Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to note that Hastings Technology Metals (ASX: HAS) ('Hastings'), Cadence's joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia, has announced significant progress on, and improved project economics for the Yangibana Project.

The updated project economics, based on a Definitive Feasibility Study (DFS) completed by Hastings in 2017 and revised in late 2021, follows an extensive and comprehensive review period, extending over three years, which has sought to de-risk project execution, optimise the flowsheet and enhance project economics.

Highlights

Post-tax Net Present Value8 ('NPV8') increases by 84% to $1,012 million.

Post-tax Internal Rate of Return ('IRR') of 26%.

Life of Mine pre-tax Free Operating Cashflow increases by 71% to $4,376 million.

Revised capital cost estimated at A$582 million (including contingency is $658 million)

Project is 'shovel-ready' following a comprehensive review and assessment of current inflationary pressures present in Western Australia.

Capital payback period forecast at 2.7 years from commencement of production.

Production of 3,400tpa of NdPr Oxides capable of supplying up to 8% of forecast global NdPr demand.

Discussions on funding options with suitable partners continue to progress.

20 million early works program to deliver the core site infrastructure at Yangibana is well underway

Key to this process was validating the capex required to bring Yangibana into operation considering the current inflationary environment and tightening labour market in Western Australia.

Following this review period, the management team now have a high degree of confidence in the quantum of capital required and are proceeding to finalise funding arrangements for Yangibana ahead of proposed commencement of plant construction activities forecast to commence in H2 2022. The $20 million early works program to deliver the core site infrastructure at Yangibana is underway with plant and personnel achieving good progress to date.

Contact:

Tel: (0) 7879 584153

Forward-Looking Statements

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