Announcement PDF ASX ANNOUNCEMENT ASX: AXL | FSE: HN8 10 September 2025 New Gallium and REE Zones Expand Caladão Project Scale Potential Highlights • • • • • • • Strong gallium results from newly identified Area C, together with additional high-grade gallium and rare earth element results from Area B, advance the Caladão Project New gallium and REE mineralised zone, Area C, identified from auger drilling Area C returned shallow surface gallium intercepts including: CLD-AUG-490 8m @ 70g/t Ga2O3 from surface CLD-AUG-504 10m @ 64g/t Ga2O3 from surface CLD-AUG-535 6m @ 66g/t Ga2O3 from surface Area B step-outs also expand mineralisation with multiple thick, high-grade gallium hits: CLD-AUG-479 17m @ 69g/t Ga2O3 from surface CLD-AUG-546 7m @ 72g/t Ga2O3 from surface CLD-AUG-485 15m @ 62g/t Ga2O3 from surface CLD-AUG-487 17m @ 65g/t Ga2O3 from surface Surface REE auger results at Area B include broad TREO intervals with strong magnetic REE proportions: CLD-AUG-520 10m @ 2,311ppm TREO (30% MREO) from 4m CLD-AUG-515 10m @ 1,821ppm TREO (33% MREO) from 4m CLD-AUG-510 10m @ 1,668ppm TREO (29% MREO) from 5m Extended zones add 23.4km2 of additional mineralisation to now cover a 115.6km2 mineralised zone Gallium-REE mineralisation to potentially expand the 100Mt Gallium Inferred Resource from Area A, one of the largest gallium deposits in the world and the first in-situ discovery in Brazil not associated with bauxite/alumina processing Caladão REE-Gallium Project • • • • Caladão Project is strategically located in Brazil’s Lithium Valley, a Tier 1 jurisdiction with worldclass infrastructure and mining ecosystem, including low-cost power, sealed highways and near existing mining hubs and ports Project covers ~430km2 with only 25% of mineralised area drilled to date for both Gallium and REE Additional Maiden REE Mineral Resource Estimate near completion from Area A Ongoing test work underway to develop low-cost recovery processes for REE and Gallium ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Axel REE Limited (ASX: AXL, FSE:HN8, “Axel” or “the Company”) is pleased to announce that new gallium and rare earth elements (REE) mineralised zones (Area C) have been identified at the Company’s flagship Caladão Project, located in the Lithium Valley, Minas Gerais state of Brazil. Recent auger drilling at Area C and the northeastern and eastern extensions of Area B has confirmed significant gallium enrichment and REE mineralisation within the weathering profile. These results substantially expand the known mineralised footprint at Caladão, reinforcing the Project’s potential to emerge as a globally significant source of both critical rare earths and gallium, key inputs for advanced technologies and military defence sectors. Non-Executive Chairman, Paul Dickson, commented: “The latest results from our high-grade Caladão REE-Gallium Project continue to demonstrate its district-scale potential. Area C is a new surface gallium discovery, complementing the discrete gallium horizon already defined at Area A and the growing extents at Area B. Consistent thick, high-grade gallium intercepts, alongside broad TREO intervals with strong magnetic REE content, reinforce Caladão’s potential as a unique district-scale system. We have systematically delivered a maiden 100Mt gallium resource and have built a comprehensive dataset across Areas A and B. Now we have added Area C, with only ~25% of the mineralised footprint drilled so far. Our focus is twofold: resource growth – particularly the maiden gallium MRE for Area B and the near-term REE MRE – and metallurgy to enable low-cost processing. With infrastructure advantages in Brazil’s Lithium Valley and continued exploration success, Axel is strategically advancing Caladão towards becoming a significant future supplier of gallium and rare earth elements.” 