New Risk • Mar 17
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -AU$1.5m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$1.5m free cash flow). Share price has been highly volatile over the past 3 months (19% average weekly change). Earnings have declined by 15% per year over the past 5 years. Revenue is less than US$1m (AU$114k revenue, or US$80k). Market cap is less than US$10m (AU$8.11m market cap, or US$5.74m). New Risk • Nov 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 15% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Revenue has declined by 71% over the past year. Shareholders have been substantially diluted in the past year (147% increase in shares outstanding). Revenue is less than US$1m (AU$90k revenue, or US$59k). Market cap is less than US$10m (AU$9.99m market cap, or US$6.53m). Minor Risk Share price has been volatile over the past 3 months (15% average weekly change). Announcement • Oct 09
Heavy Rare Earths Limited, Annual General Meeting, Nov 27, 2025 Heavy Rare Earths Limited, Annual General Meeting, Nov 27, 2025. New Risk • Sep 29
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Shareholders have been substantially diluted in the past year (205% increase in shares outstanding). Revenue is less than US$1m (AU$312k revenue, or US$204k). Market cap is less than US$10m (AU$9.78m market cap, or US$6.40m). Minor Risk Latest financial reports are more than 6 months old (reported December 2024 fiscal period end). New Risk • Mar 14
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -AU$872k This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$872k free cash flow). Shareholders have been substantially diluted in the past year (205% increase in shares outstanding). Revenue is less than US$1m (AU$301k revenue, or US$189k). Market cap is less than US$10m (AU$4.58m market cap, or US$2.88m). Minor Risk Share price has been volatile over the past 3 months (13% average weekly change). Announcement • Feb 03
Heavy Rare Earths Limited Announces Board Changes Heavy Rare Earths Limited announced the appointment of Mr. Gabriel Chiappini as Non-executive Director of the Company effective 31 January 2025. Gabriel is a Chartered Accountant with over 20 years' experience as a director, capital markets participant and a governance professional. He is a current member of the Australian Institute of Company Directors and Institute of Chartered Accountants (Australia). Gabriel's professional foundation was laid with Ernst & Young (EY) Perth. Following EY, he moved onto various corporate roles in London and Perth. For the last 20 years Mr. Chiappini has been managing his own Consulting Firm offering Corporate Advisory, Governance Services, and Non-executive Director services to a variety of ASX and start-up companies. He has provided advice and services on equity raisings exceeding AUD 850 million, debt financing in excess of AUD 350 million and assisted his clients with both divestment and acquisition strategies. Recently he managed and assisted with the vending in of seven ASX IPO's and RTO's. Gabriel has had a diverse and successful career as an ASX/public company director inclusive of Chairman, Non-executive Director and Finance/Chief Financial Officer roles, and Chair of Governance. He has a wide range of offshore corporate structuring experience in the USA, Europe and in the Middle East and is a current director of Black Dragon Gold Corporation and Invictus Energy Limited, as well as Head of Governance (Australia) for Adriatic Metals plc. The Company also advises that Mr. Ryan Skeen has resigned as Non-executive Director effective 31 January 2025. New Risk • Jan 21
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 190% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (19% average weekly change). Shareholders have been substantially diluted in the past year (190% increase in shares outstanding). Revenue is less than US$1m (AU$312k revenue, or US$196k). Market cap is less than US$10m (AU$6.14m market cap, or US$3.85m). Announcement • Dec 24
Heavy Rare Earths Limited has completed a Follow-on Equity Offering in the amount of AUD 1.2 million. Heavy Rare Earths Limited has completed a Follow-on Equity Offering in the amount of AUD 1.2 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 16,000,000
Price\Range: AUD 0.03
Discount Per Security: AUD 0.0018
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 24,000,000
Price\Range: AUD 0.03
Discount Per Security: AUD 0.0018
Transaction Features: Subsequent Direct Listing New Risk • Dec 10
