Announcement PDF ASX ANNOUNCEMENT ASX : AXL 30 July 2025 First Stage Metallurgical Results Confirm Ionic Rare Earths and Gallium Recoveries at Caladão Project HIGHLIGHTS: • • • Initial metallurgical test work completed by ANSTO on only two diamond drill samples (DDH-018 and DDH-036, 2km apart) showed positive recoveries by desorption of Rare Earth Elements (REE) using simple, low-cost sodium chloride (NaCl) and ammonium sulfate (AMSUL) leaching methods at pH 4 Strong recoveries of high value magnet rare earth elements 1 (Nd, Pr, Dy, Tb) achieved, up to 52% from first-pass tests. This mirrors initial recovery efficiencies reported from other global ionic clay REE deposits Results confirm a considerable portion of the REE at Caladão are adsorbed onto clays allowing recovery by a simple leaching process DDH-018 – Confirmed Ionic Adsorption Clay REE • • Excellent REE desorption was achieved at DDH-018 using a standard ammonium sulphate solution at pH 4, crucially confirming that the high-grade Caladão Project contains Ionic Adsorption Clay (IAC) REE High value magnetic rare earths (MREO) average head grades of 632ppm MREO over 18m demonstrating exceptional thickness DDH-036 – Exceptional Heavy Rare Earths (HREE) + Yttrium in Primary and Secondary REE phases • High MREO content including up to 139 ppm DyTb and substantial Yttrium concentrations recoverable via acid leach Strong First-Pass Gallium Recoveries • • • Strong initial gallium recovery results, achieving 25% through acid leaching in preliminary tests Elevated near-surface gallium grades in DDH-036 suggests supergene enrichment Ongoing test work underway to develop a dedicated low-cost gallium recovery process Next Steps • • • • 1 Ongoing development of a simple, two-stage heap leach process designed for low CAPEX and OPEX operations, significantly reducing environmental footprint Partnership secured with CETEM (Centro de Tecnologia Mineral), a Federal Research Center dedicated to technological innovation for the mineral industry, to carry out further metallurgical investigations for gallium and REE of the Caladão Project ANSTO partnership continues to progress metallurgical test work aimed at utilising heap leach to optimise previous leach recoveries, impurity removal and precipitation tests for REE Maiden JORC Inferred Resource for Area A expected late July / August 2025 MREO (Magnetic Rare Earth Oxide) = Nd2O3 + Pr6O11 + Dy2O3 + Tb4O7 ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Non-Executive Chairman, Paul Dickson, commented: “We are genuinely excited by these first pass results, which confirm Caladão’s potential to host both ionic and non-ionic rare earths, as well as gallium - all shaping to be recoverable through straightforward leaching techniques. Factoring in the high-grade nature of our REE and gallium intercepts to date, the recovered values of MREO and gallium from these high first pass head grades is in line with world class projects. The use of low-cost reagents like NaCl and AMSUL, combined with the absence of complex mining requirements, positions Axel incredibly well to develop a low-CAPEX, low-OPEX operation with strong environmental credentials. With the growing global focus on supply chain diversification outside China, we believe Caladão has the foundations to become one of the largest and most strategically significant rare earth and gallium projects globally.” Axel REE Limited (ASX: AXL, FSE:HN8, “Axel” or “the Company”) is pleased to announce that the first metallurgical diagnostic test work completed at ANSTO on 3 meter composites from 2 diamond holes, 2 km apart (Figure 1, Appendix 2) has successfully leached ionic adsorption clay rare earths (IAC) by standard ammonium sulphate (AMSUL) leach at pH 4 for 30 min with similar recoveries using NaCl under the same conditions. Acid leach tests were conducted on diamond drill holes DDH-018 and DDH-036 and in a composite with gallium, with promising results to recover both IAC REE (DDH-018) and REE from the primary and secondary REE minerals (DDH-036), as well as gallium, under acid leach conditions (Figure 2). Due to the significant distance between the two holes tested and large-scale REE-Gallium project area (over >65km2), the metallurgical results from these two holes can not be extrapolated across any area in the project at this stage and only represent a style of REE mineralisation in the immediate vicinity to each sampled hole. Gallium Opportunity Axel’s gallium zones, unexpectedly rich and now confirmed recoverable by acid leach, may position the Company to become a significant supplier of this globally critical, high-value metal. Unlike traditional gallium producers (residues from bauxite or sphalerite/zinc ores), Caladão’s gallium is hosted in weathered laterite over granite, reflecting a novel and attractive geochemical context. The presence in the soils and saprolite environment offers potential for hydrometallurgical extraction, via acid leach, in conjunction with the REE, generating gallium as a co-product alongside REE - an uncommon and cost-effective dual-commodity strategy. Initial testing indicates up to 25% gallium recovery via acid leaching, underscoring significant potential for supergene-enriched gallium production. The acid leach method demonstrated that gallium extraction significantly increases with acidity and longer leach duration, indicating further optimisation potential. This initial recovery highlights the project's potential for a dedicated gallium production stream, complementing the extraction of rare earth elements and enhancing overall project economics. ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Figure 1 - Map of central Area A with location of DDH-018 and DDH-036. Figure 2 – Strip log of DDH-18 and DDH-36 ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Low Cost, Low Impact Development Strategy Axel is reviewing the potential for a simple two-stage heap leach process utilising readily available reagents (NaCl or ammonium sulfate). The first stage at pH 4 and the second one increasing the acidity to extract additional REE and gallium. This novel approach may significantly lower environmental impacts and operational costs, aligning with global ESG standards. The proposed heap leach process requires no drilling, blasting, crushing, or milling, and no tailings dam, greatly reducing environmental impact and capital expenditure requirements. The process to collect the Pregnant Leach Solution (PLS) is gravity-fed, with PLS flowing naturally from the various leach pads in the plateaus to a central processing plant - enhancing operational simplicity and sustainability. Further work will include: • Finalisation of maiden JORC Inferred Resource Estimate for Area A in the coming weeks; • Development of two-stage heap leach processing flowsheet at ANSTO for both IAC REE and gallium; • Metallurgical testing for alternative processes to recover the proportion of non-ionic REE; • Ongoing gallium-focused metallurgical testing at CETEM; • Infill drilling to support resource classification upgrade; • Commencement of baseline environmental studies to expedite project permitting. CETEM Partnership for Gallium Concentration Study Axel has engaged Brazil’s national mineral technology research centre, Centro de Tecnologia Mineral (CETEM), to conduct a detailed characterization and concentration study of gallium-bearing material from the Company’s Caladão Project. The study will focus on evaluating the use of magnetic separation techniques to concentrate gallium, a critical metal of growing global strategic importance. Under the agreement, approximately 5 kg of ore selected by AXEL will be analysed at CETEM’s laboratories in Rio de Janeiro. The program includes chemical mapping, particle size distribution, mineralogical studies via XRD and MLA, and magnetic separation tests using high-gradient magnetic equipment. The study will be executed over a 6-week period and all intellectual property generated will remain the property of Axel. Metallurgical Results 39 composites (Appendix 2) representing 3 metres each from two diamond drill holes (DDH-018 and DDH036) from the Caladão Project Area A, 2 km apart, were leached at ANSTO by 0.5 Mol ammonium sulphate as lixiviant at pH 4, for 30 min at ambient temperature. The tests on the 3m composites from the two diamond drill holes showed the presence of IAC REE in the DDH-018 (Figure 3) in the desorbed zone returning strong recoveries of IAC magnetic rare earths by AMSUL up to 48% and 52% using NaCl (Table 1) from an interval of 18 metres with 632ppm MREO average from which 249ppm MREO was leached, representing a high grade nominal extracted MREO compared to other IAC projects. ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au A high average grade of 395ppm MREO remained in primary or secondary mineral phases mixed with clays that contained high Dy and Tb grades that could be recovered under a varied acid condition. Extractions: Hole CLD-DDH-018 REE Extraction (%) 60 50 40 30 20 10 0 0 10 20 30 40 50 Depth (m) TREY-Ce Magnets Figure 3 - Down hole extraction of IAC rare earths from regolith profile. Extraction of magnetic REEs increased with depth up to 35m proportional of desorbable REE with depth for CLD-DDH-018 hole (Appendix 2). Desorption tests were conducted also by 1.5M NaCl solution on 6 selected composites from hole DDH-018, with results similar to the ammonium sulphate leachate (Table 3), which is relevant as NaCl is easy to source in Brazil and a potentially cheaper alternative. Head Ammonium Recovery NaCl Recovered Grade SampleID MREO MREO ppm MREO % MREO ppm MREO % ppm CLD-COMP-007 796 314 39.5 323 40.6 CLD-COMP-008 594 287 48.2 312 52.4 CLD-COMP-009 665 287 43.2 300 45.1 CLD-COMP-010 688 228 33.1 204 29.7 CLD-COMP-011 641 270 42.2 270 42.2 CLD-COMP-012 409 136 33.2 146 35.7 Average 632 254 39.9 259 41.0 Table 1 - Ionics recovered by NaCl and AMSUL leaching test on diamond drillhole CLD-DDH-018. Exceptional nominal average recovered grade of 259ppm MREO for 41% recovery using NaCl on 18 meters of hole DDH-018. The DDH-036 did not show significant IAC REE in the leaching test at pH 4, retaining exceptional high average MREO grades up to 1,125ppm MREO in the primary or secondary mineral phases within the saprolite. The exceptional values of Dy and Tb up to 139ppm with high Yttrium in this hole demonstrated a significant heavy REE (HREE) mineralisation style. ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Additional tests were conducted in four selected samples from DDH-036 for leaching at higher acidity to improve REE recovery (Figure 4). Leach tests were conducted at 4wt% slurry density on pulverized ore in 0.5M (NH4) 2SO4 at room temperature. The pH was decreased from pH 1.5 (for 1 h) and then to pH 1. The test was then maintained at pH 1 for 5 days. Figure 4 - Acid leaching progress for Magnet REE. Magnet extraction from composite 35 from hole DDH-036 had a steady increase in recovery under acid leaching achieving 28% recovery after 5 days, opening a new front to recover REE from non-ionic REE mineralisation at the Caladão project. There was no gallium recovery under leaching (AMSUL) at pH 4 but gallium was extracted in acid leaching with extraction enhanced with leach duration (Figure 5). The varied gallium extraction despite similar grades suggest different gallium mineralisation, where a systematic increase in grade from surface is clearly seen in hole DDH-036. This indicates a supergene enrichment following the same behaviour of iron. The definition of the mineralogical association, in progress, of gallium in this oxidized horizon is crucial to work out a potential concentration method from where it can be extracted with low costs. ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Figure 5 - Acid leaching progress for gallium. This announcement was authorised by the Board of Directors. For enquiries regarding this release please contact: Axel REE Limited investors@axelreelimited.com.au Investor & Media Relations awillis@nwrcommunications.com.au About Axel REE Axel REE is an exploration company which is primarily focused on exploring the Caladão REE-Gallium and Caldas REE Projects in Brazil. Together, the project portfolio covers over 1,000km² of exploration tenure in Brazil, the third largest country globally in terms of REE Reserves. The Company’s mission is to explore and develop REE and other critical minerals in vastly underexplored Brazil. These minerals are crucial for the advancement of modern technology and the transition towards a more sustainable global economy. Axel’s strategy includes extensive exploration plans to fully realize the potential of its current projects and seek new opportunities. Competent Persons Statement The information in this announcement that relates to Exploration Results and Metallurgy and Metallurgical Test Work is based on and fairly represents information and supporting documentation compiled by Mr Antonio de Castro, BSc (Hons), MAusIMM, CREA who acts as AXEL´s Senior Consulting Geologist through the consultancy firm, ADC Geologia Ltda. Mr. de Castro has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the reporting of exploration results and analytical and metallurgical test work he is undertaking 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” (the JORC Code). Mr Castro consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears. ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Forward Looking Statement This announcement contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. These risks and uncertainties could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change. Reference to Previous Announcements In addition to new results reported in this announcement, the information that relates to previous exploration results is extracted from: • AXL ASX release 14 February 2025 “Mineral Resource Estimate and Metallurgy Testing to Commence” The Company confirms that it is not aware of any new information or data that materially affects the information contained in these announcements and, in the case of estimates of mineral resources, that all material assumptions and technical parameters underpinning the estimates in the announcements continue to apply and have not materially changed. ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Appendix 1: JORC Code, 2012 Edition – Table 1 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 ANSTO, Australian Nuclear Science and Technology Organization were supplied with 39 composites samples numbered CLD-COMP-001 to 039 compiled from the weathered portion of area A in the Caladão project. They consist of disaggregated rejects from ½ core, received back from SGS laboratory derived from the 2024 drill program. Collar locations are presented in appendix 1. ANSTO were tasked to conduct 39 diagnostic desorption tests with ammonium sulfate followed by tests with 4 selected samples with ammonium sulfate at reduced pH to access the potential for additional REE recovery and 3 acid tests on selected samples to asses gallium recovery (refer table 3, 4, 5 and 6). Test work results are for 39 individuals 3 meter composite samples, from the diamond holes DDH018 and DDH-036, both from 2m to end of the saprolite zone. The use of disaggregated rejects and the its composites are considered appropriate for leaching test works and reporting exploration results. Drilling techniques Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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). The drilling technique is a diamond drill rig Mach 32003 with HQ diameter using the wireline technique. Each drill site was cleaned and leveled with a backhoe loader. All holes are vertical. Drilling is stopped once the intersection with unweathered basement intrusive is confirmed = +3 to 5m of fresh rock. 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. ASX : AXL ACN: 665 921 273 Core recoveries were measured after each drill run, comparing the length of core recovered vs. drill depth. Overall Core recoveries are 92.5%, achieving 95% in the saprolite target horizon, 89% in the transitional rock (fresh fragments in clay), and 92.5% in fresh rock. 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Criteria JORC Code explanation Commentary 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. 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. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. The geology was described in a core facility by a geologist - logging focused on the soil (humic) horizon, saprolite, and fresh rock boundaries. The depth of geological boundaries is honored and described with downhole depth – not meter by meter. The total lengths of all holes have been geologically logged. Other important parameters for collecting data include grain size, texture, and color, which can help identify the parent rock before weathering. All drilled holes have a digital photographic record. The log is stored in a Microsoft Excel template with inbuilt validation tables and a pick list to avoid data entry errors. Subsampling 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. ASX : AXL ACN: 665 921 273 The core was cut in half which was taken on a meter basis to SGS for preparation. Sample preparation (drying, crushing, splitting and pulverising) is carried out by SGS laboratory, in Vespasiano MG, using industry-standard protocols: Dried at 100°C, the fresh rock is 75% crushed to sub 3mm, the saprolite is just disaggregated with hammers, riffle split sub-sample, 250 g pulverized to 95% passing 150 mesh, monitored by sieving, aliquot selection from pulp packet. Each disaggregated rejects were riffled split at equal weight to produce the 3 meter composites. No duplicate or repeat composite sampling has been run at this stage. As received disaggregate rejects are considered appropriate to represent the REE mineralization. 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Criteria JORC Code explanation Commentary 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. All head samples were analysed by a combination of XRF at ANSTO and fusion digest/ICP-MS (ALS, Brisbane) for the following elements: For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. XRF – Al, As, Ba, Ca, Co, Cr, Cs,Cu, Fe, Hf, K, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, S, Si, Sn, Ta, Ti, V, Zn, Zr Lithium Tetraborate Fusion Digest/ICP-MS – Ba, Ce, Cr, Cs, Dy, Er, Eu, Ga, Gd, Hf, Ho, La, Lu, Nb, Nd, Pr, Rb, Sc, Sm, Sn, Sr, Ta, Tb, Th, Ti, Tm, U, V, W, Y, Yb, Zr A summary of the REE head analysis for each sample is presented in table 3 for hole 18 and for hole 36. Full chemical analysis was provided in the Data Pack. Liquors were analysed by ALS for ICPMS (because of the low detection limits required) and at ANSTO by ICPOES . ANSTO and ALS included standards and blank materials to monito the performance of the laboratory. The standards and blanks used displayed acceptable levels of accuracy and precision. 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. Result reviewed by the Company´s Chief Geologist and the Operator Manager, and specialists at ANSTO. Apart from the routine QA/QC procedures by the Company and the laboratory, there was no other independent or alternative verification of sampling and assaying procedures. No twinned holes were used. Primary data is stored both in its source electronic form and where applicable, on paper. Assay data is retained in both the original certificate (pdf) form, where available, and the text files received from the laboratory. Primary data collection follows a structured protocol, with standardized data entry procedures ensure that any issues are identified and rectified. All data is stored both in physical forms, such as hard copies and electronically, in secure databases with regular backups. The adjustments to the data were made when required, converting the rare earth element values into the industry standard rare