Greenland's New Uranium Legislation

ASX: GGG

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Company Announcement, 12 November 2021

• 1. seeks advice on Kvanefjeld strategy following Greenland's new uranium legislation
• Greenland's parliament has passed new legislation banning mining of mineral resources with a uranium content of 100 parts per million (ppm) or greater in the total resource
• GGG's Kvanefjeld Project is a rare earths project, with an ore reserve estimate of 108 million tonnes at 1.43% rare earth oxide, that also contains 0.26% zinc, and 0.036%U3O8
• GGG is seeking advice on how new legislation may impact Kvanefjeld's proposed development strategy
• GGG can modify Kvanefjeld's development strategy including scenarios where uranium is not produced.

Greenland Minerals Ltd ('GGG' or 'the Company') advises Greenland's parliament has passed new legislation concerning uranium mining on 9 November 2021, a development foreshadowed in previous ASX announcements, including the September 2021 Quarterly Report.

The new legislation prohibits preliminary investigation, exploration, and exploitation of uranium, which it defines as uranium content which occurs at 100 parts per million or greater in the total resource. The legislation also permits the Government to extend that prohibition to other unspecified radioactive elements by imposing permitted limit values on those elements. It serves to reverse initiatives, policies and legislation adopted by successive governments over the past decade.

There are no active primary uranium projects in Greenland. Therefore, the legislation is directed at the production of rare earth materials and other critical metals, where it is common for ores to contain radioactive elements including uranium and thorium. The Company is seeking clarity as to how the new legislation will effectively modify existing approvals or authorizations.

GGG's 100%-owned Kvanefjeld rare earth project is underpinned by a JORC code compliant ore reserve estimate that contains 108 million tonnes at 1.43% rare earth oxide, 0.26% zinc, and 0.036% uranium oxide. Under the currently proposed development strategy for Kvanefjeld, uranium oxide, if recovered as a by-product of rare earth production, would contribute approximately 5% of project revenues.

The Company is not aware of any technical, radiological, or health and safety reasons why the Greenland Government has selected a threshold level of 100ppm uranium for the legislation.

PERTH: Unit 7, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904

Telephone: [phone] Facsimile: [phone]

GREENLAND: PO Box 156, Narsaq, Greenland 3921

WEB: www.ggg.glEMAIL: [e-mail]: 85 118 463 004

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A comprehensive radiological assessment of the Kvanefjeld Project by independent specialist consultancy Arcadis concluded "the Kvanefjeld Project is expected to release only small amounts of additional radioactivity to the environment and is not expected to result in an adverse effect, or significant harm, to wildlife or people that live or visit the area".

1. has completed a public consultation phase of the licensing process for the Kvanefjeld Project in strict accordance with Greenland laws. Its recently submitted consultation 'White Paper' demonstrates that concerns raised during the consultation have been effectively addressed in the impact assessments and technical reports (see ASX Announcement dated 2 November 2021).

1. is seeking further advice as to how the legislation may impact the proposed development strategy for Kvanefjeld, and whether modifications to the Project will be required. The proposed development strategy has been shaped by extensive stakeholder engagement. The Company has communicated with the Greenland Government to reiterate that there has always been flexibility to how Kvanefjeld can be developed, including scenarios where uranium is not produced in Greenland.

Background

Greenland Minerals commenced operating in Greenland in 2007 to explore the broader Kvanefjeld area and evaluate a multi-element mining operation. In November 2011, GGG's exploration licence over the Kvanefjeld Project, which covers "all mineral resources except hydrocarbons, radioactive elements and hydropower resources", was amended by the government of the time to add a conditional right for the Company to apply for an exploitation licence to include "radioactive elements", which provided the Company with a regulatory framework to effectively evaluate a multi-element mine development. This marked an important step in the evolution of the Project, as it placed a clear emphasis on rigorous scientific evaluation regarding a decision to mine.