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 23% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Revenue is less than US$1m (AU$312k revenue, or US$201k). Market cap is less than US$10m (AU$2.70m market cap, or US$1.74m). Minor Risks Share price has been volatile over the past 3 months (16% average weekly change). Shareholders have been diluted in the past year (23% increase in shares outstanding). New Risk • Nov 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 14% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Revenue is less than US$1m (AU$312k revenue, or US$203k). Market cap is less than US$10m (AU$2.46m market cap, or US$1.60m). Minor Risk Share price has been volatile over the past 3 months (14% average weekly change). New Risk • Sep 30
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$2.2m free cash flow). Revenue is less than US$1m. Market cap is less than US$10m (AU$2.18m market cap, or US$1.51m). Minor Risk Latest financial reports are more than 6 months old (reported December 2023 fiscal period end). Announcement • Sep 26
Heavy Rare Earths Limited, Annual General Meeting, Nov 14, 2024 Heavy Rare Earths Limited, Annual General Meeting, Nov 14, 2024. New Risk • Oct 26
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Australian stocks, typically moving 17% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$3.6m free cash flow). Share price has been highly volatile over the past 3 months (17% average weekly change). Revenue is less than US$1m. Market cap is less than US$10m (AU$4.78m market cap, or US$3.01m). Minor Risk Less than 3 years of financial data is available. Announcement • Oct 10
Heavy Rare Earths Limited, Annual General Meeting, Nov 29, 2023 Heavy Rare Earths Limited, Annual General Meeting, Nov 29, 2023. Agenda: To consider the re-election and appointment of directors. New Risk • Oct 02
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -AU$3.6m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$3.6m free cash flow). Revenue is less than US$1m. Market cap is less than US$10m (AU$6.21m market cap, or US$3.99m). Minor Risks Less than 3 years of financial data is available. Share price has been volatile over the past 3 months (14% average weekly change). New Risk • Sep 29
New minor risk - Financial position The company has less than a year of cash runway based on its current free cash flow. Free cash flow: -AU$3.6m This is considered a minor risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Revenue is less than US$1m (AU$28k revenue, or US$18k). Market cap is less than US$10m (AU$6.21m market cap, or US$3.99m). Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$3.6m). Less than 3 years of financial data is available. Share price has been volatile over the past 3 months (14% average weekly change). Announcement • Jan 31
Heavy Rare Earths Limited Reports Assays from Another 49 Air Core Holes Heavy Rare Earths Limited reported assays from another 49 air core holes of the now completed 438-hole exploration and resource expansion drilling program at its 100 per cent-owned Cowalinya rare earth project in the Norseman-Esperance region of Western Australia. This brings the total number of holes reported to 141, nearly one third of all holes drilled during the 2022 campaign. The latest batch reported by LabWest Minerals Analysis features the highest-grade assay returned in drilling on the Cowalinya project to date: 0.72% TREO over 2 metres in hole AC225. Hole AC225 is located 900 metres west of the Cowalinya South resource1 and sits amongst a cluster of 10 mineralised holes on two adjacent 400 metre-spaced drill lines. This cluster could represent the northern continuation of the 2-kilometre-wide zone of rare earth mineralisation encountered in 11 consecutive holes AC190-AC201 1.2 kilometres to the south. The 10 intercepts that define this newly discovered coherent zone of mineralisation are as follows: AC211: 17 metes @ 402 ppm TREO from 20 metres; AC212: 14 metres @ 1022 ppm TREO from 22 metres; AC213: 12 metres @ 748 ppm TREO from 17 metres; AC214: 5 metres @ 634 ppm TREO from 22 metres; AC215: 4 metres @ 434 ppm TREO from 31 metres; AC38 (drilled in 2021 and re-assayed in 2022): 9 metres @ 544 ppm TREO from 12 metres; AC223: 17 metres @ 1069 ppm TREO from 11 metres; AC224: 12 metres @ 509 ppm TREO from 9 metres; AC225: 14 metres @ 3217 ppm TREO from 16 metres (incomplete); AC226: 14 metres @ 473 ppm TREO from 12 metres (incomplete). Significantly, rare earth mineralisation remains open at depth in holes AC225 and AC226 with assays not yet reported for the 30-35 metre depth interval in hole AC225 and for 26-54 metres in hole AC226. In addition, the mineralised zones have not been strike constrained with rare earth assays pending for some 90 holes west of 432600E between 6357800N and 6359800N. To the east of the Cowalinya South deposit, further evidence emerges of a second new zone of mineralisation. The mineralised horizon that grades as high as 895 ppm TREO in holes AC243-AC248 in the north-east corner of HRE's tenement has the potential to link with recently reported mineralisation drilled in holes AC178-AC181 800 metres to the south. Assays for the remaining 297 drillholes, including those in the central and northern parts of the tenement, will be reported by the Company as results are received. Announcement • Dec 14
