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Resouro Strategic Metals Metallurgy Update for the Tiros Project

Metallurgy & Processing

Resouro Strategic Metals Inc.

BC0430203 (Canada) ARBN 671 716 457 (Australia)

Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143

Suite 520, 999 West Hastings Street, Vancouver, British Columbia, Canada – Tel: +1 416 642 1807 Page 1 of 19

ASX: RAU

TSXV: RSM

TSXV Release: ASX Release:

12 August 2024 13 August 2024

Resouro Strategic Metals Metallurgy Update

for the Tiros Project

Resouro Strategic Metals Inc. (ASX: RAU ; TSX-V: RSM ; FSE: 8TX ; OTC: RSGOF )

("Resouro" or the "Company") is pleased to announce an update on its metallurgical studies

for the Tiros Titanium and Rare Earth Elements Project in Brazil (“Tiros Project” or “Tiros”

or “Project”) which marks a significant milestone in the Project’s development. The results

from the metallurgical test work below indicate that Resouro, together with its partner Altilium

Projects (Australia) Pty Ltd (“ Altilium”), have the potential to achieve the highest rare earth

extractions known across the industry to date.

Highlights

Following the July 18, 2024 release of the Company’s maiden JORC Mineral Resource

Estimate ( “MRE”) for the Tiros Project , Resouro has completed the first steps of its

metallurgical strategy with its partner, Altilium.

The aim of this metallurgical study was to achieve maximum extractions and recovery of Rare

Earth and Titanium minerals, applying Altilium’s patented technology , including acid

regeneration with minimal acid loss as well as zero waste.

Altilium assessed a n approximately 50kg representative sample, covering five diamond drill

holes of the Tiros JORC compliant resource in labor atory conditions and produced the

following extraction results:

TEST TREY LREE MREE HREE

L3 80.8% 81.6% 96.2% 74.8%

Table 1: Metallurgical Extraction using 50kg of representative sample.

Resouro Strategic Metals Inc.

BC0430203 (Canada) ARBN 671 716 457 (Australia)

Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143

Suite 520, 999 West Hastings Street, Vancouver, British Columbia, Canada – Tel: +1 416 642 1807 Page 2 of 19

President, CEO, Director and Founder, Chris Eager commented:

“Completion of our first stage of the Altilium extraction assessment for the

Central Block of the Tiros Rare Earth project marks a pivotal moment for

Resouro Strategic Metals and the industry as a whole.”

“These extraction results, combined with the maiden JORC mineral resource estimate, provide

our shareholders with confidence that Tiros’ consistently thick, near surface and highly

weathered clay-like material has strong potential to produce excellent results and meet the

needs of the global demand for stable supply of rare earth critical minerals.”

“Our metallurgical studies will continue the next steps with our part ner, Altilium, whilst

reviewing options from the more conventional metallurgical study path. This work combined

with our infill drilling for mine planning and feasibility and environmental purposes will seek

to establish Resouro as a leading rare earth business.”

“Resouro is committed to sustainable practices and positive community engagement, ensuring

that our growth contributes to the well-being of the regions in which we operate.”

“Resouro will continue to update the market on progress to completion of our Preliminary

Economic Assessment”

About Altilium

Altilium Group Limited (“Altilium Group”), incorporated in England, is the parent company

of Altilium Licensing Limited (“ALL”) and Altilium Projects (Australia) Pty Ltd).

Research and development for the Altilium Group is performed in A ustralia. Altilium

Technology may be applied to ore, mining waste or process tailings. The first developed

application of Altilium Technology was the Altilium Nickel Laterite Process ™ which is

designed to process nickel laterite ore. The Altilium Group has subsequently developed the

following processes:

• Altilium Bauxite Process™ - to extract metals from bauxite ore;

• Altilium Red Mud Process™ - to re-process bauxite residue (tailings); and

• Altilium Ti/REE Process™ - to extract titanium and rare earth elements from a lateritic ore.

The Altilium Group is proactively researching and develop ing new applications for its

technology with a focus on the extraction of critical metals.

Altilium Group has marked the successful completion of its latest metallurgical testing phase,

utilising the proprietary Altilium Ti/REE Process™ on a 50 kg composite sample provided by

Resouro. This rigorous testing process, carried out at Core Resources Laboratories in Brisbane,

involved air -drying and milling the sample to 0.5mm to analyse its chemical and mineral

content. Three leach tests were conducted to understand the metal extractions, with the goal of

Resouro Strategic Metals Inc.

BC0430203 (Canada) ARBN 671 716 457 (Australia)

Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143

Suite 520, 999 West Hastings Street, Vancouver, British Columbia, Canada – Tel: +1 416 642 1807 Page 3 of 19

generating a solution rich in rare earth elements (“REEs”) and a residue enriched with titanium.

Notably, the third test, which incorporated a pre -treatment process, achieved the highest rare

earth extractions known in the industry to date, demonstrating the effectiveness of Altilium's

innovative approach.

