Announcement PDF ASX: AR3 | MARKET ANNOUNCEMENT ASX Release: 15 September 2026 AR3 expands Overland carbonatite discovery 130m carbonatite intersection open at depth expands Overland discovery Highlights • Follow-up drilling has extended the Overland carbonatite discovery ~5km south, materially increasing the potential scale of the emerging system • Hole OV176 intersected 130 metres (downhole) of carbonatite from 68 m depth and terminated within carbonatite. True thickness is not yet known, with the system remaining open at depth. • Drilling now supports interpretation of a large-scale carbonatite complex extending along a ~10km magnetic corridor. • Results from additional step-out drilling strengthen confidence in the geological model and validate magnetic anomalies as an effective targeting tool. • Assays are pending and will help determine the fertility and economic significance of the system. • Engagement with leading academic and government geological researchers is underway, reflecting growing scientific interest in this discovery. • Engage and Contribute at the AR3 investor hub here. AR3 Managing Director and CEO, Travis Beinke said: "The results so far from this drilling program have significantly increased our confidence that Overland hosts a carbonatite system of considerable scale. The 130 metre carbonatite intersection in OV176, located approximately 5 kilometres south of our original discovery hole, significantly extends the known footprint of the system, which remains open at depth. Importantly, drilling continues to correlate strongly with 10 kilometre magnetic corridor that we are systematically targeting. This is increasing our confidence that magnetics can provide a highly effective exploration tool for potentially identifying further carbonatite intrusions across the broader Overland Project. With additional drilling underway and samples for assays now being dispatched, our focus is now on determining the fertility and potential economic significance of what is emerging as a large-scale carbonatite system. We are also encouraged by the interest from leading researchers and government geologists, which reflects the rarity of this rock type and its potential importance as a source of critical minerals." Cautionary note: Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. The Company is sampling zones of interpreted carbonatitie lithology and expects to receive the laboratory analytical results of those samples in approximately 6 weeks. Addtionally, petrographic and isotopic studies currently underway will provide further input to the Company’s geological and mineralogical interpretation. Overview Australian Rare Earths Limited (ASX: AR3) is pleased to provide an update on its ongoing follow-up drilling program at the Company's 100%-owned Overland Project in South Australia. The drilling program, announced on 1 September 2026, is testing the continuity and scale potential of the recently discovered niobium-rare earth carbonatite system identified in drill hole OV167 and associated geophysical targets along a 10km magnetic corridor. Results received to date identify a potential carbonatite complex of substantial scale. Most notably, recent drilling has intersected material interpreted to be carbonatitic approximately 5 km south of the original OV167 discovery, demonstrating that the interpreted system extends well beyond the initial discovery area. Significant Carbonatite Intersection in OV176 The southern-most drill traverse completed during the current campaign has delivered the most significant geological result obtained since the original discovery. Hole OV176 intersected 130 metres (downhole) of carbonatite from 68 m depth, with the hole terminating at 201 m while still within carbonatite. True thickness is not yet known. The drill core displays characteristic carbonatite mineralogy and texture, with significant sulphide mineralisation and a pronounced gamma signature. Remaining open at 201m,the 130m intercept is a major step forward in understanding the scale and nature of the Overland carbonatite system. Southern Traverse Delineates Carbonatite Footprint Two additional holes were completed at ~100-metre spacings west of OV176 to test the extent of the interpreted intrusive body. OV177 Hole OV177 recorded an even stronger gamma response than OV176 but with fewer obvious carbonatite mineralogical and textural characteristics. This suggests the hole may have intersected alteration associated at the margins of the carbonatite intrusion, with nearby basement rocks showing evidence of carbonatite-related mineralogical modification. OV178 A further 100m step-out hole, OV178, returned significantly lower gamma responses and defined the western margin of the carbonatite at this location and is consistent with moving away from the magnetic high. These results reinforce magnetic anomalism as an effective tool for targeting the carbonatite system along strike, sharpening the Company's ability to prioritise future drilling across the corridor. A cross-section through OV176, OV177 and OV178 is included Figure 1 below. Figure 1: Cross-section through drill holes OV176, OV177 and OV178 showing the interpreted carbonatite geometry and associated alteration zones, together with downhole natural gamma and pXRF Nb and Ba responses. The upper panel shows the corresponding plan-view magnetic response and drill-hole locations along section A–A′. Refer to Figure 2 for the regional magnetic setting. 