Announcement PDF ASX ANNOUNCEMENT ASX: AXL | FSE: HN8 30 July 2026 ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au CaldasSouth Results Identify Second Potential ISR Area Highlights • Second potential ISR area identified: total and magnesium sulphate leach assays identify a laterally continuous ionic adsorption clay (IAC) rare earth system at Caldas South • Supports Axel’s ISR strategy: Caldas South has the characteristics targeted for low-cost, low- impact in-situ recovery (ISR) • Standout soluble leach results: 6m at 921ppm soluble TREO (35% MREO), including 1m at 1,542ppm soluble TREO (38% MREO) • Continuous soluble mineralisation: ionic rare earth mineralisation occurs in an exchangeable form over continuous down-hole intervals, a key geological requirement for ISR • Broad, near-surface system: total assays define extensive clay-hosted mineralisation from surface, within deeply weathered granitic and gneissic saprolite • Complements 572Mt REE Caladão Project: Caldas South has the potential to follow the staged ISR pathway being developed at Woolrich, which remains Axel’s primary focus Axel REE Limited (ASX: AXL, FSE: HN8, Axel or the Company) announces rare earth elements (REE) assays and magnesium sulphate ionic leach results from auger drilling at the Caldas South Block, located along the south-western margin of the Poços de Caldas Alkaline Complex in Minas Gerais, Brazil. These results identify Caldas South as a second area for potential in situ recovery (ISR) pathway within Axel’s portfolio. The Company’s immediate focus remains its flagship Woolrich ISR deposit within the 572Mt REE Caladão Project, where recent column leach testwork has successfully demonstrated strong REE ISR amenability. Those results underpin the upcoming exploratory ISR field trials at Woolrich and the low- impact, lower-capital-intensity ISR development model the Company is targeting. Managing Director, Patience Mpofu, commented: “These results establish Caldas South as a potential second ionic rare earth district within Axel’s portfolio. The drilling confirms broad, near-surface mineralisation, and the leach results show that a meaningful portion of that inventory sits in an exchangeable ionic form – the key characteristic we look for in a potential ISR target. Encouragingly, the mineralisation is hosted in weathered granitic and gneissic saprolite outside the central alkaline complex, a different geological setting that warrants dedicated permeability and hydrogeological assessment. Woolrich remains our most advanced project and primary focus. Our objective is to build a portfolio of ionic rare earth projects capable of progressing through a common, modular and potentially low-impact ISR development pathway, and Caldas South adds meaningful scale and optionality to that strategy.” ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Figure 1. Caldas REE and Caladão REE-Gallium project locations in Brazil ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Figure 2. Caldas Project Total and Soluble Assays: Two Complementary Measures Two assay types are reported. Total rare earth oxides (TREO) define the abundance and continuity of REE mineralisation within the clay profile, while magnesium sulphate leach assays measure the soluble, ionically-adsorbed rare earth oxides (SREO) fraction that is potentially recoverable by ISR. Because ISR relies on solution progressively exchanging adsorbed rare earth ions through a permeable clay profile, continuity of the soluble fraction, rather than total grade alone, is an important geological characteristic. Total assays therefore define the geological footprint of the system, while SREO assays support assessment of its potential suitability for ISR. ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Strong Ionic Adsorption REE Results The initial magnesium sulphate leach programme conducted by SGS Laboratories confirmed thick, near- surface intervals containing high concentrations of ionically adsorbed rare earths at Caldas South. Key results include 6m @ 921ppm STREO (35% MREO) from 3m in CAL-AUG-125, including 1m @ 1,542ppm STREO (38% MREO) from 5m. These soluble grades compare favourably with soluble grades reported from other ionic clay projects being developed internationally. Ionic leach testwork has so far been completed on selected representative auger holes. Caldas South Block The Company completed an initial programme of 28 auger holes for 315 metres across seven Exploration Licences covering 12,008.69 hectares on the south-western margin of the Poços de Caldas Alkaline Complex (Figure 3). The licences overlie the Varginha-Guaxupé Complex, where granulitic basement, biotite gneiss and syeno-monzogranite form the principal bedrock beneath the weathered profile targeted by the programme. These results identify Caldas South as a potential second mineralised district capable of progressing through the technical pathway being developed at the 572Mt REE Caladão Project. Subject to confirmation of permeability, hydraulic continuity, containment and recoverability, Caldas South could provide an additional ionic REE system within the broader Axel portfolio. ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Figure 3. Map showing spatial distribution of the total analysis results. ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au HoleID From To Interval TREO ppm MREO ppm MREO % DyTb ppm NdPr ppm HREO ppm HREO % CAL-AUG-099 0.00 8.00 8.00 716 192 26 15 177 163 22 CAL-AUG-101 0.00 14.00 14.00 959 243 24 24 220 212 21 CAL-AUG-104 5.00 18.00 13.00 903 264 29 17 248 166 19 CAL-AUG-105 9.00 15.00 6.00 1,258 202 19 4 199 42 4 CAL-AUG-106 0.00 9.00 9.00 1,110 269 24 18 252 169 15 CAL-AUG-108 6.00 14.00 8.00 721 198 28 21 177 214 30 CAL-AUG-110 0.00 10.00 10.00 1,095 242 22 22 220 210 19 CAL-AUG-113 0.00 8.00 8.00 2,540 472 19 12 460 144 7 CAL-AUG-119 0.00 5.00 5.00 796 188 24 17 171 162 20 CAL-AUG-120 0.00 8.00 8.00 1,452 408 28 43 364 401 27 CAL-AUG-121 1.00 4.00 3.00 1,093 190 18 15 175 146 14 CAL-AUG-122 0.00 13.00 13.00 1,009 182 19 5 177 57 7 CAL-AUG-125 0.00 9.00 9.00 1,847 465 25 51 413 546 27 Table 1 - Summary of significant total assay auger TREO intercepts (using 500 ppm TREO cutoff) Leaching assay results Following the review of total rare earth assay results, samples from 10 selected auger drill holes at the Caldas South Block were submitted to SGS for magnesium sulphate leach testing. The programme was designed to evaluate the SREO component and assess the potential for ionic adsorption clay-style mineralisation. Results returned several intervals above the 200 ppm SREO cut off, with the strongest result from CAL-AUG-125 returning 6 m @ 921 ppm SREO. These results compare favourably with reported soluble grades from several Chinese ionic adsorption clay deposits, including Longnan Zudong REE Mine in Gannan, Jiangxi - the largest regolith-hosted HREE deposit in the world1 . Further drilling and metallurgical testwork will be required to confirm the continuity, scale and recoverability of the mineralisation. 1 Li et al. (2019), Economic Geology, Vol. 114, pp. 541–568; p. 541. doi:10.5382/econgeo.4642. ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Figure 4. Map showing the Intersections of Leaching Results (200 ppm SREO cut-off) Figure 5. Schematic Cross Section through auger hole CAL-AUG-125. ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au HoleID From To Interv al STREO ppm MREO ppm MREO/ SREO % Soluble NdPr ppm Soluble DyTb ppm Soluble HREO ppm CAL-AUG-104 11.00 16.00 5.00 341 125 36 112 12 132 CAL-AUG-106 1.00 8.00 7.00 337 136 40 127 8 88 CAL-AUG-108 6.00 13.00 7.00 323 108 33 94 13 147 CAL-AUG-110 0.00 2.00 2.00 366 126 35 115 11 128 CAL-AUG-120 2.00 4.00 2.00 404 147 36 129 18 202 CAL-AUG-120 6.00 8.00 2.00 314 102 32 88 15 180 CAL-AUG-125 3.00 9.00 6.00 921 326 35 282 44 467 Table 2. Summary of significant auger STREO intercepts (using 200 ppm STREO cutoff). About the Caldas Project The Caldas Project, held 100% by Axel REE, is located within the Poços de Caldas Alkaline Complex, Minas Gerais State,Brazil -one of the mostdistinctive geologicalfeatures in South America andglobally recognised for its association with rare earth element (REE) and uranium mineralisation. The project area consists of multiple exploration licences covering both inside the Caldera and along the weathering contact of the Caldera domains, with