• Terminates previously announced offtake agreement with Shenghe Resources
• Goschen project on track for first production of rare earths and mineral sands by end of 2027
• Appoints Macquarie Capital as financial advisor to accelerate discussions with potential offtake and funding partners

VHM Ltd (ASX:VHM) has elected to terminate the previously announced offtake agreement with Shenghe Resources as a number of conditions precedent to that agreement have not been met. This reflects VHM's proactive strategy to unlock greater long-term value by being able to engage with a broad range of global partners in the critical minerals sector in response to inbound interest for offtake from the Goschen Rare Earths and Mineral Sands project ('Goschen'). The Goschen project is targeting first production of rare earths and mineral sands concentrates by the end of 2027, and this decision means VHM has 100% of its rare earths concentrate product available for offtake. To accelerate this process, VHM has appointed Macquarie Capital as its financial advisor to lead the discussions with offtake and potential project partners for the development of Goschen. Macquarie Capital's global reach and deep expertise in strategic transactions will assist VHM in positioning the Goschen Rare Earths and Mineral Sands Project to maximize value to shareholders. This strategic shift comes at a time of surging demand for rare earths and critical minerals driven by the global energy transition, electrification, and advanced manufacturing. VHM's world-class Goschen Project is uniquely placed to supply these markets with high-quality products, and the company is confident that this approach will enhance flexibility, strengthen margins, and create significant shareholder value.

VHM remains committed to delivering a sustainable, globally competitive operation and looks forward to updating the market as discussions with potential offtake and funding partners progress.