Metallurgical Innovation and Risk Mitigation Update Tiros Titanium and Rare Earths Project
Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Suite 250, 997 Seymour Street, V ancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
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TSXV Release ASX Release
4 May 2025 5 May 2025
Resouro Strategic Metals Inc.
(ASX: RAU; TSX-V: RSM; FSE: 8TX; OTCQB: RSGOF)
Metallurgical Innovation and Risk Mitigation Update
Tiros Titanium and Rare Earths Project
Resouro Strategic Metals Inc. ("Resouro" or the "Company") is pleased to provide an update
on its metallurgical processing strategy at the globally significant Tiros Titanium and Rare Earths
Project (“Tiros Project” or “Tiros” or “Project”) in Minas Gerais, Brazil.
Key Highlights
o Metallurgical technology identified as a risk management and revenue enhancing process;
o Next stage of metallurgical optimization set to be completed by end of second quarter 2025;
o New process reinforces Resouro as a leader in sustainable and responsible mining and..
o An expert panel of independent and highly qualified metallurgists to oversee test work.
Building on successful proof -of-concept results, the Company has commenced the next stage of
metallurgical optimization, targeting maximized product recovery, near-elimination of tailings, and
unprecedented risk mitigation.
Resouro’s application of Fusion Sulphuric Acid Leach (" FSAL") technology, developed by YM
Serviços under the Memorandum of Understanding (“ MoU”) previously announced (refer ASX -
April 28, 2025/TSXV - April 27, 2025), positions the Tiros Project at the forefront of sustainable
mining innovation, offering potentially significant operational, economic, environmental and
associated advantages.
The FSAL process involves:
• Applying controlled heat to the mineralized feed to enhance its physical and mineralogical
properties;
• Comminution to an effective grind size for acid digestion;
• Filtering and removing silica;
Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Suite 250, 997 Seymour Street, V ancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
2 | P a g e
• pH adjustments to precipitate products of titanium, iron and alumina; and
• Rare earth precipitation from the Rare Earths Oxide (“REO”) pregnant acid solution.
The next stage of follow up tests, supervised by YM Servicos, will commence on 5th May 2025 in
collaboration with:
• REFRALAB for heat treatment and comminution https://www.refralab.com.br/;
• CIT Senai for acid treatment and precipitation. https://www.fiemg.com.br/cit/; and
• SGS laboratories for assay, https://www.sgs.com/en-br/service-groups/laboratory-
services.
The budget for the first batch of tests , expected to be completed by the end of June 2025 , is
US$70,000. Resouro will have absolute exclusivity and perpetuity to the technology for the entire
Capacete Geological Formation, which hosts the mineralisation of the Tiros Project.
Resouro’s Executive Chairman, Chris Eager said:
“The advancement of the Tiros Project’ s metallurgical program represents a major value -
enhancing step for Resouro and its shareholders. By adopting a sustainable and highly efficient
processing solution, we are positioning the Company to deliver superior r eturns through higher
product recoveries, reduced capital intensity, and lower environmental risk. This innovation not
only has the potential to strengthen the economic fundamentals of the Tiros Project but also
differentiates Resouro as a forward -thinking company aligned with global sustainability
expectations. We are committed to building long-term shareholder value by developing world-class
assets through innovation, responsibility, and strategic discipline.”
Resouro’s Chief Executive Officer, Alistair Stephens, said:
"The technical results we are seeing from the Fusion Sulphuric Acid Leach process are
exceptionally encouraging. This innovative approach maximises recoveries of titanium, iron,
alumina, and rare earths while addressing one of the most critical challenges in mining today —
the management of mineral processing waste. The FSAL process significantly enhances the
metallurgical performance of the Tiros mineralisation, upgrades titanium to a higher -value
product, and has the potential to eliminate conventional ta ilings generation. This development
underscores Resouro’ s technical leadership and our commitment to advancing the Tiros Project
with efficiency, integrity, and environmental stewardship."
Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Suite 250, 997 Seymour Street, V ancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
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Risk Mitigation and Revenue Enhancement
The FSAL process (Figure 1 ) has been identified as a risk mitigation and potential revenue
enhancing process for multiple reasons:
1. The process converts over 90% of the mass in feed (minerals of titanium, iron, silica and
alumina) into saleable products and displaces, by heat treatment, volatile materials;
2. The process converts anatase (technically 100% TiO2) into rutile (technically 100% TiO2)
at the pre-heat temperature, resulting in a conventional approach to titanium processing
and recovery;
3. Sulphuric acid digest is a common process for recovering titanium and rare earths;
4. The process advances heat treatment to convert weathered materials (iron and alumina
type minerals) into recoverable and saleable products; and
5. Most importantly, the process has been identified as a major sustainable process with
significant risk reduction by the potential elimination of tailings from mineral processing.
Figure 1. The FSAL flow sheet converts almost the entire mineralisation to saleable products.
Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Suite 250, 997 Seymour Street, V ancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
4 | P a g e
Based on the preliminary cost assessment , the Company estimates that the preheat treatment
represents a potential cost and capital neutral or beneficial position for the following reasons:
1. The beneficiation process, whether by gravity or flotation, requires substantial volumes of
water, producing tailings that can exceed the feed volume by orders of magnitude
especially in clay-rich material. Without effective water recovery systems (clay is a
significant water absorbing compound), managing these tailings become a major
challenge. Dewatering clay-based tailings is capital-intensive, operationally costly, and
likely to surpass mining costs; and
2. The elimination of tailings shifts capital and operating costs to the front-end of the process
and may be cost-neutral overall.
The economic driver of this process lies in the high-grade mineralization zone of the Tiros resource
which contains grades of 24% titanium dioxide and 9,100ppm total rare earth oxide . Both
compounds are amenable to sulphuric acid digestion recovery (refer ASX - April 9, 2025/TSXV -
April 8, 2025).
When weighted against risks, the process offers significant benefits, including the elimination of
tailings generation, thereby removing the environmental and community risk of a tailings dam.
The Company acknowledges that the Mariana tailings dam failure in Minas Gerais, Brazil,
represents one of the most catastrophic breakdowns of corporate responsibility and technical due
diligence in history. The disaster devastated communities, caused irreparable environmental
damage, and resulted in an estimated US$50 billion in compensation claims. The FSAL process is
a risk mitigation strategy.
Resouro is committed to safe and responsible practices, taking a novel approach to mineralization
treatment that positions it as a leader in sustainable mining , setting a new benchmark for
responsible mining.
The Company’s innovative approach has already received strong support in early discussions with
the Minas Gerais Government agencies, particularly regarding the elimination of tailings facilities
— a critical issue in the region’s mining sector.
Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Suite 250, 997 Seymour Street, V ancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
5 | P a g e
Global Significance of the Tiros Mineral Resource
The Tiros Project hosts one of the largest known titanium and Rare Earth Element ( “REE”)
resources globally, positioning it as a strategically significant supply source in two critical and
rapidly evolving markets.
Titanium
• Tiros contains vast quantities of titanium-rich mineralisation, primarily in the anatase form,
which can be upgraded to rutile by heat treatment — a premium feedstock for titanium
dioxide pigment and titanium metal.
• With rising global demand for titanium in aerospace, defence, low-carbon technologies, and
advanced manufacturing, Tiros offers a long -life, low -impurity alternative to declining
global ilmenite and rutile reserves.
• The potential for high -purity, chloride-grade titanium feedstock differentiates Tiros in a
market increasingly driven by sustainability and supply-chain diversification.
Rare Earth Elements
• Tiros’ REE content is analogous to some of the most sought -after deposits globally with
significantly low sovereign risk.
• The rare earth suite includes critical magnet metals Neodymium (Nd), Praseodymium (Pr),
Dysprosium (Dy), and Terbium (Tb), essential for electric vehicles, wind turbines, and
defence systems.
• As global supply chains shift away from Chinese dominance, Tiros stands out as a scalable,
jurisdictionally secure, and environmentally progressive alternative.
The TiO2 and REE resource at the Tiros Project represents a globally strategic asset, aligning with
key industrial, geopolitical, and environmental drivers . It offers secure, sustainable access to
minerals essential for the clean energy transition and future-facing technologies.
Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Suite 250, 997 Seymour Street, V ancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
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ENVIROMENTAL IMPACT ASSESSMENT
Resouro appointed Sete Soluções e Tecnologia Ambiental (“ Sete”) last year to undertake
Environmental Studies for Tiros. Set e is a highly regarded Brazilian Environmental Consultant,
headquartered in Belo Horizonte with offices throughout Brazil. Sete are progressing with the
Environmental Impact Assessment for permitting of a Demonstration Treatment Plant.
Metallurgical Supervisory Team
Under the terms of the MOU, Ysao Munemassa will supervise the test work program. Resouro has
also engaged a high-quality supervisory team of metallurgical experts to review and document the
FSAL process and offer independent and impartial advice on the process. The resumes of the
independent team are as follows.
Ysao Munemassa: University of São Paulo, Geology, 1966
Ysao Munemassa is a distinguished Brazilian geologist with nearly six decades of experience in
mineral exploration and project development. A graduate of the University of São Paulo (1966), he
has held senior roles at leading global mining companies includ ing Union Carbide, Vale, BP
Minerals (as Vice President of Exploration in Brazil), CESBRA, Newmont Corporation, and Teck
Resources Limited. Throughout his career, Mr. Munemassa has been instrumental in the discovery
of major mineral deposits across Brazil, including an iron deposit in Carajás, chromite in Amapá,
the Cabaçal gold deposit in Mato Grosso, and copper -gold IOCG mineralization at Sa lobo. His
contributions extend across multiple commodities including gold, nickel, phosphate, scheelite, and
potash. In addition to his corporate roles, Mr. Munemassa has led several entrepreneurial mining
ventures, operating gold mines in Goiás, Bahia, and Amapá. As a researcher, he has developed
innovative metallurgical processes for the extraction of potassium, magnes ium, silica, titanium,
and rare earth elements. Mr. Munemassa brings a unique combination of technical expertise, field
experience, and innovation to resource development in Brazil.