a combined area of more than 228km². Axel’s tenements are strategically distributed across the northern, southern, and central sectors of the Poços de Caldas Alkaline Complex, providing comprehensive geological coverage of the system. Woolrich remains Axel's primary development focus. The Caldas South programme is designed to identify and prioritise additional ionic adsorption clay targets capable of progressing through the Company's staged technical evaluation process over time. This announcement was authorised by the Board of Directors. For enquiries regarding this release please contact: Axel REE Limited P: +61 3 9249 9859 E: investors@axelreelimited.com.au Gabriella Hold The Capital Network P: +61 2 7257 7338 E: gaby@thecapitalnetwork.com.au Julia Maguire The Capital Network P: +61 2 7257 7338 E: julia@thecapitalnetwork.com.au About Axel REE Axel REE is a critical minerals exploration company which is primarily focused on developing the Caladão REE-Gallium and Caldas REE Projects in Brazil, the third largest country globally in terms of REE Reserves. Axel is advancing a low-cost, modular development concept at Caladão based on in situ recovery (ISR) of ionic clay-hosted rare earth mineralisation using magnesium sulphate leaching. This approach aims to minimise surface disturbance and capital intensity by deploying modular hydrometallurgical plants within wellfields. In parallel, Axel is progressing metallurgical programs to unlock additional value from gallium and scandium within the near-surface oxidised profile. ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au JORC 2012 Mineral Resource Deposit JORC 2012 Classification Tonnes and Grade Caladão Project – Area A Inferred 233Mt @ 2,133ppm TREO Marambaia – Area B Inferred 126Mt @ 1,154ppm TREO Tiger Creek – Area B Inferred 85Mt @ 1,050ppm TREO Woolrich – Area B Inferred 128Mt @ 1,013ppm TREO Inferred Rare Earth MRE Area A & Area B for a total MRE tonnage of 572Mt. JORC 2012 Mineral Resource Deposit JORC 2012 Classification Tonnes and Grade Caladão Project – Area A Inferred 100Mt @ 42.0ppm Gallium Caladão Project – Area B Inferred 339Mt @ 36.6ppm Gallium Inferred Gallium MRE Area A & Area B for a total MRE tonnage of 439Mt. Competent Persons Statement The information in this announcement that relates to Exploration Results 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 activity 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. Cautionary statement The Caladão Mineral Resource Estimate is currently classified as Inferred. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration will result in the determination of Indicated or Measured Mineral Resources or an Ore Reserve. Any development concept is subject to further technical studies, regulatory approvals and funding. 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 tonewresultsreported inthis announcement,the information thatrelates to previous exploration results is extracted from: ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au • AXL ASX release 23 June 2026 “Axel Validates Ionic REE ISR Development Pathway” • AXL ASX release 23 December 2025 “Axel MRE Delivers 145% REE Growth and 339% Gallium Growth” The Company confirms that it is not aware of any other 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 | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 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 (eg 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 pulverized 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 (eg submarine nodules) may warrant disclosure of detailed information. • Auger holes • At each drill site, the surface was thoroughly cleared. Soil and saprolite samples were gathered every 1 meter with precision, carefully logged and photographed. Each sample was then sealed in plastic bags and clearly labelled for identification. 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). Augerdrilling • A motorized 2.5HP soil auger with a 4” drill bit, reaching depths of up to 20 meters, was used to drill. The drilling is an open hole, meaning there is a significant chance of contamination from the surface and other parts of the auger hole. Holes are vertical and not oriented. 