Australian Bauxite : ABx highest rare earth grades

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ASX ANNOUNCEMENT

23 November 2021

ASX: ABX

ABx highest rare earth grades from drilling at Deep Leads Tasmania

• ABx has once again discovered a new record high grade of Rare Earth Elements (REE) in the first drill results from its recent step-out drilling campaign at Deep Leads in northern Tasmania
• Hole DL392 returned a grade of 493 ppm Nd2O3, our highest neodymium grade to date from the Deep Leads discovery and had 1,878 ppm total rare earths oxide (TREO) - see Figures 2 & 3
• The thickness of the mineralised zone has been shown to be at least 3 metres thick
• Hole DL392 represents a 250 metre easterly extension of the REE mineralisation
• Hole DL392 revealed the geological setting of the REE at Deep Leads and has shown that drillholes need to penetrate further into broken, altered bedrock in areas of high water flow
• A specialist multi-purpose drill technology is being assembled for efficient drilling through this mixed zone of mineralised clays, wet clays, clay-broken rock mixture and harder bedrock
• The strike length of the Deep Leads REE exceeds 3.25 km and is open in several directions. Similar prospects exist across the region in the tenements held by ABx
• A large number of assays from drillholes recently drilled on the western flank of Deep Leads are pending, some from thicker zones of prospective geology
• Our soluble rare earths deposit differs from traditional hard rock REE deposits, being lower cost and dominated by the four super-magnet type of REEs, which are the highest value REE
• Results to date are consistent with the Ionic Adsorption Clay (IAC) type of REE mineralisation which can be rapidly developed and processed at low cost. ABx is advised that ABx is one of very few publicly listed discoverers of IAC deposits

ABx Group (ASX:ABX) is pleased to report recent assay results from its Deep Leads rare earth element (REE) discovery at the DL130 bauxite deposit in northern Tasmania, which is now proven to extend for more than 3.25 kilometres - see Figure 3.

Highest grade of super magnet REE to date and thicker intercepts

The intercept in hole DL392 has the highest grades of all four super-magnet REE to date, including 493ppm of neodymium oxide (Nd2O3), which is the main super-magnet REE 1.

The mineralisation in recent holes DL392 and DL393 is at least three metres thick, but the drill rig was unable to drill all the way through the mineralised zone due to mixtures of wet clays and broken, altered rock with high water flow rates. Hole DL393 is the first hole drilled into Target 2 (see Figure 3).

Results from the next 20 drillholes are pending

ABx awaits assay results from 20 more recent drillholes that can materially expand the areal extent of the Deep Leads REE mineralisation. These 20 holes with assays pending are shown on Figure 3.

	1 See JORC Statement Appendix 1
Australian Bauxite Limited t/a ABx Group	Level 5 52 Phillip Street	Sydney NSW 2000
ABN 14 139 494 885	P: [phone]	F: [phone]

ASX Announcement

23 November 2021

page 2

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Figure 1: Location of ABx's Deep Leads REE Discovery in Northern Tasmania

	Hole DL392 summary			Super Magnet REE
	Depth	Geology	Wet	Rock	REE Grade (Total Rare Earth	Nd2O3	Pr2O3	Dy2O3		Tb2O3	Other	TREO
	To (m)	structure	Oxides TREO ppm)	(ppm)	(ppm)	(ppm)		(ppm)	REE (ppm)	(ppm)
	6	Damp clay				9.1	2.4	2.0		0.3	66	79
	7	Damp clay &		Clay		19.7	5.2	4.0		0.7	122	152
	wet clay
	8	Wet clay				92.4	24.8	16.3		2.8	478	615
	9	Very wet clay				493.4	121.7	76.8		14.3	1,171	1,878
	& rock
	10	Wet, broken				258.9	70.5	40.3		7.4	608	985
	altered rock
	Drillhole	could not	penetrate	firm bedrock

Figure 2: Drill log and REE grades of the mineralised intercept in hole DL392

Legend:	REE	= rare earth elements
	TREO	= total rare earth oxides
Super-magnet REE:	Nd2O3	= neodymium oxide
	Pr2O3	= praseodymium oxide
	Dy2O3	= dysprosium oxide
	Tb2O3	= terbium oxide

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Target

Target

Hole DL313

Hole DL162

Target	Mineralised
	zone

ASX Announcement

23 November 2021

page 3

Target	Source	Rock?	Target 2
Possible
	Hole DL393

Hole DL392 Highest super- magnet REE grades

For personal

Target

250m

Hole DL187

Highest

TREO grade

Figure 3: Drillhole grades of Total Rare Earth Element Oxides (ppm TREO) at Deep Leads Discovery.

Note 1: Most early drillholes were not deep enough to test the full REE horizon which occurs at the boundary between REE-rich clays and broken, altered basement rock where groundwater flows are strongest. This difficult drill target requires specialist drilling technology to efficiently drill this discovery.

Note 2: The mineralised zones in holes DL392 and DL393 were at least 3 metres thick. Hole DL393 is the first drillhole into "Target 2" clays that have shed off the plateau (see green zone in Figure 3).

