Announcement PDF ASX Release 22 August 2023 Enhanced Scoping Study for Cummins Range as a DSO start-up, 3-stage phosphate-enabled rare earth critical minerals project Scoping Study outlines a fundable, low-CAPEX, Stage 1 DSO phosphate project as the springboard for a longer-term, high-value, low-risk, staged rare earths operation, delivering a critical mineral project to the Kimberley, near Halls Creek and Billiluna on Jaru Native Title, and exporting though Wyndham Port. Highlights • • • • • Low front-end CAPEX and staged capital deployment schedule presents significant project advantages: o Stage 1 is Simple, Fundable, and deliverable - significantly lower risk than other development pathways and establishes an operating platform before expanding into Stage 2; o Stage 2 development, operations, and offtake are materially de-risked following Stage 1; and o Stage 3 builds on the Stage 2 process plant with minimal anticipated modification. Attractive and robust economics across a range of pricing scenarios with Stage 1 being a significant derisking step for the first 3 years before Stage 2 and 3 lead to a 18-year mine life; a nationally significant critical minerals rare earth and phosphate project. High value-in-use products: o beginning with simple high-bioavailability, organic, WA-made rock phosphate with potential as direct application fertiliser (Stage 1). o followed by phosphate-rare earth mineral concentrate with potential in the rapidly growing, SE Asian, phosphoric acid industry (fertiliser and battery markets), and demonstrated clean phosphate leach and favourable rare-earth separation (Stage 2 and 3). Project well positioned geographically and by commodity type to work with critical mineral, agricultural, and regional development funding initiatives including grants, preferential debt, and government budgetary allocations, following precedent. Historical magnetic and geochemical surveys, on the Cummins Range tenement, have identified numerous anomalies which RareX intends to explore starting with planned magnetic and gravity surveys in 2023. RareX Limited (RareX, the Company) (ASX: REE) is pleased to announce the completion of an enhanced Scoping Study (Scoping Study, the Study) which has delivered positive outcomes from a 3-Stage, project development strategy for its 100% owned Cummins Range Phosphate-enabled Rare Earths Project (the Project, Cummins Range), located in the Kimberley region of Western Australia. The enhanced Scoping Study builds upon learnings and recommendations from the September 2022 Scoping Study1, metallurgical testwork and the 2023 updated Mineral Resource Estimate 2 which positioned Cummins Range as Australia’s largest undeveloped rare earths project. The Study’s main contributors were Primero, Mining Plus, Ausenco, Shawmac and MBS Environmental. RareX CEO, James Durrant, said: “The Scoping Study results have exceeded our expectations and validate the evolved project development pathway presented in April 2023. The results show a practical approach to allow 1 2 ASX Announcement 12 September 2022: Positive Scoping Study for Cummins Range Rare Earths Project ASX Announcement 1 May 2023: Cummins Range Resource Soars to 519Mt 0.32% TREO, 4.6% P2O5 RareX Limited ASX:REE ABN: 65 105 578 756 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 E info@rarex.com.au W ree.investorhub.com/welcome rarex.com.au RareX Limited (ASX:REE) @rarex_asx the economic extraction of rare earth elements in conjunction with valuable phosphate fertiliser or battery feedstock. “The staged approach, enabled by clean rock phosphate for direct application, as Stage 1, positive flotation and leach performance of monazite-apatite from the regolith as Stage 2, and the upside of coarse monazite in the fresh rock for Stage 3, positively differentiates us from more conventional rare earth developments which typically have less favourable geology and more complex infrastructure requirements. “The products have high value-in-use potential and we’re working to find the right buyers for Stage 1 and Stage 2, across Australia and SE Asia, having recently appointed two offtake consultants. This follows the recent board appointment of Danny Goeman, ex-FMG global head of marketing, sales and shipping, and ex-Danakali Limited CEO, where he and I worked on securing a binding take-or-pay fertiliser offtake deal during the study phase. “The low upfront capital and simple Stage 1 makes this fundable and deliverable by RareX, and we’ve materially progressed the pre-requisites for regulatory approval for Stage 1, giving us the best chance of becoming an operator in the next couple of years. Excitingly, our geologists are also extending target generation on site to a similar anomaly to Cummins Range so we look