Uncertainty Remains as Power Minerals Advances Morro do Ferro Rare Earth Acquisition

• High-grade MREO intervals up to 3.53% over 2 metres reported
• Project located in the Poços de Caldas Alkaline Complex, a leading rare earth precinct
• Binding Letter of Intent signed for acquisition, subject to due diligence
• Unique topography may enhance mining efficiency and reduce costs
• Further exploration and metallurgical studies planned to refine resource potential

Exceptional Magnetic Rare Earth Oxide Concentrations

Power Minerals Limited (ASX:PNN) has announced significant findings from its ongoing evaluation of the Morro do Ferro Rare Earth Elements (REE) Project in Minas Gerais, Brazil. The company reported exceptionally high concentrations of magnetic rare earth oxides (MREO) in drilling results, with one interval from drillhole MFSR-47 returning 35,332 ppm (3.53%) MREO over 2 metres at a depth of 9 to 11 metres. These magnetic rare earth elements; Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), and Terbium (Tb); are critical for magnet production and account for over 80% of the total REE market value.

Other notable drill results include MFSR-10, which intersected 100.44 metres at 9,485 ppm (0.95%) MREO from surface to end of hole, including 19.3 metres at 22,541 ppm (2.25%) from 25 metres depth, and MFSR-20 with 60.6 metres at 13,129 ppm (1.31%) MREO. These grades compare favourably with other rare earth deposits such as the Caldeira Project and the Jupiter deposit in Western Australia, which have lower MREO grades after applying cut-offs.

Strategic Location and Project Advantages

The Morro do Ferro Project is situated within the Poços de Caldas Alkaline Complex, a well-established rare earth province known for hosting advanced REE projects. Power Minerals has entered a Binding Letter of Intent with Mineração Terras Raras (MTR) for the acquisition of the project, pending due diligence and exploration milestones. The project benefits from a unique mining title known as a ‘manifesto de mina,’ granting direct ownership rights over the land and simplifying permitting processes.

Power’s recent site visit highlighted the deposit’s advantageous position along the crest of a steep hill with over 100 metres of topographic relief. This natural feature is expected to facilitate open-cut mining by improving accessibility and potentially lowering waste-to-ore ratios, which could enhance operational efficiency and profitability.

Ongoing Due Diligence and Future Exploration

The company’s technical due diligence has reinforced the high-grade nature of the deposit, with mineralisation remaining open at depth and along strike. The previous drilling has only partially constrained the deposit’s extent, leaving room for expansion and the possibility of discovering additional deposits nearby. Power plans to infill and extend sampling to address the wide spacing of earlier auger drilling and to better define zones of interest.

Metallurgical test programs conducted between 2012 and 2016, along with mineralogical studies by the University of São Paulo, have identified bastnasite and cerianite as the primary REE-bearing minerals. Further metallurgical studies are planned to optimise recovery and processing costs.

Context Within Power Minerals’ Broader Strategy

This announcement follows Power Minerals’ recent strategic moves, including the signing of a non-binding Term Sheet with Summit Explore to jointly develop the Salta Lithium Project in Argentina, which aims to deploy advanced direct lithium extraction technology. The company’s focus on critical minerals in South America is underscored by these developments, positioning Power Minerals as an emerging player in the rare earth and lithium sectors. The company’s appointment of rare earths veteran Alistair Stephens as CEO earlier in March 2026 further supports this strategic direction.

Power Minerals Managing Director Mena Habib commented on the Morro do Ferro Project’s potential, emphasising the combination of high-grade mineralisation and favourable topography as key factors that could underpin efficient and sustainable mining operations. She noted the company’s commitment to advancing the project through careful planning and execution.

Bottom Line?

While the high-grade MREO results at Morro do Ferro are promising, the project remains subject to due diligence, further drilling, and metallurgical validation before its economic potential can be fully assessed.

Questions in the middle?

• How will Power Minerals prioritise exploration and resource definition drilling to delineate the full extent of the Morro do Ferro deposit?
• What metallurgical challenges might arise from the unique mineralogy of the deposit, and how will these impact processing costs?
• How might evolving rare earth market dynamics influence the strategic value of the Morro do Ferro Project within Power Minerals’ portfolio?