VHM LIMITED — Capital/Financing Update 2023

Jan 16, 2023

ASX Announcement

17 January 2023

ANSTO Testwork Demonstrates High Extractions of Rare Earth Minerals

Highlights:

• Results show extractions of >99% achieved for critical light rare earths Nd/Pr and >98% for critical heavy rare earths Dy/Tb

• Testwork confirms Rare Earth Mineral Concentrate is highly amenable to the conventional Sulphate Bake processing to a Mixed Rare Earth Carbonate product

• ANSTO commissioned to progress Pilot Plant testwork in Q1 2023

VHM Limited ( “VHM” or the “Company” ), has been progressing metallurgical testwork and is now pleased to announce the metallurgical test results from static trials ( “pre-pilot testwork” ) conducted by leading rare earth research and testwork facility Australian Nuclear Science and Technology Organisation ( “ANSTO” ).

The results have confirmed exceptional leach extraction rates (>99%) are possible from the Rare Earth Mineral Concentrate ( “REMC” ) at the Goschen Project deposit. The testwork is being undertaken to finalise the plans and inform final assessment of the Hydromet Plant (Phase 1A) at the Goschen Project.

The samples used at ANSTO for metallurgical testwork are based on a sonic bulk sample drill program that the Company undertook during 2022, within Area 1 and Area 3 Extended. A total of 223 holes in Area 1 and 65 holes in Area 3 Extended were drilled, totalling 8,310.4m, using sonic and diamond drill rigs.

The intent of the bulk sampling program was to generate sufficient REMC for pilot plant testwork to support the Hydromet Plant process development.

VHM Managing Director, Graham Howard commented:

“We are extremely encouraged by the high extractions of rare earth minerals shown in the testwork results, a step further in finalising plans and informing final assessment for VHM’s Goschen Project and the future Hydromet Plant.

“Furthermore, encouraging initial discussions with potential off-take partners have indicated that the Mixed Rare Earth Carbonate will be a highly sought after refinery feedstock, due to the unique and desirable proportions of the high value critical rare earths.”

ABN 58 601 004 102 Suite 8, 110 Hay Street SUBIACO WA 6008

Details of Testwork

VHM has completed comprehensive testwork previously at ANSTO as well as flowsheet evaluation testwork in 2018 on a typical sample of REMC from the Goschen Project. The recent work demonstrated that the Goshen REMC is highly amenable to processing through to a high value upgraded Mixed Rare Earth Carbonate (“ MREC” ) product as set out in the Prospectus dated 21 November 2022 as supplemented by the supplementary prospectus dated 5 December 2022, lodged with ASX on 5 January 2023.

Based on the ANSTO testwork the Company selected the Sulphate Bake route, as it provides the highest extractions and most robust economic case.

In preparation for pilot plant testwork, ANSTO has undertaken pre-pilot testwork using the industry standard acid baking and water leach route. The purpose of this work is to define piloting conditions such as acid addition, kiln temperature and reaction time. The pre-pilot testwork has demonstrated exceptional extractions >99% for the critical light rare earth metals (praseodymium and neodymium) and >98% for the critical heavy rare earth metals (terbium and dysprosium) as shown in Figure 1. Testwork for the subsequent stages of the Hydromet Plant is ongoing. Projected commercial recoveries will be further defined at the pilot plant testwork stage (REMC to MREC).

Figure 1: Leach Extractions Based on Optimised Bake Conditions of Acid Addition, Temperature, and Time

==> picture [338 x 229] intentionally omitted <==

----- Start of picture text -----

100
99
98
97
96
95
94
93
92
91
90
La Ce Pr Nd Sm Eu Gd Tb Dy Y
Extraction (%)
----- End of picture text -----

2

ANSTO continues with pre-pilot optimisation in parallel with the design and procurement of equipment for the pilot due to commence in Q1 of 2023. When complete, the pilot will demonstrate the entire flowsheet from REMC to the MREC product and include water and reagent recycle. The pilot plant flowsheet that has been developed by ANSTO for the Goschen REMC is shown in Figure 2.

Figure 2: ANSTO Pilot Flowsheet

==> picture [452 x 393] intentionally omitted <==

The REMC is considered industry leading not only in its exceptionally high rare earth grade (>60% TREO[1] ), but also in the very high proportion of high value critical rare earths Pr, Nd, Tb and Dy. These rare earths are essential to the automotive industries transition from internal combustion engine vehicles to battery electric vehicles and plug-in hybrid electric vehicles.

A typical analysis of the REMC (as tested previously by ANSTO in 2018) is given in Table 1.

