ABX GROUP LIMITED — Capital/Financing Update 2022

Jun 28, 2022

ASX Announcement

29 June 2022

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ASX: ABX

Thick High Grade Rare Earth Element Results

ABx’s current drilling program has discovered a 10 metre thick channel of high-grade rare earth elements (REE) mineralisation at Deep Leads, northern Tasmania

88 new holes completed to date and another 25 holes scheduled to be drilled. Assays for first 20 holes have been received and have tripled the prospective area

This is a significant extension of the ionic adsorption clay (IAC) zone which has achieved excellent extraction rates of 48% to 71% of contained REE under low-cost processing[1]

Six channels of this mineralisation have been identified over considerable distances

ABx Group Limited (ASX: ABX) has received an initial batch of assays from exploration drilling for rare earth element (REE) at Deep Leads deposit, northern Tasmania (see Figures 2 and 3). ABx’s mineralisation is mainly the most valuable permanent magnet type of REE.

Hole DL450 was the first hole to reach target depth and it returned 10 metres of REE mineralisation averaging 863ppm TREO, including 6 metres averaging 1,122ppm TREO from 5 metres depth. It discovered the channel that carries the high-grade ionic adsorption clay REE mineralisation westwards towards major channels that are being drilled now.

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Hole DL450 Permanent magnet REE "SuperMags"
From To TREO SuperMag TREO-Ce Pr6O11 Nd2O3 Tb4O7 Dy2O3
m m ppm ppm ppm ppm ppm ppm ppm
4 5 143 27 85 4.2 17.8 0.7 4.2
5 6 813 123 325 20.9 86.8 2.3 13.2
6 7 1158 333 806 Clay 59.2 235.6 5.6 32.9
7 8 1349 479 1144 layers 86.9 338.2 7.9 46.4
8 9 1535 546 1373 97.9 379.1 10.1 58.8
9 10 950 299 789 52.8 207.6 5.6 33.4
10 11 930 263 787 44.0 173.2 6.3 39.3
11 12 755 160 701 22.1 92.1 6.0 39.5
12 13 559 122 502 17.4 71.1 4.4 28.7
13 14 282 55 248 7.1 31.0 2.4 14.8
14 15 302 53 270 6.8 29.4 2.3 14.9
15 16 226 40 192 5.5 23.9 1.6 9.5
16 17 193 35 161 Bedrock 5.0 21.2 1.2 7.6
17 18 148 29 117 4.6 18.3 0.9 5.3
18 19 226 43 192 6.1 25.7 1.5 9.8
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Table 1

Assay results for hole DL450

This intercept is a thick channel of ionic adsorption clay-hosted REE, which is the same type of mineralisation as in DL403 that achieved excellent extraction rates of 48% to 71% under low-cost, relatively benign leaching conditions[ 1]

The REE mineralisation commences at only 5 metres depth

Note that the hole reached well below the mineralised zone (for the first time).

Intercept 10 metres @ 863ppm TREO, incl 6m @ 1,122ppm TREO

ABx CEO, Mark Cooksey commented, “We’ve now delineated a channel of thick ionic adsorption clay REE which is good grade, shallow and proven to be easily processed[ 1] . We await assay results from recent holes into 6 other large channels on the flanks of Deep Leads (see Figure 3). The potential size of REE mineralisation at Deep Leads and the Rubble Mound REE discovery 6 kms east of Deep Leads is becoming substantial. We are also pleased that our improved drilling technology can now penetrate the full thickness of many of our REE mineralisation zones for the first time.

1 see ASX release 31 May 2022

ABx Group Limited ABN 14 139 494 885

Level 5 52 Phillip Street Sydney NSW 2000 P: +61 2 9251 7177 F: +61 2 9251 7500

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ASX release 29 June 2022
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Figure 1: Deep Leads REE project in recently harvested plantations, northern Tasmania (compare with Figure 2)

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Figure 2: Deep Leads drillhole REE grades as total rare earth oxide (TREO). Channel targets shown as green arrows (see Figure 3). Holes DL403 and DL409 achieved good REE extraction rates of 48% to 71% under low-cost, relatively benign leaching conditions and are therefore considered premium targets (see ASX release dated 31 May 2022)

High grades : Holes DL450, DL453 and DL462 returned high-grade REE results that extended the area of strong mineralisation. These holes ended while still in the strongly mineralised zone due to drill difficulties with water and broken ground. Hole DL453 intersected 4 metres of clay with high REE grades and assays for shallower samples are still pending. See Table 2.