forward to seeing how that might integrate with our development plans. “With all these positive attributes and the ability to deliver this project with our team, we are excited for the future of the Company. Our priorities for the next 6-9 months are to identify strategic offtake partners, advance Stage 1 to DFS and Stage 2 to PFS, and complete submissions for mining approvals.” The Scoping Study referred to in this release is based on low-level technical and economic assessments and is insufficient to support an estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. Further evaluation work and appropriate studies are required before RareX will be in a position to estimate any Ore Reserves or to provide any assurance of an economic development case. Click here for the Scoping Study announcement and video on the RareX investor hub: https://investors.rarex.com.au/link/drLjyO Webinar CEO James Durrant will be hosting a 10-15 minute webinar about the exciting outcomes of the Scoping Study on the RareX investor hub and addressing any feedback from investors. Please submit questions on the “Ask a Question” section of this announcement on the RareX investor hub prior to Tuesday 29 August 2023. Date and Time: Friday 1 September 2023 at 9:00am AWST / 11:00am AEST Register: Sign-up to the RareX Investor Hub: https://investors.rarex.com.au/auth/signup RareX Limited ASX:REE ABN: 65 105 578 756 2 RareX Limited (ASX:REE) @rarex_asx Cautionary Statement The Scoping Study referred to in this release was completed to determine the viability of a combined mine, DSO operation and regolith beneficiation processing plant, under a staged development approach, in the East Kimberly region of Western Australia, using phosphate and rare earth deposits at Cummins Range to produce phosphate and rare earth concentrate products. It is a preliminary technical and economic study of the potential viability of the Project. This Scoping Study is an order of magnitude technical and economical assessment and is supported by Indicated and Inferred Mineral Resources3. The Study is based on the material assumptions outlined below. These include assumptions about the availability of funding. While RareX considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Study will be achieved. To achieve the range of outcomes indicated in the Study, initial funding of approximately A$45M will likely be required for Stage 1 followed by A$304M for Stage 2 and A$63M for Stage 3. Investors should note that there is no certainty that RareX will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive or otherwise affect the value of RareX’s existing shares. It is also possible that RareX could pursue other value realisation strategies such as a sale, partial sale or joint venture of the Project. If it does, this could materially reduce RareX’s proportionate ownership of the Project. The Study includes appropriate assessment of realistically assumed modifying factors together with other relevant operational factors. The production target disclosed in the study is underpinned by ore feed classifications of 73% Indicated Resources and 27% Inferred. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The Study demonstrates a potentially viable project and has given the Board of RareX the confidence to approve the commencement of a Definitive Feasibility Study (DFS) for Stage 1 and Pre-Feasibility Study (PFS) for Stage 2 which will commence in Q3 2023. Additionally, the Board supports the on-going environmental baseline studies and the finalisation of Native Title Agreement negotiations. 3 ASX Announcement 1 May 2023: Cummins Range Resource Soars to 519Mt 0.32% TREO, 4.6% P2O5. The Company confirms that it is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed. RareX Limited ASX:REE ABN: 65 105 578 756 3 RareX Limited (ASX:REE) @rarex_asx Project Concept The Project outlined in the Scoping Study is based on the Mineral Resource Estimate published to the ASX on 1 May 2023. Stage 1: Low CAPEX (A$45M), direct shipping ore (DSO), direct application (DA), high-bioavailability, organic rock phosphate fertiliser for agricultural purposes. A production rate of up to 300 ktpa of 23% P2O5 is forecast for a period of 3 years. Stage 2: Installation of a mid-sized beneficiation plant of A$304M to produce 550 ktpa phosphate-rare earth mineral concentrate from the weathered resource for the phosphoric acid and rare-earth concentrate market. Stage 3: A$63M upgrade of the Stage 2 plant in year 13 to produce a concentrate from the un-weathered, fresh, rock below c.130 m RL. Stage 3 should see further improvement and optionality in post beneficiation upgrades due to mineralogy factors. A mine closure cost of A$41M has been allocated at the end of Stage 3. Figure 0-1: Breakdown of the staged approach and high-level capital, operating expense and unit cost metric. Outcomes are derived from the Mid-Case pricing assumptions (refer to section 5.5 for further discussion of the Low-Case, Mid-Case and High-Case pricing assumptions). The above timetable in indicative only and is subject to change. All currency in A$. The project concept outlined in the Scoping Study comprises a Stage 1 direct shipping ore (DSO) open pit mine and basic site infrastructure, including a crushing-screening plant and a road linking the mine site to the Tanami Road, 40km north of Billiluna. This will be followed by Stage 2, which comprises the installation of a flotation beneficiation facility at site to produce a rare earth and phosphate mineral concentrate, and the expansion of non-process infrastructure (NPI). This staged development approach has the benefits of initiating early cashflows, building confidence with the regulators on environmental management, furthering community relationships and social performance, providing greater mineral resource definition, allowing bulk samples for metallurgy and piloting, and RareX Limited ASX:REE ABN: 65 105 578 756 4 RareX Limited (ASX:REE) @rarex_asx establishing a functioning supply chain; all of which substantially de-risk Stage 2 which transitions the project into a rare-earth critical mineral mine. All project stage products are proposed to be trucked along mostly sealed roads to Wyndham Port, with the Tanami Road currently undergoing sealing. At Wyndham Port, which is powered by hydro electricity from the Ord River hydro power station, the Company proposes to install a simple covered stockpile storage area 4 and to collaborate on using existing infrastructure and incumbent operators, including the current KMG iron ore loading jetty 5 (or the Agrimin loading facility 6 which is yet to be built), and transhipping operators familiar with the port 7. The DSO rock phosphate has high value-in-use in the fertiliser sector due to its organic and high bioavailability nature. An average grade of 23% P2O5 with up to 5 times the bioavailability of traditional rock phosphate denotes that more phosphorous is available to the plants for a given P2O5 head grade. Additionally, there is an opportunity for RareX to support the local communities by providing meaningful employment and also support the local agricultural sector by placing product to customers for use in the Ord River Irrigated Area (ORIA) and the broader cropping region largely supplied through OrdCo 8. Stage 1 has not been assessed as a standalone project. Pit optimisation has been completed on the staged approach. Stage 1 (stand-alone) pit optimisation will be completed at the next study stage. More importantly, Stage 1 is a very useful, low-cost, de-risking step - allowing RareX to fund and establish an operational footprint whilst Stage 2 is refined for optimal delivery. The Stage 2 mineral concentrate is proposed to be pre-treated at an offshore phosphoric acid plant facility, likely in Southeast (SE) Asia, to leach the clean apatite (phosphate) mineral and liberate the monazite (rare earth) mineral, maximising value-in-use to both the acid producers and the downstream monazite rare earth refineries. Rare earths will then be refined by a third party used in the technology and clean energy sector where the product’s dominant rare earth oxide, NdPr, is used in magnets in electric vehicles and wind turbines. Phosphate product component price ranges have been estimated and benchmarked based on their grades, bioavailability and market intelligence and forecasts, including from independent consultants and market reports from Argus. Additionally, a discount has been applied for the mineral concentrate entering the phosphoric acid market. Current Argus reporting has 32% P2O5 Moroccan free-on-board (FOB) at US$258 per tonne 9, which is equivalent to A$361 per tonne at a foreign exchange (FX) of 1.4. Rare earth product component pricing considers a discounted Cummins Range total rare earth oxides (TREO) basket price (to take into consideration further processing requirements). The basket price is dominated by NdPr value. Adamas Intelligence 10 forecasts that due to demand from the electric vehicle and wind power Land tender process underway. Term sheet under negotiation for KMG to provide stockpile reclaim and barge loading services to RareX. 6 ASX Announcement 13 April 2013: Cummins Range Rare Earths-Phosphate Project - Development and Strategy Update. 7 Term sheet under negotiation with incumbent transhipping service provider. 8 ASX Announcement 7 November 2022: RareX signs MOU for Supply of Phosphate Products Locally. 9 Argus monthly phosphorous outlook, July 2023 Average. 