Note (1): Based on ANSTO testwork completed in 2018

3

Table 1: Typical REMC Analysis

RE Oxide	Assay (wt %)	Proportion
La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb4O7 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3	11.2 23.7 2.54 10.1 1.62 0.06 1.41 0.2 1.17 0.22 0.68 0.09 0.61 0.08 7.71	18.2% 38.6% 4.1% 16.5% 2.6% 0.1% 2.3% 0.3% 1.9% 0.4% 1.1% 0.1% 1.0% 0.1% 12.6%
LREO1 MREO2 HREO3 TREO	47.5 3.09 10.8 61.39	77.4% 5.0% 17.5% 100.0%

Note (1): Light rare earth oxides (LREO): La, Ce, Pr, Nd Note (2): Middle rare earth oxides (MREO): Sm, Eu, Gd Note (3): Heavy rare earth oxides (HREO): Tb, Dy, Ho, Tm, Yb, Lu & Y

The combination of the exceptionally high grade (>60% TREO) REMC in conjunction with demonstrated high extraction rates is expected to result in low capex and opex to produce the MREC product. As a result of the purity, there are expected to be lower reagent costs, smaller kiln, and lower energy costs, adding to VHM’s competitive proposition.

The Company will commence pilot plant testwork in Q1 2023 with ANSTO, the results of which will inform a future engineering study scheduled thereafter. Piloting will give VHM detailed engineering solutions, the ability to order long-lead items for the Hydromet Plant and provide product offtake for marketing.

This announcement has been approved by the Board of VHM.

4

For further information contact:

Carly O’Regan

Executive General Manager, Corporate and Investor Relations M: 61 431 068 814 E: carly.oregan@vhmltd.com.au

Ian Hobson

Company Secretary M: 0407 421 185 E: ian.hobson@vhmltd.com.au

Media

James Strong Citadel-MAGNUS M: +61 448 881 174 E: jstrong@citadelmagnus.com

Competent Person’s Statement

The information in this release that relates to metallurgical testwork is based on information compiled and / or reviewed by Mr Gavin Beer who is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM) and a Chartered Professional. Mr Beer is a consulting metallurgist with sufficient experience relevant to the activity which he is undertaking to be recognised as competent to compile and report such information. Mr Beer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr Beer does not hold securities in VHM.

The information in this release that relates to Exploration Results, is based on information and supporting documentation compiled by Mr Graham Howard, who is an employee of VHM Limited. Mr Howard is a Competent Person who is a Fellow of Australasian Institute of Mining and Metallurgy and who consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Graham Howard has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being 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 (JORC Code 2012).

Forward Looking Statement

This document may contain certain forward-looking statements concerning VHM Limited. Forwardlooking statements are not statements of historical fact and actual events, and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political, and social uncertainties, and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.

Forward-looking statements in this document are based on the company’s beliefs, opinions and estimates of VHM Limited as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

5

JORC Code, 2012 Edition – Table 1

Area 1 and Area 3 Extended- JORC Table 1 (JORC Code, 2012 Edition) Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code Explanation	Commentary
Sampling techniques	• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised 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 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 (e.g. ‘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 (e.g., submarine nodules) may warrant disclosure of detailed information.	• Sampling activities conducted in Area 1 and Area 3 Extended included Sonic drilling and Diamond Drilling. • Metallurgical bulk sample was completed on Sonic Drilling. • Geotechnical logging was completed on selective holes in field on both Sonic Drilling and Diamond Drilling, geotechnical samples of target material was packaged to preserve insitu attributes to enable testing of material properties in specialist external laboratories. • Sonic drilling was used to obtain samples at one metre intervals. The following information covers the sampling process: • The full one-metre drill samples were collected in plastic sheaths and placed in trays suitable for storing up to three meter intervals. • Metallurgical bulk sample was processed at the Company’s Kerang facility. The Company’s Manager Geology, Principal Mining Engineer and Principal Metallurgist defined composition of metallurgical samples. Metallurgical samples were compiled from multiple holes representative of likely ore feed characteristics of future process plant operations as defined by the Ore Reserve. • Metallurgical samples were taken that were representative of ore zones defined by the Ore Reserve (previously described in the Prospectus) as well as low grade sub ore and waste material. Samples were designed to test feed parameters based on the metallurgical flow sheet prepared for the Goschen Definitive Feasibility Study. • Sample logging software was used at the drill rig and at the Kerang Facility for recording sample intervals and descriptions. • Each metallurgical sample were compiled in bulka bags, with each bulka bag representing ore zones, low grade sub ore and waste material. The metallurgical samples were weighed, bulka bags were sealed and