Building on these promising results, Altilium Group is now focused on the next phase of

development, which involves designing and executing a laboratory -scale test programme to

establish the Altilium Ti/REE Process™ flowsheet. The company aims to optimise the process

parameters to improve the grades and extraction efficiency of target metals, including titanium,

silica, REEs, scandium, iron, and aluminium.

Christopher Gower, CEO of Altilium Group, said, “The recent completion of this “Sighter Test

Work” marks a significant milestone for Altilium Group. By applying our proprietary Altilium

Ti/REE Process™ (at Core Resources Laboratories), we have achieved unprecedented levels

of rare earth extractions, reinforcing our commitment to innovation and excellence in resource

processing. This accomplishment not only highlights the potential of our technology but also

sets a new benchmark for the industry."

“Looking ahead, our focus is on refining and optimising the Altilium Ti/REE Process ™ and

our other process flowsheets to maximise the extraction efficiency for the target metals:

titanium and rare earth elements in this case; and, alumina, iron, nickel, cobalt, scandium and

more in the case of our other flowsheets. Our goal is to continually enhance the grades, yields

and extractions to deliver an efficient and profitable flowsheet, positioning Altilium as a leader

in sustainable mineral processing solutions."

The Altilium Metallurgical Test Work

The scope for the first stage Altilium test work was aimed at understanding the feasibility of

applying the Altilium Ti/REE Process ™ technology to Resouro’s samples mainly for the

extraction of rare earth elements into solution.

The work involved a composite sample of 50kg, premixed by Resouro, air dried and milled to

100% passing 0.5mm. Chemical and mineralogical analysis was conducted on the head sample.

Three optimization sighter leach tests were conducted using nitric acid (HNO3) applying the

Altilium Ti/REE Process™ at Core Resources Laboratories in Brisbane to generate P regnant

Leach Solution (“PLS”) and residue. The samples were assayed for aluminium (Al), calcium

(Ca), cobalt (Co), chromium (Cr), iron (Fe), gallium (Ga), magnesium (Mg), manganese (Mn),

nickel (Ni), sulphur ( S), scandium (Sc), silicon ( Si), titanium ( Ti), and rare earth elements

(REEs).

Resouro Strategic Metals Inc.

BC0430203 (Canada) ARBN 671 716 457 (Australia)

Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143

Suite 520, 999 West Hastings Street, Vancouver, British Columbia, Canada – Tel: +1 416 642 1807 Page 4 of 19

The sighter leach test conditions were assessed as follows:

• L1 test involved leaching at the standard acid concentration used in the Altilium

Ti/REE Process™.

• L2 test involved leaching at high concentration of acid.

• L3 test involved a pre leach heat treatment process and leaching at the standard acid

concentration used in the Altilium Ti/REE Process™.

In all these tests, REE metal extractions, acid consumptions and residue compositions were

measured with the summary of extraction of the REE noted below.

TEST TREY LREE MREE HREE

L1 69.3% 69.3% 72.5% 73.8%

L2 59.8% 59.8% 63.8% 62.5%

L3 80.8% 81.6% 96.2% 74.8%

Table 2: Metallurgical Extraction using 50kg of representative sample under the three test

conditions.

Notably, the titanium dioxide (“TiO2”) contained in the sample reported between 2.5 – 4.5% in

the PLS with the remaining pleasingly not reporting to the PLS indicating a strong possibility

of TiO2 recovery by traditional metallurgical recovery methods from the residue.

The representative samples were taken from the Tiros central project area over four tenements

which are the subject of the recent maiden JORC MRE announcement by Resouro dated July

18th, 2024.

Resouro Strategic Metals Inc.

BC0430203 (Canada) ARBN 671 716 457 (Australia)

Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143

Suite 520, 999 West Hastings Street, Vancouver, British Columbia, Canada – Tel: +1 416 642 1807 Page 5 of 19

Figure 1: Plan view of the Tiros project tenements including the central blocks highlighted

and covered in the Maiden JORC MRE announcement and the subject of this metallurgical

results announcement.

Proposed Future Works

Following this announcement, Resouro will commence the second phase of the Altilium test

work. This work includes testing the representative Resouro sample with the Altilium Ti/REE

Process™ technology flowsheet. This work will also include separating the TiO 2, and zircon,

niobium and phosphate potential from the leach/residue by various beneficiation processes. In

addition, the following tasks will be undertaken:

• In-fill drilling to work towards delineating a potential JORC compliant reserve;

Resouro Strategic Metals Inc.

BC0430203 (Canada) ARBN 671 716 457 (Australia)

Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143

Suite 520, 999 West Hastings Street, Vancouver, British Columbia, Canada – Tel: +1 416 642 1807 Page 6 of 19

• Further metallurgical test work programs with preferred laboratory partners to optimise REE

extraction and TiO2 recovery under typical conditions;

• Undertake a Scoping Study with Engineering Procurement and Construction Management

(“EPCM”) partner and other subject matter experts;

• Complete a Preliminary Mining and Environmental Baseline survey and studies to submit

bulk mining approvals and work towards a pilot project; and

• Downstream studies and product testing to align the metallurgical flow sheet with potential

future offtake partners.

