Mineral Resource Update: More than 650 Percent Increase in Measured and Indicated TREO Mineral Resources for the Lofdal Heavy Rare Earths Project

Press Release

Namibia Critical Metals Inc.

Mineral Resource Update: More than 650 Percent Increase in Measured and Indicated TREO Mineral Resources for the Lofdal Heavy Rare Earths Project

Halifax, Nova Scotia May 20, 2021 - Namibia Critical Metals Inc. ("Namibia Critical Metals" or the "Company" or "NMI") (TSXV:NMI) is pleased to announce an updated NI 43-101 mineral resource estimate for the Lofdal Heavy Rare Earths Project ("Lofdal") in northwestern Namibia.

Highlights of the mineral resource update include:

• 1454% increase in total Measured and Indicated Mineral Resource tonnage from 2.88 Mt at 0.32% TREO to 44.76 million tonnes at 0.17% TREO for combined Area 4 (including the first Measured Resource for Lofdal) and Area 2B based on the same cut- off of 0.1 % TREO as in the previous PEA filed on October 1, 2014;
• Term 1 objectives with JV partner JOGMEC of doubling the mineral resource far exceeded;
• 164% increase in total Inferred Mineral Resource tonnage to 8.67 million tonnes at a grade of 0.17% TREO for combined Area 4 and Area 2B based on 0.1 % TREO cut- off;
• 6 times increase in contained TREO in Measured & Indicated categories to 76,950 tonnes;
• Compared to previous mineral resource estimate, contained dysprosium oxide (4,060 tonnes) and terbium oxide (620 tonnes) in the Measured and Indicated categories increased 6.1 times and 6.7 times, respectively;
• Dysprosium oxide price in the "moderate down case scenario" for 2021 at 420 USD per kilogram and terbium oxide price at 1,125 USD per kilogram (Adamas Intelligence, 2021)

Darrin Campbell, President of NMI stated "We are extremely pleased to see this significant increase to the size and potential of our Lofdal Project. Our first year in partnership with JOGMEC has been a great success in advancing Lofdal forward to being one of the premier heavy rare earth projects in the world. It is a great pleasure to see that our geological team has cracked the code of the deposit to establish a first significant mineral resource outside Area 4 at Area 2B with several tens of kilometers of additional strike length of potentially mineralised structural zones to be drilled in Area 2 and Area 5 that could result in additional

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mineral resources. The main value drivers of the Lofdal deposit are dysprosium and terbium which are critical components to produce high-strength permanent magnets used in electric vehicle motors and wind turbines. The permanent magnet sector is expected to be the fastest- growing end-use category of rare earths for the next decade."

Background and summary

The Lofdal deposit is being developed by a joint venture of Namibia Critical Metals and the Japanese Oil, Gas and Metals Corporation (JOGMEC). The joint venture aimed at doubling the Mineral Resource of 2.88 Mt at a grade of 0.32% TREO in the Indicated category and 3.28 Mt

at a grade of 0.27% TREO in the Inferred category (as reported in the PEA 20141) with its 9 months drilling campaign in 2020.

Figure 1 - Structural zones of the central Lofdal deposit with the first two areas with resource drilling: Area 2B and Area 4 (drill collars as green triangles).

As a result, drilling in 2020 increased the mineral resources of the project to 44.76 Mt at a grade of 0.17% TREO Measured and Indicated categories and 8.67 Mt at a grade of 0.17% TREO in Inferred category in combined Area 4 and Area 2B (see Figure 1), applying the same cut-off of 0.1% total rare earth oxides (TREO) as in the previous PEA of 2014.

1 Preliminary Economic Assessment on the Lofdal Rare Earths Project Namibia dated October 1, 2014 authored by David S. Dodd, B. Sc (Hon) FSAIMM - The MDM Group, South Africa, Patrick J.F. Hannon, M.A.Sc., P.Eng. and William Douglas Roy, M.A.Sc., P.Eng. - MineTech International Limited, Canada, Peter Roy Siegfried, MAusIMM (CP Geology) and Michael R. Hall, B.Sc (Hons), MBA, MAusIMM, Pr.Sci.Nat, MGSSA - The MSA Group, South Africa. The PEA should not be considered to be a pre-feasibility or feasibility study, as the economics and technical viability of the Project has not been demonstrated at this time. The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Furthermore, there is no certainty that the PEA will be realized.

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On April 1, 2021 the Company announced that JOGMEC had officially elected to move to Term 2 of the JV Agreement and provide additional funding of $2,063,000 for further exploration and development programs at Lofdal through to July 31, 2021.

The terms of the JOGMEC JV Agreement contemplate that JOGMEC provides $3,000,000 in Term 1 and $7,000,000 in Term 2 to earn a 40% interest in the Lofdal project. Term 3 calls for a further $10,000,000 of expenditures to earn an additional 10% interest. The total approved expenditures to date for Terms 1 and 2 are $6,163,000. The JV Agreement is structured such that no NMI equity will be issued and it is totally non-dilutive to NMI shareholders.