6

Criteria	JORC Code Explanation	Commentary
		dispatched to the Mineral Technologies metallurgical testing facility for analysis. • Sub samples were collected for moisture and bulk density testwork. Samples were selected on geological intervals based on logging data from each sonic hole and geological and assay data from existing Mineral Resource estimate (reported in the Prospectus).
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.).	• Numac Drilling and Star Drilling were the contractors used for the 2022 sonic drilling and sampling program upon which the Goschen 2022 metallurgical samples was based. • A total of 306 sonic and diamond holes were drilled totalling 8,854.4m informing the metallurgical testwork and geotechnical analysis for Area 1 and Area 3 Extended. • Of the 306 holes drilled, 288 sonic holes were drilled for metallurgical bulk sampling, totalling 8310.4m. • A breakdown by location for the 288 sonic holes are as follows: • 223 sonic drill holes were completed in Area 1 • 65 holes in Area 3 Extended • The sonic drill collar spacing provided representative samples across Area 1 and Area 3 Ore Reserve. • Of the 306 holes drilled, 18 geotechnical holes were drilled totalling 544m. • A breakdown by location and drill type for the 18 geotechnical holes are as follows: • 10 sonic holes totalling 238m were drilling in Area 1 for geotechnical analysis • 1 diamond drill hole totalling 28m was drilled in Area 1 for geotechnical analysis. • 7 diamond drill holes totalling 278m were drilled in Area 3 Extended for geotechnical analysis. • Diamond drilling was completed using a PQ3 drill rod resulting in a core diameter of 83mm. Drill hole depths averaged 30m deep with a maximum of 40m deep. • The Company trialled 8 holes which used a combination of arguer precollar with combined with a tail based on sonic drill method that targeted metallurgical sample horizons. Delays in productivity resulted in conversion for the remainder of the program to 100% sonic drilling method.

7

Criteria	JORC Code Explanation	Commentary
		• Sonic drilling used outer diameter which ranged from 152 mm (6 inch) – 200mm (8 inch) in diameter. Drill hole depths averaged 30m deep with a maximum of 35m deep. One primary hole and up to three subsidiary holes were completed at each drill location centroid in Area 1. • Sonic drilling is a standard technique for collection of sample from sand hosted deposits. Sonic drilling uses high frequency resonant energy generated in the Sonic head. This is used to advance the core barrel and core casing to sample the sand hosted heavy mineral deposit. The sonic rigs were mounted on a prime mover or tracks and a medium or heavy rigid truck is used for support. The Sonic drill rigs use water for the drilling process (no drilling muds are required). Any excess water utilised during drilling was captured within above ground water tanks. Whole sonic core was collected for metallurgical analysis.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • 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.	• Drill sample recovery is monitored by recording sample condition from 'dry good' to 'wet poor'. • While initially collaring the hole, limited sample recovery can occur in the initial 0m to 1m sample interval owing to sample and air loss into the surrounding loose soil. The initial 0m to 1m sample interval is drilled very slowly in order to achieve optimum sample recovery. • For sonic drilling, each entire one-metre sample is collected at the drill rig and enclosed within a plastic sheath. Each interval is then placed in a storage tray for dispatch to the initial split preparation facility. • At the end of each drill rod, the drill string is cleaned to remove any clay and silt potentially built up in the sample tubes. • For diamond drilling, core sample recovery was captured in geotechnical logging documented by a geotechnical consultant, Pitt&Sherry. • Minor core loss was observed for both sonic and diamond drilling.
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.	• Each sonic and diamond sample was qualitatively logged into a field-validated data capture software package, and later uploaded to the AcQuire database. • The samples were logged for lithology, colour, grainsize, sorting, hardness, sample condition, washability, estimated heavy mineral content, estimated slimes content.

8

Criteria	JORC Code Explanation	Commentary
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. • The total length and percentage of the relevant intersections logged.	• Primary and subsidiary drill holes were logged in full. All sonic drill holes were logged using hand held gamma equipment. Intervals were recorded every 100mm down hole. 65 Area 3 Extended sonic holes had additional logging using hand held XRF analysis equipment. • Logging is undertaken with reference to a Drilling Guideline with codes prescribed and guidance on description to ensure consistent and systematic data collection.
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.	• Sub samples were collected for bulk sample and moisture analysis. • The water table depth, if intersected, was noted in all geological logs. • Almost all the samples are silty sand, sand, sandy clay, clayey sand, or clay and this sample preparation method is considered appropriate. • The sample sizes were deemed suitable to reliably capture THM, slime, and oversize characteristics, based on industry experience of the geologists involved and consultation with principal metallurgist.
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. • For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations	• The 2022 bulk sample program undertook the following sample logging process; • The wet panning at the drill site or at Kerang site provides an estimate of the THM% which is sufficient for the purpose of determining approximate concentrations of THM in the first instance. • Sonic sample: • The individual one-metre sonic samples were photographed, and hand held gamma counts recorded on 0.1m intervals. These were compared with logging data and original aircore data that informed Mineral

