Parabellum Resources Limited update shareholders on the excellent progress the Company has made on the mineral resource estimate (JORC 2012), metallurgical test work and engineering design
which form the key deliverables items required in the Scoping Study. Mineral Resource Estimate: The 2,000 meter infill and bulk sampling program was completed in mid-October and all
core samples have now been sent for REO analysis. It is anticipated that all assay results
will be completed before the end of the year and then modelling for a new Mineral
Resource Estimate (MRE) under the JORC 2012 Code will be undertaken. Subject to
receiving all of the assays back before the end of the year, it is anticipated that the updated
MRE will be available in first quarter, 2023. The updated MRE will be reported under the JORC 2012 reporting standards and will also
include the latest infill drill results. In addition, the new resource and production plan will
focus on production of the NdPr suite of rare earth minerals. Metallurgical Testwork: Metallurgical test work on a 1.3 tonne bulk sample from Khotgor has been underway at
ALS Perth, Western Australian laboratories over the past 6 months. Initial flotation test work
has indicated good extractions of rare earths and good filtration properties. Rare earth
extraction was >95%, which is a very positive outcome when benchmarked against
historical REE test work. Optimisation flotation work is ongoing to try and increase REO
recoveries. Hydrometallurgical test work is now underway to produce an intermediate carbonate or
chloride product, prior to final REO/NdPr separation. Initial test work has indicated that REO
recoveries >90% can be achieved for this stage. The next phase of test work will be
undertaken early in the new year to focus on production of individual REO oxide streams,
with a focus on the NdPr mineral suite. Rare Earth Market update: The global rare earths market size is expected to grow at a CAGR of 12% between 2021 and
2026. The increasing number of applications for rare earth magnets using both Nd and Pr
in both electric vehicles and wind turbines are the predominant applications driving this
growth, with a hybrid vehicle using up to 1kg of Neodymium per vehicle and a full electric
vehicle using more.
In 2021 the price of dysprosium oxide rose above $100,000 per tonne, driven by growing
demand in the magnet, lasers and nuclear sectors. NSW Copper Gold exploration: Unprecedented rainfall continued to impede progress during October, however
pleasingly, NSW exploration team has re-commenced targeting work at the key
projects of Whitbarrow, Redlands and Lunns Dam. Ground EM work at Redlands has re-
commenced and additional EM work is planned for Miandetta in December. Subject to the
weather remaining dry into 2023, company are currently scheduled to commence an RC drilling
program on the high priority EM targets early in first quarter of calendar year 2023.