Study”) referred to in this announcement has been undertaken by Australian Rare Earths (“AR3” or the “Company”) in conjunction with various independent consultants, to determine the viability of the development at the Koppamurra Rare Earths Project in South Australia (“Project” or the “Koppamurra Project”). The PFS is based on technical and economic assessments of a level of accuracy commensurate with a prefeasibility study. The total Life of Mine Production Target (and forecast financial information derived from the Production Target) referred to in this announcement is underpinned by approximately 71% by Probable Ore Reserves and the remaining approximately 29% by Inferred Mineral Resources and have been prepared by Competent Persons in accordance with the requirements of the JORC Code (2012). There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the Production Target itself (or the forecast financial information) will be realised. The Company has satisfied itself that the Inferred Mineral Resources included in the Life of Mine Production Target are not the determining factor in project viability. The Project economics modelled without any Inferred Resources and only based on Ore Reserves retains a robust Post-Tax NPV8 of $652 million. The Inferred Mineral Resources included in the Life of Mine Production Target are allocated across the 12 year mine life with an average of 23% Inferred Mineral Resource across the first 10 years ranging from 2% to 33%. The expected payback period for the Koppamurra Project is less than one year. The Life of Mine Production Target and associated forecast financial information are based on assumptions and modifying factors which may prove to be inaccurate, and there is no certainty that the forecast outcomes will be achieved. The Company confirms that the Ore Reserves estimates, and Mineral Resources estimates have been prepared by Competent Persons in accordance with the requirements of the JORC Code. This announcement has been prepared in compliance with the JORC Code 2012 Edition (JORC 2012) and the ASX Listing Rules. All material assumptions on which Life of Mine Production Target and the forecast financial information is based have been provided in this announcement and are also outlined in the JORC 2012 table 1 disclosures in the ASX release “Maiden Ore Reserves positions Koppamurra for development” 25 June 2026. This document contains forward-looking statements, including statements regarding production targets, forecast financial information, development plans and project economics. Forward-looking statements are subject to risks, uncertainties and assumptions, many of which are outside the control of the Company. These include, but are not limited to, commodity prices, exchange rates, regulatory approvals, funding availability and operating performance. While the Company considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the production target or estimated outcomes indicated by the PFS (such as the financial forecasts) will be achieved. The production target and estimated outcomes indicated by the PFS (such as the financial forecasts) are also subject to various risk factors. See the Cautionary Statements and Forward-Looking Statements at the end of this announcement. Given the uncertainties involved and detailed in this announcement, investors should not make any investment decision based solely on the results of the PFS. Pre-Feasibility Study Overview Australian Rare Earths Limited (AR3 or the Company) is pleased to report the results of the Pre-Feasibility Study for its flagship Koppamurra Rare Earths Project in South Australia. The PFS confirms the potential for the Project to be developed as a technically viable, capital light and long-life rare earths operation based on shallow open-pit mining with rapid progressive rehabilitation, heap leach processing and offsite calcination to produce a strategically valuable MREO feedstock product for supply to customers with rare earth oxide separation capabilities, either in Australia, the EU, U.S. or other suitable destinations. The Koppamurra Project is located approximately 30 km southeast of Naracoorte on the Limestone Coast of South Australia — a well-serviced region with sealed road access, established infrastructure, and a capable regional workforce. The Project is wholly owned by AR3 and benefits from strong federal government support through a A$5 million grant under the Australian Government's International Partnerships in Critical Minerals (IPCM) program. The development case is underpinned by more than 65,000 metres of drilling across 6,042 drill holes, a completed bulk sample pit, comprehensive metallurgical testwork programs conducted by ANSTO, CSIRO, Bureau Veritas, BML, the University of Toronto and other specialist providers, together with pilot-scale processing soon to commence at ANSTO's new critical minerals facility in Sydney — the first such ionic clay REE pilot in Australia. Financial Outcomes The Investment Case: Outstanding Returns on Low