Announcement PDF ASX: AR3 | MARKET ANNOUNCEMENT ASX Release: 08 October 2026 AR3 receives A$1 Million R&D tax incentive refund Non-dilutive funding supports pilot plant activities and continued development of Koppamurra Highlights • A$1,019,814 R&D Tax Incentive refund received under the Australian Government’s Research and Development Tax Incentive program for FY2026. • The refund strengthens AR3’s funding position as the Company advances the next phase of development at the Koppamurra Rare Earths Project. • Funding will support ongoing pilot plant activities and flowsheet optimisation, informing future project studies and development decisions. • The refund complements AR3’s $5 million co-funded Australian Government grant under the International Partnerships in Critical Minerals Program. • Engage with this announcement via the Investor Hub AR3 Managing Director and CEO, Travis Beinke said: “This refund strengthens AR3’s cash position by more than $1 million. It recognises the substantial technical work completed by our team and project partners at Koppamurra during FY2026, which contributed to the completion of the Pre-Feasibility Study. With the PFS complete, our focus is now on pilot plant activities, further flowsheet optimisation and progressing the Mining Lease application. Together with the Australian Government’s $5 million co-funded grant, the R&D Tax Incentive provides valuable non-dilutive funding as we advance Koppamurra as a potential new source of light and heavy rare earths.” R&D Tax Incentive refund received Australian Rare Earths Limited (ASX: AR3) (AR3 or the Company) is pleased to announce that it has received an A$1,019,814 tax refund under the Australian Government’s Research and Development Tax Incentive (RDTI) program for the financial year ended 30 June 2026. The refund relates to eligible R&D expenditure incurred during FY2026, principally on metallurgical and process development at the Koppamurra Rare Earth Project in South Australia. This work has informed the pilot plant and associated flowsheet testwork being undertaken with ANSTO to validate and further refine the proposed processing route. The refund complements AR3’s A$5 million co-funded grant under the Australian Government’s International Partnerships in Critical Minerals Program. Together, these sources support the continued advancement of Koppamurra and its potential contribution to more diversified western supply chains for light and heavy rare earths. The announcement has been authorised for release by the Board of Australian Rare Earths Limited. For further information please contact: Australian Rare Earths Limited Media Enquiries Travis Beinke Jessica Fertig Managing Director and CEO Tau Media T: 1 300 646 100 E: info@taumedia.com.au Engage and Contribute at the AR3 investor hub: https://investorhub.ar3.com.au/ About Australian Rare Earths Limited Australian Rare Earths (AR3) is a diversified critical minerals company, strategically positioned to meet the growing global demand for uranium and rare earth elements: • AR3's Koppamurra Rare Earths Project in South Australia and Victoria is a significant deposit of light and heavy rare earths, now underpinned by a Pre-Feasibility Study and maiden Ore Reserve, and supported by the Australian Government through a $5 million grant to accelerate development. AR3 is progressing toward a Definitive Feasibility Study and pilot-scale demonstration production at ANSTO's Sydney facility, solidifying its role as a potential new source of new supply to diversify global rare earth feedstocks for the clean energy transition. • AR3's large ~8,000 km² Overland Uranium Project in South Australia shows strong uranium discovery potential, with drilling also identifying a new niobium–rare earth carbonatite exploration target. With strategic projects as well as strong government support, AR3 is well placed to capitalise on significant growth in the critical minerals market.