Parabellum Resources Limited announced update shareholders on the excellent progress the company has made on the mineral resource estimate (JORC 2012), metallurgical test work and engineering design which form the key deliverables items required in the Scoping Study. The 2,000 meter infill and bulk sampling program was completed in mid-October and all core samples have now been sent for REO analysis. It is anticipated that all assay results will be completed before the end of the year and then modelling for a new Mineral Resource Estimate (MRE) under the new JORC 2012 standard will be undertaken.

Subject to receiving all of the assays back before the end of the year, it is anticipated that the updated MRE will be available in first quarter 2023. Metallurgical Testwork: Metallurgical test work on a 1.3 tonne bulk sample from Khotgor has been underway at ALS Perth, Western Australian laboratories over the past 6 months. Initial flotation test work has indicated good extractions of rare earths and good filtration properties.

Rare earth extraction was >85%, which is a very positive outcome when benchmarked against historical REE test work. Optimisation flotation work is ongoing to try and increase REO recoveries. Hydrometallurgical test work is now underway to produce an intermediate carbonate or chloride product, prior to final REO/NdPr separation.

Initial test work has indicated that REO recoveries >90% can be achieved for this stage. The next phase of test work will be undertaken early in the new year to focus on production of individual REO oxide streams, with a focus on the NdPr mineral suite. Engineering Design: Mine design and project engineering design for the Scoping Study will commence in the next quarter to meet the Scoping Study schedule.

This work will be undertaken in Perth, with assistance from engineering consultants in Mongolia. Preliminary discussions with suppliers have indicated are that there continues to be price escalation at both the equipment and consumable level as the impact of increases in fuel, steel, energy, labour, chemicals, reagents and transport can no longer be absorbed by suppliers. Significant natural resource demand, specifically in the battery metals and commodities, has also resulted in production constraints at key equipment suppliers and is contributing to longer delivery times and increased equipment pricing.