1 1 In relation to the disclosure of pXRF results, the Company cautions that estimates of niobium and barium elemental abundance from pXRF results should not be considered a proxy for quantitative analysis of a laboratory assay result. Assay results are required to determine the actual widths and grade of the mineralisation. The company uses an Olympus Vanta M Series portable X-ray Fluorescence (pXRF). While pXRF confirms the presence of mineralisation, it does not accurately determine elemental concentrations due to limitations such as a small analysis window, uneven distribution, shallow penetration depth, and irregular surfaces. The pXRF results are indicative and the pXRF readings are subject to confirmation by chemical analysis from an independent laboratory. Figure 2: Overland magnetic imagery showing completed drill holes and the interpreted 10km carbonatite corridor. Historic Target (R64) Validation at OV175 This hole, from approximately 58m depth encounted elevated gamma responses and alteration features consistent with a carbonatite source. Importantly, the position of OV175 relative to the north-south trending magnetic feature at this location provides further support for using magnetic anomalies as an effective targeting mechanism across the broader corridor. Emerging Evidence of a Large Carbonatite Complex The proposed carbonatite intercept 5km south of the original discovery, combined with the strong correlation between drilling results and magnetic anomalies, gives increasing confidence that the 10km magnetic corridor reflects a substantial carbonatite intrusive system. Drilling of the remaining traverses in the current program is still to be completed, with approximately one week of drilling remaining. The Company considers that the Overland Project hosts a large carbonatite complex capable of extending over several kilometres. Samples from completed drilling have been dispatched for analysis (the next key catalyst) and will define the distribution of rare earth elements, niobium and other critical minerals within the system. Figure 3: OV176 core (185m to 190m) showing pervasive carbonate veining, typical of carbonatites. Figure 4: OV176 core (centred on 146.4m) showing strong foliation, brecciation, and metasomatic alteration Scientific Interest and Collaboration The significance of AR3’s carbonatite discovery at Overland continues to attract interest from the geological and academic community. Representatives from the ARC Training Centre for Future Critical Resources, Geological Survey of South Australia and Adelaide University recently visited the drill site to inspect core recovered from OV176. AR3 is continuing to work closely with: • Professor Carl Spandler, Deputy Director and Chief Investigator, ARC Training Centre for Future Critical Resources; • Holly Cooke, PhD Researcher in Earth Sciences, Adelaide University; and • Dr Adam Abersteiner, Researcher in the Australian Critical Minerals Research Centre at Adelaide University • Representatives of the Geological Survey of South Australia. Figure 5: Professor Carl Spandler, Dr. Adam Abersteiner, Holly Cooke and Geological Survey of South Australia representative Mitchell Bockmann examining OV176 core. Carbonatites are a globally rare rock type but host many of the world's most significant rare earth and niobium deposits; context for the level of scientific interest in the discovery. Models that underpin critical minerals exploration strategies need to focus on new understanding of geological processes that control critical metal transport and concentration. Scientific research into these systems will assist in developing innovative models for formation of deposits as part of a continuum of magmatic and hydrothermal evolution from mantle to upper crust. Appropriately applied research will develop quantitative tools to enhance exploration programs. The Company intends to continue these collaborations as geological, mineralogical and geochemical studies progress, with the objective of rapidly assessing the broader significance and economic implications of the emerging carbonatite system. Based on the lithologies intersected to date and preliminary petrological observations, the Company’s current interpretation is that the mineralised system is carbonatite-related. This interpretation is supported by anomalous niobium and barium, characteristic lithological textures, and the system’s proximity to the Palmer Fault. The Company is also considering alternative models and additional studies will be able to advance our current understanding. 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 Competent Person’s Statement The information in this report that relates to Exploration results is based on information compiled by Australian Rare Earths Limited and reviewed The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation compiled by Mr Chris Cockburn, who is a Member of the Australian Institute of Geoscientists (AIG). Mr Cockburn is an employee of Australian Rare Earths Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Cockburn consents to the inclusion in this report of the matters based on his information in the form and context in which they appear. Forward-Looking Statements This announcement contains forward-looking statements. Such statements are based on the Company’s current expectations and are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied. Reference to the Simandl & Paradis (2018) paper is for contextual exploration modelling purposes only. 