10 https://www.miningreview.com/energy/pensana-looks-to-achieve-first-production-at-longonjo-in-2025/. 4 5 RareX Limited ASX:REE ABN: 65 105 578 756 5 RareX Limited (ASX:REE) @rarex_asx sectors, the value of NdPr oxide consumed will increase eleven-fold by 2035. Prices are forecast to rise from current levels of US$67,000 per tonne to US$100,000 per tonne by 2025, increasing steadily to over US$200,000 per tonne by 2035. Given the low up-front capital, the low-risk development approach, and the strategic nature of Cummins Range as a critical minerals rare earth project, a Kimberley-located operation, and a potential future employer of Aboriginal people from the disadvantaged communities of Halls Creek and Billiluna, funding is proposed through a combination of grant, debt, and equity. The 50km road linking the Project to the Tanami Road has been costed in the project economics, but has the potential to be funded by way of a government sourced grant in a manner similar to the Seafarms road (A$18M 11), and the Northern Minerals road (A$50M 12) - funded from state and federal budgets respectively. Northern Australia infrastructure Facility (NAIF) is anticipated to provide a substantial portion of project debt. Relevant funding initiatives, including in the agricultural sector, include the following: • • • • • • • • Regional Grants Programme (up to A$15M) CMDP grant (A$50M over 3 years, typical grant sizes are c. A$5M) Kimberley Development Commission Grants NAIF Loan (A$500M earmarked from Critical Minerals Strategy) Export Finance Australia – Critical Minerals Facility Loan (A$2B facility) State and federal budget inclusion A$15B National Reconstruction Fund, where the resources sector is a priority area for companies conducting value-add in resources, supporting renewables and low emission technologies and enabling regional capabilities Ord River Improvement Scheme in support of agricultural initiatives At present, the Company has no pending applications in respect of the above funding initiatives. In the event that the above funding initiatives are not successful, the Company has a reasonable basis for expecting that it can secure funding solely through a combination of debt and equity. This Scoping Study has been developed from a Mineral Resource Estimate which covers approximately 40% of the Cummins Range carbonatite pipe. The remaining 60% of the carbonatite pipe has had less than 600m of drilling, all with phosphate and rare earths mineralisation (see announcement dated 1 May 2023) 13. Historical magnetic and geochemical surveys have identified numerous anomalies that are yet to be adequately tested within the RareX tenure surrounding the pipe, which RareX intends to explore with planned magnetic and gravity surveys in 2023. Any additional discoveries may have synergies due to the proximity to Cummins Range deposit. Further target generation on site is planned in 2023 on an adjacent anomaly to Cummins Range with the intention of https://seafarms.com.au/wp-content/uploads/2021/08/2236045.pdf. https://investorinsight.com.au/browns-range-access-upgrade-to-follow-commitment-from-wa-govt-in-state-budget-northern-minerals/. 13 ASX Announcement 1 May 2023: Cummins Range Resource soars to 519Mt 0.32% TREO, 4.6% P2O5. 11 12 RareX Limited ASX:REE ABN: 65 105 578 756 6 RareX Limited (ASX:REE) @rarex_asx identifying and proving up ground that could potentially be added to the mineral resources underpinning this Study. Key Project Metrics The nominal case presented in the table below, with low initial capital and a simple development plan using 3rd party operators along the supply chain, before transitioning to Stage 2, and ultimately Stage 3, is the preferred approach to developing this Project, balancing economic returns with risk and funding potential. Key project metrics Physicals Product type Av. prod. rate (dry) (ktpa) Average grade (%) Duration (yr) Costs CAPEX (A$M) OPEX (A$M/a) OPEX (A$/t product) Total SUSCAP (A$M/a) Closure (A$M) Products Average TREO production (ktpa) Average P2O5 production (ktpa) Product price (A$/t) Financial outcomes Payback (pre-tax) (yr) Average EBITDA LOM (A$M/a) Total EBITDA (A$M) Government tax (30%) (A$M) Government royalty (A$M) Native title contributions (A$M) NPV8 (pre-tax / post-tax) (A$M) IRR (pre-tax / post-tax) (%) Notes: • • Stage 1 DSO 270 23% P2O5 3 Stage 2 Phos-RE Con 503 33% P2O5; 2.3% TREO 10 Stage 3 Phos-RE Con 480 32% P2O5; 1.6% TREO 5 45 35 122 1 - 304 139 259 7 - 63 171 328 8 41 63 254 12 169 553 7 156 468 1.65 1.41 81 1,450 406 205 84 549 / 333 39% / 27% 1.69 Government royalties: 7.5% DSO, 5% Con Native title (NT) contributions per currently negotiated outcomes - note the agreement has not been executed The production target disclosed in the Study is underpinned by ore feed classifications of 73% Indicated Resources and 27% Inferred. