Krakatoa Resources Limited announced a major milestone through delivery of a maiden Mineral Resource estimate at the Tower Project, the first prospect drilled of many perspective clay hosted REE targets at the Company's Mt Clere Project, located in the north-western margins of the Yilgarn Craton, Western Australia. The impressive maiden Mineral Resource estimate of 101MT @ 840ppm TREO, which has been defined in only 7 months following the discovery at Tower, which is highlighted by thick zones of near-surface mineralisation. 40% of the Mineral Resource estimate has been classified in an Indicated category.

Significantly, the existing resource has the potential to substantially grow in size and scale as the Mineral Resource estimate only incorporates 20% of the identified Exploration Target drilled to date. Krakatoa has estimated an Exploration Target for the Tower area of 57 - 481MT at 530-1,050ppm TREO. Following completion of the maiden Mineral Resource estimate, Krakatoa will now commence key development workstreams at the Tower Project and initiate discussions with potential end-users, offtake partners and industry groups for potential funding, development, and downstream opportunities.

The Mineral Resource estimate was conducted over the central and southern Tower area located within exploration licences EL09/2357. This area was identified to represent in-situ weathered regolith plateaus over alkaline gneiss and granites showing defined radiometric anomalism located in the upper catchment of highly anomalous stream geochemical surveys. This area, as well as the Tower West area, have established station tracks which allowed the Company to undertake this drilling quickly and efficiently, while other target areas are less accessible at this time.

The area of drilling covered by the Mineral Resource estimate is 5.4km2 (Tower central and south areas) which represents less than 20% of the current exploration target identified to be prospective for REE mineralisation. The Mineral Resource estimate only includes clays and saprolite regolith types. Surface hardcap and basement saprock material has been excluded as no processing alternatives have been tested for this material.

The processing of the saprolite is understood and consistent with the Company's knowledge of other IAC and clay hosted deposits, especially those in southern China, Myanmar, and Africa. In total the Mineral Resource estimate is based on 109 vertical air core holes over the central and south areas of the Tower project. In total 139 drill holes for 3,848m of drilling have been completed, with 30 drill holes at Tower West not included in the Mineral Resource estimate.

The core area of the Tower prospect is covered by approximately 200m-spaced drill holes, which provides the confidence to move towards a higher Indicated status within that area. The drill spacing is more sporadic and greater than the 200m distance over much of the Tower West and the southern extent of Tower area.