Ann: American Rare Earths - 1.43 Billion Tonne JORC Resource, page-42

With oversight from Wood Australia, metallurgical test work continues as we seek to firm up the processing flow sheet. Test work on the comminution circuit and magnetic separation is currently underway at Nagrom Laboratories in Perth, Western Australia. We will then transition to flotation testing of WHIMS magnetics at Auralia Metallurgy, to assess the potential for further upgrading. Auralia is commencing preliminary work shortly on a sample of fresh ore to screen reagents such as collectors and depressants ahead of the work on WHIMS magnetics.This includes bulk WHIMS and floatation test work which are well advanced, to assess the likely constituents of an upgraded concentrate product. Testing will commence immediately thereafter on the further upgrade of the concentrates via a leaching process. The metallurgical test work will provide the foundation for the Scoping Study scheduled for later this year.

The thorium and uranium content within this newly claimed area is very low. The assays show an average value of 73 ppm for the combined elements of Thorium and Uranium across the newly claimed area. These results are an unusual feature of a rare earths property and align with very low levels of the penalty elements across the entire project as well as the Company’s flagship La Paz project in Arizona.