Looking forward to seeing the Updated BFS tomorrow using the...

Looking forward to seeing the Updated BFS tomorrow using the below NUMBERS , Thinking our expectations are going to be nicely quantified

Chairman's Words Extremely Profitable

THE NUMBERS

International mining industry consultants SRK Consulting has reported an upgraded Measured, Indicated and Inferred Mineral Resource estimate of:

313 million tonnes at 1.43% REO including 0.32% NdPr for 4,470,000 tonnes of REO including 990,000 tonnes of NdPr

The upgraded estimate:

• contains more than 2.3 times the previous estimate of the Measured and Indicated resources used in the Preliminary Feasibility Study¹ (announced ASX: 15 November 2019).
• has increased the proportion of the resources reported in the Measured and Indicated categories from 31% to 68%²;
• and has increased the overall contained NdPr by 35%²;

A number of previously announced drill holes in fresh rock mineralisation immediately below the weathered zone have reported continuous mineralisation to a depth of 80 metres, which remain open. Further drilling is planned in this area which will form the basis for future Mineral Resource estimation.

At a 0.2% NdPr lower grade cut, the Measured and Indicated Mineral Resource estimate for the Weathered Zone is:

39.9 million tonnes at 2.38% REO including 0.52% NdPr for 948,000 tonnes of REO including 208,000 tonnes of NdPr

The upgraded resource estimate is being incorporated into the technical studies currently underway and is expected to support an extended mine life on completion of additional workstreams of the Bankable Feasibility Study (BFS).

The Weathered Zone is contained within and is a subset of the Total Mineral Resource estimate.

¹ Comparison of contained NdPr within the Weathered Zone Measured and Indicated categories at a 0.2% NdPr cut off, November 2019 and new Mineral Resource estimates.

² Comparison of contained NdPr within the November 2019 and new Total Longonjo Mineral Resource estimates at a 0.1% NdPr cut off (Measured+Indicated+Inferred categories).

LSE and ASX announcement of 14/09/2020 contain details of the estimation.

Pensana Rare Earths Plc (LSE: PRE, ASX: PM8) is pleased to report the successful
production of an NdPr rich mixed rare earth carbonate (MREC) from the testwork
currently underway on mineralisation from its Longonjo rare earth project.
Industry experts Wood Group and Nagrom, based on testwork performed at
metallurgical laboratories in Perth Western Australia, have successfully developed
a flowsheet to produce a particularly high grade MREC with NdPr comprising 33.5%
of the total rare earths1 content.
MREC is a much higher purity and higher value product and has a much broader
market and range of applications than the concentrate product contemplated in
Pensana’s Preliminary Feasibility Study.

MREC is a much higher purity and higher value product and has a much broader
market and range of applications than the concentrate product contemplated in
Pensana’s Preliminary Feasibility Study.


The pilot plant and metallurgical test work are ongoing with a view to finalising the
preferred process route and to providing data for engineering and production cost
estimations for the Bankable Feasibility Study.

A comprehensive update on the Bankable Feasibility Study will be reported
towards the end of the month. Two of the circuits will be required to run for longer
to bring the testwork results up to the required reporting standards for the study
which will enable the finalisation of the report in due course

We are now in a position to commence discussions with potential offtake parties in
Japan, Korea and Europe in addition to the wide range of potential customers in
China.