Capital The financial outcomes of the Koppamurra PFS are exceptional by any measure in the rare earths sector. An after-tax IRR of 99% against an initial capital requirement of A$178 million represents a value creation profile that investors in resources development very rarely encounter at the PFS stage. What underpins this is the fundamental geology: shallow, free-digging ionic adsorption clay mineralisation that is ideally suited to low-cost heap leach processing with rapid and progressive rehabilitation, keeping capital costs low and delivers a strategically valuable mix of in demand magnet rare earths along with yttrium, gadolinium, samarium and lutetium all increasingly critical to Western supply chains, and many subject to Chinese export controls. The Base Case post-tax NPV₈ of A$858 million and after-tax IRR of 99% have been calculated on pricing assumptions derived from using the average of two highly regarded independent market analysis, Adamas Intelligence and Argus Media, using their Q2’ 2026 long term Western forecasts to 2040. While their forecasts differ, both are considered credible and reflect the uncertainty in a maturing Western sourced rare earth pricing market. Product Pricing and Revenue Assumptions The global rare earth market remains heavily influenced by Chinese supply dominance and evolving geopolitical dynamics, while the build-out of Western supply chains may contribute to increasing market and price bifurcation between China and ex-China markets, making long-term price forecasting inherently uncertain. Recent pricing in ex-China markets, such as spot pricing in Europe indicates an increasingly fragmented market, in particular for rare earth elements subject to China export controls such as dysprosium, terbium and yttrium. The Koppamurra PFS outlines the production of a strategically enriched mixed rare earth oxide (MREO) including: • Neodymium and praseodymium — light magnet rare earths, with growing demand driven by electric vehicles, robotics, renewable energy technologies and advanced manufacturing • Dysprosium and terbium — heavy magnet rare earths commanding a significant price premium in the west following China’s imposition of export controls • Samarium, gadolinium, yttrium and lutetium — additional value contributors now attracting premium pricing as Western buyers seek China-independent supply with Koppamurra’s MREO enriched with these elements Cost Structure and Global Competitiveness Koppamurra's PFS-level capital cost of $178 million, operating costs of US$34.14/kg TREO (ex-royalties) and all-in sustaining costs of US$38.32/kg TREO are driven by the fundamental advantages of the mineralisation type and processing approach: • Shallow open-pit, free-dig mining eliminates the need for drilling, blasting and hard rock crushing — substantially reducing mining costs and equipment requirements relative to alternate rare earth mineralisation types. It also enables rapid, progressive rehabilitation of the land and the return to its former use • Heap leach processing is a proven, low-capital processing route that avoids complex extraction infrastructure • Proximity to established infrastructure including the South Australian transport network reduces both capex and opex. Koppamurra is close to major highways, a short drive from a regional airport, serviced by good port infrastructure, and does not require a mine camp, saving on construction cost and providing reliable access to consumables and regional labour Project Overview The Koppamurra Project is located approximately 30 km southeast of Naracoorte on the Limestone Coast of South Australia. Figure 1 Koppamurra Project Location Geology and Mineral Resource A Uniquely Favourable Geological Setting The Koppamurra Project is located within the Murray Basin of south-eastern Australia along the western margin of the Naracoorte East Range on South Australia's Limestone Coast. The Project hosts shallow clay-hosted rare earth mineralisation developed within weathered Pleistocene lacustrine sedimentary clay units overlying Gambier Limestone of the Murray Group. Rare earth mineralisation occurs within shallow ionic adsorption clay zones typically developed within 2–3 metres above the weathered limestone basement — the entire mineralised horizon sits at or near the surface, with thin sandy overburden requiring minimal material movement. The broad lateral continuity of the REE-enriched smectite-rich clay horizons across the Project area supports long life, open-pit mining at low cost. The Koppamurra mineralisation represents an unusual sediment-hosted ionic clay rare earth system formed through weathering, sedimentary transport and geochemical enrichment linked to far-field granitic source rocks of the Lachlan Orogen. The ionic adsorption characteristics of the mineralisation mean rare earths are easily liberated using a mild acidic solution with magnesium sulphate as a desorption agent — the basis for the heap leach flowsheet that drives the project's low-cost profile. Figure 2 Typical