Ausmon Resources Limited has been granted by the Department of Energy and Mining of South Australia 4 new exploration licences ELs 6795, 6796, 6797 and 6807 respectively to the Company's applications ELA 2021/00082 Parrakie, ELA 2021/00136 Mt Rough, ELA 2021/00137 Kingston and ELA 2202/00015 Wolseley, each for 6 years to July 2028. The 4 licences cover a total of 2,775 square kilometers located south- east of Adelaide on the Limestone Coast in South Australia within the Loxton Sands or equivalent of the Murray and Otway Basins. The Company plans to explore for Rare Earth Elements ("REE") contained within the fine clay fraction of Tertiary (65 to 2.5 Million Years Ago) Strandlines ("ionic clay style of deposit) reportedly existing in the region.

Australian Rare Earth is already exploring over a large area in the region and 2 weeks ago announced a 104% increase in its JORC inferred mineral resource to 81.4 MT @ 785 ppm TREO (Total Rare Earth Oxides) at their Koppamurra project prospective for ionic clay REE deposit. REEs ion-adsorption type deposits are formed by weathering of various rock types (typically granites) that contain particular REE bearing minerals. Due to surface weathering, REE minerals are decomposed, and ionized REEs are absorbed on clay minerals (normally kaolin and smectite groups).

REEs have been designated critical minerals by Australia, EU, USGS and IEA and are used in rare earth permanent magnets for electric vehicles (EV), wind turbines and various electronic devices. Continuous development of advanced technologies has created increasing demand for REEs, with global emphasis on identifying new alternate sources to ensure adequate supply and to reduce current over reliance on production from China. Ore deposits containing physically clay adsorbed REEs with low mining and processing costs make them economically attractive as sources of REE.

To evaluate the commercial potential for the recovery of REEs from ion-adsorption clay deposits in a systematic manner, a standardized procedure for REE leaching has been developed previously by industry participants. Using this procedure, it was found that, regardless of variations in ore origin and REE content, all REE consistently reached peak extraction levels under low temperature condition. The Company has developed an exploration strategy for selected sites within the 4 tenements to be visited to collect where available, bulk samples to identify any clay fraction that can be sieved via shallow auger drilling traverses along the road verges.

This work is planned to commence in this September quarter with local service providers as may be available.