Heavy Rare Earths Limited Announces Positive Rare Earth Metallurgical Test Work for Cowalinya Heavy Rare Earths Limited report results from its metallurgical program on rare earth mineralisation from its 100% owned Cowalinya project in the Norseman-Esperance region of Western Australia. This initial work by Perth-based Strategic Metallurgy ("Strategic") has been completed on 13 four- and five-metre composite samples of rare earth-bearing saprolite from 10 drill holes across the Cowalinya South and North deposits. These samples represent a reasonable first-pass basis for discerning the geo-metallurgical variability of saprolite-hosted rare earth mineralisation across the Cowalinya project. Taken together, the Cowalinya South and North deposits are the foundation of HRE's maiden Inferred Resource of 28 million tonnes @ 625 ppm TREO (total rare earth oxide). Announcement • Dec 03
Heavy Rare Earths Limited Reports Rare Earths Extend Beyond Existing Cowalinya Resource Heavy Rare Earths Limited pleased to report initial assays from 53 of 421, or 13%, of the planned exploration and resource expansion drilling at its 100 per cent-owned Cowalinya rare earth project in the Norseman-Esperance region of Western Australia. These 53 vertical air core holes, drilled on 200 metre centres to depths of between 7 and 52 metres, were amongst the first 92 holes drilled in the current program along five north-south and east-west lines up to 4.2 kilometres long (Figure 1). These drill lines were designed to explore for thick developments of clay-rich mineralised saprolite on the Company's E63/1972 tenement primarily to the south and south-east, but also immediately east and west, of the Cowalinya South rare earth deposit, and be used to guide subsequent grid-based resource expansion drilling. Their locations were determined using a combination of publicly available airborne electromagnetic and magnetic, and digital elevation model data. Clay-rich saprolite has been demonstrated to host rare earth mineralisation at Cowalinya which to date has yielded 28 million tonnes @ 625 ppm TREO (total rare earth oxide) in Inferred Resources.1 Drilling by HRE in the current program has successfully intersected saprolite along all five exploration drill traverses. Saprolite averages 17.1 metres thick along these traverses which compares with 17.7 metres for the Cowalinya resource. In the subsequent 207 air core holes which are drilled on 200 x 400 metre centres mainly to the west and south of the Cowalinya South resource, and for which assays are awaited (see Figure 1), the average thickness of saprolite increases by 29.8% to 22.2 metres. Table 1 lists rare earth assays for all mineralised intercepts in the 53 reported holes (AC110- 143, AC175-181, AC186-197) where their grade-thickness exceeds the average grade- thickness of the mineralised horizon in the Cowalinya resource (8.5 metres thick @ 625 ppm TREO). The holes that host these intercepts are highlighted in Figure 1 with the hole furthest from the Cowalinya South resource being AC136, 4.2 kilometres away. These new results are broadly comparable to previous results that established the existing resource at Cowalinya. Drill intersections from drilling in 2021 include: AC29: 19 metres @ 1498 ppm TREO (27.4% magnet REOs) from 20 metres AC89: 17 metres @ 1205 ppm TREO (25.7% magnet REOs) from 26 metres AC28: 27 metres @ 951 ppm TREO (29.5% magnet REOs) from 12 metres AC02: 24 metres @ 892 ppm TREO (28.2% magnet REOs) from 8 metres AC04: 18 metres @ 719 ppm TREO (23.3% magnet REOs) from 17 metres. The relationship between upper and lower saprolite, and rare earth mineralisation, is highlighted in cross sections in Figures 3 to 5 along three of the five exploration drill traverses. This relationship is consistent with that observed in the Cowalinya resource where mineralisation tends concentrate in the lower saprolite unit, but not exclusively so. Coherent zones of mineralisation are evident along each drill traverse as follows: Figure 3: AC110-111-112 (400-metre-wide zone) and AC115-116-117-118-119 (800- metre-wide zone) along drill traverse A-B Figure 4: AC122-123-124 (400-metre-wide zone) and AC129-130-131 (400-metre- wide zone) along north-south drill traverse C-D Figure 5: AC178-179-180-181 (600-metre-wide zone) and AC190-191-192-193-194- 195-196-197 (1400-metre-wide zone) along east-west drill traverse E-F. These compare to the mineralised horizon at Cowalinya which has maximum dimensions of 1200 metres north-south and 1000 metres east-west. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 3 non-independent directors. Non-Executive Director Ryan Skeen was the last director to join the board, commencing their role in 2022. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Oct 28
