Announcement PDF SECURING AUSTRALIA'S ENERGY TRANSITION METALS 2026 Annual Report 2 SECURING AUSTRALIA'S ENERGY TRANSITION METALS 3 | Australian Rare Earths 2026 Annual Report Chairman’s Letter 4 CEO’s Letter 8 Operations Review Diversified Project Portfolio 11 Koppamurra Project 12 Pre-Feasibility Study (PFS) 14 Maiden Ore Reserve 16 2026 Mineral Resource Estimation 18 Exploration Target 20 Heap Leaching Mining Method 22 Metallurgical Testwork and Process Development 24 Uranium Portfolio 26 2026 Drilling Program and New Uranium Targets 28 Niobium–Rare Earth Carbonatite Discovery 30 Australian Rare Earths Tenement Interests 33 Directors’ Report 34 Remuneration Report (Audited) 44 Auditor’s Independence Declaration 55 Financial Report Statement of Profit or Loss and Other Comprehensive Income 58 Statement of Financial Position 59 Statement of Changes in Equity 60 Statement of Cash Flows 61 Notes to the Financial Statements 62 Consolidated Entity Disclosure Statement 80 Directors’ Declaration 81 Independent Auditor’s Report 82 Additional Information 86 Corporate Directory 89 Contents SECURING AUSTRALIA'S ENERGY TRANSITION METALS Chairman's Letter 4 Dear Shareholders, A year ago, we said that the strategic significance of rare earths had come into sharp focus. Over the 2025–2026 financial year, that shift has moved from sentiment to substance. Chinese export controls have widened, and in response, other governments have stood up strategic reserves and procurement frameworks. The world's reliance on a single-country supply chain for the magnets that power everything from electric vehicles to wind turbines and defence systems has become a mainstream policy concern rather than a specialist one. 5 | Australian Rare Earths 2026 Annual Report Government is no longer a passive observer of this sector; it is an active participant in de-risking projects. " " And there’s a growing realisation of the similar exposure to supply chain risk in other rare earth elements such as yttrium and the non-magnet heavy rare earths, essential to a range of other industrial and electronic applications. Against that backdrop, Australian Rare Earths (AR3) has converted years of testwork and drilling into a defined development case. The Koppamurra Rare Earths Project progressed to a Pre-Feasibility Study (PFS) and maiden Ore Reserve, with the PFS’ central case presenting a post-tax net present value of $858 million and a payback period, from first production, of under a year on initial capital of just $178 million. Our Overland Uranium Project delivered further systematic drilling and, in the closing weeks of the year, an early-stage discovery of carbonatite with elevated concentrations of niobium and rare earth elements, opening a new avenue of value for the project. We are, in short, in a stronger position today than the macro tailwinds alone would suggest (and the tailwinds themselves have strengthened). The Macro Context China's export restrictions on rare earth elements, first announced in April 2025, expanded during the year to capture a wider basket of elements, including yttrium, gadolinium, samarium and lutetium in addition to the magnet rare earths dysprosium and terbium. For Western manufacturers of magnets, defence systems and clean energy technology, this has sharpened an uncomfortable truth: heavy and magnet rare earths are supplied almost exclusively from Chinese-controlled sources, and that concentration is now a live commercial and national security risk rather than a theoretical one. Koppamurra's product basket, weighted toward these elements, sits directly in the path of the diversification response that Western customers and governments are now pursuing. In Australia, the policy intent we described a year ago has become policy in practice. Rare earths are now among the first minerals named for inclusion in the Federal Government's Critical Minerals Strategic Reserve, and AR3's $5 million grant under the Australian Government's International Partnerships in Critical Minerals program (of which $2.75 million had been received by the financial year end) has directly funded metallurgical testwork and co-funded our pilot-scale processing program with the Australian Nuclear Science and Technology Organisation (ANSTO). Abroad, we have seen the US move from a one-off price support deal to such deals being struck with several others, Japan moving to strike a price support deal with an established Australian producer, and the launch of Project Vault as a private-sector led, US-EXIM backed commercial stockpile. The US has actively sought to corral countries toward a coordinated policy and pricing response to foster new, diversified rare earths supply, most notably through a February 2026 Critical Minerals Ministerial of over 50 countries. The G7 Leaders’ summit in France included an important declaration of intent to reduce reliance on