ABx has drilled 88 new holes at Deep Leads since 19 April. Early results have been received from only 20 holes that are reported here – see Table 2. These results have tripled the prospective area, including 6 major channels shown in Figure 2 above that can extend ABx’s

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ASX release 29 June 2022
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ionic adsorption clay REE mineralisation by over 6.5km towards Rubble Mound discovery – see Figure 3.

Drilling program continues

ABx’s current drillholes in outlying greenfield areas are subject to a Tasmanian State Government, Exploration Drilling Grant Initiative (EDGI) for co-funded exploration drilling projects. ABx and Tasmania’s E-Drill’s improved drilling technology result in many holes now reaching target depths and collecting cores from important strata using push-tube methods.

The drilling program is planned to continue in July, including testing the 6 major channels at Deep Leads (see Figure 3) and a first pass drill testing of the 6km long extensions between Deep Leads and Rubble Mound project areas.

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Figure 3: The REE channels at Deep Leads currently being drill tested are shown in green

This announcement is approved for release by the board of directors.

For further information please contact:

Dr Mark Cooksey CEO, ABx Group Mobile: +61 447 201 536 Email: mcooksey@abxgroup.com.au

Website: abxgroup.com.au

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ASX release 29 June 2022
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Table 2 : Full REE results from 20 holes at Deep Leads