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, which has secured important Australian government support through a $5 million grant to accelerate development. With support from global advanced industrial materials manufacturer, Neo Performance Materials, AR3 is progressing towards commercialisation with a Pre-Feasibility Study, Maiden Ore Reserves and a pilot scale facility, solidifying its role as a potential 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 initial drilling identifying opportunities for substantial near-surface and deeper deposits. With strategic projects and strong government support, AR3 is well placed to capitalise on significant growth in the critical minerals market. JORC Table 1 Section 1 Sampling Techniques and Data Criteria Explanation Comment Sampling techniques Nature and quality of sampling (e.g., cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes,or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriatecalibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g., ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g., submarine nodules) may warrant disclosure of detailed information. Aircore drilling methods were used to obtain samples from the April/May 2026 drilling program and during the August/September 2026 drilling program centered on the town of Sedan. The following information covers the sampling process: All air core samples were collected from the rotary splitter mounted at the bottom of the cyclone using a pre-numbered calico bag. The samples were geologically logged at 1 m intervals using the marked calico sample which averaged ~1.5 kg in mass. A handheld Olympus Vanta pXRF Analyser (Model Vanta M Series S/N 842924) was used to assess the geochemistry of the Air Core samples in the field. The pXRF analysis provided screening analysis to characterize the sample lithology and full suite of elements. The pXRF sampling was analysed through the calico bag with a beam count time of 20-30 sec beam 1 and 10 sec beam 2. One pXRF analysis per sample was performed. Samples are placed on a workbench and flattened to provide a stable, representative surface for analysis. The pXRF is positioned directly against the sample surface with the beam oriented downward during measurement. All readings were taken at ambient temperatures between 10 and 45 degrees Celsius. The Olympus Vanta is rated for continuous operation within these temperatures. Samples range from dry to wet, this is dependent on which formation is being intercepted and whether drilling water has been injected. XRF readings were downloaded from the XRF Analyser at the end of each day and uploaded to the Australian Rare Earths Azure Data Studio database. A Uranium standard Oreas 121 (215 ppm U, sourced from Mantra Resources Nyota Prospect, Tanzania, which is a Tabular Sandstone hosted deposit) was used to verify the accuracy of the pXRF before and after each analysis session. The OREAS 121 standard was prepared using an industry standard pXRF sample cup and analysed for 20-30 sec on beam 1 and 10 Sec on beam 2. A silica blank is used to monitor the accumulation of contamination on the lens of the pXRF. Analysis of the blank is undertaken before and after each analysis session. Review of pXRF standard and blank data is checked to ensure the pXRF is operating correctly before and after each session. Samples were selected for assay at the end of the hole based on geology, pXRF, and natural downhole gamma response. Field duplicates were taken at a rate of ~1:40 and inserted blindly into the sample batches. Field Standards were taken at a rate of ~1:40 and inserted blindly into the samples batches. Samples were submitted to Bureau Veritas in Adelaide, where wet and dry sample weights were recorded before oven drying at 105 degrees Celsius for a minimum of 24 hours. Samples were then secondary crushed to 3 mm and pulverised to 90% passing 75 µm, with excess residue retained for storage and selected material submitted for analysis using the XRF-ICP-MS method. The samples were submitted for analysis using Mixed Acid Digest – Lithium Borate Fusion ICP‐MS method (BV Code SC302) with detection limits for each element shown in ppm Ag (0.2 ppm), Al (50.0 ppm), As (1.0 ppm), Au (0.01 ppm), Ba (2.0 ppm), Be (0.5 ppm), Bi (0.1 ppm), Ca (100.0 ppm), Cd (0.5 ppm), Ce (0.1 ppm), Co (1.0 ppm), Cr (20.0 ppm), Cs (0.1 ppm), Cu (1.0 ppm), Dy (0.05 ppm), Er (0.05 ppm), Eu (0.05 ppm), Fe (100.0 ppm), Ga (0.2 ppm), Gd (0.2 ppm), Hf (1.0 ppm), Ho (0.02 ppm), In (0.05 ppm), K (100.0 ppm), La (0.1 ppm), Li (10.0 ppm), Lu (0.02 ppm), Mg (50.0 ppm), Mn (50.0 ppm), Mo (0.5 ppm), Na (100.0 ppm), Nb (0.5 ppm), Nd (0.05 ppm), Ni (2.0 ppm), P (50.0 ppm), Pb (1.0 ppm), Pr (0.05 ppm), Rb (0.2 ppm), Re (0.1 ppm), S (50.0 ppm), Sb (0.1 ppm), Sc (1.0 ppm), Se (5.0 ppm), Si (50.0 ppm), Sm (0.05 ppm), Sn (0.1 ppm), Sr (0.5 ppm), Ta (0.1 ppm), Tb (0.02 ppm), Te (0.2 ppm), Th (0.1 ppm), Ti (50.0 ppm), Tl (0.1 ppm), Tm (0.05 ppm), U (0.1 ppm), V (20.0 ppm), W (0.5 ppm), Y (1.0 ppm), Yb (0.05 ppm), Zn (2.0 ppm), Zr (10.0 ppm) Select samples, often at the bottom of the holes thought to be