Ionic Rare Earths Limited Mining Licence Signed for Makuutu Heavy Rare Earth Project

Perth, Australia (ABN Newswire) - The Board of Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is pleased to announce that Rwenzori Rare Metals Limited ("Rwenzori"), owner of the Makuutu Heavy Rare Earth Project ("Makuutu" or "the Project"), has formally received the granted large-scale Mining Licence (LML00334) over the central Makuutu tenement (previously Retention Licence 1693).

- The Ugandan Minister of Energy and Mineral Development, the Honourable Dr Ruth Nankabirwa Ssentamu, has signed and issued Large Scale Mining Licence (LML) 00334 for the Makuutu Heavy Rare Earths Project;

- This mining licence approval is the first large scale mining licence awarded in Uganda;

- Award of the mining licence brings on further supply chain and off-taker engagement, and positions Makuutu for targeted Final Investment Decision later in 2024 and first production in 2026;

- The Demonstration Plant at Makuutu continues to advance, with first Mixed Rare Earth Carbonate production on track for Q1 2024;

- Ugandan Directorate of Geological Survey and Mines has also announced approval for renewal of highly prospective Exploration Licence 00147, covering the majority of the Company's existing exploration target; and

- Makuutu is the most advanced Ionic adsorption clay project in development today with product not committed to China and will supply new supply chains looking to decouple from existing sources.

Large Scale Mining Licence (LML) 00334 was officially signed on Wednesday 17th of January 2024, at a ceremony in Kampala, by the Ugandan Minister of Energy and Mineral Development (MEMD), the Honourable Dr Ruth Nankabirwa Ssentamu. The award represents the first large scale mining licence to be issued in Uganda under the Mining Act of 2022. This further supports the flagship project status awarded to Makuutu in 2022 and reflects the strong support received from Uganda in the development of the Project towards operations.

In December 2023 (ASX 11 December 2023), IonicRE announced an agreement with partners in Rwenzori to increase the Company's stake in Rwenzori and the Makuutu Project from 60% to 94%, and further to this is also in discussions with partners on the remaining 6% ownership.

Ionic Rare Earths Managing Director, Mr Tim Harrison, said the formal mining license award has been a diligent process as the Ugandan stakeholders wanted long-term investment security for flagship projects:

"The official award of the mining licence is a tremendous achievement by all stakeholders involved," Harrison said.

"We thank the Ugandan Government, and having navigated the new process together, we look forward to continue to invest in our Project at Makuutu as we advance towards operations," Harrison said.

"The formal awarding of the mining license at Makuutu to Rwenzori enables discussions with potential strategic and supply chain partners to progress to the next stage to bring Makuutu and a new supply of magnet and heavy rare earths to market."

"With this award, and discussions underway with potential partners, the Project is aiming for Final Investment Decision later this year, and first product to customers in early 2026."

"Progress continues to be made at Makuutu's Demonstration Plant, which will also be critical in de-risking the commercialisation of the Project through the production of value added, mixed rare earth carbonate (MREC) for our partners to qualify and validate."

"It is an important step forward for Ionic Rare Earths in mining, refining, and recycling the heavy rare earths critical for the energy transition, advanced manufacturing, and defence."

"With the formal award of the mining licence in Uganda, it now reinforces the Makuutu Heavy Rare Earth Project as one of the world's largest and most advanced development-ready heavy rare earth element assets, and we look forward to commissioning our Demonstration Plant at Makuutu."

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About Ionic Rare Earths Limited:

Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is focused on developing its flagship Makuutu Rare Earths Project in Uganda into a significant long life, low-cost, supplier of high-value critical and heavy rare earths.

Makuutu is an advanced-stage, ionic adsorption clay-hosted project highlighted by near-surface mineralisation, significant exploration upside, excellent metallurgical characteristics and access to tier-one infrastructure.

The ionic adsorption clay-hosted geology at Makuutu is similar to major rare earths projects in Southern China, which are responsible for the majority of global supply of low cost heavy and critical rare earths, specifically the high value magnet metals (Dysprosium and Terbium) Heavy Rare Earths (>98% originating from ionic clays). Metallurgical testing at Makuutu has returned excellent recovery rates, which provide multiple avenues for a simple process route.

Makuutu is well-supported by tier-one existing infrastructure which includes access to major highways, roads, power, water and a professional workforce.

Rare Earths will play a critical role in the future of clean energy. Rare Earths are a key ingredient in the permanent magnets found in wind turbines and electric vehicles.

IonicRE is led by an experienced and proven team, who have the capabilities to deliver Makuutu into production and realise value for all stakeholders.

Source:
Ionic Rare Earths Limited

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