Latin Resources Limited reported the results from the recent rare earth element (REE) analysis at its 100% owned Cloud Nine Halloysite-Kaolin Deposit ("Cloud Nine") in Western Australia. The results have confirmed REE mineralisation with anomalous concentrations in 38% of the samples. Analysis was conducted on a small random selection (one out of every 20) of existing <45 µm fraction samples collected from the recent infill drill programme at Cloud Nine. Results from 30 of 78 samples submitted for analysis have returned anomalous total rare earth oxide (TREO) concentrations of >1000
ppm; five have TREO concentrations >3500 ppm, with a maximum TREO value of 3617 ppm. Importantly, a large proportion of the TREO encountered in analysis are the in-demand magnetic rare earth oxides (MREO), which are a critical component of high-performance magnets used for climate
economy products such as electric vehicles and wind turbines. The key magnetic rare earth oxides are neodymium (Nd) and praseodymium (Pr) which form the majority of the MREO mix in the samples. The Company believes these results are encouraging and warrant further analyses to identify the extent of the REE mineralisation encountered at Cloud Nine. Latin has engaged RSC, an experienced geological consulting service company, to provide an independent review of the REE data, incorporated in this update. Kaolinite and halloysite are the primary hosts of REEs in regolith-hosted REE deposits. During weathering of granite and breakdown of feldspar to halloysite and kaolinite, REEs from the granite are retained in the regolith profile and can be adsorbed to the surface of the two clay minerals. This process leads to REE enrichment from primary granite to its weathering product. Clay-hosted REE deposits are targeted for exploration because they have low Th and U concentrations, and REEs can often be extracted via weak acids or ionic solutions. Therefore, REE concentrations in commercially extracted clay-hosted deposits can be low - typically in the range of 500­2000 ppm
TREO (Borst et al. 20201). The lower grade is largely offset by easier mining and lower processing costs. These deposits are generally mined by open-pit methods and little beneficiation is required. The results of these wide-spaced samples show the potential for REE at Cloud Nine; additional samples
will now be analysed to define the extent of REE mineralisation. Leach tests (e.g. weak aqua regia, ammonium sulphate) will also be performed to determine whether the REE mineralisation can be classified as ionic-adsorption-type (weakly adsorbed to the surface of kaolinite and halloysite) or whether REEs are related to other mineral species in the regolith profile. Since the geology and geometry of the kaolinite-halloysite domains and the weathering profile at Cloud Nine are well established, the resource estimate model can be rapidly updated with REE concentrations once further analyses are received.