Brazilian Rare Earths Reveals 9km Rare Earth Mineral Corridor at Velhinhas, Expanding Monte Alto District Across Multiple Zones

Velhinhas Corridor Emerges as District-Scale Growth Zone Transforming Regional Exploration

The airborne geophysical survey at Velhinhas has established a comprehensive exploration framework that integrates multiple surface discoveries into a unified district-scale model. The survey identified over 9 kilometres of cumulative exploration trends across at least four major parallel north-northeast trending mineralised zones. This approach mirrors the exploration pathfinder model that led to BRE's discovery of world-class rare earth and critical mineral deposits at Monte Alto and Sulista. The 1,948-line kilometre airborne survey at 50-metre line spacing reveals that the Velhinhas Corridor represents a regional-scale system of repeated rare earth mineralised structures rather than isolated anomalies.

The spatial correlation between airborne magnetic and radiometric anomalies, ultra-high-grade surface samples, shallow pathfinder mineralisation, and diamond drill intercepts enhances confidence in exploration targeting. The extension of confirmed rare earth mineralisation more than 8 kilometres south of Monte Alto establishes continuity between known deposits and unlocks significant new exploration potential within the Monte Alto District framework. These findings support BRE's interpretation of a large-scale rare earth and critical mineral district extending over 10 kilometres south from Monte Alto through Velhinhas.

Drilling Confirms Exceptional Yttrium-Rich Heavy Rare Earth Mineralisation in Bedrock

Reconnaissance diamond drilling at Velhinhas has verified ultra-high-grade heavy rare earth mineralisation within bedrock. Drill hole MADD0210 intersected 2.5 metres at 7.5% TREO from 6.0 metres depth, including a 1.3-metre interval at 10.9% TREO from 7.2 metres. This interval was notably enriched in yttrium, with 58,249 ppm (5.8%) Y2O3, alongside 4,135 ppm dysprosium oxide (Dy2O3), 488 ppm terbium oxide (Tb4O7), and 1,588 ppm uranium oxide (U3O8). Another auger hole, STU2478, located approximately 200 metres southwest, intersected 12 metres at 8.7% TREO from 18 metres to the hole’s end, including 1,004 ppm dysprosium-terbium (DyTb) and 0.44% yttrium oxide (Y2O3), with mineralisation remaining open at depth.

Yttrium constitutes over 50% of TREO in the peak interval of hole MADD0210, equating to about 58 kilograms of Y2O3 per tonne of mineralised rock. Across all significant bedrock intervals, yttrium accounts for approximately 48 to 53% of TREO. Four of the first six diamond holes confirmed heavy rare earth mineralisation, validating the 2024 surface discovery reporting 14.6% TREO, including 7.45% Y2O3 and 6,428 ppm DyTb. This consistency between surface and bedrock assays strengthens the mineralisation model and indicates shallow oxidised rare earth mineralisation extends into unweathered bedrock with minimal grade loss.

Critical Minerals Including Niobium, Scandium, and Tantalum Confirm Polymetallic REE-Nb-Sc-Ta-U System at Velhinhas

Rare earth mineralisation at Velhinhas is accompanied by critical minerals such as niobium, scandium, tantalum, and uranium, consistent with the polymetallic REE-Nb-Sc-Ta-U systems identified at Monte Alto and Sulista. The coexistence of these elements enhances the economic potential by enabling recovery of multiple high-value products from a single mining operation. BRE’s prior exploration at Monte Alto and Sulista has established expertise in these mineral systems and their development pathways.

The consistent presence of niobium, scandium, tantalum, and uranium alongside rare earths at Velhinhas suggests deposit geometries and mineralogical traits comparable to Monte Alto and Sulista. This geological similarity provides a framework to anticipate deposit characteristics and recovery potential. The critical mineral assemblage aligns with global market trends emphasizing diversified critical mineral production essential for renewable energy, defense, and advanced manufacturing technologies.

Monte Alto District Framework Unifies Velhinhas and Expands Development Strategy

BRE has officially integrated the Velhinhas Corridor into the Monte Alto District reporting framework, encompassing the Monte Alto Deposit, heavy rare earth and yttrium discoveries, and related regional corridors. This unified district-scale model reflects management’s view of a large mineral system extending well beyond the original deposit boundaries, enabling stakeholders to appreciate the full mineral resource potential across interconnected areas.

This framework supports development scenarios involving simultaneous or sequential mining of multiple deposits within the Monte Alto District, leveraging centralized infrastructure to reduce costs. The Velhinhas expansion, beginning 5 kilometres south of Monte Alto and extending over 8 kilometres further south, offers opportunities for geographically distributed yet logistically integrated operations. BRE’s prior success with the Sulista district underpins the geological and development potential of the Monte Alto District model.