earth format. The conversion factors used are included in the table below. (source: https://www.jcu.edu.au/advanced- ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Criteria JORC Code explanation Commentary analytical-centre/resources/element-tostoichiometric-oxide-conversion-factors) Element ppm Conversion Factor Oxide Form La 1.1728 La2O3 Ce 1.2284 CeO2 Pr 1.2082 Pr6O11 Nd 1.1664 Nd2O3 Eu 1.1579 Eu2O3 Gd 1.1526 Gd2O3 Tb 1.1762 Tb4O7 Dy 1.1477 Dy2O3 Ho 1.1455 Ho2O3 Er 1.1435 Er2O3 Tm 1.1421 Tm2O3 Yb 1.1387 Yb2O3 Lu 1.1371 Lu2O3 Y 1.2699 Y2O3 Sc 1.5337 Sc2O3 Ga 1.3442 Ga2O3 Rare earth abbreviations typically used in industry reporting and throughout this report were in accordance with IUPA guidelines, and were as follows: REE - Rare Earth Elements, value presented as oxide assay. REO – Rare Earths Oxides, value presented as oxide assay. TREE – La+Ce+Pr+Nd+Sm+Eu+Gd+Tb+Dy+Ho+Er+Tm+Yb+Lu plus Y and Sc. MREE – Pr, Nd, Tb, Dy. LREE: La+Ce+Pr+Nd and Sm. HREE: Eu+Gd+Tb+Dy+Ho+Er+Tm+Yb+Lu plus Y. TREO (Total Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Y2O3 + Lu2O3 plus Y2O3 and Sc2O3 MREO (Magnetic Rare Earth Oxide) = Pr6O11 + Nd2O3 + Tb4O7 + Dy2O3 ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Criteria JORC Code explanation Commentary LREO (Light Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 HREO (Heavy Rare Earth Oxide) = Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 plus Y2O3 NdPr = Nd2O3 + Pr6O11 DyTb = Dy2O3 + Tb4O7 CREO (Critical Rare Earth Oxide) = Nd2O3 + Eu2O3 + Tb4O7 + Dy2O3 + Y2O3 (From U.S. Department of Energy, Critical Material Strategy, December 2011) There are three commonly applied approuches to calculating extraction for leaching : Tail over Head, which is calculated as 1 – tail grade/head grade. Where notable mass loss occours in leaching, as is common for acid leaching, the tail grade is increased due to the mass loss and would result in an underestimation extraction. In this case, the tail grade is corrected via accounting for the solids mass loss, or via a « tie-in « with a non-soluble element such as Pb. Mass Basis, which is calculated as element mass in liquor/(element mass in liquor + element mass in solids) for the discharge liquor and solids. This method ignores the head assay and somewhat eliminates sampling error impacting the head assay. It also accounts for any mass loss within the test. Liquor out over solids in, which is calculated as element mass in liquor/element mass in solids in. This method is the most prone to error, as it includes sampling errors on the head assay, error in the liquor assay and error in the liquour SG assay. Small errors in the liquor assay can results in large percentage differences in extraction when the extraction extends its high (>60-70%) due to the nature of the calculation. For the diagnostic tests, which are low solids density and with no intermediate samples taken, ANSTO uses the liquor out over solids for the REEs and Al, Fe, etc. Ansto have found that for the clays, sampling and assaying of solids is quite problematic (due to the ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Criteria JORC Code explanation Commentary presence of REEs in a number of phases). When conducting leach tests at higher slurry densities, it uses both methods, 1 and 3. In these diagnostic tests reported it used pulverized samples to enhance sample representivity. Also the diagnostics are partly a screening test soi t minimise assays to reduce costs for a large number of tests. It found that results for slurry leaching of IADs are very similar to the diagnostic tests results. Agrees that if extraction >60-70%, it is preferred to assay the residues. 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. Drill hole collar locations were surveyed using a Real Time Kinematic (RTK) GPS unit, ensuring sub-metre accuracy for all recorded positions. All spatial data were captured and reported using the SIRGAS 2000 geodetic datum, projected to UTM Zone 24 South. Specification of the grid system used. Quality and adequacy of topographic control. 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. Orientation of data in relation to geological structure ASX : AXL ACN: 665 921 273 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 39 individual composites were carried out on 2 diamond drillholes from 2m down to the fresh rock, samples numbered CLD-COMP-001 to 039 (table 2) from the DDH-018 and DDH-036 which are 1.94 km apart. Each one represents a different Style of REE mineralization in the area A. No resources are reported. The disaggregated rejects from each 1 metre interval returned from SGS over a 3 metre interval stablished around 2kg composites for test works at ANSTO. All drill holes were drilled vertically, which is deemed the most suitable orientation for this type of supergene deposit. These deposits typically have a broad horizontal extent relative to the thickness of the mineralised body, exhibiting horizontal continuity with minimal varia