• Exceptional returns: A$858M Post-Tax NPV, 99% Post-Tax IRR
• Low capital requirement: A$178M initial CAPEX
• Rapid payback: 0.9 years post-tax
• Strategic exposure to high-value rare earths
• Government support and potential to extend mine life

Australian Rare Earths Limited (AR3) has completed a Pre-Feasibility Study (PFS) for its Koppamurra Rare Earths Project in South Australia, highlighting exceptional returns on low capital. The PFS validates the project as Australia's most advanced ionic clay rare earths project, with a post-tax Net Present Value (NPV) of A$858 million, an Internal Rate of Return (IRR) of 99%, and a capital expenditure (CAPEX) of just A$178 million. The project is expected to deliver a capital payback in 0.9 years, with annual production of 1,860 tonnes of Total Rare Earth Oxides (TREO) including critical magnet rare earths. The PFS is based on a maiden Ore Reserve of 26 million tonnes at 920ppm TREO and a processing capacity of 3 million tonnes per annum for an initial 12-year mine life. The project benefits from shallow open-pit mining, a proven heap leach flowsheet, and rapid progressive rehabilitation, positioning it as a capital-light and low-risk development opportunity. The strategic location in South Australia, a Tier 1 mining jurisdiction, is supported by the Australian Government through the International Partnerships in Critical Minerals Program, including a $5 million grant. The project is expected to contribute to Australia's sovereign supply chain capacity, supporting the development of a reliable Western supply chain of rare earth products.

A$858M Post-Tax NPV, 99% Post-Tax IRR, A$178M initial CAPEX, 0.9 years post-tax payback

The project is expected to deliver strong returns on low capital, with a clear path to production and significant growth potential. The project's strategic exposure to high-value rare earths and government support positions it for long-term success.