How Resouro’s Tiros Resource Expansion Could Reshape Rare Earths Supply

• Updated JORC resource for Tiros project shows 11.7% increase in total tonnage
• High-grade zone expanded by 37% with strong rare earth and titanium dioxide grades
• Q1 2025 loss narrows to CAD 1 million from CAD 2 million in prior year quarter
• Dual ASX listing completed in June 2024 with CAD 7.3 million raised via private placement
• Ongoing metallurgical studies and exploration drilling support resource advancement

Financial Overview and Market Position

Resouro Strategic Metals Inc., a mineral exploration company focused on strategic metals in Brazil, has released its unaudited financial results for the quarter ended June 30, 2025. The company reported a comprehensive loss of CAD 1.0 million, a marked improvement from the CAD 2.0 million loss recorded in the same period last year. This reduction reflects a shift from intensive drilling activities in 2024 to ongoing metallurgical studies and administrative cost control in 2025.

Resouro maintains a cash position of CAD 846,088 and a working capital surplus, supported by a successful dual listing on the Australian Securities Exchange (ASX) in June 2024. The concurrent private placement raised CAD 7.3 million, providing the company with capital to advance its exploration programs and corporate activities over the next year.

Tiros Project Resource Update

The highlight of the quarter is the updated JORC-compliant Mineral Resource Estimate (MRE) for the Tiros Titanium Dioxide and Rare Earth Elements Project in Minas Gerais, Brazil. The revised resource shows an 11.7% increase in total tonnage to approximately 1.9 billion tonnes at 3,920 ppm total rare earth oxides (TREO) and 12% titanium dioxide (TiO2). Notably, the high-grade Measured and Indicated resource zone expanded by 37%, maintaining strong grades of around 9,100 ppm TREO and 23% TiO2.

This resource update positions Tiros as one of the largest undeveloped deposits globally for both titanium dioxide and rare earth elements, critical materials for emerging technologies and clean energy applications. The resource expansion was driven by a 46-hole infill and step-out drilling program completed in 2024, enhancing geological confidence and resource classification.

Exploration and Development Activities

During the quarter, Resouro continued metallurgical test work to assess the economic viability of extracting titanium dioxide and rare earth elements from the Tiros deposit. The company also acquired three additional tenements contiguous with the existing Tiros holdings, further consolidating its land position in the highly prospective Capacete Formation.

Exploration efforts at the Novo Mundo Gold Project in Mato Grosso remain ongoing, with the company maintaining its mineral rights and regulatory compliance. The Santa Angela project, an early-stage exploration asset, continues to be held with minimal expenditure during the quarter.

Capital Structure and Shareholder Considerations

As of June 30, 2025, Resouro had 92.6 million common shares issued, alongside 12.5 million stock options and 750,000 performance rights outstanding. Several equity instruments, including options and shares issued as part of the Tiros acquisition and ASX listing, remain subject to escrow until mid-2026. The company’s management and board maintain a cautious outlook on capital requirements, emphasizing the need for ongoing financing to support exploration and development milestones.

Management acknowledges material uncertainties related to the company’s going concern status, given its exploration-stage nature and accumulated losses. However, the recent capital raise and strategic resource expansion provide a foundation for advancing the Tiros project towards feasibility studies and potential development.

Strategic Outlook

Resouro’s updated resource and exploration progress at Tiros underscore its potential to become a significant supplier of titanium dioxide and rare earth elements, materials critical to global supply chains for high-tech and green energy sectors. The company’s focus on metallurgical testing and economic assessments will be key to unlocking value from this large resource base.

Investors will be watching closely for further results from metallurgical studies, progress on feasibility work, and the company’s ability to secure additional funding to sustain its exploration momentum. The dual ASX listing has broadened Resouro’s investor base, positioning it well to access capital markets in Australia and Canada.

Bottom Line?

Resouro’s expanded Tiros resource and improved quarterly results set the stage for critical feasibility milestones and capital raises ahead.

Questions in the middle?

• When will Resouro release results from its ongoing metallurgical test work at Tiros?
• What are the company’s plans and timeline for advancing the Tiros project into feasibility and development?
• How does Resouro intend to finance its exploration and development activities beyond the current cash runway?