Hole DL444	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
2 3 363 70 226	10.8 44.3 1.7 13.0 8.8 44.2 74.5		137.0 2.5 9.7 2.2 6.6 0.9 6.0 0.9
3 4 359 76 252	12.1 50.4 1.9 12.0 10.9 46.9 83.4		106.7 3.0 11.9 2.6 7.8 1.1 6.7 1.0
4 5 330 73 239 7 8 247 57 190	11.3 48.1 1.9 11.8 10.5 42.7 80.0 8.8 36.9 1.6 9.7 8.8 32.4 64.0		90.4 3.0 11.8 2.5 7.3 1.0 6.6 0.9 57.4 2.5 9.5 2.1 6.3 0.9 5.3 0.8
Hole DL445	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
0 1 279 64 216	10.2 42.0 1.7 10.5	9.3 38.3 73.5	63.3 2.6 10.5 2.3 6.8 1.0 5.8 0.9
Hole DL446	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
1 2 77 16 51 2 3 102 20 63 3 4 167 38 112	2.6 10.3 0.4 2.4 3.3 13.1 0.4 2.8 6.3 25.3 0.9 5.3	2.0 10.8 15.5 2.4 14.8 17.8 5.1 24.0 30.4	26.5 0.6 2.1 0.5 1.7 0.2 1.7 0.2 39.3 0.6 2.6 0.6 1.8 0.3 1.9 0.3 55.2 1.4 5.0 1.0 3.1 0.5 3.3 0.5
Hole DL447	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
3 4 19 3 11 5 6 82 16 55 6 7 115 25 84	0.5 2.1 0.1 0.6 2.7 10.6 0.4 2.7 3.9 15.6 0.7 4.3	0.5 2.6 3.0 2.3 10.2 17.8 3.7 14.3 28.4	7.7 0.1 0.4 0.1 0.4 0.1 0.5 0.1 26.8 0.7 2.4 0.6 1.9 0.3 1.9 0.3 31.9 1.1 3.9 1.0 2.9 0.4 2.9 0.4
Hole DL448	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
4 5 67 10 30 5 6 71 11 33 6 7 69 13 38	1.6 6.8 0.3 1.8 1.7 7.1 0.4 2.0 1.9 8.2 0.4 2.4	1.7 5.5 7.1 1.8 5.6 8.6 2.2 5.7 10.7	37.2 0.5 1.6 0.3 1.1 0.1 1.1 0.2 37.7 0.6 1.8 0.4 1.2 0.2 1.3 0.2 30.6 0.8 2.2 0.5 1.3 0.2 1.4 0.2
Hole DL448	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
7 8 129 28 87 8 9 166 37 117	4.2 18.0 0.9 5.2 5.2 23.7 1.2 7.2	4.5 13.6 26.4 6.5 16.8 35.6	41.8 1.5 4.9 1.1 3.1 0.5 3.2 0.5 49.3 2.0 6.5 1.5 4.4 0.7 4.7 0.6
9 10 531 171 478	26.5 115.5 4.3 24.8	28.1 75.2 134.0	53.4 8.5 26.5 4.8 13.7 1.9 12.5 1.7
10 11 814 277 739	43.1 190.7 6.5 36.4	45.0 121.4 194.3	75.8 13.4 40.2 6.8 19.3 2.6 16.6 2.3
Hole ended in REE mineralisation
Hole DL449	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
4 5 378 55 143 5 6 295 60 208 6 7 229 43 173	8.7 37.6 1.2 7.3 8.5 37.4 2.0 11.9 6.2 26.6 1.5 9.1	9.0 25.0 32.9 9.4 28.6 77.6 6.6 22.2 75.1	234.6 2.5 7.4 1.4 4.3 0.6 4.9 0.7 86.4 2.9 11.6 2.5 7.4 1.0 6.5 1.0 55.2 2.1 8.7 2.0 6.3 0.9 5.4 0.8
Hole DL450	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
4 5 143 27 85	4.2 17.8 0.7 4.2	4.2 14.1 27.2	57.9 1.3 4.1 0.9 2.7 0.4 2.7 0.4
5 6 813 123 325 6 7 1158 333 806 7 8 1349 479 1144 8 9 1535 546 1373 9 10 950 299 789 10 11 930 263 787 11 12 755 160 701 12 13 559 122 502	20.9 86.8 2.3 13.2 59.2 235.6 5.6 32.9 86.9 338.2 7.9 46.4 97.9 379.1 10.1 58.8 52.8 207.6 5.6 33.4 44.0 173.2 6.3 39.3 22.1 92.1 6.0 39.5 17.4 71.1 4.4 28.7	17.3 71.3 73.4 48.6 177.1 146.7 68.8 260.4 196.2 76.3 327.2 252.1 39.9 199.4 153.7 36.5 175.3 203.8 22.4 95.3 317.5 17.8 73.6 212.7	487.7 4.4 14.2 2.7 8.0 1.2 8.4 1.2 352.5 12.3 34.8 6.3 19.0 2.9 21.4 3.1 205.1 16.9 48.3 8.8 26.2 4.2 30.4 4.3 162.1 19.8 59.4 11.2 33.3 5.2 37.3 5.3 160.3 10.6 33.0 6.4 19.3 3.0 21.5 3.1 143.1 10.2 35.3 7.9 23.8 3.6 24.4 3.5 54.4 7.4 31.7 8.7 27.3 3.8 23.1 3.7 57.0 5.5 23.6 6.4 19.6 2.8 16.2 2.5
13 14 282 55 248 14 15 302 53 270	7.1 31.0 2.4 14.8 6.8 29.4 2.3 14.9	8.5 29.7 117.3 8.0 29.6 141.0	33.9 2.9 13.0 3.4 9.8 1.3 5.8 0.9 32.6 2.5 13.5 3.6 10.6 1.3 5.5 0.8
15 16 226 40 192 16 17 193 35 161 17 18 148 29 117 18 19 226 43 192	5.5 23.9 1.6 9.5 5.0 21.2 1.2 7.6 4.6 18.3 0.9 5.3 6.1 25.7 1.5 9.8	6.0 24.9 95.9 5.0 21.8 78.6 4.4 18.6 49.5 6.2 25.9 90.9	33.7 1.9 9.6 2.2 6.5 0.7 3.5 0.5 31.4 1.6 7.8 1.8 5.3 0.6 3.1 0.5 31.3 1.3 5.5 1.2 3.4 0.4 2.7 0.4 33.3 1.9 9.1 2.3 6.4 0.9 4.7 0.8
Intercept 10 metres @ 863ppm TREO, incl 6m @ 1,122ppm T	REO
Hole DL451	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
1 2 103 24 84 2 3 77 16 55 3 4 103 18 56 4 5 345 51 145	3.8 15.4 0.7 4.3 3.5 15.9 29.1 2.3 9.9 0.5 3.4 2.6 8.3 17.5 2.8 11.8 0.5 3.0 2.9 10.2 17.3 8.2 34.5 1.2 7.2 8.0 27.7 39.1		18.8 1.0 3.7 0.9 2.7 0.4 2.4 0.4 22.1 0.7 2.6 0.8 2.3 0.4 3.1 0.5 46.6 0.8 2.7 0.6 1.6 0.3 1.7 0.3 199.6 2.2 7.4 1.4 3.8 0.6 3.7 0.5
5 6 363 85 288	11.3 52.8 3.0 18.0 14.7 38.8 102.6		74.6 4.8 18.8 3.6 9.7 1.3 7.4 1.1

