Power Minerals Limited (ASX: PNN) — Power Minerals Targets Premium Magnet Rare Earth Development at Morro do Ferro

22 June 2026

Price Sensitive Announcement $

Highlights:

• A priority mineralogical characterisation program is underway at Power’s flagship Morro do Ferro (MDF) Rare Earth Project in Minas Gerais, Brazil
• Previous mineralogy studies have identified two distinct rare earth mineral species — bastnäsite, which hosts the majority of high-value magnet rare earths, and cerianite, a cerium-enriched secondary mineral
• Approximately 40% of the non-cerium rare earth inventory at MDF comprises the high-value magnet rare earths Neodymium (Nd), Praseodymium (Pr), Terbium (Tb), Dysprosium (Dy) and Holmium (Ho)
• Analysis of non-cerium drill data above a 0.5% TREO cutoff returns an average Nd2O3+Pr6O11 grade of 4,521ppm, 31ppm Tb4O7 and 141ppm Dy2O3 — with peak values exceeding 3% Nd2O3+Pr6O11, 250ppm Tb4O7 and 1,024ppm Dy2O3
• The highest combined NdPr assay recorded to date is 33,750ppm (3.38% of whole rock) within drillhole MFSR-47, alongside multiple intervals exceeding 2.7% combined NdPr oxide
• The mineralogy program aims to identify pathways to selectively reject low-value cerium and gangue minerals during mining, simplifying future process design and reducing development capital requirements
• Power’s maiden diamond drilling program at MDF is underway, with initial assays expected in July 2026

Overview:

Power Minerals has provided a compelling update on the mineralogical character of its Morro do Ferro Rare Earth Project in Brazil, with early findings pointing toward the potential development of a premium magnet rare-earth product focused on the elements that drive the vast majority of value in the global rare-earth supply chain.

Critically, mineralogical work indicates that the high-value magnet rare earth elements — Nd, Pr, Dy and Tb — are preferentially hosted within bastnäsite-rich mineralisation, while low-value cerium is concentrated in a separate mineral phase, cerianite. This distinction matters enormously: based on current pricing assumptions, Nd, Pr, Dy and Tb account for approximately 98% of the contained rare earth value within the non-cerium inventory, despite representing only around 40% of that inventory by mass. If this mineralogical separation can be exploited through mine planning and beneficiation, Power may be able to selectively reduce low-value cerium ahead of downstream processing — a meaningful potential advantage over many conventional rare earth projects.

The grade data supporting this thesis is striking. Drillhole MFSR-47 returned a combined Nd2O3+Pr6O11 grade of 33,750ppm (3.38% of whole rock) within a broader interval grading 12.22% TREO, while drillhole MFSR-43 delivered a dysprosium oxide grade of 1,023.6ppm Dy2O3 alongside 224.7ppm Tb4O7 — among the highest heavy rare earth oxide grades reported globally for a project at this stage. These magnet rare earth elements are essential inputs for high-performance permanent magnets used across electric vehicles, wind turbines, robotics, AI infrastructure and defence technologies, placing Morro do Ferro squarely in the value chain that matters most to end users.

Beyond the immediate grade story, the mineralogical program is expected to materially influence project economics by informing mine design and scheduling strategies that avoid cerium-rich zones, simplify the process flowsheet, reduce reagent consumption and downstream processing circuit sizing, and lower residue management and water treatment requirements. The work will also underpin future radiation management and environmental studies, supporting a faster, lower-risk path through permitting under Brazil’s Manifesto de Mina mining licence framework.

With the Company’s maiden diamond drilling program also underway and initial assays expected in July 2026, Power is building a substantially larger dataset to refine its understanding of rare earth distribution, liberation characteristics and the spatial relationship between high-value and gangue minerals across the deposit — work that will progressively feed into future resource, metallurgical and development studies.

Company Notes:

Power Minerals Managing Director, Mena Habib, commented: “At Morro do Ferro, we are excited about the immense potential in strategically recovering the rare-earth elements that are most essential for the permanent magnet markets. By focusing on this approach, we aim to minimise the extraction of lower-value cerium and radioactive minerals. We believe this strategy could greatly enhance the project’s economic viability, streamline future development, and position Morro do Ferro as a differentiated magnet rare-earth project.”

Chief Executive Officer, Alistair Stephens, commented: “MDF is demonstrating the characteristics of a premium magnet rare-earth project, with mineralogical studies highlighting strong exposure to the high-value magnet rare earths Nd, Pr, Dy and Tb and the potential to reduce low-value cerium through mine planning and beneficiation. This combination has the potential to improve project economics, reduce development complexity and establish MDF as a differentiated rare-earth development opportunity. Having previously helped define and advance more than 7 million tonnes of TREO resources into development globally, I believe the mineralogical characteristics emerging at MDF have the potential to differentiate the project from many conventional rare earth developments. Each stage of technical work strengthens our understanding of the project’s value and its potential importance to future rare earth supply chains.”

About Power Minerals Limited (ASX: PNN | OTCQB: PEIMF):

Power Minerals is an ASX and OTCQB-listed critical minerals exploration and development company advancing its flagship Morro do Ferro Rare Earths Project in Minas Gerais, Brazil. The 100%-owned project is situated within the Poços de Caldas alkaline complex, an emerging global rare-earth hub, and hosts exceptional near-surface TREO mineralisation with a rare earth mineral assemblage potentially well suited to the production of premium, magnet-focused rare earth concentrates. The Company is currently progressing a maiden diamond drilling program alongside mineralogical characterisation studies, with initial assay results expected in July 2026.

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