Mineral Resource Estimates

The in-situ Mineral Resource estimate was independently prepared by The MSA Group of South Africa ("MSA") and was based on geochemical analyses and density measurements of core samples obtained by diamond drilling undertaken by Namibia Critical Metals from 2010 to 2012, 2015 and more recently in 2020.

A total of 172 drill holes have been drilled at Area 4, of which 13 were collared outside the defined Mineral Resource. In Area 2B, 46 drill holes were used to estimate the Mineral Resource. Extensive trenching and trench sampling were conducted in the earlier years of exploration, which was useful in defining the extents of the mineralisation but was excluded from the grade estimates due to potential biases from sampling in the near surface environment.

From the assumed parameters a 0.1% TREO cut-off grade was calculated, which together with the Whittle optimised pit shell demonstrates reasonable prospects for eventual economic extraction (RPEEE) for the Mineral Resource. The Mineral Resource is classified into the Measured, Indicated and Inferred categories and is reported at a cut-off grade of 0.1% TREO (TREO and *TREO in tables below refers to Total Rare Earth Oxides including Y2O3).

The mineral resource was estimated by MSA as follows:

Table 1: Area 4 Mineral Resources Estimate for 0.1% TREO cut-off

Area 4 Mineral Resource Estimate above 0.1% TREO* cut-off grade
	Tonnes	TREO*	HREO**	LREO***	Dy O	3	TREO*
Category					2
(Mt)	%	%	%	ppm	(kt)
Measured	5.93	0.21	0.14	0.07	138		12.71
Indicated	36.63	0.16	0.08	0.08	82		59.97
Measured &	42.57	0.17	0.09	0.08	90		72.68
Indicated
Inferred	6.09	0.17	0.07	0.09	72		10.12

Notes:

1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.
3. *TREO = Total Rare Earth Oxides and includes Y2O3
4. **HREO = Total Heavy Rare Earth Oxides and includes Y2O3
5. ***LREO = Total Light Rare Earth Oxides

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Table 2: Area 2B Mineral Resources Estimate for 0.1% TREO cut-off

			Tonnes	TREO*	HREO**	LREO***	Dy O	3			TREO*
Category										2
	(Mt)	%	%		%			ppm	(kt)
Indicated	2.20	0.19	0.10		0.09			104				4.27
Inferred	2.58	0.19	0.09		0.09			92				4.80
Table 3: Area 4 Grade and Tonnages in Measured and Indicated categories
	Cut-off			Tonnes			TREO*		HREO**			LREO**			Dy2O3		TREO
	TREO %			(Mt)			%		%			%				ppm		(kt)
0.10		42.57			0.17		0.09			0.08			90		72.7
0.15		17.50			0.24		0.15			0.09			141		42.1
0.20		7.63			0.33		0.23			0.10			216		25.2
0.25		4.05			0.43		0.33			0.10			305		17.3
0.30		2.67			0.51		0.40			0.10			371		13.5
0.35		1.93			0.58		0.47			0.11			428		11.2
0.40		1.46			0.64		0.53			0.11			484		9.3
Table 4: Area 4 Grade and Tonnages in Inferred category
	Cut-off			Tonnes			TREO*		HREO**			LREO**			Dy2O3		TREO
	TREO %			(Mt)			%		%			%				ppm		(kt)
0.10		6.09			0.17		0.07			0.09			72		10.1
0.15		2.97			0.21		0.10			0.12			94		6.3
0.20		1.35			0.26		0.13			0.13			123		3.5
0.25		0.59			0.31		0.21			0.10			198		1.9
0.30		0.22			0.36		0.27			0.09			252		0.8
0.35		0.09			0.42		0.33			0.09			305		0.4
0.40		0.05			0.45		0.37			0.08			345		0.2
Table 5: Area 2B Grade and Tonnages in Indicated category
	Cut-off			Tonnes			TREO*		HREO**			LREO**			Dy2O3		TREO
	TREO %			(Mt)			%		%			%				ppm		(kt)
0.10		2.20			0.19		0.10			0.09			104		4.3
0.15		1.24			0.25		0.12			0.13			125		3.1
0.20		0.76			0.30		0.14			0.16			143		2.3
0.25		0.47			0.35		0.15			0.20			158		1.6
0.30		0.29			0.39		0.16			0.23			172		1.1
0.35		0.18			0.43		0.18			0.26			189		0.8
0.40		0.11			0.47		0.19			0.28			205		0.5

Notes:

1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.
3. *TREO = Total Rare Earth Oxides and includes Y2O3
4. **HREO = Total Heavy Rare Earth Oxides and includes Y2O3
5. ***LREO = Total Light Rare Earth Oxides

