Axel Ree Ltd (ASX:AXL) Confirms Widespread High-Grade REE

3 December 2024

Price Sensitive Announcement $

Highlights:

• Channel sampling program over a linear 8km (East-West) area confirms continuous high
  grade TREO mineralisation at the flagship Caladão Project in the Lithium Valley
• Over 40% Magnetic Rare Earth Oxides (MREO) proportion of TREO with an average of 32% MREO across 8km of sampling supports the potential for Caladão to be a district-scale high-grade discovery
• Assays received from seven channel samples taken from inactive artisanal mines returned
  exceptional high-grade TREO and MREO widths:
  CLDCHN 001: 15m @ 3,784ppm TREO (34% MREO)
  CLDCHN 002: 15m @ 2,013ppm TREO (30% MREO)
  CLDCHN 003: 15m @ 1,564ppm TREO (22% MREO)
  CLDCHN 004: 20m @ 3,128ppm TREO (29% MREO)
  CLDCHN 005: 30m @ 5,568ppm TREO (40% MREO)
  CLDCHN 006: 30m @ 5,742ppm TREO (39% MREO)
  CLDCHN 007: 40m @ 3,019ppm TREO (28% MREO)
• Mineralisation occurred in weathered saprolites
• Channel sampling results further confirm the widespread and laterally persistent REE
  mineralisation covering the entire ~30km2 drilled zoned completed to date, representing less than 10% of the total Caladão Project target area
• The 20,000m drill campaign continues, with results progressively being released once
  received

Overview:

Axel REE Limited has announced its horizontal channel sampling program recently completed at the Company’s flagship Caladão REE Project located in the Lithium Valley region of Minas Gerais, Brazil, has returned consistently high-grade total rare earth oxide (TREO) assay results and significantly high proportions of magnetic rare earth oxides (MREO) up to 41% MREO/TREO. The channel sampling results further confirm that the high-grade REE at Caladão is continuous and consistently present across a widespread zone that covers over 30km2, which represents less than 10% of the total Caladão Project target area.

Company Notes:

Managing Director, Dr Fernando Tallarico, said:
“The channel sampling program at the Caladão Project was conducted in conjunction with our Phase 1 2,600m diamond drill program, to test the lateral extent of REE mineralisation and speed up our process to a target resource area. These channel samples, which covered an 8km East West linear area, coupled with our high-grade diamond and auger drill results to date covering over 30 km2, confirm that we are in a huge REE-mineralised system.
This validates our exploration approach and positions Caladão closer to a development-ready opportunity. The extensive TREO mineralisation and high proportion of the high-value MREO in weathered saprolites not only offers near-surface continuity but also aligns with cost-efficient mining techniques, making it a highly attractive proposition.
Our team is pleased to be sharing these results with our shareholders, and we are excited to continue our exploration efforts to define the quality and potentially large scale of this project
further.”

Full ASX Announcement: 3A657270.pdf