Resource Drilling Commences at Mt Edon Critical Mineral Project

Highlights

• Phase 1 resource drilling at the Mt Edon Critical Mineral Project has commenced with a ~1,400m RC program
• Drilling to follow up pegmatite formation with previous results delivering 80m of Rubidium at 0.32%, from surface
• Drilling will result in the conversion of the current Exploration Target to a Mineral Resource Estimate in 2024
• Phase 2 drilling to follow in Q3-2024
• Rubidium and Mica product development update due mid to late May 2024

(Above: drilling in progress at Mt Edon)

Everest Metals Corporation Limited (ASX: EMC) (“EMC” or “the Company”)is pleased to advise that resource definition drilling has commenced at the Mt Edon critical mineral Project (M59/714) located 5km southwest of Paynes Find, in the Mid-West region of Western Australia, 400km northeast of Perth. Drilling follows the establishment of an initial Exploration Target (JORC 2012) of 3.2 to 4.5 million tonnes at a 0.23 to 0.35% Rubidium.

“The more we dig into the growing global Rubidium market the more excited we are to have this potential world class deposit at the Mt Edon project, on a granted mining lease, just a few kilometres south of Paynes Find, Western Australia. The Mt Edon project has a current exploration target of 3.2 to 4.5m tonnes with a grade of 0.23 to 0.35% Rubidium, highlighting the potential scale and grade of the project. We look forward to updating the market on product development in coming weeks.”

CEO and Executive Chairman Mark Caruso commented:

Cautionary Statement:

The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

RESOURCE DRILLING

Resource definition drilling will be comprised of two phases and occur during early May 2024 and August/September 2024.

• Phase 1) ~1,400m RC drilling
  • 12 x holes at a spacing of 40m along strike and 20m across strike,
  • 4 x holes to test individual pegmatites parallel to the main orebody, and
  • This phase will define a mineralised wireframe and generate a maiden JORC 2012 Mineral Resource Estimate (“MRE”)
• Phase 2) ~1,600m RC drilling
  • Infill drilling extending to 20m along strike designed to be used in the calculation of an indicated JORC MRE
  • Timing of MRE – December quarter 2024

BACKGROUND

Mt Edon Pegmatite Project sits on mining lease M59/714 and covers the southern portion of the Paynes Find greenstone belt in the southern Murchison which hosts an extensive pegmatite field (Figure 1). There are several large irregular shaped felsic pegmatites which have intruded into the Paynes Find Greenstone Belt, a northeast trending sequence of mafic, ultramafic, and sedimentary rocks, with east-west structures cutting these metasediments. Pegmatites appear to be folded sills dipping in variable directions and angles and are connected at depth representing both sill and dyke structures. These prospective pegmatites have a northeast-southwest strike of up to 350m and occur along a 1.2km interval of the LCT Pegmatite corridor. Larger pegmatitic bodies appear less influenced by the underlying structural trends and fabrics, with many of these bodies cutting both structural fabrics. The larger pegmatitic bodies are interpreted as blowouts related to structural intersections.

            Figure 1: Mt Edon mining lease location map

Two stages of RC drilling was completed at the Mt Edon mining lease in late May and early August 2023. During Stage-1 drilling in late May 2023, drill hole ME23-07 intersected a mixed zone of altered mafic host rock and 62m of pegmatite up to a depth of 111m and remained open (Figure 2). Geological logging of the chip samples highlighted well-developed muscovite-rich zones. Hole ME23-007 intersected over 40 metres grading 0.26% Rb₂O from 49m, including 19m at 0.33% Rb₂O (0.43% Rb₂O + Li₂O), in addition to three higher grade zones of 2m @ 0.53% Rb₂O + Li₂O (14-16m), 2m @ 0.53% Rb₂O + Li₂O (20-22m) and 2m @ 0.53% Rb₂O + Li₂O (30-32m)[1]. The entire mineralised intersection within ME23-007 indicates the highly fractionated and fertility of the pegmatite in the northeast corner of Mt Edon. The pegmatite body in this hole remained open at a depth of 111m (dip 60 degree) and shows there is high potential for lateral extensions particularly toward the northeast.