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Table 6: Area 2B Grade and Tonnages in Inferred category

	Cut-off			Tonnes				TREO*		HREO**		LREO**						Dy2O3			TREO
	TREO %			(Mt)				%					%					%						ppm			(kt)
0.10			2.58				0.19			0.09				0.09					92			4.8
0.15				1.37				0.24				0.13				0.11					123			3.3
0.20				0.67				0.31				0.17				0.14					168			2.1
0.25				0.45				0.36				0.20				0.16					196			1.6
0.30				0.31				0.39				0.23				0.16					226			1.2
0.35				0.20				0.43				0.29				0.14					274			0.9
0.40				0.11				0.47				0.34				0.13					324			0.5
Table 7: Area 4 Mineral Resources estimate by individual REO - Grades at a cut-off of 0.1% TREO
	Class	Tonnes	TREO*	La2O3	Ce2O3	Pr2O3	Nd2O3	Sm2O3		Eu2O3		Gd2O3	Tb2O3		Dy2O3		Ho2O3		Er2O3	Tm2O3	Yb2O3	Lu2O3	Y2O3
	Mt	%	ppm		ppm	ppm		ppm	ppm		ppm		ppm	ppm		ppm		ppm		ppm	ppm	ppm	ppm	ppm
Measured	5.93		0.21	177	320	34		127	44		19		85		20		138		30		86	13	78	11	960
Indicated	36.63	0.16	208	371	39		139	40		15		62		13		82		17		49	7	44	6	546
	M&I	42.57	0.17	204	364	38		137	41		16		65		14		90		19		54	8	48	7	603
Inferred	6.09		0.17	247	436	45		158	41		14		54		11		72		15		45	7	41	6	470
Table 8: Area 4 Mineral Resources estimate by individual REO - Tonnes at a cut-off of 0.1% TREO
	Class	Tonnes	TREO*	La2O3	Ce2O3	Pr2O3	Nd2O3	Sm2O3		Eu2O3		Gd2O3	Tb2O3		Dy2O3		Ho2O3		Er2O3	Tm2O3	Yb2O3	Lu2O3	Y2O3
	Mt	kt	kt		kt	kt		kt		kt		kt		kt	kt		kt			kt		kt	kt	kt	kt	kt
Measured	5.93		12.71	1.05	1.90	0.20		0.75	0.26		0.11		0.51		0.12	0.82	0.18	0.51	0.08	0.46	0.07	5.69
Indicated	36.63	59.97	7.62	13.58	1.42		5.09	1.48		0.56		2.26		0.46	3.01	0.62	1.78	0.26	1.60	0.23	19.99
	M&I	42.57	72.68	8.67	15.48	1.62		5.84	1.74		0.67		2.76		0.58	3.83	0.80	2.30	0.34	2.06	0.30	25.68
Inferred	6.09		10.12	1.50	2.65	0.28		0.96	0.25		0.08		0.33		0.07	0.44	0.09	0.27	0.04	0.25	0.04	2.86
Table 9: Area 2B Mineral Resource estimate by individual REO - Grades at a cut-off of 0.1% TREO
	Class	Tonnes	TREO*	La2O3	Ce2O3	Pr2O3	Nd2O3	Sm2O3		Eu2O3		Gd2O3	Tb2O3		Dy2O3		Ho2O3		Er2O3	Tm2O3	Yb2O3	Lu2O3	Y2O3
	Mt	%	ppm	ppm	ppm		ppm	ppm		ppm		ppm	ppm		ppm		ppm		ppm	ppm	ppm	ppm	ppm
Indicated	2.20		0.19	255	398	41		161	64	25	87		17	104		20		58	8	54	8	638
Inferred	2.58		0.19	243	385	41		178	85	29	94		16	92	17	49	7	45	7	575
Table 10: Area 2B Mineral Resource estimate by individual REO - Tonnes at a cut-off of 0.1% TREO
	Class	Tonnes	TREO*	La2O3	Ce2O3	Pr2O3	Nd2O3	Sm2O3		Eu2O3		Gd2O3	Tb2O3		Dy2O3		Ho2O3		Er2O3	Tm2O3	Yb2O3	Lu2O3	Y2O3
	Mt	kt	kt		kt	kt		kt		kt		kt		kt	kt		kt			kt		kt	kt		kt	kt	kt
Indicated	2.20		4.27	0.56	0.88	0.09		0.35	0.14	0.05	0.19		0.04		0.23		0.04		0.13	0.02	0.12	0.02	1.41
Inferred	2.58		4.80	0.63	0.99	0.11		0.46	0.22	0.08	0.24		0.04		0.24		0.04		0.13	0.02	0.12	0.02	1.48

Notes:

1. All tabulated data have been rounded and as a result minor computational errors may occur.
2. Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.
3. *TREO = Total Rare Earth Oxides and includes Y2O3