Axel REE Reports Up to 13,705 Gram-Metre Soluble TREO at Paraíso Target

Strong Leach Results Confirm Multi-Wellfield Potential

Axel REE Limited (ASX – AXL) has reported compelling results from a second batch of magnesium sulphate bench leach tests at the Paraíso target within its Caladão Ionic Clay Rare Earth Element Project in Brazil's Lithium Valley. The assays revealed multiple thick, near-surface intercepts of soluble total rare earth oxides (TREO), with grade-thickness values reaching as high as 13,705 gram-metre. These findings reinforce the presence of a laterally extensive ionic clay rare earth system with multiple leachable centres, supporting a scalable in-situ leach (ISL) development approach.

The Paraíso area, designated Area A, demonstrated a magnet-rich rare earth oxide (MREO) assemblage, with MREO constituting approximately 41–42% of soluble TREO and neodymium-praseodymium (NdPr) averaging around 39–40%. This composition is favourable for producing a high-value mixed rare earth carbonate (MREC) product, a key marketable output in the rare earth supply chain.

Dual Target Areas and Modular Development Strategy

Alongside Paraíso, the Woolrich target (Area B) also exhibits promising soluble TREO grades and a magnet-rich basket, confirming two distinct ISL target zones within the Caladão Project. This dual-target configuration aligns with established Asian ionic clay ISL operations, where multiple wellfields feed modular processing plants. Axel interprets Paraíso as comprising up to nine potential wellfield domains, enabling staged deployment of modular plant capacity and flexible scaling of production.

Such a modular approach offers several advantages, including lower capital intensity, reduced environmental footprint, and operational flexibility. ISL mining avoids large open pits and extensive waste handling, relying instead on injecting magnesium sulphate solutions into permeable clay horizons to mobilise rare earth elements for recovery.

Advancing Technical and Commercial Workstreams

Axel is actively progressing multiple technical workstreams to de-risk the ISL development pathway. These include expanding MgSO₄ leach coverage, conducting column and sequential leach tests to better simulate field conditions, hydrogeological and geotechnical studies to refine wellfield designs, and 3D geological modelling supported by infill drilling. Environmental baseline data collection and early stakeholder engagement are also underway to ensure strong ESG compliance for future pilot-scale trials planned later in 2026.

On the commercial front, the company is engaging with rare earth traders, processors, and potential end users to gather real-world data on product specifications, pricing, and offtake volumes. This early market engagement aims to align project design with customer requirements and support the development of a robust, integrated life-of-mine evaluation.

Significant Mineral Resources and Strategic Positioning

The Caladão Project hosts substantial inferred mineral resources, including 572 million tonnes at 1,506 ppm TREO and 439 million tonnes at 38 ppm gallium, covering approximately 35% of the project area. These resources position Caladão as a potentially significant non-Chinese source of critical rare earth elements, particularly given the magnet-rich composition of its deposits.

Non-Executive Chairman Paul Dickson highlighted the strategic importance of these results, noting that the combination of robust soluble grades and a magnet-rich basket comparable to Asian ISL operations bolsters confidence in Caladão's potential. The project’s modular ISL development concept could offer a low-cost, scalable pathway to rare earth production, addressing growing global demand for these critical minerals.