Announcement PDF ASX ANOUNCEMENT ASX : AXL 23 October 2024 HIGH GRADE REE UP TO 7,099PPM TREO FROM FIRST BATCH OF ASSAYS RECEIVED AT POÇOS DE CALDAS HIGHLIGHTS: • First batch of assay results received for Caldas Project at the Poços de Caldas Alkaline Complex with exceptional concentrations of rare earth elements (REE) and high-value neodymium and praseodymium (NdPr) and dysprosium and terbium (DyTb) • Confirmed high-grade project area with all of the initial auger drill holes returning excellent results and all ending in high-grade mineralisation indicating continuity at depth: CAL-AUG-001: 11m @ 3,273ppm TREO (847ppm NdPr, 47ppm DyTb) from surface including 1m @ 7,099ppm TREO (2,310ppm NdPr, 136ppm DyTb), ending with 3m @ 5,609ppm TREO (1,821ppm NdPr, 108ppm DyTb) CAL-AUG-002: 12.7m @ 2,222ppm TREO (530ppm NdPr, 35ppm DyTb) from surface including 1m @ 3,033 ppm TREO (873ppm NdPr, 60ppm DyTb) ending with 8m @ 2,602ppm TREO (725ppm NdPr, 47ppm DyTb) CAL-AUG-003: 20m @ 3,082ppm TREO (805ppm NdPr, 48ppm DyTb) from surface including 1m @ 6,536ppm TREO (1,935ppm NdPr, 143ppm DyTb) ending with 11m @ 3,699ppm TREO (1,062ppm NdPr, 68ppm DyTb) CAL-AUG-004: 9m @ 1,782ppm TREO (321ppm NdPr, 24ppm DyTb) from surface including 1m @ 2,654 ppm TREO (695ppm NdPr, 43 DyTb) ending with 3m @ 2,309ppm (588ppm NdPr, 35ppm DyTb) • Significant concentrations of high-value magnet rare earth oxides (MREO) up to 36% of TREO (CAL-AUG-001) and averaging 24% across all samples received to date • Auger drill program continuing to further define the extent and continuity of mineralisation • Assay results progressively returning and will be reported to market as batches arrive • Significant progress at the Caladão Project in the Lithium Valley with up to 77 holes of combined auger and diamond drilling completed, batch samples sent to lab Axel REE Limited (ASX: AXL, “Axel” or “the Company”) is pleased to announce the first batch of auger assay results from the Caldas Project, located in the world class Poços de Caldas Alkaline Complex in Minas Gerais South, Brazil. ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au Managing Director, Dr Fernando Tallarico, said: “We are extremely pleased with our initial auger drill assay results showing high-grade TREO from our Caldas project within the Poços de Caldas Alkaline Complex. This first batch demonstrates the significant surface mineralisation of our project area and underscores the discovery potential of the project area. The most exciting aspect of these initial results is that all holes returined increasingly high-grade TREO mineralisation at end of hole, which, similar to that of our peers at the Poços de Caldas, demonstrates the significant potential for a discovery zone at depth. In addition, this is just the first batch as we expect to progressively receive auger results from our Caldas Project as well as diamond drill results at our Caladão Project in the Lithium Valley.” The auger program was initiated to test surface and near-surface rare earth mineralisation, targeting areas with anomalous geochemical signatures identified through previous reconnaisance. 53 auger drill samples from the current program have been received from SGS Geosol laboratory and returned exceptional highgrade REE mineralisation at surface that warrant continued exploration in this area. Figure 1 - Cross section of auger holes (potential fresh rock zone depth interpreted) ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 2 Figure 2 - Assay status map of Caldas tenement 830.889/2023 REE assays from the auger program at Caldas returned consistently high grade TREO 1 and significant MREO 2 proportions (refer Table 1 below for significant results). 