ETM Advances EU Critical Minerals Supply with Updated Penouta Resource

Penouta Resource Update Highlights EU Supply Chain Role

Energy Transition Minerals Ltd (ASX:ETM) has delivered a significant milestone with the release of a JORC Code (2012) compliant Mineral Resource Estimate (MRE) for its Penouta Tin-Tantalum-Niobium Mine in Galicia, Spain, as at 1 May 2026. This updated resource confirms Penouta as the only recent supplier of tin and tantalum within the European Union, underscoring its strategic importance amid growing EU efforts to secure domestic critical mineral supplies for energy transition and high-tech industries.

Penouta's location within a Tier-1 jurisdiction, combined with existing infrastructure and its status as a past-producing mine, positions ETM to contribute meaningfully to reducing the EU's reliance on imported critical minerals. The MRE supports the potential for a long-term mining operation aligned with European policy frameworks prioritising supply chain resilience.

Resource Details and Environmental Constraints

The MRE, prepared by independent consultants SLR Consulting Ltd, reports a total of 108 million tonnes at grades of 437 ppm tin (Sn), 80 ppm tantalum pentoxide (Ta2O5), and 91 ppm niobium pentoxide (Nb2O5), with contained metal estimates of 47.2 kt Sn and 8.6 kt Ta2O5. Notably, niobium is not currently attributed revenue in the net smelter return (NSR) calculation.

Compared to the previous 2021 NI43-101 resource, the key change is the imposition of the Natura 2000 environmental boundary as a hard limit on the pit extent, which has led to a 24.2 million tonne reduction primarily from the inferred resource category. This constraint reflects the project's proximity to a protected EU-designated area, requiring ETM to complete a new environmental impact assessment (EIA) and Natura 2000 impact study as part of permitting.

Acquisition Nears Completion Amid Regulatory Progress

ETM is finalising the acquisition of Penouta, expecting 100% ownership shortly following Foreign Direct Investment approval from the Spanish Government. This regulatory milestone clears a major hurdle for ETM’s strategic foothold in the European critical minerals sector. The company is concurrently working on the formal transfer of mining and investigation permits, which remain subject to environmental and legal processes.

This acquisition complements ETM’s portfolio, which includes the Kvanefjeld Rare Earth Project in Greenland and lithium-tantalum projects in Spain and Canada. However, the Penouta deal stands out as a tangible near-term asset to supply critical metals within the EU, a region increasingly focused on securing traceable and local sources of tin and tantalum.

Operational Review and Project Restart Plans

The updated MRE underpins ongoing mine planning and a detailed operational review aimed at determining the optimal path to restart operations. ETM plans to declare an Ore Reserve Estimate that integrates updated geological modelling, metallurgical testwork, and economic parameters, including operating costs, metal prices, and environmental constraints.

Processing improvements are anticipated, such as adding a fines recovery circuit and upgrading cyclone screens, to enhance metallurgical recoveries estimated at 75% for tin and 65% for tantalum pentoxide. The current processing circuit involves gravity concentration and magnetic separation, with tailings management moving toward dry-stack disposal within existing storage footprints due to capacity limits.

ETM’s Managing Director Daniel Mamadou emphasised Penouta’s unique strategic position and the company’s progress on operational readiness, stating confidence in advancing the project with local community support and established management teams.

Legal and Environmental Challenges Remain

The mining concession for Penouta’s hard rock Section C was declared null and void by the High Court of Justice of Galicia in June 2024 due to an inadequate environmental assessment concerning the adjacent Natura 2000 site. The ruling is under appeal, and the concession remains effective pending final judgment. ETM expects to submit a new concession application with a full EIA, with no known impediments to reapproval.

This legal uncertainty adds a layer of risk to the project timeline, requiring careful navigation of environmental regulations and community engagement. ETM’s approach includes demonstrating minimal impact, applying mitigation measures, or pursuing environmental offsetting as part of the permitting process.

ETM’s progress on the Penouta acquisition follows its recent Spanish FDI approval for Penouta, which was a key regulatory milestone enabling the company to move toward completion this quarter.

Technical Rigor and Historical Data Integration

The MRE integrates extensive drilling data from historical campaigns in the 1980s and more recent drilling by Strategic Minerals Spain in 2012-2013, totalling 139 diamond drill holes over 25 km. Sampling and assaying employed industry-standard methods with rigorous QAQC protocols, including certified reference materials and duplicate samples, to ensure data quality and representativity.

Geological modelling used advanced software and dynamic anisotropy to align grade estimation with geological continuity. The resource extends over a strike length of approximately 1,040 meters, width of 980 meters, and depth to 230 meters, with mineralisation hosted primarily in an alkaline leucogranite dome and overlying greisen zones.

Grade capping was applied to tin but not to tantalum or niobium, reflecting the statistical distribution of assay results. The MRE was validated against plant feed data from a six-month production period, showing close reconciliation in grade and tonnage.

However, the company faces challenges with the historical concession’s legal status and the need for updated environmental approvals, which will be critical to watch as ETM advances feasibility studies and permitting.