Competent Person Statement

The information in this announcement that relates to the Metallurgical Results is based on, and

fairly represents, information compiled by Mr Sravan Maddipati a Competent Person and

registered professional Metallurgist (MAUSIMM #323008) with experience in metallurgy,

metallurgical studies and operations and experience in rare earth element extraction . Mr

Maddipati is an employee of Altilium and has sufficient experience that is relevant to the style

of mineralisation and type of deposit under consideration and to the activity being undertaken

to qualify him as a Competent Persons as defined in the 2012 Edition of the Australasian Code

for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Simon Mortimer, a Competent and Qualified Person and registered professional geologist

(FAIG #7795) with experience in geology, mineral exploration, geological modelling, mineral

resource estimation and classification, and database management. Mr Mortimer is a consultant

for Atticus Geoscience and ha s sufficient experience that is relevant to the style of

mineralisation and type of deposit under consideration and to the activity being undertaken to

qualify them as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code

for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ and as Qualified

Person under the National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr

Maddipati and Mr Mortimer consent to the inclusion of this information in this announcement

of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Exploration Targets, Exploration Results

and Mineral Resources is based on, and fairly represents, information compiled by Mr Luis

Oviedo. Mr Oviedo is a consultant for Atticus Geoscience and has sufficient experience that

is relevant to the style of mineralisation and type of deposit under consideration and to the

activity being undertaken to qualify him as Competent Person as defined in t he 2012 Edition

of the ‘Australasian Code for Reporting of Explor ation Results, Mineral Resources and Ore

Reserves’. Certain information in this announcement is extracted from the ASX announcement

titled "Resouro Strategic Metals Maiden JORC Resource for the Tiros Project" dated 18 July

2024 that relates to Exploration Targets, Exploration Results and Mineral Resources and is

Resouro Strategic Metals Inc.

BC0430203 (Canada) ARBN 671 716 457 (Australia)

Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143

Suite 520, 999 West Hastings Street, Vancouver, British Columbia, Canada – Tel: +1 416 642 1807 Page 7 of 19

based upon information compiled by Mr Luis Oviedo. The Company confirms that it is not

aware of any new information or data that materially affects the information included in the

ASX announcement and, in the case of Exploration Targets, Exploration Result s and Mineral

Resources, that all material assumptions and technical parameters underpinning the estimates

in the relevant market announcement continue to apply and have not materially changed. The

Company confirms that the form and context in which Mr Oviedo's findings are presented have

not materially been modified from the original market announcement. Mr Luis Oviedo

consents to the inclusion of this information in this announcement of the matters based on his

information in the form and context in which it appears.

This announcement has been authorized for release by the Board of Directors.

Contact Information:

Chris Eager, CEO

[email protected]

+44 7388 0579809

Justin Clyne, Director

[email protected]

+61 407 123 143

Melissa Hamilton, Media & Capital

Partners, Director

[email protected]

+61 417 750 274

Resouro Strategic Metals Inc.

BC0430203 (Canada) ARBN 671 716 457 (Australia)

Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143

Suite 520, 999 West Hastings Street, Vancouver, British Columbia, Canada – Tel: +1 416 642 1807 Page 8 of 19

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 project in Minas Gerais and the Novo Mundo

Gold Project in Mato Grosso. The Tiros project represents 25 mineral concessions totalling 450

km2 located in the state of Minas Gerais, one of the most infrastructurally developed states of

Brazil, 350 km from Belo Horizonte, the state capital. Resouro has released a Mineral Resource

Estimate for the Tiros Project of 1. 7 bn tonnes of Inferred, Indicated and Measured Resource

as announced to the ASX on 18 July 2024 (TSXV 17 July 2024) and is based on the JORC

Compliant Technical Report prepared by Mr Simon Mortimer and Mr Luis Oviedo of Atticus

Geoscience, as follows:

DOMAIN CAT TONNES (t) TiO2 (%) TREO (ppm) MREO (ppm)

HG (High Grade)

Inferred 42,000,000 23 8,700 2,200

Indicated 55,700,000 23 9,030 2,380

Measured 20,800,000 24 9,320 2,530

Sum 120,000,000 23 9,000 2,400

MG (Medium

Grade)

Inferred 620,000,000 11 3,500 950

Indicated 704,000,000 11 3,650 1,020

Measured 224,000,000 11 3,570 997

Sum 1,500,000,000 11 3,500 930

Totals 1,700,000,000 12 3,900 1,100

Note: Further details of the Company’s Maiden JORC MRE are contained within the

Company’s announcement of 18 July, 2024.