Victory Metals Reports 59x Enhancement in Rare Earth Concentrate from North Stanmore Pilot Plant

Continuous Flotation Pilot Plant Achieves Record Concentrate Grades

Victory Metals’ newly commissioned continuous flotation pilot plant in Perth successfully processed North Stanmore ore samples, delivering a 59-fold upgrade to a concentrate grading 7.1 wt.% Total Rare Earth Oxide. This improvement was achieved from a feed grade of 1,195ppm, with heavy rare earth elements comprising 40% of the total rare earth basket in the concentrate. The pilot plant operated at roughly 12 times the scale of previous flotation tests on North Stanmore ore, processing 65 one-metre samples from 25 drill holes across multiple depths. This marks a substantial advancement from earlier sighter flotation tests that yielded a 48-fold upgrade to 5.9 wt.% TREO concentrate.

The upgraded concentrate contains premium heavy rare earth elements commanding top market premiums, essential for advanced defence and technology applications. ALS Laboratories in Western Australia conducted assays using industry-standard protocols, confirming the effective concentration of North Stanmore’s rare earth mineralisation via a simple, continuous, low-cost flotation circuit. Victory’s ownership of the pilot plant and processing intellectual property grants a competitive edge, facilitating rapid flowsheet optimisation and scalable production independent of third-party facilities.

Heavy Rare Earth Elements Profile in North Stanmore Concentrate

The flotation concentrate from Victory’s Perth pilot plant features key premium heavy rare earth oxides vital to defence, aerospace, and renewable energy sectors. The concentrate achieved approximately 7.1 wt.% TREO (around 71,000 ppm), with heavy rare earth oxides making up about 40% of the rare earth basket. Notably, dysprosium oxide measured 2,777ppm, terbium oxide 479ppm, and yttrium oxide 1.77 wt.%. These elements were prioritized in processing optimisation due to their high market value and strategic significance.

The concentrate also includes lighter rare earth elements such as lanthanum oxide, cerium oxide, praseodymium oxide, and neodymium oxide, typical of monazite and phosphate-hosted deposits. Detailed elemental and oxide data confirm the flotation circuit’s success in enriching rare earth mineralisation while maintaining manageable levels of associated elements. Additionally, the concentrate is enriched with secondary phosphate minerals like rhabdophane and churchite, indicating natural weathering processes at North Stanmore that concentrated rare earth elements. Weathering removed uranium and thorium, resulting in exceptionally low thorium and uranium activity in the final concentrate.

Native Title Mining Agreement Advances Mining Licence Prospects

During the quarter, Victory Metals executed a Native Title Mining Agreement with the Wajarri Yamaji Aboriginal Corporation, securing Traditional Owner consent and land access rights essential for developing the North Stanmore rare earth project. This agreement is a critical prerequisite for obtaining a mining licence from Western Australian regulators. Victory’s update highlights this milestone as a key step toward commercial production, as engagement with Traditional Owners is mandatory for tenure and mining operations.

The Wajarri Yamaji Aboriginal Corporation represents the Native Title holders for North Stanmore. The agreement reflects Victory’s commitment to collaborative relations with Traditional Owners and progress toward a sustainable operating framework. This successful negotiation positions Victory to advance its mining licence application, the next vital regulatory milestone. With metallurgical testing and Traditional Owner agreements progressing, Victory is preparing the project for potential commercial development pending feasibility and regulatory approvals.

US Defense Industrial Base Consortium Membership Enhances Strategic Position

Victory Metals gained approval as a member of the US Defense Industrial Base Consortium (DIBC), granting direct access to the US defence procurement network at a critical time. The US is actively diversifying heavy rare earth element supply chains away from China to reduce dependency on single-source suppliers for critical defence materials. The heavy rare earths concentrated at North Stanmore, especially dysprosium and terbium, are crucial for advanced defence technologies including radar and missile guidance systems where performance and reliability are vital.