The granting of an exploitation licence then became dependent on establishing an environmentally and socially sustainable development scenario that is economically robust. The addition of "radioactive elements" to the exploration licence in 2011 did not affect, or qualify, the right of the Company to apply for an exploitation licence for any other mineral resources (except hydrocarbons and hydropower resources). Similarly, a denial of exploitation licence for "radioactive elements" is irrelevant to the rights which are granted by the Standard Terms for the exploration licence.

Over the subsequent decade, leading independent international experts completed many environmental and technical studies, resulting in the Kvanefjeld impact assessments being accepted as meeting Greenland's Guidelines for public consultation by the Government of Greenland and its independent scientific advisors in December 2020. The 38 -week public consultation period concluded on 13 September 2021, and the Company has lodged its White Paper responses to all public comments with the Government.

In parallel to detailed feasibility, environmental and social studies on the Kvanefjeld Project, numerous initiatives have been undertaken by successive governments in Greenland to investigate, then establish, a legal framework to manage the production and export of uranium in Greenland. These endeavors were

PERTH: Unit 7, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904

Telephone: [phone] Facsimile: [phone]

GREENLAND: PO Box 156, Narsaq, Greenland 3921

WEB: www.ggg.glEMAIL: [e-mail]: 85 118 463 004

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primarily due to Greenland's ambitions to become a significant producer of rare earths materials, and other critical minerals where ores are also enriched in uranium.

A timeline of key developments includes:

• September 2010, the 'Standard Terms' for exploration licences in Greenland were modified to allow for the Government to approve, for use in the feasibility study of a mineral deposit, exploration that can include minerals containing radioactive elements above background
• November 2011, GGG's exploration licence amended to include radioactive materials
• October 2013, uranium zero-tolerance policy lifted
• In January 2016, Greenland and Denmark entered into an agreement on the rules for the future commercial export of uranium from Greenland
• In May 2016, Greenland parliament passed four bills to ensure that uranium mining and export meets the Kingdom of Denmark's international non-proliferation commitments.
• In June 2016, Danish parliament passed legislation that created the legal framework to allow Greenland to export uranium
• At the 60th General Conference of the International Atomic Energy Agency (IAEA) held in Vienna in September 2016, Greenland, acting on behalf of Denmark, filed documents that formalised its status as a signatory in its own right to several important international nuclear conventions essential for Greenland's participation in the global civil uranium industry
• In May 2017, IAEA Director General visits southern Greenland and Kvanefjeld Project area at the invitation of Greenland and Danish governments.

The new uranium legislation marks a shift in the Greenland Government's decade-long agenda of developing a critical minerals industry in Greenland, in alignment with Greenland's broader minerals strategy.

PERTH: Unit 7, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904

Telephone: [phone] Facsimile: [phone]

GREENLAND: PO Box 156, Narsaq, Greenland 3921

WEB: www.ggg.glEMAIL: [e-mail]: 85 118 463 004

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About the Kvanefjeld Project

The Kvanefjeld Rare Earth Project is one of the most significant and advanced emerging rare earth projects globally. The Project is unique with respect to its favourable metallurgy and forecast production profile across all commercially important rare earths. Kvanefjeld is located near existing infrastructure in southern Greenland with year-round direct shipping access to the project area. The Project has been carefully designed to minimise impacts through the consideration of the existing environment. Hydroelectricity has been positively evaluated as an option to power the project to produce low-emissions rare earth materials, in addition to providing additional power to the south Greenland grid.

Rare earth elements are critical to the electric vehicle revolution and renewable energy, as well as many other energy efficient applications. The Kvanefjeld Project is forecast to be a globally significant producer of all commercially important rare earth elements including neodymium, praseodymium, terbium and dysprosium, over an initial 37-year mine life. These rare earths are used to make high powered permanent magnets that are utilised in electric vehicles and wind turbines, along with many other applications. Kvanefjeld is well-placed to meet the major surge in rare earth demand that will be generated by the transition to electric vehicles, along with growth in renewable energy.

