Resource Upgrade and Metallurgical Breakthroughs Propel Caladão Toward In Situ Leach Risks

Resource Expansion Signals District-Scale Opportunity

Axel REE Limited has delivered a significant milestone for its flagship Caladão Rare Earth Elements (REE) and Gallium Project in Minas Gerais, Brazil. The company announced a maiden Mineral Resource Estimate (MRE) for Area B, adding 339 million tonnes at 1,075 parts per million (ppm) total rare earth oxides (TREO) and 36.6 ppm gallium. This expansion lifts the combined Area A and B resource to 572 million tonnes at 1,506 ppm TREO and 439 million tonnes at 38 ppm gallium, marking a 145% increase in rare earths and a 339% increase in gallium inventory.

The scale of this resource positions Caladão as a district-scale rare earth and one of the world’s largest discrete gallium deposits. The resource spans three deposits within Area B; Marambaia, Tiger Creek, and Woolrich; each contributing substantial tonnage and consistent grades. This broad footprint offers multiple development fronts and underpins Axel’s vision of Caladão as a cornerstone asset in critical minerals supply chains.

High-Value Rare Earths and Metallurgical Breakthroughs

Crucially, the resource includes a significant proportion of magnet rare earth oxides; neodymium-praseodymium (NdPr) and dysprosium-terbium (DyTb); which are essential for permanent magnets used in electric vehicles and renewable energy technologies. This magnet rare earth exposure supports a high-value basket for future mixed rare earth carbonate (MREC) production, enhancing the project's economic potential.

Metallurgical testwork at the Woolrich deposit has demonstrated promising leachability using magnesium sulphate, achieving 464 ppm soluble TREO. This result is comparable to the 486 ppm soluble TREO grade at Malaysia’s Gerik in situ leach (ISL) mine, a profitable ionic adsorption clay operation. The use of magnesium sulphate, an environmentally friendly leachate widely adopted in Asia, could enable a low-cost, modular in situ recovery approach, potentially transforming Caladão’s development economics.

Strategic Location and Infrastructure Advantages

Located within Brazil’s Lithium Valley, Caladão benefits from established infrastructure including power, roads, and services developed for battery materials supply chains. The project’s dual commodity endowment; rare earths and gallium; adds strategic value, given gallium’s critical role in electronics and semiconductors. This positioning enhances Axel’s ability to attract investment and accelerate project development.

Next Steps Toward Trial Mining and Scoping Study

Looking ahead, Axel plans to expand metallurgical testing with systematic magnesium sulphate leach assays across all drillholes to identify priority zones amenable to in situ leach. Targeted infill drilling will increase geological and metallurgical confidence, feeding into a 2026 scoping study focused on modular in situ recovery operations. The company also aims to conduct hydrological assessments and secure environmental approvals to support a controlled trial mining program next year.

Non-Executive Chairman Paul Dickson highlighted the significance of this resource upgrade, emphasizing the collaborative technical effort and the potential for Caladão to become a major supplier of critical materials for global technology and energy markets. While the resource remains classified as inferred and economic viability is yet to be demonstrated, the combination of scale, grade, metallurgical amenability, and infrastructure access paints a compelling development pathway.