9

Criteria	JORC Code Explanation	Commentary
	factors applied and their derivation, etc. • 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.	Resource estimation in the area that bulk samples were extracted. • Primary sonic holes twinned the original aircore holes, providing reconciliation of the geology interpretation against aircore hole data that formed the basis of geology interpretation of the Mineral Resource. Subsidiary sonic holes drilled at centroid provided further reconciliation data on the variability of the geological interpretation. • The sealed bulk samples were delivered to Mineral Technologies metallurgical testing facility on the Gold Coast Queensland. • Metallurgical samples were processed through the Mineral Technologies facility in either 10 tonne or 20 tonne batches. • A sub-sample from each bulk bag was extracted for reference purposes. • The whole batch was then homogenised and be processed through a continuous feed preparation plant (FPP) circuit, consisting of a scrubber/trommel, a fine screen and a de-sliming stage. The aim of the circuit is to prepare feed suitable for beneficiation by gravity spirals. • Sub-samples of the FPP feed and product including slimes and oversize were retained. • Sub-samples of each bulk bag were also retained for reference purposes / future use. • A 10t sample of material originating from Area 1 representing the initial years of mining was homogenised and used for flowsheet verification test work. Assay across particle size ranges, specific gravity, particle size diameter and mineralogy will be used for a future metallurgical balance. • The prepared feed was then processed through a gravity concentrator circuit, consisting of a gravity spiral separation followed by wet table upgrade of the spiral concentrate. • The aim of the circuit was to produce a Heavy Mineral concentrate (HMC) recovering Rare Earth Mineral, Zircon, and high SG Ti-minerals only. • Sub-samples of the WCP products were retained. • The HMC was processed through an REMC flotation plant circuit.

10

Criteria	JORC Code Explanation	Commentary
		• The aim of the circuit was to produce a final mixed Rare Earth Mineral Concentrate (REMC) meeting the DFS specification. • Assay methodology for results reported by ANSTO are based on a sub-sample of the as-supplied moist REMC being dried and the moisture content determined. A representative sub-sample was separated for elemental analysis. The solid feed and any subsequent leach residue solids were be analysed by a combination of XRF, and fusion / digest followed by ICP-OES and ICP-MS analysis of the digest liquor(s). • Both Metallurgical testing facilities maintain QAQC systems.
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 results were checked by the company's Geology Manager and principal metallurgists. • The company's competent person, Geology Manager, Principal Metallurgist, Principal Mining Engineer, and an independent Peer reviewer made periodic visits to the Goschen site and Kerang facility where metallurgical samples were processed and combined into bulka bags. • Principal metallurgists managed on a weekly basis metallurgical sample program with Mineral Technologies testing facility and or Australian Nuclear Science and Technology Organisation (ANSTO). • A process of laboratory data validation using mass balance is undertaken to identify entry errors or questionable data. • Results compared with previous metallurgical programs and or Mineral Resource and Ore Reserve data. • The field and laboratory data were exported from the VHM's AcQuire database and imported into Datamine by a geologist contracted to VHM Limited, which is appropriate for this stage in the program. Data validation criteria are included to check for overlapping sample intervals, end of hole match between 'Lithology', 'Sample', 'Survey' files and other common errors.
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	• Drill hole collars locations were surveyed by an independent surveyor using industry standard equipment. Three permanent survey marks in the area provided survey control, allowing for repeatable and accurate survey readings across the project area.

11

Criteria	JORC Code Explanation	Commentary
	used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• The datum used is GDA 94 and coordinates are projected as MGA zone 54. • A digital topographic surface was generated by VHM Limited from data collected during a LIDAR survey commissioned by VHM. The accuracy of the locations is sufficient for this stage of exploration.
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.	• Holes were developed within representative panels which were based on mine design and schedule from the Ore Reserve. This was designed to enable reconciliation of future mining and process outcomes (against the bulk sample metallurgy results) Drill holes are spaced on a grid of lines spaced at 200m in the N- S direction and typically between 100 and 200m in the E-W direction with some close-spaced drilling as close as 50m along traverses. • One primary sonic hole and up to 3 subsidiary sonic holes were completed at each collar coordinate, in Area 1. The collar spacing is sufficient to provide a high degree of confidence in geological model and grade continuity and these metallurgical outcomes. • Metallurgical drill holes were compiled under the direction of the Manager Geology and Principal metallurgist, to ensure representation of material types for testing.
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.	• The mineralisation at the Goschen Area 1 and Area 3 Extended project is a largely flat-lying (with some soft sediment deformation across a basement fault) sedimentary package which does not display a strong orientation of mineralisation at the current sample spacing.
Sample security	• The measures taken to ensure sample security.	• Sonic samples were stored on site (at a dedicated warehouse in Kerang). • The samples were then dispatched to Mineral Technologies, Gold Coast Queensland using Swan