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. Caladão project with Area A , B and C over Geology. New Mineralised Zone – Area C The recently identified Area C target represents a new mineralisation zone within the Caladão Project, delineated during the latest auger drilling campaign which consisted of 7 holes for 48m. Assays results returned high-grade gallium up to 70g/t Ga2O3 from surface (see Table 1). The target is characterised by lateritic cover developed over leucogranitic and monzogranitic rocks, distinctly different from the Caladão Granite and Padre Paraíso Charnockite which host the mineralisation at Areas A and B. These lateritic profiles occur on well-developed plateaus, where intense tropical weathering has favoured the enrichment and concentration of gallium. Auger drilling confirmed significant gallium values within these ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au lateritic horizons, highlighting the economic potential of Area C as an additional growth opportunity for the Project. The geological setting and the positive gallium results mark Area C as a promising new target, expanding the footprint of mineralisation beyond the previously defined Areas A and B, and reinforcing the potential of the district to host multiple styles of gallium and rare earth element enrichment. Figure 2. Geological map of Caladão Area C, highlighting the distribution of Gallium intersections, using a 50 g/t Ga2O3 cutoff. Figure 3. Cross section of auger drillholes CLD-AUG-490 and CLD-AUG-492 – Area C. 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 CLD-AUG-490 CLD-AUG-491 CLD-AUG-492 CLD-AUG-504 CLD-AUG-529 CLD-AUG-535 CLD-AUG-537 From (m) 0.00 0.00 0.00 0.00 0.00 0.00 1.00 To (m) 8.00 5.00 5.00 10.00 6.00 6.00 7.00 Length (m) 8.00 5.00 5.00 10.00 6.00 6.00 6.00 Ga2O3 (g/t) 70.07 52.96 60.76 64.25 60.26 65.64 55.34 Table 1. Summary of significant Gallium intercepts from auger drilling (AUG) samples (50g/t Ga2O3 and min. 5m composite length cutoff) on area C. Photo 1. Chip Box of auger hole CLD-AUG-490 showing Ga2O3 results. Further Gallium Intercepts at Area B With strong results including 17m @ 69g/t Ga2O3 from surface, the latest analytical results from auger drilling at Area B have expanded the mineralised zones of gallium and rare earth elements in the central portion of the target (See Tables 2 and 3). In addition, new mineralised zones were identified along the eastern and north-eastern sectors of Area B. These results continue to demonstrate the scale and consistency of mineralisation across Area B, reinforcing the potential of the Caladão Project to emerge as a project of global significance. 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. Distribution of Gallium intercepts at Area B over Geology. HoleID CLD-AUG-478 CLD-AUG-479 CLD-AUG-480 CLD-AUG-481 CLD-AUG-483 CLD-AUG-484 CLD-AUG-485 CLD-AUG-487 CLD-AUG-489 CLD-AUG-500 CLD-AUG-502 CLD-AUG-506 CLD-AUG-508 CLD-AUG-508 ASX : AXL | FSE: HN8 ACN: 665 921 273 From (m) 0.00 0.00 5.00 3.00 0.00 0.00 0.00 0.00 5.00 1.00 1.00 0.00 1.00 8.00 To (m) 6.00 17.00 16.00 12.00 5.00 7.00 15.00 17.00 11.00 6.00 9.00 9.00 6.00 15.00 832 High St Kew East VIC Australia 3102 Length (m) 6.00 17.00 11.00 9.00 5.00 7.00 15.00 17.00 6.00 5.00 8.00 9.00 5.00 7.00 Ga2O3 (g/t) 52.65 68.95 59.76 59.14 55.38 62.22 61.56 65.00 70.8 54.57 55.28 56.75 52.69 52.42 www.axelreelimited.com.au info@axelreelimited.com.au HoleID CLD-AUG-509 CLD-AUG-513 CLD-AUG-514 CLD-AUG-519 CLD-AUG-521 CLD-AUG-526 CLD-AUG-527 CLD-AUG-528 CLD-AUG-530 CLD-AUG-531 CLD-AUG-539 CLD-AUG-542 CLD-AUG-543 CLD-AUG-545 CLD-AUG-546 CLD-AUG-547 CLD-AUG-549 CLD-AUG-550 CLD-AUG-552 CLD-AUG-555 CLD-AUG-556 CLD-AUG-557 CLD-AUG-558 CLD-AUG-559 CLD-AUG-561 CLD-AUG-565 CLD-AUG-567 CLD-AUG-570 From (m) 1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00 0.00 4.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00 5.00 0.00 5.00 0.00 To (m) 8.00 6.00 8.00 5.00 6.00 10.00 8.00 11.00 6.00 5.00 11.00 8.00 9.00 13.00 7.00 5.00 7.00 6.00 7.00 5.00 9.00 5.00 6.00 12.00 10.00 6.00 12.00 6.00 Length (m) 7.00 6.00 8.00 5.00 6.00 10.00 8.00 11.00 6.00 5.00 6.00 8.00 5.00 13.00 7.00 5.00 7.00 6.00 7.00 5.00 9.00 5.00 6.00 7.00 5.00 6.00 7.00 6.00 Ga2O3 (g/t) 53.38 57.8 52.09 52.96 56.23 55.38 56.96 54.75 56.68 51.61 54.22 57.97 61.57 67.52 72.39 55.92 60.49 54.89 56.65 55.38 55.71 61.57 59.37 56.07 54.3 54.89 58.38 58.47 Table 2. Summary of significant Gallium intercepts from auger drilling (AUG) samples (50g/t Ga2O3 and min. 5m composite length cutoff) on area B. 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 5. Distribution of TREO intercepts at Area B over Geology. 