Figure 2: A schematic cross section looking northwest – Shows significant mineralised intersections in hole MD23-07, 15-16 and 18-19 located in the northwest area of the Mt Edon tenement

Stage-2 drilling was designed to unlock the potential of a 600m pegmatite sitting along a northeast-southwest strike. This zone is interpreted to be a mineralised alteration zone located between the intrusive pegmatites and the mafic country rock. 10 x RC holes were drilled along this trend and all intercepted significant rubidium-lithium results. Some of the thickest and highest grade intersections are outlined below[2]:

• Hole ME23-019 intersected over 80 metres grading 0.32% Rb₂O and 0.11% Li₂O from 25m, including 9m at 0.47% Rb₂O from 87m.
• Hole ME23-018 intersected 31 metres grading 0.21% Rb₂O and 0.12% Li₂O from 35m, including 7m at 0.34% Rb₂O from 39m.
• Hole ME23-016 intersected 2 metres grading 0.34% Rb₂O and 0.42% Li₂O from surface and 8 metres grading 0.13% Rb₂O from 19m.
• Hole ME23-015 intersected 15 metres grading 0.22% Rb₂O and 0.27% Li₂O from 14m, including 5 meters at 0.27% Rb₂O and 0.6% Li₂O from 22m.

Additionally, findings from both the Stage-1 and Stage-2 drilling programs suggest that Mt Edon has the potential to be classified as a Rubidium-Lithium project^[3].

In December 2023, the maiden Exploration Target was reported and was based on the results of exploration activities undertaken to date and supported by the drill hole database containing over 600m of reverse circulation drilling in the northeast corner of the Mt Edon mining lease, geological mapping, and estimation in accordance with the JORC Code (2012)[4]. The reported Exploration Target is exclusively defined by wide spaced drilling which is insufficient to support either indicated or inferred resource classification (Figure 3). Importantly, the Exploration Target does not include any untested targets along strike or at depth extensions which have yet to be drill tested as the absence of any material geological information is considered insufficient to estimate an Exploration Target at this time, however these areas provide excellent exploration potential given the Pegmatite zones, being the principal control on mineralisation, have been mapped over the entire Mt Edon project and will be drill tested in the next phases of the planned exploration program.

Initial Exploration Target comprises only the north-eastern corner of the Mt Edon mining lease, the surrounding mineralised area measuring approximately 450m x 100m. The estimate was limited to a vertical depth of about 100m below surface and highlights that Mt Edon may have the scale, grade, and other attributes to justify its continuing evaluation as a possible producer of a Rubidium concentrate that could then be processed for application in high technology manufacturing industries. The current Exploration Target (JORC 2012) ranges from 3.2 to 4.5 million tonnes with a grade of 0.23 to 0.35% Rb₂O and 0.08 to 0.12% Li₂O (Table 1 and Figure 3).

Table 1- Mt Edon Exploration Target estimate summary

Category	Lower Limit (Mt)	Upper Limit (Mt)	Grade Range Rb2O (%)	Grade Range Li2O (%)
Exploration Target	3.2	4.5	0.23 – 0.35	0.08 – 0.12

• All tabulated data have been rounded
• The potential quantity and grade of mineralisation is conceptual in nature
• The Exploration Target is reported as a range of grade and tonnages for the project based on drillhole data statistical confidence limits and various assumptions of continuity

Cautionary Statement:

