Avenira Limited provided the following update on the proposed DSO Phosphate Project, to mine and sell high-grade phosphate ore from its Tier 1, 100% owned Wonarah Phosphate Project to third parties to produce high-purity phosphoric acid (the "DSO Project"). Wonarah has the large high grade Phosphate resource in Australia, with its ore well suited for the production of high purity phosphoric acid for use as a feedstock to Avenira's proposed Lithium Ferro Phosphate (LFP) manufacturing plant, as well as direct sales into agricultural and industrial chemical markets. Tier 1 large premium grade phosphate deposit in Australia (15% Cut off grade): Measured Resource of 64.9 Mt @ 22.4% P2O5; Indicated Resource of 133 Mt @ 21.1% P2O5; Inferred Resource of 335 Mt @ 21% P2O5.

100%-owned by Avenira. Excellent infrastructure including nearby road, rail, gas, and water. Avenira is well advanced on discussions for binding offtake agreements.

Marketing samples have been successfully shipped and are being laboratory tested by interested regional Phosphoric Acid customers. These samples have been independently verified to contain an abnormally high phosphorous content which paired with the physical robustness of the phosphate ore makes it uniquely suited for thermal processing and the production of high-purity Battery Grade Phosphoric Acid. Additionally, trial shipments have been requested by potential offtakers.

Pending successful product qualification, a binding offtake agreement is expected to be executed for the sale of up to 600,000tpa of high grade, high value DSO phosphate ore. Morocco FOB Phosphate ore prices for 32% P2O5 remained strong at USD 317.5/t in October 2022, with the World Bank forecasting Phosphate Rock prices to remain elevated at USD 200/t in 2023ii. Due to its abnormally high-grade, physical properties and low impurities, Avenira may command a premium to the benchmark price for Wonarah Ore.

Phosphate prices are intrinsically linked to international supply and demand trends for agriculture, with the majority of phosphate rock being used to produce mineral fertilisers. Growing human populations and expanding meat consumption in developing countries have continued to outpace new production capacity, increasing long-term phosphate rock prices. This upward trend has been particularly evident over the past 12 months, with a confluence of geopolitical factors providing additional tailwinds for phosphate rock prices, including: Russian exports falling significantly following globally imposed economic sanctions relating to the invasion of the Ukraine; China suspending phosphate exports to ensure adequate availability for domestic supply needs; and · European Union heavy metal limits for phosphate imports affecting supply originating from Morocco, one of the large producers of phosphate rock.

Avenira anticipates elevated phosphate pricesii to continue over the medium to long term, driven by demand in the fertiliser markets together with the rapid adoption of Lithium Ferro Phosphate battery cells. Mining contractor selection process underway with request for quotation to be distributed shortly. Rail haulage rates are currently being negotiated with Aurizoni for Tennant Creek to Darwin transport to formulate the freight and logistical framework required to transport the DSO ore to the Darwin port.

Negotiations to lease an existing under utilised construction camp (less than 5 years old) adjacent to the Wonarah mine has commenced and will be executed once the mining license is granted. Mining use agreements with the Arruwurra Aboriginal Corporation are being progressed, and are expected be finalised and executed in December qtr 2022.