Rafaella Resources Limited has been notified by the Department of Mines in Galicia that is has commenced a review process that could eventually lead to the cancellation of the Santa Comba concessions. Key Points: The Grupo Minera Santa Comba (GMSC) concessions comprise 15 concessions totalling 10.6km2 with an expiry date of February 2068 and contain the Santa Comba tungsten project. The GMSC concessions have an existing underground mining permit (the "Permit").

The mining permit requires the holder of the Permit to undertake operational activity. The Company executed an approved action plan in 2021, in compliance with the mining permit, which included the installation of pilot plant, and has been operating the underground and processing ore from September 2021. In March of 2022, the Company requested a suspension of these activities due to health and safety concerns related to the adjacent quarry operation.

Moreover, the Company has been advised that full commercial restart of activities may only commence once a water discharge permit has been awarded. Said application was submitted 20 months ago with the award still pending. The Department of Mines has rejected the request for the suspension of activities and furthermore has requested the immediate restart of underground mining activities.

The Company has communicated its EH&S concerns to the Dept of Mines prior to, and throughout the period of suspension. The Company is continuing discussions with the relevant authorities and remains committed to complying with the Permit, including having restarted operations following recent safety improvements undertaken by the quarry operator, whilst ensuring proper environmental and social considerations are addressed.