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 Auger drilling No recoveries arerecorded. Recovery is not routinely measured for this style of auger drilling. • No relationship is believed to exist between recovery and grade. ASX : AXL | FSE: HN8 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 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 Company´s geological logging facility by the project 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. Other important parameters for collecting data include grain size, texture, and color, which can help identify the parent rock beforeweathering. 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. 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. Sample preparation (drying, crushing, splitting and pulverising) is carried out by SGS laboratory, in Vespasiano MG, using industry-standard protocols: 1. total assay by sodium metaborate, • dried at105°C • the saprolite is just disaggregated with hammers • Riffle split sub-sample • 250 g pulverized to 95% passing 150 mesh, monitored bysieving. 2. For leaching with magnesium sulfate, • dry sieving at 4mm (SCR33) discharging the retained material • <4mm homogenized • 40g aliquot selectionfrom pulppacket 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 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. Total Analysis – Sodium Peroxide Fusion (ICM90A) blank sample, 1 certified reference material (standard) sample and 1 field duplicate sample were inserted by company into each 25 sample sequence. Standard laboratory QA/QC procedures were followed, including inclusion of standard, duplicate and blank samples. The assay technique used was Sodium Peroxide Fusion ICP OES / ICP MS (SGS code ICM90A). Elements analyzed at ppm levels: Al 100 – 250,000 Dy 0.05 – 1,000 Ce 0.1 – 10,000 Eu 0.05 – 1,000 Er 0.05 – 1,000 Gd 0.05 – 1,000 La 0.1 – 10,000 Ho 0.05 – 1,000 ASX : AXL | FSE: HN8 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 Nd 0.1 – 10,000 Li 10 – 15,000 Sm 0.1 – 1,000 Pr 0.05 – 1,000 Th 0.1 – 1,000 Tb 0.05 – 1,000 U 0.05 – 10,000 Tm 0.05 – 1,000 Yb 0,1 – 1,000 Y 0.05 – 1,000 The sample preparation and assay techniques used are industry standard and provide total analysis. The SGS laboratory used for assays is ISO 9001 and 14001 and 17025 accredited. Leaching analysis – Magnesium Sulphate (ICM696) The assay technique used was 40gr of the sample in 160 ml solution of magnesium sulphate 0.5M in a Becker for 30 minutes (SGS code ICM 696). After the lixiviation the pulp is vacuum filtered. One aliquot is extracted from the solution and diluted 25 times with HNO3 2%. The solution is analysed by ICP-MS. Elements analysed at ppm levels: Al 2 – 8,000 Nd 2.4 – 800 Ba 20 – 800 Ni 0.2 – 800 Be 0.4 – 800 P 4 – 8000 Bi 0.8 – 800 Pb 0.32 – 800 Ca 10 – 8000 Pr 0.06 – 800 Cd 0.12 – 800 Rb 0.8 – 200 Ce 0.20 – 800 Re 0.4 – 200 Co 0.20 – 800 Sc 0.24 – 800 Cr 1 – 800 Sm 0.04 – 200 Cs 0.2 – 200 Sn 1.2 – 200 Cu 0.04 – 800 Sr 0.16 – 800 Dy 0.028 – 200 Ta 0.2 – 200 Er 0.02 – 200 Tb 0.08 – 200 Eu 0.02 – 200 Th 0.2 – 200 Fe 2 – 8000 Ti 5 – 8000 Gd 0.02 – 200 Tl 0.08 – 200 Ho 0.016 – 200 Tm 0.012 – 200 In 0.08 – 200 U 0.04 – 200 K 20 – 8000 V 2 – 800 La 1 – 800 W 1 – 800 Li 0.4 – 800 Y 0.2 – 800 ASX : AXL | FSE: HN8 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 Lu 0.04 – 200 Yb 0.4 – 200 Mn 0.4 – 8000 Zn 0.5 – 800 Mo 0.2 – 200 Zr 0.2 – 800 Na 20 – 8000 The sample preparation and assay techniques used are industry standard and provide partial analysis. The SGS laboratory used for assays is ISO 9001 and 14001 and 17025 accredited. 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. 