Resource Development Group Limited provided the following project update as the processing plant construction nears completion, commissioning is due to commence, and first production of garnet is fast approaching. Further confirmatory drilling and Heavy Mineral (HM) analysis has also enabled an update to the project resource estimate to be completed. RDG acquired the Lucky Bay Garnet Project (Lucky Bay) during January 2021 through its wholly owned subsidiary, Australian Garnet Pty Ltd. (AGPL).

Lucky Bay's tenements, located between the coastal towns of Kalbarri and Port Gregory, are contiguous with the world's supplier of highquality alluvial garnet. Highquality alluvial garnet products are used in the abrasive blasting and waterjet cutting markets. Since acquiring the project, RDG has undertaken the design, procurement and construction of a worldclass processing facility with RDG's wholly owned subsidiary, Central Systems responsible for the overall construction of the project.

Demand for high quality garnet abrasives have continued to grow in key markets around the world. Global market demand has been driven by increased investment in infrastructure, manufacturing, oil and gas projects and shipbuilding. In blast abrasive markets, customers are seeking high quality garnet products that deliver superior performance compared to slag abrasives.

Demand for quality blast abrasives is forecast to continue to grow over the foreseeable future. AGPL has had very strong interest in its products from customers around the world looking for quality garnet abrasive. The Company has invested in stateoftheart mining and processing facilities at Lucky Bay, Western Australia, to ensure its garnet products meet the most stringent quality standards and deliver the performance customers require.

Nonmagnetic concentrate (nonmag) demand from China is also forecast to remain high in the medium term. Indicative pricing received, based on the mineral content of nonmag concentrate, has increased the expected revenue for these sales compared to last market update. Demand for ilmenite is strong, with prices expected to hold at the current high levels level for the foreseeable future.

Distribution agreements have been established with customers in Asia Pacific, USA and Europe. These distributors are well established in their respective markets as reputable suppliers of garnet abrasives. They include Burwell Technologies, Kuhmichel in Australia, CESCO and Allredi in the USA and Meldgaard and Kuhmichel in Europe.

The Company will work with all its distributors to establish and position the Australian Garnet brand as `the garnet abrasive that delivers superior performance when it is launched during August 2022. The Company is experiencing cost increases from shipping lines to its key export markets. COVID19 related events around the world have impacted shipping capacity, which has resulted in increases in shipping rates from Fremantle, Western Australia to destinations in USA and Europe.