any non-G7 member for rare earths and permanent magnets supply to below 60% by 2030, with an ambition to further lower that reliance further to 50% as soon as possible. We await to see how these pledges are converted into concrete policy action, especially in Europe, but the message is clear: Government is no longer a passive observer of this sector; it is an active participant in de-risking projects. The uranium thematic playing out at Overland is a parallel story. South Australia remains one of the world's premier uranium jurisdictions, home to the only three currently operating uranium mines in the country, and our exploration there this year took place against a backdrop of robust uranium prices driven by expanding global nuclear power programs and energy security imperatives. The new niobium-rare earth carbonatite discovery identified late in the year adds a further, unplanned dimension of upside to that ground. This serves as a reminder that systematic, well-targeted exploration can surface value beyond the commodity originally being sought. 6 CHAIRMAN'S LETTER AR3 continued to seek to shape rare earths industry policy at home and abroad, and to lift our profile among potential offtake partners. During the year, the Company participated in the Rare Earth Mines, Magnets and Motors Summit in Toronto, attended the opening of a new rare earth processing facility in Estonia by our technical partner Neo Performance Materials, and was invited to join an Austrade-sponsored delegation of Australian critical minerals companies to Washington DC to engage with US administration officials on closing critical minerals supply gaps. These are not, by themselves, operational milestones, but they matter: they are how projects like Koppamurra become known to the governments, customers and financiers who will ultimately determine which projects get built. Positioning AR3 for the Opportunity Being the beneficiary of a favourable macro backdrop is not the same as being positioned to capture it, and the Board's focus this year has been on ensuring AR3 is the latter. Koppamurra's combination of shallow open-pit mining with rapid progressive rehabilitation, a proven heap leach flowsheet and a comparatively low initial capital requirement gives it a shorter, lower-risk path to future production than many peer rare earth developments; a genuine advantage when capital for small-cap developers remains difficult to source. In the here and now, being confirmed as the first industry partner to access ANSTO's new pilot-scale processing facility removed the need for AR3 to fund and build its own pilot plant, saving time and capital at a critical stage of the Project's development. With the Pre-Feasibility Study and maiden Ore Reserve now delivered, the task ahead is converting a well- defined project into a funded, constructed one. Much hard work still lies ahead, and the Board is realistic about the work still required to reach a final investment decision. We believe the combination of a de-risked technical case and a structurally tightening supply picture for magnet and other heavy rare earths gives AR3 – and Koppamurra's technical and economic case is now defined, and Overland has added a promising new dimension. " " South Australia - a genuine opportunity to be part of the diversified, non-Chinese supply chain that governments and customers are now actively seeking to build. With Thanks The Company's ability to fund its work this year owes much to the continued support of our shareholders, who backed a $6 million placement to institutional, sophisticated and professional investors during the year, and to the Australian Government, whose IPCM grant funding has directly underwritten key testwork and pilot milestones. I thank our shareholders and the Australian Government for their support, I thank my fellow directors for their continued guidance, and I thank the AR3 team, led by Managing Director Travis Beinke, for all the hard work and technical ingenuity they have brought to a year of substantial progress. Conclusion The themes that were emerging a year ago are now well established: governments are active participants in shaping critical minerals supply chains, and the strategic value of non-Chinese heavy and magnet rare earth supply has never been clearer. Koppamurra's technical and economic case is now defined, and Overland has added a promising new dimension. As geopolitics, policy and market forces continue to move in this sector's favour, we believe AR3 is well placed to convert that opportunity into shareholder value. Yours sincerely, Angus Barker Chairman Australian Rare Earths Limited Outlook OVER THE YEAR AHEAD, OUR PRIORITIES ARE: Progress pilot-scale operations at ANSTO and deliver Mixed Rare Earth Oxide product samples for customer qualification and offtake discussions. Submit the Mining Lease Application for Koppamurra and continue the Definitive Feasibility Study, targeted for completion in 2027. Advance project funding discussions across a range of options, ahead of a final investment decision. Follow up the niobium-rare earth carbonatite discovery at Overland with further geophysics and drilling, alongside continued uranium exploration across our expanded tenure. Maintain AR3's engagement with government and industry, in Australia and internationally, to ensure the Company continues to benefit from the policy momentum behind critical minerals. 