Ann: February 2025 Rhyolite Ridge Mineral Resource Estimate, page-7

The 2025 Rhyolite Ridge Lithium-Boron Mineral Resource Estimate from Ioneer Ltd. marks a significant milestone in the development of the Rhyolite Ridge project in Nevada, USA, which is primarily focused on lithium and boron production. Below is a detailed analysis of the key highlights:
Key Points of the 2025 Mineral Resource Estimate:

1. 45% Increase in Resource Estimate:
   The total mineral resource has seen a 45% increase, reflecting an expanded estimate based on new data from 2024 drilling. This has boosted confidence in the resource base, and the addition of high-grade lithium mineralization strengthens the project's potential for long-term economic viability.
2. Resource Composition:
   • Total Resource: 510 million tonnes (Mt).
   • Contained Lithium Carbonate Equivalent (LCE): 3.97 million tonnes.
   • Contained Boric Acid Equivalent (BAE): 14.66 million tonnes. These quantities are within the fully permitted project boundary, which is an important development given the regulatory hurdles in mining projects.
3. Resource Categorization:
   • Measured & Indicated Categories: 81% of the resource now sits in the Measured & Indicated categories, providing a more reliable and higher-confidence estimate of the project's viability compared to the Inferred category. Inferred resources cannot be included in Ore Reserve estimates.
   • Ore Reserve Estimate: The new resource is expected to substantially increase the Ore Reserve estimate, which is scheduled for release in April 2025.
4. Flexibility with Production Streams:
   The Rhyolite Ridge project includes three distinct mineralized streams (Stream 1, 2, and 3), offering flexibility in processing and production. This is crucial in optimizing production depending on prevailing market conditions.
   • Stream 1: High-boron and low-clay content, which is ideal for lithium and boron extraction.
   • Stream 2: Low-boron and low-clay content, also suitable for leaching methods.
   • Stream 3: Low-boron and high-clay content, requiring more intensive agitated tank leaching, with potential for blending with Stream 1 and 2 for processing.
5. Boron as a Co-Product:
   Ioneer emphasizes the strategic importance of boron in its product mix, which makes Rhyolite Ridge unique among lithium projects. In times of low lithium prices, the project can prioritize boron-rich ores (Stream 1), which is expected to make up 30-40% of the project’s total revenue. This flexibility mitigates the impact of fluctuations in lithium prices, diversifying revenue sources.
6. Leachability and Processing Methods:
   The ore from Streams 1 and 2 is suitable for both vat leach and heap leach processes, which are efficient and well-established techniques for lithium extraction. In contrast, Stream 3, due to its high clay content, necessitates agitated tank leaching, a more intensive method that may require additional infrastructure.
   • Stream 1: Contains 179 Mt with 1.54 Mt of lithium carbonate and 12 Mt of boric acid.
   • Stream 2: Contains 274 Mt with 1.78 Mt of lithium carbonate and 2.25 Mt of boric acid.
   • Stream 3: Contains 58 Mt with 0.64 Mt of lithium carbonate and 0.41 Mt of boric acid.
7. Environmental and Regulatory Approval:
   The project has already secured full permitting for the development of the South Basin area, as confirmed in October 2024. This is a significant achievement as obtaining regulatory approval in the United States for mining projects can be a lengthy and complex process.
8. Potential for Growth:
   The company notes that a substantial portion of the South Basin and the nearby North Basin remains unexplored. Additional drilling is expected to further increase the resource base, thus enhancing the long-term value of the project.
9. Strategic Support and Financing:
   The project is backed by a $996 million loan from the U.S. Department of Energy's Loan Programs Office, reflecting governmental support for the development of critical materials like lithium and boron, which are key to the transition to clean energy and electric vehicles.

Implications for Ioneer Ltd and the Market:

1. Economic Viability and Scalability:
   The expansion of the resource base and the shift of significant quantities into the Measured & Indicated categories suggests a more robust economic case for the Rhyolite Ridge project. The incorporation of boron alongside lithium provides additional stability in revenue generation, especially in a market with volatile lithium prices.
2. Strategic Position in Global Lithium and Boron Markets:
   With lithium and boron being crucial for battery production and other industries, Rhyolite Ridge is positioned as a major supplier in these markets. The ability to adjust the balance between lithium and boron extraction according to market conditions gives Ioneer a competitive edge in a rapidly changing sector.
3. Environmental Considerations and Sustainability:
   The project’s leaching methods, especially with Stream 1 and 2, are designed to minimize environmental impacts. The ore’s suitability for dry stacking after leaching eliminates the need for tailings dams, which are often controversial due to their environmental risks. This sustainable approach is an attractive aspect for investors and regulators alike.

Conclusion:

The updated Mineral Resource estimate for the Rhyolite Ridge project reinforces its potential as a major player in the global lithium and boron markets. With significant increases in resource size, high-confidence categorization, and flexible production capabilities, the project is well-positioned to meet the growing demand for these critical materials. The 2025 estimate not only supports the expected increase in Ore Reserves but also strengthens the project's economic foundations as it moves closer to the development phase, backed by government support and a clear plan for further exploration and growth.
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