Airborne Geophysics Defines Exploration Targets Comparable to Sulista District Model

The high-resolution airborne magnetic and radiometric survey at Velhinhas, covering 1,948 line kilometres at 50-metre spacing with an average elevation of 43 metres, has delineated exploration targets analogous to BRE’s Sulista district opportunity. Intense north-south magnetic and radiometric anomalies extend over 10 kilometres across the Monte Alto District, highlighting the scale of the rare earth mineralisation system.

BRE’s exploration pathfinder model, which led to world-class discoveries at Monte Alto and Sulista, has been systematically applied at Velhinhas through mapping of widespread +1% TREO rare earth mineralisation from shallow auger drilling. The consistent methodology and scale of targets at Velhinhas demonstrate a repeatable exploration model for identifying district-scale rare earth and critical mineral systems in Brazil. This reinforces BRE’s position as a developer capable of advancing substantial mineral resources from grassroots exploration to development assessment.

Shareholders Approve Alurion Resources Demerger with 99.94% Backing for Independent Bauxite-Gallium Venture

At the General Meeting on 10 July 2026, Brazilian Rare Earths shareholders overwhelmingly approved the demerger of the Amargosa bauxite-gallium project, with 99.94% voting in favor. This strategic move separates the bauxite-gallium business from BRE’s rare earth and critical mineral operations focused on Monte Alto, Sulista, and Velhinhas. The Amargosa project will be spun out as Alurion Resources Limited, a standalone listed entity pursuing independent development strategies tailored to its commodity portfolio.

The demerger includes appointment of a dedicated board and leadership team with expertise in bauxite and gallium development. BRE management views the separation as essential to align technical expertise, capital allocation, and investor engagement for these distinct businesses. The strong shareholder support underscores recognition of the value-accretive nature of the demerger.

A$50 Million IPO for Alurion Resources Oversubscribed, Reflecting Strong Market Demand

Alurion Resources successfully raised A$50 million through an initial public offering of 47,619,048 fully paid ordinary shares at A$1.05 each. The IPO was oversubscribed, with demand surpassing the maximum subscription level, implying an undiluted equity valuation of approximately A$256 million at the offer price. This robust investor interest highlights confidence in the Amargosa bauxite-gallium project’s development prospects and broader critical mineral market appeal.

Post-IPO, BRE retains approximately 16% of Alurion’s issued capital, valued at about A$41 million based on the offer price, maintaining strategic exposure to the project while enabling focused capital allocation to rare earth and critical mineral assets. Alurion Resources Limited is expected to list on the ASX on 30 July 2026, with trading commencing on 3 August 2026, subject to regulatory approvals.

Strategic Capital Allocation Enables Focused Advancement of Rare Earth and Critical Mineral Assets

The Alurion demerger and capital raise facilitate dedicated funding for the Amargosa bauxite-gallium project’s next development phase, managed by specialists in laterite bauxite processing and gallium recovery. Concurrently, BRE’s retained focus on rare earth and critical mineral exploration aligns with its technical strengths and market positioning as a developer of high-grade REE-Nb-Sc-Ta-U systems.

The Velhinhas Corridor discovery’s district-scale expansion offers significant opportunities for enhanced development planning and investment within BRE’s portfolio. The A$41 million valuation of BRE’s retained Alurion stake provides liquidity support while allowing management to concentrate on advancing the Monte Alto District from exploration through development assessment. This demerger exemplifies multi-asset companies unlocking value and optimizing capital deployment by creating specialist entities aligned with distinct commodity markets and investor bases.

Velhinhas Corridor Mineralisation Extends District Potential, Supporting Multi-Deposit Development Strategies

The confirmation of ultra-high-grade rare earth mineralisation along the 9-kilometre Velhinhas Corridor south of Monte Alto supports development scenarios involving multiple mineralised zones within the Monte Alto District. The spatial separation and shared geological characteristics between Velhinhas and Monte Alto suggest potential for linked operations utilizing centralized infrastructure and processing facilities. The identical critical mineral assemblages across deposits further endorse district-scale development approaches to optimize capital and operational efficiencies.

Diamond drill hole STU2478 remains open at depth, indicating further upside potential beyond initial reconnaissance results. Upcoming drilling campaigns will assess lateral and vertical extents of mineralisation to support resource estimation and mine planning. The four parallel mineralised trends identified by airborne geophysics also suggest potential for expanding the known mineralised footprint or discovering additional structures beyond the current 9-kilometre corridor. These exploration prospects affirm BRE’s classification of Velhinhas as a major growth corridor with substantial potential to enhance the Monte Alto District’s overall mineral resource base.