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 6. Cross section of auger drillholes CLD-AUG-478 and CLD-AUG-484 – Area B. Figure 7. Cross section of auger drillholes on Area B Eastern portion. ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au ASX : AXL | FSE: HN8 ACN: 665 921 273 From To Interval TREO MREO MREO NdPr DyTb HoleID (m) (m) (m) (ppm) (ppm) (%) (ppm) (ppm) CLD-AUG-472 2.00 4.00 2.00 1,162 199 17 187 12 CLD-AUG-472 6.00 7.00 1.00 1,023 171 17 163 8 CLD-AUG-472 8.00 16.00 8.00 1,407 324 24 308 16 CLD-AUG-476 12.00 13.00 1.00 1,030 192 19 171 20 CLD-AUG-476 15.00 16.00 1.00 1,082 279 26 256 23 CLD-AUG-478 4.00 8.00 4.00 1,210 152 12 140 12 CLD-AUG-478 9.00 14.00 5.00 2,571 242 10 226 16 CLD-AUG-483 10.00 11.00 1.00 1,015 45 4 39 7 CLD-AUG-484 5.00 16.00 11.00 2,879 144 5 137 7 CLD-AUG-486 2.00 3.00 1.00 1,145 185 16 174 10 CLD-AUG-486 4.00 5.00 1.00 1,000 171 17 161 10 CLD-AUG-487 7.00 8.00 1.00 1,098 237 22 229 8 CLD-AUG-488 4.00 8.00 4.00 1,373 265 19 256 9 CLD-AUG-489 11.00 16.00 5.00 1,979 415 21 394 21 CLD-AUG-496 10.00 11.00 1.00 1,392 14 1 8 6 CLD-AUG-496 12.00 13.00 1.00 1,308 14 1 8 6 CLD-AUG-496 15.00 16.00 1.00 1,403 17 1 10 7 CLD-AUG-497 4.00 9.00 5.00 1,163 53 5 46 6 CLD-AUG-497 14.00 15.00 1.00 1,108 47 4 42 5 CLD-AUG-498 1.00 3.00 2.00 1,129 226 20 213 12 CLD-AUG-498 5.00 7.00 2.00 1,372 290 22 276 15 CLD-AUG-499 12.00 13.00 1.00 1,155 245 21 228 17 CLD-AUG-501 6.00 7.00 1.00 1,630 435 27 404 32 CLD-AUG-502 9.00 10.00 1.00 1,427 46 3 42 5 CLD-AUG-506 10.00 12.00 2.00 1,426 238 16 221 16 CLD-AUG-508 13.00 16.00 3.00 1,767 575 33 535 40 CLD-AUG-510 5.00 15.00 10.00 1,668 477 29 447 30 CLD-AUG-511 5.00 7.00 2.00 1,376 152 12 143 10 CLD-AUG-512 3.00 10.00 7.00 1,264 318 25 297 21 CLD-AUG-512 11.00 12.00 1.00 1,055 254 24 237 17 CLD-AUG-513 2.00 9.00 7.00 1,313 321 24 300 21 CLD-AUG-514 12.00 16.00 4.00 1,446 437 30 413 24 CLD-AUG-515 4.00 14.00 10.00 1,821 625 33 592 33 CLD-AUG-516 2.00 3.00 1.00 1,179 225 19 214 11 CLD-AUG-517 5.00 8.00 3.00 1,775 28 1 22 6 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au From To Interval TREO MREO MREO NdPr DyTb HoleID (m) (m) (m) (ppm) (ppm) (%) (ppm) (ppm) CLD-AUG-517 9.00 15.00 6.00 1,830 636 33 619 17 CLD-AUG-518 0.00 2.00 2.00 1,280 292 22 274 17 CLD-AUG-520 1.00 2.00 1.00 1,079 44 4 38 6 CLD-AUG-520 4.00 14.00 10.00 2,311 734 30 691 43 CLD-AUG-521 5.00 10.00 5.00 1,363 393 27 378 15 CLD-AUG-524 0.00 4.00 4.00 1,668 337 20 317 20 CLD-AUG-525 5.00 9.00 4.00 2,080 570 26 537 32 CLD-AUG-526 5.00 13.00 8.00 1,297 241 18 226 15 CLD-AUG-527 4.00 10.00 6.00 1,804 321 16 302 19 CLD-AUG-528 1.00 3.00 2.00 1,062 29 3 24 4 CLD-AUG-528 5.00 7.00 2.00 1,026 26 2 22 4 CLD-AUG-528 9.00 13.00 4.00 1,628 388 19 366 21 CLD-AUG-531 2.00 14.00 12.00 1,407 247 17 233 14 CLD-AUG-534 1.00 4.00 3.00 1,303 54 4 49 5 CLD-AUG-540 6.00 11.00 5.00 1,486 407 25 386 21 CLD-AUG-543 9.00 10.00 1.00 1,356 189 14 178 11 CLD-AUG-543 13.00 14.00 1.00 1,303 122 9 114 8 CLD-AUG-554 2.00 5.00 3.00 1,132 175 15 169 6 CLD-AUG-554 6.00 10.00 4.00 1,186 224 19 216 8 CLD-AUG-555 4.00 5.00 1.00 1,124 101 9 93 8 CLD-AUG-559 17.00 18.00 1.00 1,073 213 20 204 9 CLD-AUG-562 4.00 5.00 1.00 1,084 145 13 138 7 CLD-AUG-563 7.00 9.00 2.00 1,135 194 17 184 10 CLD-AUG-563 12.00 15.00 3.00 1,268 120 9 112 8 Table 3. Summary of significant TREO intercepts from auger drilling (AUG) samples (1,000 ppm cutoff) at area B. About the Caladão Project Located in northeast Minas Gerais, the Caladão Project overlies Neoproterozoic sedimentary sequences punctuated by late-tectonic alkaline intrusions. In Area A, intense tropical weathering of the granitic units has produced a saprolite layer with notably high MREO grades, indicating significant enrichment of magnetics rare earth elements across a broad footprint. Meanwhile, Area B’s lateritic profile as area A shows consistent, elevated gallium values, evidencing a coherent Ga-rich horizon that warrants systematic drill testing for resource extents. The first phase of drilling at the Caladão Project has now been completed, comprising 599 holes for a total of 8,444 metres across the primary targets. This comprehensive dataset provides the foundation for defining ASX : AXL | FSE: HN8 ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au a rare earth element and gallium resource at Area B, establishing a solid platform for the next stage of project development. 