12

Criteria	JORC Code Explanation	Commentary
		Hill Freight agents, and delivered directly to the Laboratories. • Mineral Technologies metallurgical manager inspected the packages and did not report tampering of the samples
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• Internal reviews were undertaken during the geological interpretation and throughout the metallurgical sampling process by the Manager Geology, Principal Metallurgist, Internal Peer reviewer, competent person.

13

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)

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 security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• The exploration work was completed on tenements that are 100% owned by VHM Ltd in Victoria, Australia. • The drill samples for this metallurgical test program were drilled and collected from retention licence RL6806. • The exploration license original date of grant was 10/10/2014 with an expiry date of 09/10/2019. A Retention Licence to replace the exploration licence was granted by Earth Resources Regulation, which is the responsible statutory body and part of Victorian Department of Jobs, Precincts and Regions, in January 2020.
Exploration done by other parties	•Acknowledgment and appraisal of exploration by other parties.	• Historic exploration work was completed by previous exploration companies including Austiex (1977 - 1978), CRA Exploration (1981 - 1987), Renison Goldfields Consolidated (1980 - 1991), W J Holdings (1998), RZM Group (1999), Basin Minerals (2001), Providence Gold and Minerals (2004 - 2005), and Iluka (2009). • The Company has obtained the hardcopy reports and maps in relation to this information as part of its historical review in preparation for their current work program. • The historic data comprises surface sampling, limited aircore drilling and mapping. • The current metallurgical work program is based solely on work conducted by VHM Ltd.
Geology	•Deposit type, geological setting, and style of mineralisation.	• The heavy mineral sands at the Goschen Project are a fine-grained deposit hosted within the offshore depositional paleo-environment of the Loxton Parilla Sands. The Loxton-Parilla Sand is common within the Murray Basin and hosts all known mineral sand deposits in the Basin. Alluvial sediments of the Shepparton Formation have been deposited over the Loxton-Parilla Sand and the Bookpurnong Formation consisting of shallow marine clays and marls is positioned below within the lithological sequence.
Drill hole Information	•A summary of all information material to the understanding of the exploration results including a tabulation of the following	• Hole collars were surveyed by an independent surveyor using industry standard equipment. • Holes were drilled vertically.

14

Criteria	JORC Code Explanation	Commentary
	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.	• Drill hole depth cross verified with drilling reports and geologist log for each hole. • The field and laboratory data were exported into the VHM's AcQuire database.
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. •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 data aggregation methods were utilised, no top cuts were employed, and all cut-off grades have been reported in the Prospectus.
Relationship between mineralisation widths and intercept lengths	•These relationships are particularly important in the reporting of Exploration Results. •If the geometry of the mineralisation 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	• The nature of the mineralisation is horizontal, thus vertical sonic and diamond holes represent the true thicknesses of the mineralisation that inform the metallurgical bulk sample.

15

Criteria	JORC Code Explanation	Commentary
	effect (e.g. ‘down hole length, true width not known’).
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.	• Plan view and typical cross sections provided in Annexure F of the Prospectus.
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.	• Metallurgical results are reported by ANSTO and the Company’s Principal Metallurgist responsible for rare earth mineral metallurgical testwork.
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.	• During a bulk REMC trial material originating from Area 1 was shipped to Mineral Technologies and processed through FPP, WCP and rare earth flotation circuits as a proxy for the Goschen process flowsheet. The resulting REMC was collected and stored for further processing at ANSTO during the planned pilot scale trial. • Metallurgical samples were provided to the ANSTO for preliminary leach extraction assessment using samples and conditions as detailed within the body of the report. • It must be noted that the extraction numbers reported are indicative only and do not account for further losses or inefficiencies that may or may not occur due to further downstream processing to marketable product(s).
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.	• Additional metallurgical testwork is in progress as part of the 2022 bulk sample program. Results inform metallurgical and engineering programs for the development of the Goschen Project.

16