The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

Figure 3: Wireframe encompassing the mineralised holes at the Mt Edon tenement

RESEARCH AGREEMENT

On 26 February 2024 Edith Cowan University (“ECU”) and EMC executed a Research Agreement (“Agreement”) for studies in relation to the Extraction of Rubidium and Mica from Mt Edon ore[5]. The research activities will be undertaken at ECU’s Mineral Recovery Research Centre (“MRRC”) for a period of 9-12 months. The Direct Rubidium Extraction test work and studies will utilise advanced processes such as ion exchange. This project focuses on extracting the Rubidium and Mica from ore by using a Direct Rubidium Extraction technology. Due to the increasing need for sustainable and environmentally friendly extraction processes, these studies aim to develop a state-of-the-art extraction technique that maximise the recovery of Rubidium and Mica. By selecting suitable Cations and optimising operating conditions, the project aims to achieve maximum Rubidium and Mica extraction by utilising a cost effective and environmentally friendly method. This approach will leverage cutting-edge technologies, innovative methodologies, and industry best practices to ensure a sustainable and profitable extraction process. The process encompasses purification and refining, ultimately leading to the conversion into a final product such as Rubidium slat, and metal, and Mica. Under the Research agreement any intellectual property rights deriving from the project will be owned by EMC. As part of this study, critical assessment of the feasibility and potential enhancements of the Direct Rubidium Extraction method will be done. This will allow EMC and ECU to jointly apply for the Cooperative Research Centres Projects (“CRC-P”) Grants to scale up the process technology. The Company expenditure for this project will be eligible for Federal Government Research and Development (“R&D”) Tax Incentive.

RUBIDIUM AND MICA MARKET

Rubidium Market

Rubidium is a designated Critical Mineral by the most recent US Government Geological Survey of 2023[6]. Its potential uses across a wide range of high tech as well as traditional industries are growing rapidly.

Rubidium is often associated with caesium and lithium mineralisation and its compounds are used in biomedical research, electronics, specialty glass, pyrotechnics as well as military industrial applications. Since it is easily ionised, researchers believe it will also be used as a propellant in ion engines on spacecraft. Importantly, Rubidium is used interchangeably or together with caesium in many uses. Its recent applications in specialty glasses used in fibre optic telecommunication systems has been an important contribution to its growing demand.

Rubidium has several uses in medical science, such as in Positron Emission Tomographic (“PET”) imaging, the treatment of epilepsy, blood flow tracer and Rubidium Chloride is used as an antidepressant. A dozen or more other uses are known, which include use as a co-catalyst for several organic reactions and in frequency reference oscillators for telecommunications network synchronisation.

Developing uses strengthens the demand which ensures the current price of ~USD1,200/kg[7] for Rubidium Carbonate remain for many years to come.

Mica Market

The global market for mica is driven by applications across a diverse set of industries such as electronics, construction, cosmetics, plastic, rubber, paints, and coatings.

The global mica market size reached US$ 526.4 million in 2022. Over the forecast period 2023 to 2033, the global mica demand is anticipated to rise at a 4.8% CAGR. Total market value is predicted to increase from US$ 546.3 million in 2023 to US$ 874.8 million in 2033. The demand for mica is projected to remain high in the cosmetics segment. The latest mica market analysis shows that the target segment is projected to thrive at a 5.2% CAGR during the assessment period. Global demand for mica is also expected to rise due to rapid population growth, increasing usage due to thermal & heat-resistant properties, and growing demand for enhanced texture & durability in paints and coatings[8]. The current Mica price is USD300-500 per tonne[9].

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[1] ASX: EMC announcement; Mt Edon Drilling Results Confirms High Grade Rubidium, dated 13 July 2023

[2] ASX: EMC announcement Mt Edon Drilling Program Continues to Deliver, 80m High Grade Rubidium Intersection with Associated Lithium, dated 21 September 2023

[3] The high grade intersected Rubidium is in line with world class Rubidium occurrences including the Karibib pegmatite deposit in Namibia (8.9 Mt at 0.23%Rb) and Guobaoshan deposit in China (234 Mt at 0.12%Rb).

[4] ASX: EMC announcement Mt Edon Exploration Target defined, supporting resource drilling commencement, Continued high grade rubidium-lithium assays from surface, dated 14 December 2023

[5] ASX: EMC;EMC TO ADVANCE MT EDON CRITICAL MINERAL PROJECT THROUGH RUBIDIUM AND INDUSTRIAL MICA PRODUCT DEVELOPMENT, dated 27 February 2024

[6] https://www.energy.gov/eere/articles/us-department-energy-releases-2023-critical-materials-assessment-evaluate-supply

[7] https://www.metal.com/Other-Minor-Metals/202012250004

[8] https://www.futuremarketinsights.com/reports/mica-market

[9] Statistica Industrial Minerals Market Information: https://www.statista.com/