St George Mining Boosts Araxá Resource by 75% and Secures Key Development Partnerships

Significant Resource Upgrade Elevates Araxá’s Global Standing

St George Mining Limited (ASX:SGQ) has announced a major 75% increase in the Mineral Resource Estimate (MRE) for its Araxá rare earths-niobium project in Brazil, now totalling 70.91 million tonnes at 4.06% total rare earth oxides (TREO) and 0.62% niobium pentoxide (Nb₂O₅). This upgrade propels Araxá into the ranks of the world’s largest and highest-grade carbonatite-hosted rare earth deposits, alongside giants like Lynas’s Mt Weld and MP Materials’ Mountain Pass.

The resource expansion was driven by a 218% jump in Measured and Indicated categories to 29.49Mt at 4.56% TREO and 0.75% Nb₂O₅, providing a more solid foundation for upcoming economic studies. Notably, the mineralisation starts from surface and extends 100 to 120 metres deep, all within the weathered profile, which is free-digging and suitable for low-cost open-pit mining. The resource remains open in all directions, signalling further growth potential pending ongoing drilling.

This latest MRE update excludes results from 41 recent drill holes, including a standout 178.7m intercept grading 4.34% TREO and 0.75% Nb₂O₅ from surface, announced on 7 April 2026, underscoring the resource’s continuing expansion. The thick, high-grade mineralisation starting at surface lends itself to straightforward mining logistics, a key advantage in project economics. These results build on previous drilling campaigns that have steadily redefined the resource footprint at Araxá, confirming its world-class status record thick high-grade rare earths.

Processing Strategy Advances with Land Acquisition and Government Support

To support future development, St George acquired a strategic 166-hectare parcel of land less than 2km from the Araxá mining tenure, earmarked for processing and operational facilities. The site benefits from flat terrain, existing infrastructure including roads and rail, and access to low-cost hydroelectric power. This approach mirrors the setup of neighbouring operations at the Barreiro Carbonatite, where processing plants are located outside mineralised zones to avoid resource sterilisation.

In parallel, St George is exploring regional processing options through confidential discussions with existing plant operators, including the Mosaic Company, which recently idled its Araxá Complex and is pursuing a sale of those assets. Such arrangements could accelerate Araxá’s pathway to production by leveraging existing infrastructure.

Crucially, the State of Minas Gerais has formalised financial support by granting St George an exemption from up to 18% state goods tax on materials and equipment acquired for project development. This preferential tax regime, signed by the Governor and state agencies, is designed to reduce upfront capital costs and expedite regulatory approvals, reflecting the strategic importance of Araxá in supporting domestic supply chains for critical minerals government financial support.

Expanding Downstream Partnerships to Unlock Value

St George has broadened its network of downstream collaborators to advance processing and product development at Araxá. The existing strategic alliance with US-based REalloys Inc (NASDAQ: ALOY) has been extended, focusing on metallurgical test work to optimise rare earth element separation and recovery. REalloys’ integrated supply chain includes US government contracts, positioning Araxá rare earths for strategic markets.

In a significant move for niobium processing, St George partnered with Boston Metal to trial their patented Molten Oxide Electrolysis (MOE) technology. This innovative method promises lower cost, higher yield, and reduced carbon emissions in niobium production. Boston Metal’s CEO, Tadeu Carneiro, brings deep industry expertise and leadership experience from CBMM, the world’s leading niobium producer, enhancing the partnership’s credibility niobium processing partnership.

Further downstream, St George has allied with Brazilian nanotechnology firm Nanum Nanotecnologia to commercialise the cerium component of the rare earths resource, aiming to upgrade higher-value neodymium-praseodymium (NdPr) and heavy rare earth elements. Meanwhile, a Memorandum of Understanding with Spain’s Tecnicas Reunidas will see test work on proprietary RARETECH® processing technology, potentially unlocking access to European rare earths markets through the EU-funded PERMANET Project strategic European alliance.

Corporate Developments and Financial Position

St George’s market profile received a boost with its inclusion in the S&P/ASX All Ordinaries Index in March 2026, reflecting its rising market capitalisation of approximately A$530 million. The company also appointed Carla Grasso as Principal Geologist at Araxá, bringing over two decades of local experience, including time at the adjacent Mosaic phosphate mine, to accelerate resource modelling and development efforts.

Financially, St George ended the quarter with a strong cash balance of around A$43 million, supporting ongoing drilling, feasibility studies, and development activities. The company reported net cash outflows from operating and investing activities consistent with its exploration and development phase, with no debt facilities drawn.

Engagement with governments continues, highlighted by St George’s participation at the Brazil-US Critical Minerals Forum in Sao Paulo, where it was one of six companies invited to present. Discussions with US and Brazilian officials are ongoing, focusing on potential financial and logistical support to fast-track Araxá’s development.