$2 Million Placement to Accelerate Grass Patch and Selectro Process Development

Placement Raises $2 Million to Fund Critical Minerals Development

Mount Ridley Mines (ASX:MRD) has successfully closed a $2 million placement at $0.033 per share, attracting strong demand from sophisticated and professional investors. The raise, oversubscribed yet deliberately sized to align with specific work program needs, aims to accelerate development at the Grass Patch Project and advance the proprietary Selectro™ Process. Directors have also committed to subscribe for an additional $100,000 on the same terms, pending shareholder approval at the upcoming General Meeting.

Technical Work to Focus on Flotation and Bulk Metallurgical Testwork

The proceeds will underpin a near-term work program centred on flotation testwork, bulk metallurgical leaching trials, and scoping studies. Flotation is being evaluated as a pre-concentration step ahead of Selectro™ leaching, targeting improved feed grades and reduced reagent use. This approach builds on recent mineralogical insights into the rare earth elements’ host minerals, which support flotation as a key beneficiation step. The bulk metallurgical program will scale up Selectro™ leaching to enhance the technology readiness level and support production of the company’s first mixed rare earth oxide product.

Advancing the Selectro™ Process and Resource Definition

Mount Ridley is also prioritising optimisation and validation of the Selectro™ Process, including downstream processing studies and assessing its application to third-party feedstocks. This follows the company’s earlier provisional patent application for Selectro™, which demonstrated promising recoveries of heavy rare earths, scandium, and gallium. Concurrently, resource definition activities will focus on increasing geological confidence across scandium, gallium, and heavy rare earth element resources, with an eye on identifying drilling targets to support future resource upgrades.

Placement Terms and Use of Funds

The new shares will be issued under Mount Ridley’s existing placement capacity with settlement expected on 10 September 2026. The issue price represents a 17.5% discount to the last closing price and a 9.2% discount to the 15-day volume weighted average price. Alpine Capital acted as lead manager and will receive a 6% fee plus options subject to shareholder approval. Funds raised will also cover ongoing exploration, corporate costs, and general working capital.

Strategic Positioning in Critical Minerals Supply

Located 25 kilometres north of Esperance, the Grass Patch Project hosts significant heavy rare earths, scandium, and gallium resources, with extensive historical drilling underpinning the resource base. The project remains underexplored relative to its scale, with multiple high-priority drill targets identified for 2026. Alongside the Weld Range Project, Mount Ridley is positioning itself as an emerging player in critical minerals supply chains, targeting markets where these elements are increasingly strategic.