Hole ended in REE mineralisation

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ASX release 29 June 2022
page 5
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Table 2 continued : Full REE results from 20 holes at Deep Leads

Hole DL452	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
4 5 239 39 120 5 6 269 56 162 6 7 187 36 134	6.5 25.8 1.0 6.0 9.2 37.4 1.3 7.9 5.6 22.6 1.1 6.9	6.3 23.7 33.8 8.5 30.7 44.6 5.3 21.0 52.2	119.5 1.7 5.7 1.3 3.6 0.5 3.4 0.5 106.6 2.4 8.0 1.6 4.8 0.7 4.3 0.7 52.8 1.6 6.3 1.5 4.5 0.7 4.1 0.7
Hole DL453	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
2 3 assays pending 3 4 assays pending
4 5 2721 1041 2491 5 6 1586 480 1252 6 7 1424 368 941	191.5 736.0 17.8 96.1 84.8 333.6 9.4 52.6 65.4 255.4 7.1 40.1	154.8 630.9 392.4 71.2 307.3 246.4 54.8 218.7 187.9	230.3 41.7 117.0 17.0 44.5 6.2 39.3 5.5 334.1 19.5 59.8 9.8 26.9 3.8 23.9 3.3 482.7 15.1 45.4 7.5 20.3 2.8 18.1 2.5
7 8 527 111 316	19.3 74.9 2.4 14.5	16.9 65.0 83.4	210.7 4.7 14.9 2.9 7.9 1.1 7.0 1.0
Hole ended in mineralisation. Shallower sample assays pendi	ng.
Hole DL454	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
2 3 313 77 206 3 4 175 40 110	13.4 52.6 1.6 9.0 6.9 27.3 0.8 4.9	10.9 44.9 48.6 5.9 23.8 26.8	107.0 3.0 9.7 1.8 4.8 0.7 4.3 0.6 65.1 1.7 5.2 1.0 2.7 0.4 2.5 0.4
Hole DL455	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
2 3 187 28 80 3 4 447 34 94	4.7 18.7 0.7 4.1 5.7 22.9 0.8 4.8	4.6 14.9 19.9 5.8 17.6 23.1	107.5 1.3 4.0 0.8 2.5 0.4 2.8 0.4 352.5 1.6 4.8 1.0 2.6 0.4 2.7 0.4
6 7 403 92 288	13.8 60.2 2.6 15.5	14.6 44.9 94.1	114.5 4.6 16.5 3.1 8.6 1.2 7.2 1.1
7 8 270 60 206	9.1 37.8 1.8 11.2	9.7 31.1 74.4	64.2 3.1 11.2 2.3 6.7 0.9 5.5 0.8
Hole DL456	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
2 3 160 30 87 3 4 165 25 74 4 5 198 29 96	4.6 19.8 0.8 4.6 3.9 16.4 0.7 3.8 4.7 18.9 0.8 4.9	4.7 14.8 25.5 4.0 12.8 21.8 4.4 16.8 32.3	73.0 1.3 4.6 0.9 2.6 0.4 2.3 0.3 91.4 1.2 3.9 0.8 2.1 0.3 1.9 0.3 101.8 1.3 4.5 1.0 3.0 0.4 2.7 0.4
Hole DL457	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
6 7 53 7 23 7 8 211 25 75 8 9 581 59 170	1.1 4.8 0.2 1.2 4.0 16.1 0.7 4.1 9.6 38.6 1.6 9.2	1.2 3.9 6.7 4.0 13.8 20.7 9.8 31.2 44.8	30.6 0.3 1.1 0.3 0.7 0.1 0.8 0.1 135.7 1.2 3.8 0.9 2.5 0.4 2.4 0.4 411.5 2.8 8.7 1.9 5.2 0.8 5.0 0.7
