Australian Rare Earths Limited announced the start of a new drilling program as part of its strategy to grow the Resource at its Koppamurra project in South Australia. The new program is aimed at extending the known mineralization beyond the boundaries of the current resource. AR3 is also awaiting the remaining assays from the drilling conducted in late 2022.

These will be included in the Resource update scheduled for later this quarter. Drilling at 120 metre spacings is currently underway targeting resource extension and conversion from Exploration Target resource classification. Preliminary pXRF (portable handheld spectrometer devices to identify elements) geochemistry readings, geological assessments and the assays that have been returned from those areas have been highly encouraging, with the shallow rare earth mineralised clays underlain by limestone.

The current Exploration and Resource Definition drilling program commenced in late January 2023 with 216 holes already drilled for 2,383 metres. Drilling is spaced at 100m along road verges and 120m in other areas. Exploration drilling is planned to continue up until early May 2023, targeting a total of 10,000 metres and aiming to significantly expand the existing mineral resource at Koppamurra, and to test regional extensions of the wider prospect area.

The 2022 drilling programs generated over 8,000 samples across 1,239 drillholes. Samples were sent to the laboratory for analysis. Results are pending for 1,585 of these samples and are expected to arrive at the end of February 2023.

An updated MRE supported by the 2022 drilling is on track for completion by the end of the first quarter of calendar 2023. The sections, identified in the Location Plan above and illustrated here below, show continuity and extension of mineralisation occurring within the northern region of the defined Exploration Target area. The Company confirms that it is not aware of any new information or data that materially affects the Exploration Results and/or the estimates of Mineral Resources in this release, and in respect of the estimates of Mineral Resources reported, that all material assumptions and technical parameters underpinning the estimates continue to apply and have not changed.