J.R. Goode : P.Eng. (ON and NL), 1963, FCIMM, FAusIMM
John graduated from the Royal School of Mines as a metallurgist in 1963. After two years with
Falconbridge and two years at RTZ’s Avonmouth operation, he transferred to Rio Algom in Elliot
Lake, Ontario, where he was involved in process development in the yttrium-thorium and uranium
plants. In 1973, he transferred to RTZ’s Ore Sorters Ltd. In 1976, John joined Kilborn Engineering
and was VP of Mining and Metallurgy when he left in 1994. While there, he completed numerous
Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Suite 250, 997 Seymour Street, V ancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
7 | P a g e
gold, uranium, and rare earth projects, including the design and commissioning of a new yttrium
plant in Elliot Lake and an evaluation of rare earth operations in China that resulted in AMR (now
Neo Performance Materials) acquiring interests in two separation plants. John joined Barrick Gold
in 1994 and spent four years managing China operations. Upon returning to Canada, he established
a consultancy undertaking numerous projects, including many rare earths projects in ore processing
and separation plant design. John has presented about 80 papers, many concerning rare earths. He
is a co -organizer of CIM conferences and was an expert to ISO/TC 298 rare earth, which sets
international standards for the industry.
Steve Williams B App Sc, MBA – Executive Chairman, Blue Coast Research (BCR)
Steve has worked in the mining industry, in Australia, Canada and South America for more than
four decades working in metallurgical operations in Australia, Canada, Philippines, Dominican
Republic and Mongolia. Steve Williams founded metallurgical services for Lakefield Research in
Chile and worked there from 1994 – 2001. At SGS Lakefield Research, Steve acquired 30 years of
experience in metallurgical project management and business development, before becoming
Managing Director for SGS Canada in 2008. H e is the author of many acclaimed papers in
geometallurgy, and he became a CIM Distinguished Lecturer in 2004, followed by a CIM Fellow,
for his notable work in geometallurgy. Steve joined Blue Coast Research in 2019 and has worked
on many geometallurgy based projects for BCR.
This announcement has been authorized for release by the Board of Directors.
Contact Information:
Chris Eager,
Executive Chair (Santiago)
+44 7388 0579809
Alistair Stephens
Chief Executive Officer (Perth)
+614 88 99 25
Emily Evans, SPOKE
Media and Content Manager
+61 401 337 959
About the Company
Resouro is a Canadian incorporated mineral exploration and development company, listed on the ASX, TSXV ,
OTC and FSE, focused on the discovery and advancement of economic mineral projects in Brazil, including the
Tiros Titanium -Rare Earths Project and the Novo Mundo Gold Project. The Tiros project has 28 mineral
concessions totalling 497 km 2 located in the state of Minas Gerais, one of the best infrastructurally developed
states of Brazil, 350 km from the state capital of Belo Horizonte. Resouro's Mineral Resource Estimate for the
Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Suite 250, 997 Seymour Street, V ancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
8 | P a g e
Tiros Project contains 165 million tonne of titanium dioxide and 5.5 million tonne of total rare earths oxides within
a Measured and Indicated Resource of 1.4 billion tonne.
Note: Further details of the Company’ s JORC MRE are contained within the Company’ s ASX announcement of 9
April, 2025/TSXV 8 April 2025. Resouro is not aware of any new information or data that materially affects the
information included in the Company’ s announcement and that all material assumptions and technical parameters
underpinning the estimates referred to therein continue to apply and have not materially changed.
Resouro Strategic Metals Inc., capital structure
ASX Chess Depositary Interests 42,833,059
TSXV Common Stock 49,756,990
Total on Issue 92,590,049
Shares held in Escrow included in Total on Issue 10,979,257
Options issued under the Company Plan 12,495,000
Options issued to Brokers 1,843,643
Warrants issued to Brokers 600,616
Performance Rights 750,000
Fully Diluted Securities 108,279,308
Forward-Looking Information
This news release contains certain "forward -looking information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or
"will" occur. Although we believe that the expectations reflected in the forward -looking information are reasonable,
there can be no assurance that such expectations wi ll prove to be correct. We cannot guarantee future results,
performance or achievements. Consequently, there is no representation that the actual results achieved will be the
same, in whole or in part, as those set out in the forward-looking information.
DOMAIN Category Million Tonne TiO2 % TREO (ppm) MREO (ppm)MREO/TREO ratio
HG (High Grade) Measured 30 24 9,300 2,500 27%
Indicated 74 23 8,900 2,300 26%
M + I 103 23 9,100 2,400 26%
Inferred 33 22 8,300 2,200 26%
MG (Medium Grade) Measured 340 11 3,700 1,000 28%
Indicated 930 11 3,600 1,000 28%
M + I 1,300 11 3,600 1,000 28%
Inferred 470 11 3,400 920 27%
TOTAL (HG+MG) Measured 367 12 4,100 1,100 28%
Indicated 1,000 12 4,000 1,100 27%
M + I 1,400 12 4,000 1,100 28%
Inferred 500 12 3,700 1,000 27%