7 | Australian Rare Earths 2026 Annual Report SECURING AUSTRALIA'S ENERGY TRANSITION METALS Chairman's Letter Dear Shareholders, In 2025–2026, Australian Rare Earths made substantial operational progress across our portfolio, advancing the Koppamurra Rare Earths Project from metallurgical testwork through to a Pre-Feasibility Study (PFS) and maiden Ore Reserve, while our Overland Uranium Project delivered further drilling results and, near year end, an unexpected new discovery. It has been a year in which the technical foundations we have been building came together into a defined, de-risked development case. CEO's Letter 8 9 | Australian Rare Earths 2026 Annual Report Operational Overview At Koppamurra, we spent the first half of the year progressing metallurgical testwork with ANSTO, achieving magnet rare earth extraction rates of approximately 70% from ore and establishing a viable, low-technical-risk pathway from pregnant leach solution through to a Mixed Rare Earth Oxide (MREO) product. A step-change improvement in heap leach performance, in which doubling the irrigation rate approximately halved leach cycle times without any loss in recovery, materially improved the Project's capital and operating cost profile. That testwork underpinned the PFS and maiden Ore Reserve we released in June 2026; a post-tax NPV of A$858 million, a post-tax IRR of 99% and a payback of under a year on initial capital of A$178 million, built around a 26 Mt Ore Reserve at 920 ppm TREO and an updated global Mineral Resource of 243 Mt at 751 ppm TREO. In parallel, we were confirmed as the first industry partner to access ANSTO's new pilot-scale rare earth processing facility in Sydney, avoiding the cost and time of building our own pilot plant and by year end, had approximately 30 tonnes of Koppamurra ore on-site and ready for processing. We also made steady progress on the regulatory path to production, with the Department for Energy and Mining's Scoping Report and our own baseline environmental studies supporting a Mining Lease Application we intend to submit by the end of calendar year 2026. At Overland, we expanded our tenure to approximately 8,000 km² and completed 67 holes for approximately 6,370 metres of drilling across two campaigns during the year. The first, completed in the second half of 2025, confirmed a compelling ISR-amenable uranium target in the north-western region of EL7001. The second, drilled across newly granted tenure in April and May 2026, tested two priority target zones defined from a detailed review of historic drilling, and while it did not return significant uranium intersections, the same program led from samples in drill hole OV167, to the discovery of a niobium-rare earth carbonatite mineral system at the R254 prospect. That is an early-stage result from a single hole, but the presence of pyrochlore and grades up to 1.16% TREO and up to 0.53% niobium make it a discovery we intend to follow up quickly. Financial Overview During the year, we raised approximately $6 million via a placement to institutional, sophisticated and professional investors, which together with $2.75 million received at financial year end under our $5 million Australian Government International Partnerships in Critical Minerals grant, has funded our testwork, technical and environmental studies and preparation for our pilot program, while maintaining a disciplined cost base. I thank our shareholders for that continued support. We are now assessing a range of options from equity, debt, strategic partner investment, offtake-linked financing and government funding, to support Koppamurra through to a final investment decision and ultimately through construction. Outlook Looking ahead, our focus shifts from defining Koppamurra to advancing it. We commenced pilot-scale operations at ANSTO shortly after year end, to produce MREO product samples for customer qualification and to support offtake discussions, alongside submission of our Mining Lease Application in 2026 and completion of a Definitive Feasibility Study targeted for 2027. At Overland, we will follow up the niobium-rare earth discovery with further geophysics and drilling, while continuing to test the broader uranium potential of our expanded tenure position. I thank the AR3 team for their commitment and technical depth over the past year, and our