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The estimated Mineral Resources underpinning the production target have been prepared by a competent person or persons in accordance with the requirements in Appendix 5A (JORC Code) as presented to the ASX RareX Limited ASX:REE ABN: 65 105 578 756 7 RareX Limited (ASX:REE) @rarex_asx release on 1 May 2023 “Cummins Range Resource soars to 519 Mt 0.32% TREO, 4.6% P2O5”. The Company confirms that it is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed. The material assumptions underpinning these project metrics are: • The Mineral Resource Estimate released to the ASX on 1 May 2023 14. • A Scoping Study compiled by RareX with supporting consultants including Primero, Mining Plus, Ausenco and MBS Environmental with a typical confidence level of +/-40%. • Mining costs and basic schedule based on typical mining methods and assumed geotechnical parameters. • Metallurgical performance based on laboratory test work released to the ASX on 12 September 2022 15, 4 October 2022 16, 11 October 2022 17, 23 March 2023 18, 8 June 2023 19 and 11 July 2023 20 . The Company confirms that it is not aware of any new information or data that materially affects the announcement. • Environmental factors determined from desktop studies and field surveys. • Materially advanced mining heritage agreement with Jaru traditional owners. • Market confidence derived from memorandum of understanding (MOU) with Ordco, (see ASX announcement dated 7 November 2022) and market knowledge and intelligence from Argus and independent consultants (as referenced throughout this study). Excluded material assumptions are: • No site visit by mining consultant Note: No Ore Reserves have been estimated. ASX Announcement 1 May 2023: Cummins Range Resource soars to 519Mt 0.32% TREO, 4.6% P2O5 ASX Announcement 12 September 2022: Positive Scoping Study for Cummins Range Rare Earths Project 16 ASX Announcement 4 October 2022: Met Testwork Delivers Premium Phosphate Concentrate 17 ASX Announcement 11 October 2022: Positive Ore Sorting Testwork Results for Cummins Range 18 ASX Announcement 23 March 2023: Phosphate Testwork Confirms Potential to Produce Fertiliser 19 ASX Announcement 8 June 2023: Bioavailability Tests Confirm Potential of Cummins Range 20 ASX Announcement 11 July 2023: Phosphoric Acid Leach Test Supports RareX Stage-3 Operations 14 15 RareX Limited ASX:REE ABN: 65 105 578 756 8 RareX Limited (ASX:REE) @rarex_asx This announcement as been approved for release by the Board of Rare X Limited. For more information, please contact: Investors: James Durrant, CEO Media: Nicholas Read, Read Corporate Engage and Contribute: Investor Hub P +61 (0) 8 6383 6593 P +61 (0) 8 9388 1474 W ree.investorhub.com/welcome About RareX Limited – ASX: REE RareX Limited (ASX: REE), a Perth based project development and exploration Company, was founded on the fundamental belief of the electronics revolution and the electric vehicle mega-trend. Our focus is rare earths and associated battery and electronic metals. Cummins Range, in the East Kimberley region of Western Australia, is our flagship project which aims to produce a sustainable, ethical, transparent and secure low carbon rare earth and phosphate supply chain solution for its products which satisfy the two global mega-trends of population growth and electrification. RareX maintains exploration upside programs in the immediate vicinity of the Cummins Range Project and also more broadly to identify targets and progress projects complementary to the founding beliefs and expertise of the core team. Rare earths and in particular, NdPr, are core enablers of decarbonisation and electrification of our society. NdPr supports high strength magnets which enables low carbon technologies, especially in the electric mobility sector, robotics solutions and renewable energy, particularly the wind energy sector. Phosphates are one of the three macro nutrients required in fertilisers. Fertilisers are in ever more demand due to population growth, depleting soils and reduced arable land requiring ever more intensive farming. RareX maintains material investments in Kincora Copper (ASX:KCC), Cosmos Exploration (ASX:C1X) and Canada Rare Earth Corporation (LL.V). For further information on the Company and its projects visit www.rarex.com.au RareX Limited ASX:REE ABN: 65 105 578 756 9 RareX Limited (ASX:REE) @rarex_asx 2023 Cummins Range Scoping Study 1 Introduction The Cummins Range Project (Cummins Range, the Project) is a nationally significant rare earths and phosphate project located in the Kimberley region of Western Australia, 135km southeast of the township of Halls Creek. Halls Creek is well provisioned for