Resouro Strategic Metals Metallurgy Update for the Tiros Project

TEST

TREY

LREE

MREE

HREE

L3

80.8%

81.6%

96.2%

74.8%

TEST

TREY

LREE

MREE

HREE

L1

69.3%

69.3%

72.5%

73.8%

L2

59.8%

59.8%

63.8%

62.5%

L3

80.8%

81.6%

96.2%

74.8%

Chris Eager, CEO

chris.eager@resouro.com

+44 7388 0579809

Justin Clyne, Director

justin.clyne@resouro.com

+61 407 123 143

Melissa Hamilton, Media & Capital Partners, Director

melissa.hamilton@mcpartners.com.au

+61 417 750 274

DOMAIN

CAT

TONNES (t)

TiO2 (%)

TREO (ppm)

MREO (ppm)

HG (High Grade)

Inferred

42,000,000

23

8,700

2,200

Indicated

55,700,000

23

9,030

2,380

Measured

20,800,000

24

9,320

2,530

Sum

120,000,000

23

9,000

2,400

MG (Medium Grade)

Inferred

620,000,000

11

3,500

950

Indicated

704,000,000

11

3,650

1,020

Measured

224,000,000

11

3,570

997

Sum

1,500,000,000

11

3,500

930

Totals

1,700,000,000

12

3,900

1,100

Criteria

JORC Code explanation

Commentary

Sampling techniques

• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialized 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 representativity and the appropriate calibration of any measurement tools or systems used.

• Samples were taken from the diamond drill hole. The sampling intervals were chosen based on geological description during drill core logging. One quarter of selected stored core samples was taken, completing a bulk sample of `50kg, representative of the full mineralization. The samples were taken according to industry standard procedures.

• Measures to ensure the metallurgical sample representativity included selection of diamond drill core to represent the mineralization, given the higher recovery of this type of drilling, the selection using a random method, to avoid bias and the comparison of the grade for TiO2% and TREO ppm between the mineral resource published and the calculated grade of the metallurgical sample. Geology was also taken into account, though the usage of the main lithologic units present in the mineralization, which are the strongly oxidized material (SOX) , with 54% of the sample, and moderately oxidized material (MOX), with 46% of the sample.

• Aspects of the determination of mineralization 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 pulverized 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 mineralization types (e.g. submarine nodules) may warrant disclosure of detailed information.

• Discussed in the Mineral Resources declaration, published at ASX in July 18th, 2024. The geology and grades reported in this declaration were reproduced in the metallurgical sample, in order to reproduce the mineral deposit.

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.).

• All holes were vertical and with depths below 100m, no trajectory measures were taken in the holes

• All diamond drilling was performed using HQ (63.5 mm diameter).

Drill sample recovery

• Method of recording and assessing core and chip sample recoveries and results assessed.

• The diamond drilling recovery consisted of verifying runs and recoveries recorded in the core boxes with verification by measuring the core present in the boxes with tape measure. The recovery control of the drilled material is carried out for auger and aircore holes by comparing its weight with the theoretical weight calculated from bibliographic density values.

• Measures taken to maximize sample recovery and ensure representative nature of the samples.

• Due to the soft nature of the material being drilled, no geotechnical logging was carried out, however it was noted that the core drilling gave good recovery.

• 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.

• Not applied because the core recovery data is not registered in the drill hole database.

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.

• Not applicable

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

• Geotechnical descriptions were not carried out.

• Geological description consisted of defining weathering levels, mineralogy, and lithology The author observed the photographs of the drill core with random representatives shown below.

Click Image To View Full Size

Click Image To View Full Size

• The total length and percentage of the relevant intersections logged.

• All diamond drill holes were fully logged.

Sub-sampling techniques and sample preparation

• If core, whether cut or sawn and whether quarter, half or all core 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 all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field.

• duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• The diamond drilling and collected core samples were cut in half and then in half again to allow one quarter of the material to be sent for chemical analysis and the remaining three quarters stored in the core shed. The sampling was planned by the geologists and care was taken to avoid any contamination between neighbouring samples.