1 2 TREO = La2O3 + CeO2 +Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O MREO = Tb4O7 + Dy2O3 + Nd2O3 +Pr6O11 ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 3 Length MREO ppm MREO % DyTb ppm NdPr ppm From To m TREO ppm CAL-AUG-001 0 11 11 3,273 894 24 47 847 including 9 10 1 7,099 2,446 34 136 2,310 ending with 9 11 3 5,609 1,929 34 108 1,821 CAL-AUG-002 0 12.7 12.7 2,222 565 23 35 530 including 9 10 1 3,033 933 31 60 873 ending with 5 12 8 2,602 772 29 47 725 CAL-AUG-003 0 20 20 3,082 853 26 48 805 including 15 16 1 6,536 2,077 32 143 1,935 ending with 9 20 11 3,699 1,130 30 68 1,062 CAL-AUG-004 0 9 9 1782 345 18 24 321 including 8 9 1 2,654 738 28 43 695 ending with 6 9 3 2,309 623 27 35 588 HoleID Table 1: Summary of auger drill results ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 4 Figure 3 - CLD-AUG-001 interval from 9.00 to 10.00 metres – 7,099ppm TREO clay zone with disseminated kaolinite Caladão Project Update The ongoing drilling campaign at Caladão Project in the Lithium Valley, Minas Gerais, continues with 77 auger and diamond drillholes completed across key target areas. Drill samples have been sent to SGS and are expected to return in batches progressively in the coming weeks. The data collected from these drillholes will be used to support a potential REE resource within this project area. This announcement was authorised by the Board of Directors. For enquiries regarding this release please contact: Fernando Tallarico Managing Director fernando@axelreelimited.com.au ASX : AXL ACN: 665 921 273 Investor & Media Relations Andrew Willis awillis@nwrcommunications.com.au 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 5 Competent Persons Statement The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources, or Ore Reserves is based on information compiled by Dr. Fernando Tallarico, who is a member of the Association of Professional Geoscientists of Ontario, and Dr. Paul Woolrich, who is a Competent Person and a Member of the Australian Institute of Mining and Metallurgy (AusIMM). Dr Tallarico is a full-time employee of the company. Dr. Tallarico and Dr. Woolrich have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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. Dr. Tallarico and Dr. Woolrich consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. About Axel REE Axel REE is an exploration company which is primarily focused on exploring the Caladão, Caldas, Itiquira, and Corrente rare earth elements (REE) and other critical minerals projects in Brazil. Together, the project portfolio covers over 1,105km² 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. ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 6 Table 2 - Assay Results HoleID CAL-AUG-001 From To 0 1 CAL-AUG-001 1 2 CAL-AUG-001 2 3 CAL-AUG-001 3 4 CAL-AUG-001 4 5 CAL-AUG-001 5 6 CAL-AUG-001 6 7 CAL-AUG-001 7 8 CAL-AUG-001 8 9 CAL-AUG-001 9 10 CAL-AUG-001 10 11 Length m 11m @ 3,273ppm TREO Including 1m @ 7,099ppm TREO ending at 3m @ 5,609ppm TREO TREO ppm MREO ppm MREO % HREO ppm HREO % DyTb ppm NdPr ppm 2,137 178 8 138 6 13 165 2,246 303 13 149 7 15 288 2,615 504 19 210 8 20 484 2,178 379 17 177 8 17 362 2,475 455 18 266 11 26 429 2,035 583 29 268 13 25 558 2,402 717 30 333 14 30 686 3,083 926 30 478 16 44 881 5,374 1,937 36 1,080 20 100 1,837 7,099 2,446 34 1,489 21 136 2,310 4,354 1,405 32 946 22 89 1,316 CAL-AUG-002 0 1 1,553 123 8 148 10 13 111 CAL-AUG-002 1 2 1,371 88 6 103 8 9 79 CAL-AUG-002 2 3 1,365 172 13 125 9 12 160 CAL-AUG-002 3 4 1,915 363 19 193 10 19 344 CAL-AUG-002 4 5 CAL-AUG-002 5 6 CAL-AUG-002 6 7 CAL-AUG-002 7 8 12m @ 2,222ppm TREO Including 1m @ 3,033ppm TREO ending at 8m @2,602ppm TREO 1,866 422 23 221 12 20 402 2,745 760 28 390 14 38 723 2,537 716 28 383 15 38 679 2,828 872 31 496 18 48 824 CAL-AUG-002 8 9 CAL-AUG-002 9 10 CAL-AUG-002 10 11 CAL-AUG-002 11 12 2,608 746 29 CAL-AUG-002 12 12.7 2,199 636 29 CAL-AUG-003 0 1 2,028 128 6 CAL-AUG-003 1 2 2,046 175 CAL-AUG-003 2 3 1,683 CAL-AUG-003 3 4 2,021 CAL-AUG-003 4 5 20m @ 3,082ppm TREO including 1m @ 6,536ppm TREO ending at 11m @ 3,699ppm TREO 2,800 825 29 538 19 51 774 3,033 933 31 617 20 60 873 2,728 877 32 625 23 62 815 496 19 50 696 436 20 44 592 197 10 15 113 9 179 9 14 161 250 15 147 9 14 236 383 19 183 9 17 366 2,405 551 23 297 12 28 524 2,482 598 24 262 11 25 573 2,735 736 27 302 11 29 707 2,694 848 31 368 14 35 813 2,860 950 33 414 14 38 911 3,973 1,275 32 592 15 56 1,219 CAL-AUG-003 5 6 CAL-AUG-003 6 7 CAL-AUG-003 7 8 CAL-AUG-003 8 9 CAL-AUG-003 9 