Cross Section - Koppamurra Why the rare earth composition matters: The resource contains a magnet rare earth element (MRE) component accounting for 25% of total TREO, encompassing all four key magnet REEs. The strategically important heavy REEs dysprosium and terbium (approximately 3% of TREO combined), along with yttrium, gadolinium, samarium and lutetium, are now subject to China's expanded export controls. This basket composition creates both revenue quality and strategic market positioning that a deposit containing predominantly light magnet rare earths components (Nd and Pr bearing ores) cannot match. The total Mineral Resource estimate of 243 Mt at 751 ppm TREO is a large ionic clay REE resources and is supported by drilling programs totalling ~65,000m. Approximately 47% of the Mineral Resource is categorised as Measured or Indicated. The Mineral Resource estimate was updated in 2026 and is summarised in Table 2. Table 2: Global Mineral Resource Estimate — Koppamurra Project (JORC 2012) Mineral Resource Category Material BD TREO TREO- CeO2 MREO La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3 Gd2O3 Mt g/cm3 ppm ppm %TREO ppm ppm ppm ppm ppm ppm Measured 0.9 1.6 773 502 25.1 125 271 36 135 27 25 Indicated 113 1.6 766 502 25.3 121 264 35 135 27 26 Inferred 130 1.6 737 486 25.3 121 251 34 130 26 24 Total 243 1.6 751 493 25.3 121 257 35 132 26 25 Summary of Global Mineral Resources continued Mineral Resource Category Tb4O7 Dy2O3 Ho2O3 Er2O3 Eu2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 U3O8 ThO2 ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm Measured 4 20 4 10 6 1 8 1 102 1 21 Indicated 4 20 4 10 6 1 8 1 106 2 19 Inferred 3 19 4 9 6 1 7 1 102 2 18 Total 4 19 4 10 6 1 8 1 104 2 19 Exploration Target: A Multi-Decade Resource Base in Waiting Beyond the existing Mineral Resource, the Project carries a significant Exploration Target across the broader southern and northern extents of the project region. This indicates the potential scale of the full mineralised system and points to a development asset that could underpin production well beyond the current PFS life of mine. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for these areas, and it is uncertain whether further exploration will result in the estimation of a Mineral Resource. Future drill programs will include the potential to expand the existing Mineral Resource base across the broader Project area. Koppamurra 2026 Ore Reserve Estimate The Maiden Ore Reserve estimate of 26Mt at 920ppm TREO for the Koppamurra Deposit is estimated at 25 June 2026 and summarised in Table 3. Tonnages and grades are rounded as appropriate and mineral assemblage is reported as parts per million. Measured and Indicated Mineral Resources have been converted to Probable Ore Reserves only. No Inferred Mineral Resources are included in the Ore Reserves. Ore Reserves are a subset of Mineral Resources. Ore Reserves are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code – JORC 2012 Edition). Table 3 Ore Reserve Estimation as at 25 June 2026 Ore Reserve Category Material BD TREO TREO- CeO2 La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3 Gd2O3 Mt g/cm3 ppm ppm ppm ppm ppm ppm ppm ppm Probable 26 1.6 920 602 141 324 43 167 33 32 Ore Reserve Estimation continued Ore Reserve Category Tb4O7 Dy2O3 Ho2O3 Er2O3 Eu2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 U3O8 ThO2 ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm Probable 4.5 25 4.7 13 7.6 1.6 10 1.4 125 1.4 19 This study summarises the material information pursuant to ASX Listing Rule 5.9. Additional information required by ASX Listing Rule 5.9 is summarised in JORC Code 2012 – Table 1 Section 4 of ASX release 25 June 2026 “Maiden Ore Reserve positions Koppamurra for development”. Figure 3 Koppamurra JORC Classification (>325 ppm TREO-CeO2) Mining and Mine Design Low-Impact, Low-Cost Open-Pit Mining The Koppamurra mine design leverages the inherent advantages of shallow, ionic adsorption clay mineralisation. The operation will use conventional open-pit truck-and-excavator methods, but the soft, free-digging nature of the clay-hosted ore eliminates the need for drilling and blasting — reducing operating costs, environmental impact, and equipment wear compared with hard rock alternatives. The mine plan is structured around a phased mining sequence to optimise feed grade, maximise MREO recovery and deliver steady-state throughput of 3 Mtpa (dry basis) to the heap leach facility. The Koppamurra mine design has been developed with progressive rehabilitation integrated into the mine plan, with disturbed areas progressively restored as mining sequences advance. The life-of-mine production schedule demonstrates a relatively consistent ore feed profile throughout most of the operation, while integrating mining, heap leaching, residue placement and progressive rehabilitation requirements. The total Life of Mine Production Target (and forecast financial information derived from the Production Target) referred to in this announcement is