• The physical preparation of the drilling samples was performed at the SGS Laboratory of Vespasiano - MG. For diamond samples, physical preparation involves crushing ~75% of the material to 3mm followed by pulverizing 95% of the material to 150#, generating a pulp weighing 250g.

• In the Resouro exploration program per details in recent Maiden JORC MRE announcement (dated 18th July 2024) (includes aircore, auger and diamond), 10 field duplicates, and 10 blanks were inserted into a batch with 224 original samples to control the quality of the physical preparation. For the remaining batches, for every group of 44 samples, 6 control samples were added: three standards, one field duplicate and two blanks, totaling 12% of quality control samples for every group of 50 results.

• Sample sizes are considered appropriate for the mineralization and testwork type.

Quality of assay data and laboratory tests

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• The applied assay method is considered to be the standard for the determination of TiO and REE. Chemical analyses were conducted in the laboratory of SGS Geosol, Vespasiano-MG. Sample pulps were assayed by ICP-MS, ICP-OES, and X-ray Fluorescence methods, the latter being used only in diamond drilling samples. The assay technique is considered to be a total rock geochemical analysis method and a standard technique within the industry.

• For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Handheld XRF instrument model Niton Goldd Xlt3 was used in the aircore samples by Iluka-Vicenza JV.

• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

• Quality control tools (standard samples, blanks, and duplicates) were applied in the drilling programs in the chemical analysis performed on SGS Geosol.

Verification of sampling and assaying

• The verification of significant intersections by either independent or alternative company personnel.

• A site visit was undertaken by Mr. Luis Oviedo, competent person and employee of Atticus geoscience who works closely with Mr. Mortimer. Mr. Oviedo did not take any independent samples to verify the intersection data used in this metallurgy test.

• The use of twinned holes.

• Five (5) twin holes are included in the drilling database and an interpretation of these indicated a strong correlation.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• Primary data sources were reviewed against digital information extracted from the RSM Access database. Verification procedures were applied by the Atticus Geoscience data team when migrating the Access database into a more robust SQL data management system.

• Discuss any adjustment to assay data.

• There are no adjustments on assays relating to this announcement.

Location of data points

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• All drill hole collars were topographically surveyed using the RTK system, which is a stationary GPS system of high precision. Some drill hole landmarks are visible and were identified in the field, however som48e landmarks are not visible due to the agricultural nature of the land use in the areas drilled.

• Specification of the grid system used.

• WGS 84 Datum for coordinate system.

• Quality and adequacy of topographic control.

• In the field it was observed that drill hole landmarks are fragile and can be destroyed and lost due to vehicles, animals, and agricultural machinery. There's a risk of loss of information related to the topographic survey of the hole collars not being accurate.

Data spacing and distribution

• Data spacing for reporting of Exploration Results.

• The drilling grid is not regular and prioritizes locations without the presence of cover, where the Capacete Formation outcrops.

• The majority of the diamond drill hole samples that were taken have a length of 1m.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• The drilling is in the exploratory phase and the grid is irregular in general terms.

• Whether sample compositing has been applied.

• Not Applied

Orientation of data in relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• The geological layers are approximately horizontal, and the holes are vertical. Sampling was performed almost perpendicular to the layers, which is the best condition.

• If the relationship between the drilling orientation and the orientation of key mineralized structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• No bias was introduced when using vertical drill holes.

Sample security

• The measures taken to ensure sample security.

• Samples from the drilling program received in the field are identified on the core box containing the hole number and depth. Later in the core storage facility, each sample receives a sample number identification, both on the outside of the box and internally with a label. The aliquots sent to the laboratory are also properly identified, internally and externally, with the sample number.

• The samples were transported by Resouro's personnel from the drill site to the core storage facility in Tiros.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• There has been no specific audit or reviews on sampling techniques, however, Resouro did appoint some senior consulting geologists to review the sampling and drilling techniques.

