Caldeira Project

Meteoric has completed the acquisition of the Caldeira Project, a Tier 1 Ionic Clay Rare Earth Element (REE) project in the Minas Gerais State of Brazil, following the signing of a definitive agreement with Togni Group of Companies in March 2023.

Meteoric has reported its Maiden JORC Mineral Resource Estimate (MRE) for Caldeira which stands at 409Mt @ 2,626 ppm TREO at a 1000ppm cut off.

At a 2,000ppm TREO cut-off, the MRE is 271Mt @ 3,146ppm TREO, applying a higher-grade cut-off allows for evaluation of high-grade zones forming priority targets for future drilling.

The Caldeira Project comprises 51 licences (23 Mining Licences and 21 Mining Licence Applications) and has previously had significant exploration conducted including 1,311 shallow auger drill holes for 13,037m. Drilling across six licences returned ultra-high-grade Total Rare Earth Oxide (TREO) intersections all of which are reported from surface.

Meteoric will commence a 100,000m air core and diamond drilling program in mid 2023 to increase confidence in the resource estimate, with Scoping/Prefeasibility studies to commence in Q4 2023.

At Caldeira, REE mineralisation commences from surface. The average drill depth used in the MRE is 6.9m and 85% of all holes finish in TREO grades above 1,000 ppm – the Caldeira deposit remains completely open at depth.

The TREO identified across the Caldeira Project represents an enriched HREO basket with strongly enriched Magnet REOs – Tb2O3, Dy2O3, Nd2O3 and Pr2O3 – averaging greater than 22% of TREO.

Location of Caldeira Project – Detail Map Simplified regional geological map of the Poços de Caldas Intrusive complex highlighting licenses included in the Caldeira Project deal. Licenses emphasised in callouts have had extensive auger drilling.

Table 1. Caldeira REE Project 2023 Mineral Resource Estimate– by licence at 1,000ppm TREO cut-off

License	JORC Category	Tonnes Mt	TREO ppm	Pr₆O₁₁ ppm	Nd₂O₃ ppm	Tb₄O₇ ppm	Dy₂O₃ ppm	MREO ppm	MREO/TREO %
Capão do Mel	Inferred	68	2,692	148	399	4	22	572	21.3%
Cupim Vermelho Notre	Inferred	104	2,485	152	472	5	26	655	26.4%
Dona Maria 1 & 2	Inferred	94	2,320	135	404	5	25	569	24.5%
Figueira	Inferred	50	2,811	135	377	5	26	542	19.3%
Soberbo	Inferred	92	2,948	190	537	6	27	759	25.8%
Total	Inferred	409	2,626	154	447	5	25	631	24.0%

Table 2. Caldeira REE Project 2023 Mineral Resource Estimate– by cut-off grade

JORC Category	Cut-off ppm TREO	Tonnes Mt	TREO ppm	Pr₆O₁₁ ppm	Nd₂O₃ ppm	Tb₄O₇ ppm	Dy₂O₃ ppm	MREO ppm	MREO/TREO %
Inferred	0	413	2,607	153	443	5	25	625	24.0
Inferred	500	413	2,607	153	443	5	25	625	24.0
Inferred	1000	409	2,626	154	447	5	25	631	24.0
Inferred	1500	361	2,802	169	491	5	27	692	24.7
Inferred	2000	271	3,146	199	580	6	30	815	25.9
Inferred	2500	185	3,570	235	688	7	34	964	27.0
Inferred	3000	115	4,072	275	808	8	38	1,130	27.7
Inferred	3500	72	4,588	314	924	9	42	1,288	28.1

Competent Persons Statement

The information on this website that relates to Mineral Resources at the Caldeira Project is based on information compiled by Dr. Beck Nader, a Competent Person who is a Fellow of Australian Institute of Geoscientists #4472. Dr. Beck Nader is a consultant for BNA Mining Solutions. He 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 Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr. Beck Nader consents to the inclusion on this website of the matters based on his information in the form and context in which it appears.

The information on this website that relates to Mineral Resources at the Caldeira Project is based on information compiled by Dr. Volodymyr Myadzel, a Competent Person who is a Member of Australian Institute of Geoscientists #3974. Dr. Volodymyr Myadzel is a consultant for BNA Mining Solutions. He 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 as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr. Volodymyr Myadzel consents on this website in the report of the matters based on his information in the form and context in which it appears.

Project Geology

The Alkaline Intrusive Complex of Poços de Caldas represents one of the most important economic terrains in Brazil and hosts deposits of bauxite, clay, uranium, zirconium, REEs and leucite (used as a fertiliser). The Poços de Caldas Intrusive Complex covers an area of approximately 800km2, constituting the largest occurrence of alkaline rocks in South America. The main rock types found in the Poços de Caldas Complex are intrusive and volcanic alkaline rocks of the nepheline syenite system comprising phonolites and foidolites.

The Poços de Caldas area has a long and continuous history of clay mining for bricks and subsequently refractory clays along with a more recent history (from the 1950s) of mining activities focused on bauxite for aluminium and uranium by the Brazilian Nuclear Industry (INB – decommissioned).

Acquisition Terms

Under the acquisition agreement, Meteoric acquired the exclusive rights to explore for and develop all rare earths elements located on the 30 mining leases that comprise the Caldeira Project from Togni S/A Materiais Refratários on the following terms:

Payment (completed) of US$200,000 for an exclusivity period to 6 April 2023, to allow Meteoric to complete due diligence on the Project;
Subject to the satisfactory completion of due diligence and negotiation of formal binding transaction documents, payment of:
- Total cash consideration of US$20,000,000 comprised as follows:
  - Initial cash payment of US$5 million on Completion; and
  - Three further payments of US$5 million on the 12th, 24th and 36th month anniversaries of Completion; and
- A royalty payment of 4.75% on minerals extracted from the Project, with the purchase price of US$20,000,000 to be credited against initial payments under the royalty (so that there is a royalty holiday for the first US$20,000,000 of royalty payments otherwise due).