shareholders for their ongoing support. We are energised by the progress made and confident in our ability to keep converting technical results into project value. Yours sincerely, Travis Beinke Managing Director and CEO Australian Rare Earths Limited Operations Review SECURING AUSTRALIA'S ENERGY TRANSITION METALS 10 11 | Australian Rare Earths 2026 Annual Report During the 2025–2026 financial year, Australian Rare Earths Limited (AR3 or the Company) continued to advance its diversified project portfolio, anchored by the Koppamurra Rare Earths Project in South Australia and Victoria and the Overland Uranium Project in South Australia, together with a portfolio of early-stage uranium and rare earths interests in South Australia and Queensland. Koppamurra progressed during the year, advancing from metallurgical testwork through to a Pre-Feasibility Study (PFS) and maiden Ore Reserve, released in June 2026, together with the first delivery of Koppamurra ore to a pilot-scale processing facility. Overland delivered further systematic drilling across an expanded tenure package, defined new uranium target zones informed by historic drilling data and, in the closing weeks of the year, an early-stage discovery of carbonatite with elevated concentrations of niobium and rare earth elements that represents a new exploration opportunity for the Project. Diversified Project Portfolio Massie Creek Oaky Valley Sandy Tate Forty Mile Scrub Dalrymple Overland Koppamurra Hamilton Creek Triggs Bore Rare Earths Uranium Copper/Gold Koppamurra Project OPERATIONS REVIEW KOPPAMURRA RARE EARTHS PROJECT 12 13 | Australian Rare Earths 2026 Annual Report SECURING AUSTRALIA'S ENERGY TRANSITION METALS KOPPAMURRA Naracoorte Mount Gambier Keith Bordertown Penola Portland Murray Bridge ADELAIDE SOUTH AUSTRALIA VICTORIA 50km KOPPAMURRA Naracoorte Mount Gambier Keith Bordertown Penola Portland Murray Bridge ADELAIDE SOUTH AUSTRALIA VICTORIA 50km Rare Earths Project SA & Vic Overview The Koppamurra Project is AR3's flagship ionic clay-hosted rare earths development, spanning tenure in South Australia and western Victoria. During the year, the Project moved from metallurgical testwork to a fully defined development case, culminating in a Pre-Feasibility Study and maiden Ore Reserve that confirm Koppamurra as one of the more advanced ionic clay rare earths development projects in Australia. Scale/Size 7,400km2 Exploration Licence area Ownership 100% Maiden Ore Reserve 26Mt @ 920ppm TREO Magnet Rare Earth~26% of TREO including strategically valuable heavy Rare Earth Elements (REE's) dysprosium & terbium ~3%; along with yttrium, gadolinium, samarium and lutetium, now subject to China's expanded export controls Mineral Resource 243Mt @ 751ppm TREO and untapped Exploration Target; significant scope for a multi-decade operation as the project scales Offtake Neo Performance Materials (Non-binding MOU for 50% offtake of stage 1) Location & Jurisdiction ~300km SE of Adelaide, in South Australia and Victoria Australia: Low political risk; South Australia: Pro-mining state Access: Road & Port Within 8km of main highway with established road to site; Shipping via the Port of Adelaide ~380km from the project site (or Portland) Workforce & Supporting Infrastructure Access to skilled workforce regionally Drive in workforce with no requirement for camp or airstrip due to project location Water & Power Water Recycling of water within the process will provide for a low water consumption project; to be sustainably sourced from local aquifer Power Either onsite solution or connection to existing infrastructure tenure 14 OPERATIONS REVIEW KOPPAMURRA RARE EARTHS PROJECT Key Production Outcomes Annual Average LOM Ore Mined (Mt) 3 34.9 Strip Ratio (waste: ore) 1.5 1.5 Average TREO Feed Grade (ppm) 927 924 TREO Recovery (%) 68 100 MREO Recovery (%) 68 100 TREO (t) 1,860 21,937 Neodymium Praseodymium (NdPr) (t) 435 5,136 Terbium (t) 9 102 Dysprosium (t) 48 563 Samarium (t) 69 814 Gadolinium (t) 67 788 Yttrium (t) 238 2,807 Lutetium (t) 4 50 Pre-Feasibility Study (PFS) The Pre-Feasibility Study (PFS) confirms the potential for the Project to be developed as a technically viable, long-life rare earths project based on shallow open-pit mining, heap leach processing, rapid progressive rehabilitation and offsite calcination to produce a saleable mixed rare earth oxide product for supply to customers with rare earth oxide separation capabilities, either in Australia, the EU, U.S. or other suitable destinations. The development case is underpinned by extensive drilling, metallurgical testwork, environmental studies and engineering design work completed by AR3 and its specialist consultants. The study provides the technical foundation for the next phase of project development, including Mining Lease Application (MLA) submission, pilot plant operation, product qualification, offtake