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The Tiros central target comprises of four (4) exploration concessions totalling 4,400 Ha. These exploration concessions are held by BRAZIL COPPER MINERAÇÃO LTDA, (the former name of Tiros Minerais Estratégicos Mineração Ltda) which is 90% owned by Tiros Stratmet Pte Ltd (100% owned by Resouro Strategic Metals) and 10% owned by third party RBM CONSULTORIA MINERAL EIRELI. The Tiros project, in total, has 25 permits, with 45,000 ha. It is divided in four exploration target zones: Tiros North, Tiros Central, Sao Gotardo, and Campos Altos. This metallurgy update is limited to a portion of the Tiros Central exploration target per figure 1 in this announcement.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

• ANM' GIS system (http://sigmine.dnpm.gov.br/webmap/SIGMINE (anm.gov.br) was checked to verify the status of tenement areas at the time of the report and the information shows the areas as regular for exploration works by RSM. No issue related to tenement rights in this check was detected.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• Historical exploration work was carried out by Vicenza and Iluka-Vicenza JV. The principal source of information was the Final Exploration Report (FER) to DNPM/ANM (Brazilian National Department of Mineral Production/ Mining National Agency) with a description and evaluation of results obtained in the exploration work carried out by Vicenza, and an internal report titled '6 Monthly Report activities in Capacete Project, MG - Brazil' carried out by Iluka-Vicenza JV.

Geology

• Deposit type, geological setting and style of mineralization.

• Rare earth and titanium mineralization are hosted in sandstones and conglomerates of the Capacete Formation, belonging to the Mata da Corda Group. Titanium is associated with the mineral anatase, originating from the alteration of perovskite. As for rare earths, they are suspected to be associated with ionic clays. Both rare earth and Titanium are spatially related.

The Capacete Formation is the result of the sedimentation of the erosion product of the rocks of the Patos Formation, also belonging to the Mata da Corda Group. The Patos Formation represents a voluminous set of Upper Cretaceous kamafugite pyroclastic flows and deposits, hosted in the Brasília Belt, southwest of the São Francisco Craton.

Drill hole Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

• easting and northing of the drill hole collar

• elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

• dip and azimuth of the hole

• down hole length and interception depth.

• hole length.

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

The sample used for this metallurgical test was made by 40 representative samples selected randomly from the mineralized interval intercepted in the drill holes listed below. TiO2 % and TREO ppm grades calculated from the weighted average grades of the individual samples is given in the table below:

Data aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

• not applicable.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• No compositing has been used in the calculation of notable intervals, short intervals are considered when greater than two metres, and gaps between intervals are aggregated when less than two metres

TREY: HREE + LREE

HREE: ([Dyppm]) + ([Erppm] ) + ([Euppm]) + ([Gdppm]) + ([Hoppm]) + ([Luppm]) + ([Tbppm]) + ([Tmppm] ) + ([Ybppm]) + ([Yppm])

LREE: ([Ceppm]) + ([Lappm] + ([Ndppm]) + ([Prppm]) + ([Smppm])

MREE: ([Prppm]) + ([Ndppm]) + ([Tbppm]) + ([Dyppm])

Relationship between mineralization widths and intercept lengths

• These relationships are particularly important in the reporting of Exploration Results.

• If the geometry of the mineralization with respect to the drill hole angle is known, its nature should be reported.

• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

• All holes were drilled vertically, and the mineralization exists in horizontal layers. The interval lengths reported are a reflection of the true width of the mineralized body. Information from the drilling indicates that the thickness of the mineralized unit, the Capacete Formation, is on average 50m thick and may in places exceed 60m.

Diagrams

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Refer to attached announcement.

Balanced reporting

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• Not applicable.

Other substantive exploration data

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• Limited work apart from those details noted in this announcement have been carried out for metallurgical tests with the exception of two samples generated from a composite of Aircore drilling samples. These two samples were sent independently to two different labs, the Prosper laboratory and the CDTN laboratory, both in Brazil, where they and were tested for leaching. The results of the studies were inconclusive and much more work is required with more samples needing to be tested under controlled conditions.

Further work

• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• Included in the body of this announcement