weathered basement/saprolite material were also analyzed for gold using Lead collection Fire Assay AAS (BV Code FA001) where a detection limit for Au (0.01 ppm) Laboratory repeat analyses were completed at an approximate frequency of 1 in 16 samples. Commercially sourced certified reference materials were inserted by the laboratory into the sample sequence at an approximate frequency of 1 in 5 samples. Laboratory blanks were inserted into the sample sequence at an approximate frequency of 1 in 50 samples. After the hole was drilled to completion a Reflex EZ Gamma logging tool was used to survey the hole. For the April/May program reflex Ez-Gamma (serial number GAM‐105) rented from Imdex and operated by the drilling crew was run down the hole, inside the rods/innertube to log the natural gamma response of the sediments. The gamma tool was last calibrated by Imdex on February 19th, 2026, as noted in the provided Certificate of Conformance. Confidence check jig serial number 030. For the August/Sept program reflex Ez-Gamma (serial number GAM‐005) rented from Imdex, and operated by the drilling crew was run down the hole, inside the rods/innertube to log the natural gamma response of the sediments. The gamma tool was last calibrated by Imdex on April 8th, 2026, as noted in the provided Certificate of Conformance. Confidence check jig serial number 001. The survey was run in and out of the hole at a speed of no more than 10m/min and the downhole speed was reviewed after the survey. The up (out) survey was then used to plot sections, after reviewing both in and out surveys. In previous drilling at Overland, the Reflex EZ-Gamma logging tool was checked with an EZ-Gamma Confidence Checker by AR3 staff before each downhole gamma survey to verify instrument performance. Based on the demonstrated reliability and consistency of the EZ-Gamma tool during previous programs, it was determined that routine confidence checks were not necessary for this drilling campaign. Instead, the repeatability of the gamma data was assessed by comparing the downhole (in-run) and uphole (out-run) surveys. After completion of each gamma survey, the in-run and out- run datasets were reviewed and compared to confirm data repeatability and identify any significant discrepancies that could indicate instrument drift or logging issues. Any inconsistencies would have triggered further investigation and, if required, a repeat survey. After the gamma survey is completed, the data is uploaded to the Imdex hub IQ portal (https://iq.imdexhub.com) from the rig via satellite internet and available for review. Aircore drilling with Polycrystalline diamond (PCD) bit A polycrystalline diamond (PCD) drill bit was used to penetrate competent rock beneath the unconsolidated sedimentary cover. During PCD drilling, discontinuous core pieces of variable length, commonly approximately 5–20 cm and approximately 34–35 mm in diameter, were recovered through the inner tube and placed into core trays for geological logging and subsequent sampling. The PCD drilling process also generated drill cuttings, which were collected separately over 1 m intervals. Drill cuttings generated during PCD drilling were returned via the cyclone and collected in a bucket over each 1 m drilled interval. At the completion of each metre, the bucket was removed and excess water decanted before the remaining cuttings were transferred to a labelled calico bag. This process was intended to provide a composite sample representative of the material returned from each 1 m drilled interval. Discontinuous PCD core pieces were also recovered through the inner tube and retained in core trays, providing complementary geological material from the corresponding drilled intervals. Due to the wet drilling and sample-return process, some mixing and/or contamination between intervals may occur. Groundwater and loose sediment or drill material from higher in the hole may migrate downhole as drilling progresses and subsequently be incorporated into the returned cuttings. Accordingly, the 1 m cuttings samples may contain a degree of up-hole contamination and should not be considered equivalent to intact, continuously recovered drill core. The following holes and intervals are where core was retrieved OV175 62.5m – 75m, OV176 72m-201m, OV177 75m-110m, OV178 74m-111m. Drilling techniques Drill type (e.g., core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g., core diameter, triple or standard tube, depth of diamond tails, face- sampling bit, or other type, whether core is oriented and if so, by what method, etc). Drilling was completed using a Wallis “Mantis 100/200” air core drill rig for the drilling. Aircore drilling is a form of reverse circulation drilling where the sample is collected at the face and returned inside the inner tube. The drill cuttings are removed by injection of compressed air into the hole via the annular area between the inner tube and the drill rod. Aircore drill rods used were 3 m long. NQ diameter (76 mm) drill bits and rods were used. The intervals of cored material provided a core diameter between ~34-35mm diameter. All aircore drill holes were vertical with depths varying between 27- 201m depth. Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Drill sample recovery for aircore is monitored by recording sample condition descriptions where ‘Poor’ to ‘Very Poor’ were used to identify any samples recovered which were potentially not representative of the interval drilled. A comment was included where water injection was required to recover the sample from a particular interval. The use of water injection can potentially bias a sample and very little water injection was required during this drilling program. No significant loses of samples were observed due to the shallow drilling depths. Drilling commonly advanced from unconsolidated Murray Basin sediments into saprolitic bedrock, with sample quality varying in basement zones where interpreted faults were intersected. These zones were logged at one-metre intervals and assigned a sample quality attribute. The rotary splitter was set to an approximate 20% split, which produced approximately 1.5 kg sample for each meter interval. The 1.5 kg sample was collected in a pre- numbered calico bags and the remaining 80% (5 kg to 8 kg) was disposed of in a sump below the cyclone/rotary splitter. At the end of each drill rod, the drill string is cleaned by blowing down with air to remove any clay and silt potentially built up in the sample pipes and cyclone. No relationship has been identified between sample recovery and grade at this early stage of exploration. Aircore with Polycrystalline diamond (PCD) bit Due to the wet drilling and sample-return process, some mixing and/or contamination between intervals may occur. Groundwater and loose sediment or drill material from higher in the hole may migrate downhole during drilling and subsequently be incorporated into the returned cuttings. The 1 m cuttings samples may therefore contain a degree of up-hole contamination. No relationship between sample recovery and grade has been established. The potential for preferential loss or gain of fine or coarse material has not been quantified and, consequently, some sampling bias cannot be excluded. In addition to cuttings the PCD bit produced discontinuous PCD core pieces recovered through the inner tube and retained in core trays, providing complementary geological material from the corresponding drilled intervals. PCD core recovery was visually assessed as generally good; however, systematic core recovery or RQD measurements were not undertaken. Photographs included in the body of the release are considered representative of typical PCD core recovery. Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. All aircore samples collected in calico bags were logged for lithology, colour, cement type, hardness, percentage rock estimate, sorting, and any relevant comments such as moisture, sample condition, or vegetation. Geological logging data for all drill holes was qualitatively logged onto Microsoft Excel spreadsheet using a Panasonic Toughbook with validation rules built into the spreadsheet including specific drop- down menus for each variable. The data was uploaded to the Australian Rare Earths Azure Data Studio database. Every drill hole was logged in full and logging was undertaken with reference to a drilling template with codes prescribed and guidance to ensure consistent and systematic data collection. The density drilling is not sufficient to support consideration of resource estimation, or mining and no geotechnical logging was completed. Aircore with Polycrystalline diamond (PCD) bit Drill cuttings from each 1 m PCD interval were retained in chip trays and geologically logged by company geologists. Discontinuous PCD core recovered from the corresponding intervals was placed in core trays and used in conjunction with the chip trays to assist geological logging and interpretation over the 1 m intervals. Logging included lithology, mineralogy, alteration, weathering and other relevant geological characteristics. The level of logging completed is considered appropriate for the current stage of exploration and geological interpretation and is not currently being used to support a Mineral Resource estimate, mining study or metallurgical study. Geological logging was predominantly qualitative in nature, with quantitative observations recorded where appropriate. The retained PCD core provides additional geological information to support interpretation of the 1 m intervals and has been photographed and preliminarily logged. More detailed geological logging, review and systematic sampling of the retained PCD core is planned in the coming weeks. Geological logging was completed over the full length of the relevant PCD-drilled intervals using the 1 m chip-tray samples together with the available recovered core. Accordingly, 100% of the relevant drilled intervals were geologically logged, subject to the availability and recovery of drill material. Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all cores taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality, and appropriateness of the sample preparation technique. Quality control procedures adopted for allsub- sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in- situ materialcollected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. 1 m aircore sample interval were homogenised within the cyclone and the rotary splitter was set to an approximate 20% split producing around 1.5 kg sample for each metre interval. The 1.5 kg sample was collected in a pre- numbered calico bags and the remaining 80% (5 kg to 8 kg) was disposed of in a sump below the cyclone/rotary spli