10 CAL-AUG-003 10 11 CAL-AUG-003 11 12 CAL-AUG-003 12 13 CAL-AUG-003 13 14 CAL-AUG-003 14 15 3,653 1,076 29 746 CAL-AUG-003 15 16 6,536 2,077 32 1,736 CAL-AUG-003 16 17 4,125 1,339 32 913 CAL-AUG-003 17 18 2,801 784 28 609 ASX : AXL ACN: 665 921 273 3,421 1,064 31 534 16 51 1,013 3,492 1,120 32 654 19 61 1,059 3,704 1,152 31 720 19 67 1,084 3,521 1,044 30 689 20 64 980 20 68 1,009 27 143 1,935 22 82 1,257 22 53 731 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 7 HoleID Length m TREO ppm MREO ppm MREO % HREO ppm HREO % DyTb ppm NdPr ppm From To CAL-AUG-003 18 19 2,984 822 28 673 23 57 765 CAL-AUG-003 19 20 2,477 680 27 481 19 45 635 CAL-AUG-004 0 1 1,421 133 9 234 16 17 116 CAL-AUG-004 1 2 CAL-AUG-004 2 3 1,562 119 8 234 15 16 103 1,624 1,681 172 276 11 16 262 307 16 18 19 23 154 253 CAL-AUG-004 3 4 CAL-AUG-004 4 5 1,357 216 16 242 18 17 199 CAL-AUG-004 5 6 1,470 323 22 289 20 20 303 CAL-AUG-004 6 7 2,158 537 25 380 18 29 508 CAL-AUG-004 7 8 2,115 594 28 417 20 34 561 2,654 738 28 511 19 43 695 9m @ 1,782ppm TREO ending at 3m @ 2,309ppm TREO CAL-AUG-004 CAL-AUG-004 8 9 9 10 Assay Pending CAL-AUG-004 10 11 Assay Pending CAL-AUG-004 11 12 Assay Pending Table 3 – Caldas Auger drill-hole locations. Assay Status HoleID Easting Northing RL (m) EOH Tenement CAL-AUG-001 345838.00 7580163.00 1,244 11.00 830.889/2023 Complete CAL-AUG-002 345938.20 7580163.40 1,261 12.70 830.889/2023 Complete CAL-AUG-003 346038.20 7580163.40 1,259 20.00 830.889/2023 Complete CAL-AUG-004 346134.00 7580163.40 1,247 12.00 830.889/2023 Partially Complete to 9m CAL-AUG-005 346363.00 7580136.00 1,247 16.00 830.889/2023 Pending CAL-AUG-006 346470.00 7580156.00 1,260 18.00 830.889/2023 Pending ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 8 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 Drilling techniques • Drill type (eg core, reverse circulation, openhole 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). Auger drilling 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 material. Auger drilling ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 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. 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. No recoveries are recorded. No relationship is believed to exist between recovery and grade. www.axelreelimited.com.au info@axelreelimited.com.au 9 Criteria JORC Code explanation Commentary 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. Subsampling techniques and sample preparation Quality of assay data and laboratory tests 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. • 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 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. 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. The assay technique used was Sodium Peroxide Fusion ICP OES / ICP MS (SGS code ICM90A). Elements analyzed at ppm levels: • 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 Ce 0.1 – 10,000 Dy 0.05 – 1,000 Er 0.05 – 1,000 Eu 0.05 – 1,000 Gd 0.05 – 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 ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 10 Criteria JORC Code explanation Commentary 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 • 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/advancedanalyticalcentre/resources/element-to-stoichiometricoxide-conversionfactors). Element ppm Conversion Factor Oxide Form Ce 1.2284 CeO2 Dy 1.1477 Dy2O3 Er 1.1435 Er2O3 Eu 1.1579 Eu2O3 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 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 ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 11 Criteria JORC Code explanation Commentary 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 23S grid datum is used for current reporting. The auger holes 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. The auger drilling program was executed on a systematic 100 x 100-meter grid. This spacing ensures a high-resolution exploration framework appropriate for the area of interest. The grid is designed to facilitate the delineation of an initial mineral resource and provide a robust understanding of geological structure and grade continuity within the targeted zone. 