Resouro Strategic Metals Inc. provided an update on activities at the Tiros Rare Earths and Titanium project in Brazil. Resouro announced it has received a report detailing preliminary Rare Earths leaching tests on a broad composite of material from the Tiros Project. The tests were carried out by Prosper Laboratories, a large and well-respected metallurgical test-work laboratory based in the state of Rio de Janeiro, Brazil.

Key highlights of the test-work include: over 41% recovery of Neodymium (Nd); over 60% recovery of Dysprosium (Dy); over 31% recovery of Praseodymium (Pr). These results were from a 207kg composite sample made up from 242 samples from 19 historic drill holes, which included multiple samples from a variety of different zones across the Tiros Project. These results were from material passing 600 mesh, leached at 80 degrees Celsius using a 40ml of 0.5 mole Ammonium Sulphate (NH4)2SO4 with pH starting at 3.5 and finishing at 4.5, with an average pH of 4. Resouro views these initial, preliminary results as highly encouraging in terms of providing the Company with further confidence in the metallurgical characteristics of the Tiros Project.

As noted, Prosper is a highly regarded metallurgical testing laboratory in Brazil, which received the initial 207kg overall sample from Resouro in June 2023 and included multiple samples from a variety the variety of different zones across theTiros project. Following receipt of Prosper's initial positive test-work and its verification of the calculation of those results[ii] the Australian Nuclear Science and Technology Organisation (" ANSTO") subsequently recommended that Resouro accelerate its metallurgical testing program, which will involve sending a further 50 composite samples from a similar variety of depth/locations as the Prosper sample; this process is underway and being expedited. In line with the practices of industry peers in the region, both Resouro and ANSTO considers that this is the best pathway forward in order to provide a more comprehensive and holistic understanding of, and further confidence in, the overall metallurgical profile of the Tiros Project.

Resouro looks forward to updating the market as further results materialize. Resouro has established a new core yard and site house at the Tiros Project and has completed 256 m of Auger drilling and 297m of Aircore drilling ("AC") since starting work on the Tiros Project in June 2023. Auger drilling has an average depth of 10.5 m, with 25 holes, while the AC, with 4 holes complete, had an average of 60 m. Resouro has now mobilized two diamond drill rigs, which will be principally used for producing the 50 composite samples to be provided to ANSTO.

Diamond drilling may allow more accurate location of samples down the profile to base of the Capacete formation. Similar to the follow up metallurgical test-work detailed above, Resouro looks forward to update the market as drilling results materialize in the coming weeks and months.