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 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 transforming the elementvaluesinto the oxide values.The conversion factors used are included in the table below. (source: https://www.jcu.edu.au/advanced-analytical- centre/resources/element-to-stoichiometric-oxide- conversion-factors) Element ppm Conversion Factor Oxide Form Al 1.8895 Al2O3 Ce 1.2284 CeO2 Dy 1.1477 Dy2O3 Er 1.1435 Er2O3 Eu 1.1579 Eu2O3 Ga 1.3442 Ga2O3 Gd 1.1526 Gd2O3 Ho 1.1455 Ho2O3 La 1.1728 La2O3 Lu 1.1371 Lu2O3 Nd 1.1664 Nd2O3 Pr 1.2082 Pr6O11 Sm 1.1596 Sm2O3 Tb 1.1762 Tb4O7 Tm 1.1421 Tm2O3 Y 1.2699 Y2O3 Yb 1.1387 Yb2O3 Rare earth oxide is the industry accepted form for reporting rare earths. The following calculations are used for compiling REO into their reporting and evaluation groups: TREO (Total Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Y2O3 + Lu2O3 ASX : AXL | FSE: HN8 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 HREO (Heavy Rare Earth Oxide) = Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Y2O3 + Lu2O3 CREO (Critical Rare Earth Oxide) = Nd2O3 + Eu2O3 + Tb4O7 + Dy2O3 + Y2O3 (From U.S. Department of Energy, Critical Material Strategy, December 2011) MREO (Magnetic Rare Earth Oxide) = Nd2O3 + Pr6O11 + Tb4O7 + Dy2O3 NdPr = Nd2O3 + Pr6O11 DyTb = Dy2O3 + Tb4O7 In elemental from the classifications are: TREE: La+Ce+Pr+Nd+Sm+Eu+Gd+Tb+Dy+Ho+Er+Tm+Tb+Lu+Y HREE: Sm+Eu+Gd+Tb+Dy+Ho+Er+Tm+Tb+Lu+Y CREE: Nd+Eu+Tb+Dy+Y LREE: La+Ce+Pr+Nd The Soluble grades follows the same procedures, including the letter S for soluble when required. 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. • Specification of the grid system used. • Quality and adequacy of topographic control. The UTM SIRGAS2000 zone 23S grid datum is used for current reporting. The auger collar coordinates for the holes reported are currently controlled by hand-held GPS. 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. Collar plan displayed in the body of the release. No resources are reported. The drilling density is appropriate for reporting Exploration Results but is insufficient for Mineral Resource estimation. 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. All auger 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 variation in thickness. Given the extensive lateral spread and uniform thickness of the deposit, vertical drilling is optimal for achieving unbiased sampling. This orientation allows for consistent intersections of the horizontal mineralised zones, providing an ASX : AXL | FSE: HN8 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 accurate depiction of the geological framework and mineralisation. No evidence suggests that the vertical orientation has introduced any sampling bias concerning the key mineralised structures. The alignment of the drilling with the deposit's known geology ensures accurate and representative sampling. Any potential bias from the drilling orientation is considered negligible. Sample security • The measures taken to ensure sample security. All samples were collected by field personnel and securely sealed in labeled plastic bags to ensure proper identification and prevent contamination. All samples for submission to the lab are packed in plastic bags (in batches) and sent to the lab where it is processed as reported above. The transport from the Caldas Project to the SGS laboratory in Poços de Caldas-MG was undertaken by field personnel. Audits or reviews • The results of any audits or reviews of sampling techniques and data. No independent audit has beencompleted. Section 2 Reporting of Exploration Results 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. All samples were sourced from tenements fully owned by Axel REE Ltd. Exploration done by other parties • Acknowledgment and appraisal of exploration • by other parties. In the Caldas region, there is currently ongoing REE ionic absorption clay mineral exploration programs in course by other junior explorers. Geology • Deposit type, geological setting and style of mineralisation. The rare earth elements (REE) deposit type is supergene and related to Ionic Adsorption Clay minerals (IAC). The Caldas South licences are located along the external contact of the Poços de Caldas Alkaline Complex, where deeply weathered granitic and gneissic rocks of the Varginha–Guaxupé Complex have developed extensive saprolite hosting Ionic Adsorption Clay (IAC) rare earth mineralisation. Drill hole Information • A summary of all information material to the understanding of the exploration results, including a tabulation of the Reported in the body of the announcement. ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au following information for all Material drill holes: o Easting and northing o