Authorised for release by the Board of Greenland Minerals Ltd.

-ENDS-.

PERTH: Unit 7, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904

Telephone: [phone] Facsimile: [phone]

GREENLAND: PO Box 156, Narsaq, Greenland 3921

WEB: www.ggg.glEMAIL: [e-mail]: 85 118 463 004

Statement of Identified Mineral Resources, Kvanefjeld Project, Independently Prepared by SRK Consulting (February, 2015)

				Multi-Element Resources Classification, Tonnage and Grade					Contained Metal
			Cut-off	Classification	M tonnes	TREO2	U3O8	LREO	HREO	REO	Y2O3	Zn	TREO	HREO	Y2O3	U3O8	Zn
		(U3O8 ppm)1		Mt	ppm	ppm	ppm	ppm	ppm	ppm	ppm	Mt	Mt	Mt	M lbs	Mt
		Kvanefjeld - February 2015
only	150	Measured	143	12,100	303	10,700	432	11,100	978	2,370	1.72	0.06	0.14	95.21	0.34
150	Indicated	308	11,100	253	9,800	411	10,200	899	2,290	3.42	0.13	0.28	171.97	0.71
			150	Inferred	222	10,000	205	8,800	365	9,200	793	2,180	2.22	0.08	0.18	100.45	0.48
			150	Total	673	10,900	248	9,600	400	10,000	881	2,270	7.34	0.27	0.59	368.02	1.53
			200	Measured	111	12,900	341	11,400	454	11,800	1,048	2,460	1.43	0.05	0.12	83.19	0.27
			200	Indicated	172	12,300	318	10,900	416	11,300	970	2,510	2.11	0.07	0.17	120.44	0.43
			200	Inferred	86	10,900	256	9,700	339	10,000	804	2,500	0.94	0.03	0.07	48.55	0.22
use	200	Total	368	12,100	310	10,700	409	11,200	955	2,490	4.46	0.15	0.35	251.83	0.92
250	Measured	93	13,300	363	11,800	474	12,200	1,105	2,480	1.24	0.04	0.10	74.56	0.23
			250	Indicated	134	12,800	345	11,300	437	11,700	1,027	2,520	1.72	0.06	0.14	101.92	0.34
			250	Inferred	34	12,000	306	10,800	356	11,100	869	2,650	0.41	0.01	0.03	22.91	0.09
			250	Total	261	12,900	346	11,400	440	11,800	1,034	2,520	3.37	0.11	0.27	199.18	0.66
			300	Measured	78	13,700	379	12,000	493	12,500	1,153	2,500	1.07	0.04	0.09	65.39	0.20
personalr	300	Indicated	100	13,300	368	11,700	465	12,200	1,095	2,540	1.34	0.05	0.11	81.52	0.26
300	Inferred	15	13,200	353	11,800	391	12,200	955	2,620	0.20	0.01	0.01	11.96	0.04
300	Total	194	13,400	371	11,900	471	12,300	1,107	2,530	2.60	0.09	0.21	158.77	0.49
			350	Measured	54	14,100	403	12,400	518	12,900	1,219	2,550	0.76	0.03	0.07	47.59	0.14
			350	Indicated	63	13,900	394	12,200	505	12,700	1,191	2,580	0.87	0.03	0.07	54.30	0.16
			350	Inferred	6	13,900	392	12,500	424	12,900	1,037	2,650	0.09	0.00	0.01	5.51	0.02
			350	Total	122	14,000	398	12,300	506	12,800	1,195	2,570	1.71	0.06	0.15	107.45	0.31
	PERTH: Unit 7, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904
	T l phone: [phone] Facsimile: [phone]
	GREENLAND: PO Box 156, Narsaq, Greenland 3921
	WEB: www.ggg.gl	EMAIL: [e-mail]: 85 118 463 004