iTech Minerals Ltd. provided update on exploration progress heading into the new year. Ionic Clay Metallurgy: iTech has submitted 20 samples across two of its REE prospects at Ethiopia and Burtons (formerly Salt Creek) for metallurgical test work to determine the extent of ionic adsorption of REEs present in the clays at each prospect. Samples have been sent to the Australian Nuclear Science and Technology Organisation (ANSTO) to undertake scoping test work.

The main objective is to assess the leachability of rare earths, under typical desorption conditions applied to ionic clay deposits (IAC) with results expected prior to the commencement of drilling. The samples have been selected to represent different levels within the weathering profile spatial distributed across the prospects. This will help iTech understand to what degree ionic adsorption plays a role in the REE mineralisation at each prospect and how it may vary within the system.

Drilling Progress: The Company has been busy contacting landowners on its Eyre Peninsula tenements, post-harvest, to obtain permission to access the land for drilling. Access to all prospects has now been granted and a drill rig secured to commence drilling next month. Over 370 drill holes are planned to be drilled across four prospects on the central Eyre Peninsula, targeting both kaolin (kaolin-halloysite and HPA) and kaolin-IAC REE styles of mineralisation.

Bartels IAC REE Prospect: iTech has identified a new zone of REE mineralisation in a weathered, clay rich horizon at the Bartels Prospect, in the southernmost part of the Eyre Peninsula tenement package. In 2012, Archer Materials drilled 3 reverse circulation drill holes targeting gold mineralisation in epithermal systems. One drill hole, EPIRC12_003, intersected significant rare earth elements in what is described as kaolinised coarse grained felsic, this hole was drilled in an attempt to identify strike extensions to gold mineralisation. EPIRC12_003 intersected 21m @ 2298 ppm TREO from 55-76m; including 9 m @ 3054 ppm TREO from 55-56m; and 7 m @ 2626 ppm TREO from 69-76m; EPIRC12_001 and EPIRC12_002 intersected alteration and significant gold mineralisation but didn't intersect the kaolinitic felsic unit identified in EPIRC12_003.

Due to the depth of the mineralisation, there is some question as to whether it could be ionic in nature. The mineralized interval appears to be a preferentially weathered zone of felsic intrusive within layered metasediments of the Hutchison Group Metasediments. A review of the chip trays from the drilling does suggest that the influence of lateritic weathering extends well below the mineralized horizon, potentially preferentially weathering certain units.

More importantly weathered equivalents of the felsic outcrop extensively in the vicinity of the drill hole and provide a significant IAC REE target in the upcoming drilling program. iTech intends to drill approximately 50 drill holes across an area of approximately 4km x 2km to test this target. Ethiopia Kaolin ­ IAC REE Prospect: Having identified extensive enrichment of REE's in kaolinitic clays, across an area in excess of 1.3 km x 1 km, at the Ethiopia Prospect, iTech plans to drill approximately 65 additional holes.

The program is designed to infill and extend the mineralisation to an area of approximately 2.5 km x 1.5 km with a focus on extending high grade mineralisation at the end of historical drilling in ETH-029 which intersected 32m @ 1633 ppm TREO (<45m). Burtons (Salt Creek) IAC REE Prospect: iTech has identified significant rare earth element mineralisation in the clay rich, weathering profile at the Burtons Prospect on the Eyre Peninsula, South Australia (Fig. 1).

The rare earths display significant enrichment of neodymium and praesidium (~23% Nd+Pr), which are critical in the production of permanent magnets for electric vehicles and renewable energy. They also display significant enrichment in desirable heavy rare earth element oxides (~39% HREO) which command a premium price. A detailed review of historical data, from drilling undertaken by Archer Materials Ltd. in 2011, identified thick intervals of up to 32m of REE rich, clay dominant material, over an area extending over 1 km in a north-south direction (Fig.

4). Of the 19 drill holes, 15 holes had high levels of REE mineralisation consistent with ion adsorption clay (IAC) style mineralisation. The results show thick intervals of clay rich material near surface with high levels of total rare earth element oxides.

Representative samples from Burtons Prospect are being sent to the ANSTO laboratories in Sydney where they specialise in the metallurgical extraction of REE from IAC deposits. The results will give an indication of expected recoveries and whether ionic adsorption plays a significant role in the REE mineralisation style. iTech plans to drill approximately 64 holes at the Burtons Prospect over an area of 12km x 3km to test the full extent of the clay hosted REE mineralisation.

Caralue Bluff Kaolin Prospect: The Caralue Bluff Prospect has bright white kaolin confirmed in drilling at <10m depth, up to 17m thick, in two drill holes over 5 km apart. Historical partial chemical and mineralogical analyses of the bulk raw clay from one drill hole recorded relative high kaolinite content (~70%) with total Fe 2O3 of 0.55% and raw brightness of 87% according to the TAPPI 646m-54 standard. The high purity and brightness of this material makes it well suited to high purity alumina feedstock, paper coating and filler applications (ASX Release, Replacement Prospectus, 19 October 2021).

The Company has an extensive drilling program planned to cover an area of 12 km x 12km for a total of approximately 194 holes. In addition to the two drill holes that intersect bright white kaolin, numerous dams and council rubble pits in the region reveal white kaolin exposed at surface over.