Heavy Rare Earths Limited Announces Cowalinya Re-Assays Confirm Rare Earth Grade Increase Heavy Rare Earths Limited reported final results from its Analytical (Re-Assay) Program, in which 729 two-metre composite samples from 102 air core holes drilled at its Cowalinya rare earth project in 2021 were re-assayed using Lithium Borate Fusion/ICP-MS. The program has delivered a length-weighted average grade in total rare earth oxides ("TREO") of 856 ppm for samples where the original analytical work by 4-Acid Digest/ICP- MS (on largely four-metre composites) returned assays above 300 ppm TREO-CeO2, the cut-off grade for the project's Inferred Mineral Resources of 28 million tonnes at 625 ppm TREO1 hosted in clay-rich saprolite. This represents a 3.8% increase in grade over the original assays which average 825 ppm in contrast to the more modest resource grade of 625 ppm that includes significant dilution in the grade estimate. HRE earlier reported interim results from 67 two-metre composites from 16 holes drilled mainly in the southern part of the Cowalinya South resource. For these samples a length-weighted average increase in TREO grade of 14.8% over the original assays was presented. The difference between that interim and this final (3.8% increase) result is likely due to spatial and compositional variation in rare earth-bearing phases across the resource, potentially linked to basement litho-types and long-lived weathering processes. This variation is being further investigated by HRE in the context of its metallurgical program. The results from the Analytical (Re-Assay) Program confirm routine two-metre sample compositing for assay by Lithium Borate Fusion/ICP-MS (`total digest') as the basis for future grade estimation of rare earth mineralisation from the Company's ongoing resource exploration and expansion drilling program at Cowalinya. Several batches of saprolite and end-of-hole basement samples from the drilling program have been delivered to LabWest Minerals Analysis in Perth for assay, with first results expected to be reported next month. Announcement • Oct 11
Heavy Rare Earths Limited, Annual General Meeting, Nov 29, 2022 Heavy Rare Earths Limited, Annual General Meeting, Nov 29, 2022. Announcement • Sep 13
Heavy Rare Earths Limited Commences Drilling At Cowalinya Rare Earth Project Heavy Rare Earths Limited advised that drilling has commenced at its Cowalinya rare earth project in the Norseman-Esperance region of Western Australia. HRE's 100%-owned E 63/1972 tenement is located on unallocated crown land and hosts extensive rare earth mineralization in clay-rich saprolite. In 2021 the company completed a program of 3,098 metres of air core drilling in 109 vertical holes in the south-eastern part of the tenement. The mineralized horizon (300ppm TREO (total rare earth oxides)) is at depths of between 8 and 43 metres, averages 8-9 metres thick, and remains open in all lateral directions. Rare earth grades exceeding 1000ppm TREO were encountered over significant widths in 17 of the 82 mineralized holes drilled including: Heavy Rare Earths Limited advised that drilling has commenced at its Cowalinya rare earth project in the Norseman-Esperance region of Western Australia. HRE's 100%-owned E 63/1972 tenement is located on unallocated crown land and hosts extensive rare earth mineralization in clay-rich saprolite. In 2021 the company completed a program of 3,098 metres of air core drilling in 109 vertical holes in the south-eastern part of the tenement. The mineralized horizon (300ppm TREO (total rare earth oxides)) is at depths of between 8 and 43 metres, averages 8-9 metres thick, and remains open in all lateral directions. Rare earth grades exceeding 1000ppm TREO were encountered over significant widths in 17 of the 82 mineralized holes drilled including: Cowalinya South: 4 metres @ 2249ppm TREO from 16 metres in hole AC33. 10 metres @ 1511ppm TREO from 15 metres in hole AC28. 19 metres @ 1445ppm TREO from 20 metres in hole AC29. 16 metres @ 1155ppm TREO from 16 metres in hole AC2. Cowalinya North: 4 metres @ 1864ppm TREO from 32 metres in hole AC90. 12 metres @ 1580ppm TREO from 24 metres in hole AC81- including 4 metres @ 3428ppm TREO from 24 metres. 