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. Collar plan displayed in the body of the release. No resources are reported. 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. 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 mineralized zones, providing an 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. ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 12 Criteria JORC Code explanation Commentary 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 of samples from our Caldas Project was delivered to SGS facilities in the city of Poços de Caldas MG by Axel staff. Audits or reviews • The results of any audits or reviews of sampling techniques and data. No independent audit has been completed. Section 2 Reporting of Exploration Results Criteria Mineral tenement and land tenure status JORC Code explanation • • Commentary 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. Acknowledgment and appraisal of exploration by other parties. In the Caldas Project, there has been intense mineral exploration activity in the Alkaline Poços de Caldas Complex. But we are unaware of previous exploration programs in our tenements. Exploration done by other parties • Geology • Deposit type, geological setting and style of mineralisation. The Alkaline Complex of Poços de Caldas represents one of the most important geological terrains in Brazil, which hosts deposits of ETR, bauxite, clay, uranium, zirconium, rare earth, and leucite. The different types of mineralisation are products of a history of postmagmatic alteration and weathering in the last stages of its evolution. The REE mineralisation is of the Ionic Clay type, as evidenced by development within the saprolite/clay zone of the weathering profile of the Alkaline syenite basement. Drill hole Information • A summary of all information material to the understanding of the exploration results, including a tabulation of the following information for all Material drill holes: o Easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea Reported in the body of the announcement. ASX : AXL ACN: 665 921 273 • 832 High St Kew East VIC Australia 3102 www.axelreelimited.com.au info@axelreelimited.com.au 13 • Data aggregation methods • • • Relationship • between mineralisation • widths and intercept lengths • level in metres) of the drill hole collar o Dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. Data acquisition for this project encompasses results from auger drilling. The dataset was compiled in its entirety, with no selective exclusion of information. All analytical techniques and data aggregation were conducted in strict accordance with industry best practices, as outlined in prior technical discussions. These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). All holes are vertical, and mineralisation is developed in a flat-lying clay and transition zone within the regolith in both Pro Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Balanced reporting • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of ASX : AXL ACN: 665 921 273 832 High St Kew East VIC Australia 3102 Reported in the body of the text. The data presented in this report aims to provide a transparent and comprehensive overview of the exploration activities and findings. All relevant information, including sampling techniques, geological context, prior exploration work, and assay www.axelreelimited.com.au info@axelreelimited.com.au 14 Exploration Results. results, has been thoroughly documented. Cross-references to previous announcements have been included where applicable to ensure continuity and clarity. The use of diagrams, such as geological maps and tables, is intended to enhance understanding of the data. This report accurately reflects the exploration activities and findings without bias or omission. Other substantive exploration data • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. There is no additional substantive exploration data to report currently. Further work • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).