Velox Energy Materials Inc. provided an update on results received from its Phase 1 metallurgical testwork program completed on samples from the Cambridge Vanadium Deposit at the North Queensland Vanadium Project . Three composite samples were created from four diamond drillholes completed in September 2023 and submitted to Brisbane Met Labs (BML), an expert in the assessment of North Queensland vanadium deposits, to assess mineral recovery within identified stratigraphic horizons of the prospective Toolebuc Formation. Assay results of up to 0.98% V 2 O 5 were achieved within the -38µm fraction indicating a significant 2.4 to 3.65 times improvement in grade.

The separation of the Toolebuc can be seen, which has been derived by separating the Toolebuc into a series of stratigraphic horizons based on lithological, mineralogy, and geochemical variations observed. The horizons represent distinctive stages in the deposition of the Toolebuc Formation and mineralisation. The horizon variation has material significance to understanding the deposit and mineral processing.

TLBA: Represents correlative of the St Elmo Coquina; Limestone, shell tests typically exceed 50%, laminated with clay bands; Mineralogy dominated by coarse crystalline calcite; and Geochemically, typically moderate vanadium, high calcium, low silica content. TLBB: Represents correlative of the Willats Crossing Shale; Shale-Limestone, shell tests typically 10-50%, laminated with clay bands and micrite; Mineralogy increasingly dominated by clay and micrite; and Geochemically, typically high vanadium, moderate calcium, moderate silica content. TLBC: Represents correlative of the Manfred Coquina; Limestone, shell tests typically exceed 50%; Mineralogically dominated by coarse crystalline calcite, with apatite often abundant; and Geochemically, typically moderate vanadium, high calcium, low silica, often enriched P and TREO.

TLBD: Represents correlative of the Arrolla Shale; Shale, shell tests typically less than 10%; Mineralogy dominated by clay, micrite, and often increase pyrite; and Geochemically, typically high vanadium, low calcite, high silica, increased sulphur. TLBE: Represents correlative of the Arrolla Shale Lower Transition to Wallumbilla Formation; -Mudstone, shell tests generally absent; Mineralogy dominated by clay, limited micrite, minor pyrite; andGeochemically, typically low vanadium, low calcium, high silica. Metallurgical Testwork Program Four diamond drill holes were selected to represent the Cambridge Vanadium Deposit (NQP23_002, NQVP23_003, NQVP23_006 and NQVP23_008), with three geological horizons (A,B/C and D) within the Toolebuc Formation being identified from drill logging and assays for testwork: Composite 1: Represents horizon A Composite 2: Represents horizon B/C Composite 3: Represents horizon D Assays and quantitative XRD analyses of the head size were completed by BML as part of the test work program.

Metallurgical Test work Results The results of the test work have been assessed by Velox metallurgical consultants, BHM Process Consultants (BHM), with the following key observations identified: A strong correlation between the head assays and the drill assays was identified. Head grade results for of 0.23% V 2 O 5 from Composite 1 and 0.41% V 2 O 5 from Composite 2 received. Pre-scrub results proved very promising with results including: Composite 1 (-9.5mm sub split) within the -38µm fraction returning assays of 0.84% V 2 O 5;Composite 2 (-9.5mm sub split) within the -38µm fraction returning assays of 0.98% V 2 O 5 .

These findings indicate a significant improvement of 2.4 - 3.65 times in V 2 O 5 grade from the original sample to the mass within the -38µm fraction. Next Steps: The positive findings from the Phase 1 metallurgical testwork program provide a solid foundation for the next phase of testwork (Phase 2), which will include: Receipt of Composite 3 results; Bulk scrubbing of Composites 1 and 2; and Commencement of sighter flotation testing. Velox anticipates results from Phase 2 testwork will be concluded by the end of Second Quarter CY24.

Continued updates will be provided as and when results are received.