Significance of these results

1. ABx's REE mineralisation is enriched in the super-magnetic rare earth elements neodymium (Nd), praseodymium (Pr), terbium (Tb) and dysprosium (Dy), which are strategically important, high priced metals needed for electric vehicles, wind turbines, smart phones and military electronics. Prices are rising rapidly as demand grows strongly.
2. ABx's REE exploration is identifying a large, low-grade mineralised zone that appears strongest where the flow rates of the saline groundwater are strong.
3. Like low-grade open pit gold deposits, this REE mineralisation can be easily processed.
4. ABx believes it has discovered "water-soluble" ionic adsorption clay REE resources that can be concentrated into a saleable precipitate by low-cost leaching with dilute water-based solutions (see ASX release 13/09/2021).
5. Some drillholes need to be drilled to 25 metres depth in places to ensure that the entire REE mineralised clay and altered bedrock mineralised horizon is revealed and sampled.

For personal use only

ASX Announcement

23 November 2021

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Summary comments

ABx Exploration Manager, Paul Glover said; "As Covid travel restrictions ease, we can introduce new technologies for this REE exploration project, including high resolution geophysics to map the groundwater channels that host the best REE exploration targets and a multi-purpose drill rig to reveal the full thickness and geology of the mineralised zones.

We await the granting of our new Exploration License application that covers several attractive REE targets that exist to the east of our current Deep Leads discovery."

This announcement is authorised by the Board of Australian Bauxite Limited.

For further information please contact:

Ian Levy, CEO

ABx Group

Mobile: [phone]

Email: [e-mail]

ASX Announcement

23 November 2021

page 5

Table 1: REE drill results Deep Leads Discovery

					Super Magnet REE
only		Hole	From	To	Nd2O3	Pr2O3	Dy2O3		Tb2O3	Other REE	TREO
	(m)	(m)	(ppm)	(ppm)	(ppm)		(ppm)	(ppm)	(ppm)
	DL389	13	14	23.6	6.3	2.9		0.6	139	172
		DL389	14	15	17.7	4.7	3.1		0.6	129	155
		DL389	15	16	11.3	2.7	3.7		0.6	80	99
		DL389	16	17	29.3	6.8	7.3		1.3	142	187
		DL389	17	18	106.3	25.4	20.9		4.0	439	595
		DL389	18	19	209.9	48.7	52.7		9.7	908	1229
		DL389	19	20	159.8	36.7	42.2		7.7	735	981
		Drill hole did not reach firm	bedrock
use		DL390	12	13	19.9	5.4	3.5		0.7	192	222
	DL390	13	14	24.6	6.5	4.9		0.9	383	420
	DL390	14	15	25.2	6.0	7.8		1.3	257	297
		DL390	15	16	30.6	7.1	9.2		1.5	287	336
		Drill hole stopped at top of firm bedrock
		DL391	5	6	2.8	0.7	0.9		0.1	22	27
		DL391	6	7	2.4	0.6	0.7		0.1	21	25
		DL391	7	8	2.3	0.6	0.7		0.1	27	31
personal		DL391	8	9	6.2	1.6	1.4		0.2	154	163
	DL391	9	10	6.0	1.5	1.3		0.2	158	167
	DL394	11	12	16.6	4.3	3.5		0.6	215	240
		Drill hole stopped at top of firm bedrock
		DL392	5	6	9.1	2.4	2.0		0.3	66	79
		DL392	6	7	19.7	5.2	4.0		0.7	122	152
		DL392	7	8	92.4	24.8	16.3		2.8	478	615
		DL392	8	9	493.4	121.7	76.8		14.3	1171	1878
		DL392	9	10	258.9	70.5	40.3		7.4	608	985
		Drill hole could not	penetrate firm bedrock
		DL393	4	5	60.1	16.3	11.4		2.0	282	372
		DL393	5	6	64.4	17.4	11.7		2.0	282	377
		DL393	6	7	60.9	16.2	12.4		2.2	269	361
		Drill hole stopped at	top of firm bedrock
		DL394	7	8	8.7	2.6	2.5		0.4	107	122
		DL394	8	9	5.4	1.5	1.5		0.3	175	184
		DL394	9	10	12.1	3.0	3.0		0.5	289	308
		DL394	10	11	28.7	7.2	5.8		1.0	203	246
For		Drill hole stopped at top of firm bedrock
	DL395	5	6	5.4	1.5	0.9		0.2	65	72
	DL395	6	7	2.3	0.6	0.5		0.1	20	24
	DL395	7	8	3.0	0.7	0.6		0.1	38	42
	DL395	8	9	3.2	0.9	0.7		0.1	39	44
	DL395	9	10	5.3	1.5	1.2		0.2	120	129
	DL395	10	11	25.3	1.4	1.1		0.2	90	98
	DL395	11	12	21.0	3.9	4.0		0.6	237	261
		DL395	12	13	2.6	7.1	5.1		0.9	219	258
		DL395	13	14	6.6	5.8	4.2		0.6	195	226
		DL396	2	3	1.9	0.7	0.6		0.1	17	21
		DL396	3	4	3.2	1.8	1.1		0.2	43	53
		DL396	4	5	5.2	0.5	0.5		0.1	55	58
		DL396	5	6	14.9	0.8	0.8		0.1	47	52

Drill hole stopped at top of firm bedrock