Pensana reported the interpretation of the geophysical surveys conducted late in 2023 over the Coola carbonatite and the Sulima West laterite located 75 kilometres north of the Longonjo project and of the commencement of a bulk metallurgical test work programme designed to test for the amenability of this mineralization to be processed at Longonjo. The Coola Exploration project of which the company has a 90% interest is located approximately 160 kilometers east of the Port of Lobito, originally covering an area of 7,456 square kilometres. The Company has completed multiple field programmes in 2020, 2021 and 2022 confirming carbonatite/alkaline rare earth mineralization on two highly prospective targets, the Coola carbonatite and Sulima West laterite.

A metallurgical test work programme at Blu Sky Mining laboratory in South Africa is underway to test the identified mineralization for low-cost physical separation techniques which can be applied at site to produce a high-grade rare earth concentrate. Successful results from these separation techniques will allow the drill programmes to target zones of mineralisation which have the potential to produce a high-grade concentrate at site. These concentrates may then be trucked to the Longonjo facility for processing.

Four bulk samples have been sent for metallurgical test work, including the Coola carbonatite initial sample reporting 4.7% TREO as mainly bastnaesite, and the Sulima West enriched laterite initial sample reporting 4.8% TREO as well as samples of fluorite and apatite. Samples will be tested for multi-gravity, wet tables, WHIMS (wet high intensity magnetic separation), magnetic separation, and XRF/optical sorting with a view to concentrate generation ahead of processing at Longonjo, or as standalone mining opportunities in the case of the fluorite and apatite targets.