Base Resources Limited released the outcomes of its pre-feasibility study on exploitation of the contained monazite at its Toliara Project in Madagascar through concentration of the existing waste stream from the project?s mineral sands processing facilities to produce a valuable monazite product (Monazite PFS). On an incremental basis, the Monazite PFS has delivered exceptional outcomes and is a significant enhancement of the Toliara Project as outlined in the enhanced definitive feasibility study on the project?s mineral sands (Mineral Sands DFS2). For modest additional estimated capital expenditure of USD 71 million, the Monazite PFS outcomes include an incremental post-tax/pre-debt (real) NPV10 of USD 1.0 billion, IRR of 79% and an average revenue to cost of sales ratio of 7.9, over an initial 38-year mine life.

When combined with the Mineral Sands DFS2, the Toliara Project has an overall post-tax/pre-debt (real) NPV10 of USD 2.0 billion. Key Points: Pre-feasibility study on the production of monazite has significantly enhanced the forecast financial returns from the Toliara Project. With an incremental NPV10 of USD 1.0 billion (post-tax, real), the Monazite PFS has doubled the Toliara Project?s overall NPV10 to USD 2.0 billion (post-tax, real).

Monazite is a rich source of rare earth elements critical to the world?s green energy transition and represents 2.0% of the heavy mineral in the Toliara Project?s Mineral Resources estimate. The Monazite PFS demonstrates that tails from the mineral sands processing planned under the Mineral Sands DFS2 can be easily upgraded to a monazite product, for modest additional capital expenditure. Capitalising on what is essentially a ?waste?

stream will make the Toliara Project one of the largest and most cost-competitive sources of rare earth oxides globally. Other key incremental outcomes from the Monazite PFS include: IRR of 79%. Capex of USD 71 million and a capital payback period of 1 year.

Average annual monazite production of 21.8kt, containing 2.8kt of NdPr.