Pitombeiras Project

The Pitombeiras vanadium titanomagnetite ('VTM') Project (“Pitombeiras”’ or the “Project”’) is located in the Northeast region of Brazil, approximately 280 km southwest of Fortaleza town, the capital of Ceará State.

The Project is a high-grade vanadium, titanium, iron ore development project with the potential for open pit extraction.   Following work expended by the Company since 2019, the Project is now close to a production decision, with a potential lead time from commencement of mine construction to cash flow estimated at between 6-9 months.

Pitombeiras is well located to reach in-country and overseas markets being less than 300km from both the Pecém and Fortaleza seaports in Ceará state, which are within the Ceará Free Trade Zone, an industrial free trade area for processing and selling the Company’s product.

The Company’s external consultant confirmed in April 2022, that there are no legal, technical, or geological impediments to proceeding to mine development, construction, and production, and highlighted the Project’s robust economics and excellent potential to become a profitable producer of Ferrovanadium concentrate (‘Fe 62%’) and Titanium dioxide (‘TiO2’).  All chapters of the Technical Report, including pit design and operation, processing route, production matrix and sales route were defined to feasibility level, with the exception being the chapter relating to TiO2, which is at PEA level.

Significant upside remains as resources has been defined on only three out of eight known targets with vanadium titanomagnetite mineralisation ('VTM') signatures, over a total area of 1,958 hectares.