9 10 442 85 267	12.9 54.5 2.5 15.4	13.5 43.5 82.4	175.0 4.3 13.9 3.2 9.2 1.4 9.0 1.3
Hole ended in REE mineralisation
Hole DL458	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
4 5 60 10 31 7 8 117 18 54 8 9 208 27 82 9 10 271 44 156	1.5 6.5 0.3 1.6 2.9 11.7 0.4 2.8 4.4 17.4 0.7 4.3 6.6 27.3 1.3 8.4	1.5 5.9 9.1 2.9 11.1 14.2 4.2 16.2 22.5 6.9 24.0 58.5	28.6 0.5 1.5 0.3 0.9 0.1 1.0 0.1 63.6 0.8 2.6 0.6 1.7 0.3 1.7 0.3 126.5 1.1 3.9 0.8 2.6 0.4 2.7 0.4 114.9 1.9 7.8 1.8 5.1 0.8 4.6 0.8
Hole DL459	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
5 6 64 13 43 6 7 39 8 25 7 8 87 18 60	2.0 7.9 0.3 2.3 1.2 4.9 0.2 1.3 2.8 11.3 0.5 3.1	1.8 8.2 14.4 1.1 4.7 7.7 2.5 10.2 21.1	20.5 0.5 1.9 0.5 1.3 0.2 1.5 0.3 14.5 0.3 1.1 0.3 0.8 0.1 0.9 0.1 26.8 0.8 2.8 0.7 2.0 0.3 2.1 0.3
Hole DL460	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
5 6 40 6 24 6 7 83 7 22	1.1 3.8 0.2 1.2 1.1 4.7 0.2 1.0	0.9 5.0 8.1 1.1 4.6 6.5	15.7 0.2 0.9 0.3 0.9 0.1 1.1 0.2 60.9 0.3 1.1 0.2 0.6 0.1 0.8 0.1
Hole DL461	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
4 5 46 6 18 5 6 94 18 64	1.0 3.7 0.1 0.8 2.8 11.3 0.5 3.4	0.8 4.2 5.1 2.7 10.8 23.4	27.5 0.2 0.7 0.2 0.5 0.1 0.6 0.1 29.8 0.8 3.1 0.7 2.1 0.3 2.0 0.3
Hole DL462	Permanent magnet REE "SuperMags"
From To TREO SuperMags TREO-Ce m m ppm ppm ppm	Pr6O11 Nd2O3 Tb4O7 Dy2O3 ppm ppm ppm ppm	Sm2O3 La2O3 Y2O3 ppm ppm ppm	CeO2 Eu2O3 Gd2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 ppm ppm ppm ppm ppm ppm ppm ppm
8 9 150 32 85 9 10 146 24 68 10 11 280 30 88 11 12 218 36 104 12 13 381 80 188	5.8 21.9 0.6 3.3 4.3 15.9 0.5 2.9 5.2 19.8 0.7 4.4 6.1 23.7 0.9 5.1 13.2 56.0 1.7 9.0	4.8 24.0 15.2 3.7 19.1 13.7 4.7 21.3 19.0 5.8 23.8 24.1 14.4 33.4 34.9	65.3 1.4 4.0 0.6 1.6 0.2 1.4 0.2 77.4 1.1 3.3 0.6 1.5 0.2 1.4 0.2 192.2 1.5 4.6 0.8 2.3 0.4 2.3 0.3 113.9 1.8 5.5 1.0 2.7 0.4 2.5 0.3 192.9 4.2 10.8 1.6 4.0 0.5 3.5 0.5
13 14 612 170 427 14 15 1549 427 1242	29.4 120.1 3.2 16.9 65.7 285.8 11.2 64.7	26.9 106.3 76.3 66.8 220.5 350.5	184.9 7.3 22.0 3.1 7.6 1.0 6.5 0.9 307.1 20.4 72.6 12.6 33.7 4.6 28.8 4.0

