Power Minerals Ltd (ASX:PNN) Maiden Drilling to Commence at Morro Do Ferro Rare Earths Project, Brazil

11 May 2025

Price Sensitive Announcement $

Highlights:

▪ Power to commence maiden diamond drilling program at Morro do Ferro Rare Earths Project (MDF Project), Brazil, following acquisition completion

▪ Drilling is planned to consist of:

 3000m of diamond core drilling to target depth and expansion of existing high-grade mineralisation; and
 800m of larger diameter diamond core drilling to advance metallurgy by providing samples for test work

▪ Diamond drillhole assays include:

 – 60.85m at 89,177ppm (or 8.92%) TREO from surface to EOH in drillhole MFSR35
 – 70.9m at 79,997ppm (or 8.00%) TREO from surface to EOH in drillhole MFSR44
 – 60.6m at 70,217ppm (or 7.02%) TREO from surface to EOH in drillhole MFSR20

▪ Ultra-high-grade MREO samples include:

 2m at 34,835ppm (3.48% of whole rock) MREO in drillhole MFSR-47 (9–11m)
 2m at 33,569ppm (3.36%) MREO in drillhole MFSR-35 (44–46m)
 2m at 31,860ppm (3.19%) MREO in drillhole MFSR-35 (38–40m)

▪ Drilling planned to commence this month and is expected to take up to three months to complete, with results released progressively – first results expected in June 2026

Overview:

Power Minerals Limited has announced that its maiden drilling campaign at the high-grade Morro do Ferro Rare Earths Project (MDF Project) in southern Minas Gerais state, Brazil, will commence later this month.

The MDF Project is a very high-grade REE asset, strategically located within the centre of the Poços de Caldas alkaline complex, an emerging global rare-earth hub. The commencement of drilling is a key step in Power’s pathway to unlock the Project’s value, and comes after the Company completed the acquisition of the Project last month.

The drilling campaign will consist of:

▪ 3000 metres of NQ/HQ diamond core drilling designed to target depth and extensions of existing very high-grade Magnetic Rare Earth Oxides (MREO) and Total Rare Earth Oxides (TREO) mineralisation; and

▪ 800 metres of larger diameter PQ diamond core drilling to obtain representative material for comprehensive metallurgical test work.

The full campaign is expected to take three months to complete, and results are planned to be progressively released as they become available. The upcoming drilling campaign will cover the tenement 100% held by Power Minerals (see Figure 1).

Power completed the acquisition of the MDF Project after a comprehensive due diligence process. Technical due diligence validated the MDF Project’s significant potential to host a substantial MREO Mineral Resource Estimate (MRE), and this extensive maiden drilling campaign is the first towards realising this objective.

The MDF Project sits on a unique ‘Manifesto de Mina’ mining licence, which grants direct ownership over the land, facilitating an expedited exploration process by allowing ground-disturbing activities (subject to environmental approvals) and simplifying permitting requirements.

Drill Campaign Overview:

Power’s maiden drilling campaign at the MDF Project will target depth and expansion of the known MREO and TREO mineralisation within the Project area. Drilling will include 3,000m of diamond core drilling and an additional 800m of wider-diameter diamond core drilling for metallurgical test work purposes.

Power recently reported very high-grade MREO and TREO sampling assay results as part of its due diligence for its acquisition of the MDF Project1 . The results came from sampling programs conducted by the previous project owner, Mineração Terras Raras (MTR), and six samples collected by Power. The results highlight the extremely high-grade MREOs and TREOs within the project area, and Power will seek to expand the existing mineralised footprint in its drilling.

Verification samples recently from MTR returned TREO values up to 14.03%, and MREO concentrations as high as 26,418ppm (or 2.64% of whole rock), both in drillhole MFSR-44.

Other high-grade results included:
▪ 49,673ppm (or 4.97%) TREO in sample PMB-4129 from drillhole MFSR-12
▪ 26,074 ppm (or 2.61%) TREO in sample PMB-4125 from drillhole MFSR-12
▪ 16,589 ppm (or 1.66%) TREO in sample PMB-1426 from drillhole MFSR-18
▪ 23,871 ppm (or 2.39% of whole rock) MREO in (a second) sample from drillhole MFSR-44.

Next Steps:

Power’s diamond drilling campaign at MDF is expected to be completed in three months, with drilling results released progressively, with the first results from MDF drilling expected in early June.

The drilling will test the mineralisation in the main deposit, which remains open at depth and along strike. The drilling will build on the recent verification sampling results and is expected to provide a strong technical foundation for a maiden Mineral Resource Estimate. Wider-diameter drilling is also planned to ensure representative larger samples are collected to enable the rapid commencement of studies to optimise the metallurgical process.

Company Notes:

Power Minerals Chief Executive Officer Alistair Stephens said:
“We are delighted to announce the commencement of our maiden drilling campaign at the MDF Project, following the completion of the acquisition in the previous month. Drilling is planned to begin this month and will include approximately 3,800 metres of diamond drilling, designed to expand the current mineralised footprint along strike and down-dip and enhance our understanding of the mineralogy at the MDF Project, to help facilitate a swift progression towards a maiden Mineral Resource Estimate for the project. The campaign is expected to be completed in the following quarter, and results are planned to be progressively released as they become available.”

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