underpinned by approximately 71% Probable Ore Reserves and the remaining approximately 29% by Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the Production Target itself (or the forecast financial information) will be realised. The Company has satisfied itself that the Inferred Mineral Resources included in the Life of Mine Production Target are not the determining factor in project viability. The Inferred Mineral Resources included in the Life of Mine Production Target are allocated across the 12 year mine life with an average of 23% Inferred Mineral Resource across the first 10 years ranging from 2% to 33%. The expected payback period for the Koppamurra Project is less than one year. 0 200 400 600 800 1,000 1,200 0 1 2 3 4 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 TREO ppm Mt Life of Mine Production Target: Resource Category and Grade Measured Indicated Inferred Ore Grade A Proven, Simple and Cost-Effective Flowsheet The Koppamurra processing flowsheet has been designed to take advantage of the ionic adsorption clay mineralisation characteristics that make this deposit type uniquely amenable to low-cost processing. The proposed heap leach flowsheet is technically simpler and significantly lower in capital and operating cost than the processing routes required for hard rock or non-ionic clay REE projects. The processing route produces a mixed rare earth oxide (MREO) product through the following key steps: • Ore is mined, screened and agglomerated before being stacked on a lined leach pad • Lixiviant of diluted sulphuric acid and magnesium sulphate solution is applied to the heap at ambient temperatures, selectively extracting rare earth elements • Pregnant leach solution (PLS) is collected and processed through a simple precipitation and re-dissolution step as a first stage of removing impurities including aluminium and other gangue elements • Rare earth precipitation with oxalic acid produces a mixed rare earth oxalate filter cake, which is calcined offsite to produce the final MREO product for sale • Reagent availability has been identified with all key reagent volumes able to be sourced from ex-China locations across Australia and abroad Metallurgical Performance supported by ANSTO testwork Recovery assumptions underpinning the PFS financial model are based on an extensive testwork program completed with the support of ANSTO. Key outcomes from flowsheet testwork include: • TREO recovery of 68% from Mineral Resource to final MREO product • MREO recovery of 68%, reflecting the strong leaching response of the magnet rare earth elements • Low impurity levels in the final product, supporting strong payability in offtake negotiations • Consistent metallurgical performance across spatially distributed sample locations, providing confidence in the representativeness of recoveries across the mine plan Critically, AR3 will be the first company in Australia to conduct pilot-scale processing of ionic clay REE ore through ANSTO's new pilot processing facility in Sydney. This program — processing approximately 30 tonnes of bulk sample material — will generate continuous processing data, engineering design inputs for the DFS, and product samples for customer qualification. Figure 4 Koppamurra Flowsheet Figure 5 Birdseye view of the processing plant model Project Capital and Operating Costs The Capital and Operating estimates have been prepared as Class 4 Estimates in accordance with Australasian Institute of Mining and Metallurgy (AusIMM) for prefeasibility-level technical studies. Capital Cost The estimated capital costs reflect a 3Mtpa base case operation for a total cost of A$178 million, inclusive of a ~25% contingency of $35 million. The capital costs exclude the mining fleet with a contract mining model adopted for the PFS. All mining costs are included as operating cost. The Koppamurra Project is a very low capital cost option. Table 4 Capital Estimate Description CAPEX Total (A$m) Processing Plant 77 Site Infrastructure and Services 48 Temporary Facilities 4 Owner’s Cost 14 Contingency 35 TOTAL (incl. contingency) 178 Operating Cost Operating Cost estimate for the Project is A$96 million per annum. Table 5 below summarises the operating cost by category. Mining comprises of 45% of total OPEX, and the process plant costs account for 52% of total OPEX. Table 5 Operating Costs Description A$ million per annum % of total Operating Cost US$/dry t ore (3Mt)* US$/kg TREO (1860 t)* Mining 43 45 9.32 15.29 Processing 50 51 10.83 17.78 General and Administration 3 3 0.65 1.07 TOTAL 96 100 20.80 34.14 *Assuming a USD:AUD foreign exchange rate of 0.65 Total Mining costs include surface, ore and waste material movement costs. Total material movement has been calculated based on A$4.2/t for overburden (waste) removal and A$5.4/t for mining of ore. Surface operations encompassing topsoil removal, clearing and rehabilitations contribute to the overall mining costs of A$43 million per annum. Process plant operating costs include both fixed and variable costs. Fixed