Hole ended in REE mineralisation

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Table 3
Location data for the
20 holes at Deep Leads
reported in Table 2
Hole ID Northing Easting
GDA 94
DL444 5409898 477934
DL445 5409944 478039
DL446 5410780 478477
DL447 5410145 478339
DL448 5410121 478399
DL449 5410178 478414
DL450 5410185 478360
DL451 5410226 478419
DL452 5410234 478368
DL453 5410294 478427
DL454 5410305 478367
DL455 5410350 478441
DL456 5410360 478395
DL457 5410334 478566
DL458 5410379 478607
DL459 5410323 478623
DL460 5410310 478673
DL461 5410340 478780
DL462 5409261 478696
DL463 5409110 478605
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Glossary of technical terms

Rare earth elements : (“REE”) are lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb) and lutetium (Lu). Yttrium (Y) is also usually included with the REE.

Super magnets and permanent magnets : REE super magnets are used in electronic and computing equipment, batteries, electric vehicles, wind turbines, mobile phones and military systems. Nd & Pr are used in high-power magnets. Dy, Sm & Tb are used in high-temperature super magnets.

Ionic adsorption clay REE : (“IAC”) in contrast with hard-rock REE ores, ionic adsorption clay REE mineralisation forms when REE attach loosely to clays and can be recovered by low-cost leaching methods. IAC REE deposits have been mined in southern China and Myanmar. ABx is one of the very few listed companies with proven, authentic IAC REE mineralisation in the channels at Deep Leads.

Extraction rates from desorption tests : To assess the potential of extracting REEs from these prospects, tests are done to measure the “leachability” to “extract” REE under typical IAC desorption conditions that are applied to ionic clay deposits. These leaching tests were conducted by ANSTO in Sydney, which has extensive experience in metallurgical testing of clay-hosted rare earth deposits worldwide. The tests were conducted at “standard” desorption conditions of 0.5 M ammonium sulfate at pH 4 which are low-acid, low-cost processing conditions for ionic adsorption clay REE.

Extraction rates are the proportion of REE contained in the sample that reports to the leach solution. Very few other REE occurrences in Australia have achieved extraction rates that have been achieved on ABx’s REE mineralisation in the channels at the Deep Leads project area in northern Tasmania.

Qualifying statements

General : The information in this report that relates to Exploration Information is based on information compiled by Ian Levy who is a member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Levy is a qualified geologist and is a director of ABx Group Limited.

The information relating to Exploration Information and Mineral Resources in Tasmania has been prepared or updated under the JORC Code 2012. Mr Levy has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity, which has been 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.

Mr Levy has consented in writing to the inclusion in this report of the Exploration Information in the form and context in which it appears.

APPENDIX 1

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JORC Code, 2012 Edition – Table 1 report

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry	•	Drill holes samples to 25 metres maximum depth but
techniques		standard measurement tools appropriate to the minerals under investigation, such as down hole		typically to 12 metres depth
		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 appropriate calibration 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 (eg ‘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(eg submarine nodules) may warrant disclosure of detailed information.
Drilling	•	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic,	•	Reverse circulation rotary percussion and push-tube
techniques		etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling		coring
		bit or other type, whether core is oriented and if so, by what method, etc).
Drill sample	•	Method of recording & assessing core and chip sample recoveries and results assessed.	•	Weight tests indicated reliable sample recovery
recovery	•	Measures taken to maximise sample recovery & ensure representative nature of the samples.
	•	Whether a relationship exists between sample recovery and grade and whether sample bias may
		have occurred due topreferential loss/gain of fine/coarse material.
Logging	•	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support	•	Geologically logged in detail by senior geologists.
		appropriate Mineral Resource estimation, mining studies and metallurgical studies.		Every sample photographed, with photos and logs and
	•	Whether logging is qualitative or quantitative. Core (or costean, channel, etc) photography.		ABx’ AB u
	•	The total length andpercentage of the relevant intersections logged.		database.
Sub-sampling	•	If core, whether cut or sawn and whether quarter, half or all core taken.	•	Chips are subsampled using bauxite shovel and
techniques	•	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.		quartering method in accordance with ISO standards
and sample	•	For all sample types, the nature, quality and appropriateness of the sample preparation technique.
preparation	•	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 thegrain size of the material being sampled.
Quality of	•	The nature, quality and appropriateness of the assaying and laboratory procedures used and	•	Assaying done at NATA-registered commercial labs of
assay data		whether the technique is considered partial or total.		ALS Brisbane Australia and Labwest Minerals Analysis in
and	•	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in		Western Australia. Duplicate interlab assays done.
laboratory		determining the analysis including instrument make and model, reading times, calibrations factors	•	Desorption extraction tests were conducted by ANSTO
tests		applied and their derivation, etc.		at Lucas Heights, Sydney NSW with assays done at ALS
	•	Nature of quality controlprocedures adopted(eg standards, blanks, duplicates, external lab checks) & whether		Brisbane.