infrastructure with power, water and sealed airstrip and there is surplus industrially allocated land. It is serviced by the Great Northern Highway which connects to the Port of Wyndham. Currently, Cummins Range is accessible from the Great Northern Highway via the Tanami Road and the site access track, both currently unsealed. The Tanami Road section is anticipated to be sealed by the time the Project becomes operational, supported by government initiatives, and the Company intends to install a straight access road along the Carranya Station boundary for an improved link to the Tanami Road. Cummins Range was acquired in mid-2019 and, following drilling programs in 2020, 2021, and 2022 presented the most recent JORC Code (2012) compliant Mineral Resource Estimate in May 2023 21. Cummins Range now counts itself as Australia’s largest, undeveloped rare earths project, and a significant source of phosphate. The primary rare earth mineral is monazite, one of the most well understood and processed rare earth minerals in the world. Phosphate is primarily reported in apatite and monazite minerals. RareX is undergoing a resource definition and metallurgical drilling program which will contribute to an updated mineral resource estimate later in 2023. The Resource covers 40% of the carbonatite-ultramafic pipe and is centred around two carbonatite dykes. The larger of the two dykes to the south is a dolomitic intrusion and hosts most of the higher-grade rare earths and the northern thinner dyke is more phosphate dominated. The fresh rock rare earths mineralisation consists of monazite dominated veins or dykes, and the phosphate mineralisation occurs in pervasive coarse apatite. In the weathered portion of the system, a combination of residual, or eluvial, chemical weathering and primary mineralisation has contributed to the strong enrichment of rare earths and phosphate at surface (Siegfried, 2022), with the orebody outcropping in multiple locations. The major host minerals in the weathered portion are monazite and apatite. Significant amounts of niobium and scandium are also present. The 2023 Scoping Study assesses a staged approach to project development, whereby the initial stage (Stage 1) focusses on a very simple mining and crushing operation feed with high grade phosphate rock to produce a direct shipping ore that can be used as direct application fertiliser. The intent is to offset some, or all, of the initial capital requirements with Stage 1 in order to establish a lower cost and lower risk beneficiation operation (Stage 2). Approvals are focussed on Stage 1 initially to allow critical approvals to be progressed quickly due to the less complex starter project, Stage 2 approvals will begin in parallel but are expected to have a longer completion time. Stage 2 focusses on the economics of an open pit mining operation within the weathered zone, where a concentrator is the principal upgrade to the operation. A concentrator requires substantially more capital, 21 ASX Announcement 01 May 2023: Cummins Range Resource Soars to 519Mt 0.32% TREO, 4.6% P2O5 RareX Limited ASX:REE ABN: 65 105 578 756 10 RareX Limited (ASX:REE) @rarex_asx water and power, and fundamentally increases project complexity both from an approvals and operational perspective. The installation of Stage 1, initially, is planned as a strategic de-risking step for Stage 2. The concentrator, delivering a mixed rare earth and phosphate concentrate (apatite and monazite), lifts the Project’s economic metrics and provides a platform for Stage 3 where the ore feed transitions into fresh rock. Stage 3 is anticipated to utilise a modified processing plant from Stage 2 to beneficiate the different mineral aspects of the underlying carbonatite intrusion, where monazite presents in coarse grained crystals. Mineralogy confirms this hypothesis but additional metallurgical testing is required to confirm performance outcomes. Stage 2 buys the Project significant time to optimise the Stage 3 transition. Products, initially rock phosphate and subsequently phosphate-rare earth concentrate are proposed to be shipped from the Port of Wyndham where there is the potential for final product preparation utilising hydroelectric power already reticulated to the port. The markets for the DSO product from Stage 1 are expected to be the direct application market for use on high-value crops where the unique properties of the DSO rock, lack of chemical treatment and its Western Australian source from the Kimberley are anticipated to contribute to a high value-in-use in the local sector, and potentially offshore. Stage 2 product is targeted at the phosphoric acid industry where the installation of a simple acid leaching step, alongside an existing acid facility, is pro