engagement and definitive feasibility work. Staged expansion potential Long term optionality beyond initial 12-years. Highly attractive MREO production delivering meaningful quantities of a strategically critical suite of rare earths PFS targeted Southern portion of resource to support area around initial Mining Lease Application Scope for staged capital efficient expansion North to significantly increase mine life and production rates SECURING AUSTRALIA'S ENERGY TRANSITION METALS PFS Highlights HIGHLY ATTRACTIVE PRODUCT High-value MREO basket with exposure to constrained heavy REE markets; including rare earths are increasingly critical to Western supply chains LOW TECHNICAL RISK Shallow open pit mining, simple heap leach flowsheet and rapid progressive rehabilitation key driver of the project’s robust economics LONG-TERM OPTIONALITY BEYOND THE PFS Maiden Ore Reserve with initial 12-year mine life and substantial potential for a multi- decade operation as the project scales TIER-1 AUSTRALIAN JURISDICTION Western customers seeking rare earth feedstock rich in heavies that can be delivered from allied nations with speed to market COMPELLING ECONOMICS A$858m After-Tax NPV8 ; 99% IRR; ~1 yr payback CAPITAL-LIGHT DEVELOPMENT A$178 million with capital efficiency ratio of 4.8; a clear signal of the value embedded in the asset 15 | Australian Rare Earths 2026 Annual Report 16 OPERATIONS REVIEW KOPPAMURRA RARE EARTHS PROJECT Maiden Ore Reserve In June 2026, Australian Rare Earths achieved a major milestone with the declaration of a maiden Ore Reserve for the Koppamurra Rare Earths Project. The Probable Ore Reserve of 26 million tonnes at 920 ppm TREO, converted from Measured and Indicated Mineral Resources, represents an important step in demonstrating the Project’s development potential. The maiden Ore Reserve provides a defined foundation for mine planning and supports the outcomes of the Pre-Feasibility Study. The study applied project-specific Modifying Factors, including mining, processing, metallurgical recovery, operating cost and pricing assumptions. The Reserve is underpinned by the updated Koppamurra Mineral Resource of 243 million tonnes at 751 ppm TREO, highlighting both the scale of the mineralised system and its potential for staged development. The Ore Reserve grade is approximately 22% higher than the average grade of the global Mineral Resource, reflecting the opportunity to prioritise higher-value areas within the deposit during initial mine planning. The rare earth basket includes a significant proportion of magnet and heavy rare earth elements, including neodymium, praseodymium, dysprosium and terbium, which are critical inputs for high-growth applications such as electric vehicles, wind turbines and defence technologies. The maiden Ore Reserve materially de-risks Koppamurra and provides a strong platform for advancing approvals, detailed design, financing discussions and future development activities. Together with the broader Mineral Resource and Exploration Target, it reinforces AR3’s confidence in Koppamurra’s scale, quality and long-term growth potential. The maiden Ore Reserve was central to the Koppamurra Pre-Feasibility Study, providing the mineable inventory used to support the proposed mine plan, production schedule, processing assumptions and financial evaluation. Supported by project-specific Modifying Factors, it gives AR3 a stronger basis for assessing development scale, capital requirements, operating costs and project economics. Category Material BD TREO TREO - CeO2 La2 O3 Ce O2 Pr6 O11 Nd2 O3 Sm2 O3 Gd2 O3 Mt (g/cm3 ) ppm ppm ppm ppm ppm ppm ppm ppm Probable 26 1.6 920 602 141 324 43 167 33 32 Tb4 O7 Dy2 O3 Ho 2O3 Er2 O3 Eu2 O3 Tm2 O3 Yb2 O3 Lu2 O3 Y2 O3 U3 O8 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 ORE RESERVE ESTIMATION AS AT 25 JUNE 2026 4 3 2 1 0 1,200 1,000 800 600 400 200 0 Inferred Ore Grade Indicated Measured LIFE OF MINE PRODUCTION TARGET: RESOURCE CATEGORY AND GRADE Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 MT TREO ppm SECURING AUSTRALIA'S ENERGY TRANSITION METALS KOPPAMURRA PROJECT MINING SEQUENCE 17 | Australian Rare Earths 2026 Annual Report OPERATIONS REVIEW KOPPAMURRA RARE EARTHS PROJECT 2026 Mineral Resource Estimation AR3 engaged the specialist consulting group Mineral Technologies to complete an update of the Koppamurra geological block model and Mineral Resource Estimate in 2026. Importantly, the update was primarily focused on improving the geological resolution and quality of the resource model, rather than simply incorporating additional drilling. The work built on the previous Mineral Resource Estimate by integrating an improved geological and metallurgical understanding of the ionic-adsorbed clay mineralisation and its relationship with the underlying limestone and associated gangue material. A key improvement was the refinement of