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Criteria	JORC Code explanation Commentary
	acceptable levels of accuracy (ie lack of bias) &precision have been established.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. • All assaying done at NATA-registered commercial laboratories of ALS Brisbane Australia and Labwest Minerals Analysis Pty Ltd in Western Australia. Duplicate interlab assays showed excellent correspondence.
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. • Specification of the grid system used. • Quality and adequacy of topographic control. • GPS hole locations have been tested for accuracy on many prospects, all satisfactorily – within 1m.
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • 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. • Whether sample compositing has been applied. • Drilling typically at 50 to 75 metre spacing on mineralised prospects
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. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • Vertical holes through flat-dipping bauxite is as good as it gets
Sample security	• The measures taken to ensure sample security. • Samples collected and assembled onto pallets every day
Audits or reviews	• The results of any audits or reviews of sampling techniques and data. • Several audits confirmed reliability

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral	•	Type, reference name/number, location and ownership including agreements or material issues with	•	Satisfactory to excellent. All tenements are
tenement and land tenure	•	third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to		u umb .…
status		obtaining a licence to operate in the area.
Exploration done by other parties	•	Acknowledgment and appraisal of exploration by other parties.	•	ABx is the first company to explore for Rare Earth Elements in northern Tasmania.
Geology	•	Deposit type, geological setting and style of mineralisation.	•	Bauxite deposit formed on Lower Tertiarybasalts

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Drill hole	•	A summary of all information material to the understanding of the exploration results including a	•	GPS location.
Information		tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar	• •	Airborne Radar RL topography Lidar topography contoured at 1m height intervals
		o dip and azimuth of the hole	•	All holes are short straight vertical holes
		o down hole length and interception depth
		o 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.
Data	•	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade	•	All data are presented.
aggregation		truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
methods	•	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 usedfor any reporting of metal equivalent values should be clearly stated.
Relationship	•	These relationships are particularly important in the reporting of Exploration Results.	•	Mineralisation typically 3 to 6 metres thick and
between	•	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should		Drillholes are sampled at 1 metre intervals
mineralisation		be reported.
widths &	•	If it is not known and only the down hole lengths are reported, there should be a clear statement to
intercept lengths		this effect(eg ‘down hole length, true width not known’).
Diagrams	•	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any	•	N.A.
		significant discovery being reported These should include, but not be limited to a plan view of drill
		hole collar locations and appropriate sectional views.
Balanced	•	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting	•	All new results are reported in this report
reporting		of both low and high grades and/or widths should be practiced to avoid misleading reporting of
		Exploration Results.
Other	•	Other exploration data, if meaningful and material, should be reported including (but not limited to):	•	N.A.
substantive		geological observations; geophysical survey results; geochemical survey results; bulk samples – size
exploration data		and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and
		rock characteristics; potential deleterious or contaminating substances.
Further work	•	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or	•	Step-out drilling over a wider area has been
		large-scale step-out drilling).		planned, work plans submitted and new drill rig
	•	Diagrams clearly highlighting the areas of possible extensions, including the main geological		configurations have been developed.
		interpretations andfuture drilling areas, provided this information is not commercially sensitive.

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