17 metres @ 1205ppm TREO from 26 metres in hole AC89. Inferred Resources at Cowalinya have been estimated at 28 million tonnes at 625ppm TREO using a cut-off grade of 300ppm TREO-CeO22. This has been achieved by drilling just over 1% of the area of HRE's tenement. All mineralized samples that support the resource's grade estimate have been submitted for re-assay by Lithium Borate Fusion/ICP-MS and reporting of initial results from the re-assay program are expected in late-September 2022. HRE has now commenced a resource exploration and expansion drilling program at Cowalinya. The main part of the program comprises up to 10,000 metres of air core drilling in 330 holes targeting extensions to known rare earth mineralization, particularly to the immediate west and south-east of the Cowalinya South resource which contains 75% of the project's resource inventory. Holes are planned to be drilled 200 metres apart on 400 metre-spaced lines. Subject to delineating the necessary continuity to rare earth mineralization in saprolite, this drilling density is designed to deliver Inferred Resources on an additional 11.5% of the area of the tenement. A second phase of the program involves drilling of up to 4,500 metres along existing access tracks to explore the central and western parts of the tenement for rare earth mineralization. These holes will be drilled on 400 metre centres immediately after cultural heritage surveys are completed along these drill traverses in the latter part of October. Drilling is being undertaken using a single air core rig by Perth-based Terrain Drilling. Based on drilling rates achieved during the 2021 campaign, the current program is expected to be completed during December 2022. Drilling samples from the program are planned to be dispatched on a fortnightly basis from Esperance to LabWest Minerals Analysis ("LabWest") in Perth for sample preparation and assay by Lithium Borate Fusion/ICP-MS. LabWest has indicated that current assay turnaround from sample receipt is approximately 6 weeks. Announcement • Aug 30
Heavy Rare Earths Limited Announces Work Underway on Cowalinya Rare Earth Project Heavy Rare Earths Limited commenced a program of analytical and metallurgical test work on samples from its Cowalinya clay-hosted rare earth deposit in the Norseman-Esperance region of Western Australia. Analytical (Re-Assay) Program; Mineral Resources were estimated at Cowalinya in December 2021 using 859 assay samples from 109 air core holes drilled in July 2021. These assays were done by 4-Acid Digest/ICP-MS. HRE subsequently selected 61 one metre samples from two holes (AC16 and 28) for assay using Lithium Borate Fusion/ICP-MS. This was done to compare the effectiveness of this methodology to report all rare earths (`total digest') versus rare earths contained in acid-soluble mineral species only (`near total digest'), and provided a useful check of the primary 4-Acid Digest/ICP-MS assays. Forty (40) of the 61 samples submitted for assay by Lithium Borate Fusion /ICP-MS contained >300ppm TREO-CeO2, the cut-off grade for the Cowalinya resource. Re-assay of these 40 samples delivered an average increase in total rare earths of 12.2%. This result led to the Competent Person ("CP") for Mineral Resources recommending that HRE use Lithium Borate Fusion/ICP-MS for future programs at Cowalinya. HRE has adopted the CP's recommendation and, in anticipation of a revised resource base arising from an expanded drilling footprint at Cowalinya, earlier this week delivered 729 two- metre composites from 102 of the 109 air core holes drilled at Cowalinya in 2021 to LabWest Minerals Analysis ("LabWest") in Perth for assay by Lithium Borate Fusion/ICP-MS. The firstbatch of assays from this program is expected to be reported by LabWest in late-September 2022. Metallurgical Program; In 2021 HRE completed leach tests on 40 mineralised saprolite drill samples from three holes (AC16, 28 and 41) at Cowalinya which involved the use of hydrochloric acid (HCl) at different concentrations (2-20% w/w) and at a range of temperatures (20-50°C). The resonance time for each test was 24 hours. This work demonstrated that for Cowalinya material substantial proportions of rare earths could be brought into solution, averaging approximately 91% of total rare earths (or 88% of the valuable magnet rare earths praseodymium, neodymium, terbium and dysprosium) at 30°C and 5% w/w HCl. To build on these encouraging results, HRE has engaged Perth-based Strategic Metallurgy ("Strategic") to both validate these sighter tests and design and undertake a comprehensivemetallurgical program, initially involving particle size analysis as the basis for gangue rejection. This will be followed by a series of batch tests to examine the influence on leaching performance of parameters such as resonance time, temperature, acid type and concentration, and slurry density. Observation as to reagent consumption, metal recovery and solution composition, including impurity deportment, will be considered to establish a suitable leach regime.HRE has delivered 13 samples to Strategic from ten drill holes (AC4, 16, 28, 36, 41, 47, 57, 69, 89 and 104) across the Cowalinya deposit as the basis for first-pass metallurgical work. Each sample is a five-metre composite of mineralised upper or lower saprolite horizon for which final head assays are in the process of being determined by LabWest (likely approximate range 320-1450ppm TREO). Key outcomes of the metallurgical program will be communicated to the market in the weeks and months ahead as material results come to hand. 