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 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. 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 17 December 2024 “Significant Gallium Mineralisation at Caladao Project” AXL ASX release 20 January 2025 “68% Increase In Mineralised Drilled Area at Flagship Caladao” 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 19 March 2025 “Thick, High Grade REE and Ga Intercepts Continue at Caladao” AXL ASX release 6 May 2025 “Strong Gallium and REE Intercepts Continue at Caladao” AXL ASX release 10 June 2025 “Exceptional Gallium Mineralisation Continues into Area B” AXL ASX release 16 July 2025 “High Grade Gallium Intercepts Continue at Caladao Project” AXL ASX release 22 August 2025 “100Mt Maiden Gallium Mineral Resource Estimate” 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 | FSE: HN8 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 (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. 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, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise ASX : AXL | FSE: HN8 ACN: 665 921 273 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. Auger drilling • 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. Auger drilling • No recoveries are recorded. 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Criteria Logging Subsampling techniques and sample preparation Quality of assay data and laboratory tests ASX : AXL | FSE: HN8 ACN: 665 921 273 JORC Code explanation Commentary 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 material. • No relationship is believed to exist between • 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. • 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: • 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 1 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. recovery and grade. 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. • dried at 60°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 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Criteria JORC Code explanation Commentary 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. 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 Ga 1 – 1,000 Ho 0.05 – 1,000 La 0.1 – 10,000 Li 10 – 15,000 Nd 0.1 – 10,000 Pr 0.05 – 1,000 Sm 0.1 – 1,000 Tb 0.05 – 1,000 Th 0.1 – 1,000 Tm 0.05 – 1,000 U 0.05 – 10,000 Y 0.05 – 1,000 Yb 0,1 – 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. Verification of sampling and assaying ASX : AXL | FSE: HN8 ACN: 665 921 273 • 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 element values into the oxide values. The conversion factors used are included in the table below. (source: https://www.jcu.edu.au/advanced-analyticalcentre/resources/element-to-stoichiometric-oxideconversion-factors) Element ppm Conversion Factor Oxide Form Al 1.8895 Al2O3 Ce 1.2284 CeO2 Ga 1.3442 Ga2O3 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 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Criteria JORC Code explanation Commentary Lu Nd Pr Sm Tb Tm Y Yb 1.1371 1.1664 1.2082 1.1596 1.1762 1.1421 1.2699 1.1387 Lu2O3 Nd2O3 Pr6O11 Sm2O3 Tb4O7 Tm2O3 Y2O3 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 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 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 24S grid datum is used for current reporting. The auger and DDH collar coordinates for the holes reported are currently controlled by handheld GPS. Data spacing • Data spacing for reporting of Exploration Results. • Whether the data spacing and Collar plan displayed in the body of the release. ASX : AXL | FSE: HN8 ACN: 665 921 273 No resources are reported. 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Criteria JORC Code explanation and distribution 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 • 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 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 variation in thickness. • 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. Sample security Commentary 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 accurate depiction of the geological framework and mineralisation. No evidence suggests that the vertical orientation has introduced any sampling bias concerni