geological domaining to provide greater resolution of the principal REE-enriched ore zones and improved separation of mineralised clay from material associated with the limestone contact and sporadic weathered limestone clasts. The revised model defines Zone 3 as the principal REE-enriched clay domain, while Zones 4 and 5 provide additional geological resolution around the basal contact and areas containing weathered limestone clasts. This approach provides a more representative model of the orebody and its associated gangue material, while preserving the interpreted continuity of the primary mineralised clay domain. The revised geological domains were incorporated into updated grade interpolation and bulk density assignment, supported by domain-specific variography, contact analysis, sectional interpretation and statistical validation. The resulting model provides improved definition of ore-zone geometry, grade distribution and internal geological variability, increasing confidence in the Mineral Resource model and providing a stronger foundation for mine planning, metallurgical evaluation and staged technical development of the Project. 18 Naracoorte office and facility SECURING AUSTRALIA'S ENERGY TRANSITION METALS Category Material BD TREO TREO - CeO2 MREO La2 O3 Ce O2 Pr6 O11 Nd2 O3 Sm2 O3 Gd2 O3 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 GLOBAL MINERAL RESOURCE ESTIMATE FOR THE KOPPAMURRA PROJECT 2026 Tb4 O7 Dy2 O3 Ho 2O3 Er2 O3 Eu2 O3 Tm2 O3 Yb2 O3 Lu2 O3 Y2 O3 U3 O8 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 19 | Australian Rare Earths 2026 Annual Report Koppamurra 2026 Mineral Resource Statement (JORC 2012) The Global Mineral Resource reported above a 325 ppm TREO-CeO2 (TREO minus cerium oxide) cut-off grade for the Project is presented in the table below. This table conforms to guidelines set out in JORC Code (2012). The Koppamurra project comprises a total Mineral Resource estimate of 243 Mt @ 751 ppm TREO and 493 ppm TREO- CeO2. The Global Mineral Resource JORC Categories are specifically stated as: Measured Mineral Resource of 0.9 Mt @ 773 ppm TREO and 502 ppm TREO-CeO2, Indicated Mineral Resource of 113 Mt @ 766 ppm TREO and 502 ppm TREO-CeO2, and; Inferred Mineral Resource of 130 Mt @ 737 ppm TREO and 486 ppm TREO-CeO2. 20 Exploration Target The Koppamurra Project retains a significant Exploration Target across the northern and southern extents of the Project, highlighting the substantial scale of the mineralised system beyond the current Mineral Resource. The Exploration Target occurs predominantly in areas where drilling remains widely spaced, but where existing drilling and downhole assay results demonstrate continuation of the geological setting that hosts the Koppamurra Mineral Resource. 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. A cut-off grade range of 225 ppm to 425 ppm TREO- CeO2 was used to define a Global Exploration Target range of (680 Mt @ 820 ppm TREO to 3620 Mt @ 540 ppm TREO) for the Koppamurra project area. The Exploration Target covers large areas across the project both north and south informed by limited drilling and downhole assay results at this stage of project development. There remains an opportunity for the Exploration Target material to be converted into the Mineral Resource estimate upon the completion of additional aircore drilling in these areas. Over the next 2 years, AR3 expects to undertake further drilling across priority areas of the defined Exploration Target. The program is intended to progressively test geological continuity and reduce drill spacing from the current widespaced pattern to approximately 240 m and, where warranted, 120 m, providing additional data that may support future Mineral Resource estimation. OPERATIONS REVIEW KOPPAMURRA RARE EARTHS PROJECT Material Type Zone Material BD TREO TREO - CeO2 MREO Dy2 O3 Tb4 O7 Nd2 O3 Pr6 O11 Mt (g/cm3 ) ppm ppm ppm ppm ppm ppm ppm Target 3 650 - 3120 1.6 560 -820 360 - 540 140 - 210 15 - 20 3 - 4 100 - 150 25 - 40 4 30 - 500 1.6 420 - 690 300 - 500 110 - 190 10 - 20 2 - 3 80 - 140 20 - 40 Total 680 - 3620 1.6 540 – 820 350 - 540 140 - 210 15 - 20 3 - 4 100 - 150 25 - 40 SUMMARY OF 2026 GLOBAL EXPLORATION TARGET 2026 KOPPAMURRA JORC CLASSIFICATION SECURING AUSTRALIA'S ENERGY TRANSITION METALS 21 | Australian Rare Earths 2026 Annual Report OPERATIONS REVIEW KOPPAMURRA RARE EARTHS PROJECT TEMPORARY HEAP CLAY PREPARATION 4-10m RAPID REHABILITATED MINE VOID SOIL / SUBSOIL OVERBURDEN PLACEMENT NEUTRALISED CLAY Heap Leaching Mining Method Australian Rare Earths is designing a staged, low impact mining approach, where small, higher grade areas are mined one at a time rather than developing one large continuous site. Heap leaching has been selected as the method for extracting the rare earths from the clay. This is a mature and well understood extraction method. Temporary processing areas,