DIBC membership offers Victory a formal channel to engage US defence contractors and procurement agencies seeking qualified heavy rare earth suppliers. This is strategically important amid geopolitical concerns over rare earth supply security. Victory’s consortium membership, combined with its operational pilot plant and representative processing results, positions the company to engage potential US defence sector customers. The subsequent dispatch of concentrate samples to potential offtake partners in Australia, Japan, and the US post-quarter indicates parallel progress in commercial discussions alongside technical development.

Curtin University Research Grant Supports Heavy Rare Earth Processing

Victory Metals secured a $350,000 Resources Technology and Critical Minerals (RTCM) Trailblazer grant during the quarter to fund a two-year collaborative heavy rare earth element (HREE) processing research program with Curtin University. This grant supports ongoing technical development of Victory’s processing methods and provides access to university research infrastructure and expertise. The collaboration underscores Victory’s technical credibility and engagement with Australian academic expertise in rare earth processing.

The RTCM Trailblazer grant, administered by the Australian government, fosters new technologies for critical mineral extraction and processing. The two-year research aligns with Victory’s pilot plant optimisation and variability testing. Partnership with Curtin University offers independent analytical capabilities, rigorous experimental design, and potential commercialisation pathways for innovations. The grant also alleviates internal R&D funding pressures, preserving capital for pre-feasibility studies and regulatory activities.

Federal Minister Officially Opens North Stanmore Pilot Plant

The continuous flotation pilot plant in Perth was officially opened by Federal Minister for Resources, the Hon Madeleine King MP, during the quarter ending 30 June 2026. This event highlights the strategic importance of rare earth supply chains to Australian policy and recognizes Victory’s role in developing domestic rare earth processing capacity. The pilot plant represents a significant investment and Victory’s commitment to vertically integrated development from exploration through pilot-scale processing.

The ministerial opening validates the facility’s capabilities and signals government endorsement of Victory’s technical approach. The presence of the Federal Minister underscores Australia’s focus on critical minerals development and supply chain resilience. For investors, this government engagement aligns Victory’s project with national policy objectives, potentially easing regulatory progress and attracting support. Operating with proprietary continuous flotation infrastructure, Victory controls its processing IP and can further optimise the concentration flowsheet.

Sample Dispatch to Global Offtake Partners Advances Commercialisation

Following the quarter, Victory dispatched heavy rare earth concentrate samples from North Stanmore to potential offtake partners in Australia, Japan, and the United States for independent qualification. This step marks a transition from pilot testing to commercial engagement with strategic customers and end-users. Dispatching samples across multiple regions reflects Victory’s strategy to diversify offtake partnerships rather than relying on a single market or partner.

Independent qualification is standard in the rare earth sector, as customers require verified assay data and confirmation of concentrate purity and suitability before committing to offtake agreements. Targeting Australia, Japan, and the US—key consumers of heavy rare earths in advanced manufacturing and defence—demonstrates Victory’s broad market approach. The sample dispatch, following the pilot plant opening and 59-fold upgrade results, positions Victory to advance commercial discussions while continuing pilot-scale flowsheet optimisation.

Strong Cash Position Supports Ongoing Development

At quarter end, Victory Metals held approximately $11.18 million in available cash, providing a solid financial base for continued pilot plant optimisation, variability testing of North Stanmore ore, pre-feasibility study advancement, and regulatory engagement for mining licence approval. The $350,000 RTCM Trailblazer grant for Curtin University collaboration further supports research and development funding over two years.

This cash balance reflects prudent expenditure management during technical and regulatory project development. Focusing on pilot-scale testing rather than immediate capital-intensive construction preserves working capital while key milestones are achieved. Investors should monitor quarterly cash flow reports to assess cash burn rates related to pilot operations, regulatory activities, and pre-feasibility progress, which will inform funding runway and potential future capital needs.

Ongoing Flotation Optimisation and Variability Testing

Victory Metals reported ongoing optimisation and variability testing at the North Stanmore pilot plant, with results to be disclosed as available. These tests assess flotation process consistency across various ore samples from different deposit locations and depths, and optimise flotation circuit parameters to enhance recovery and concentrate grades. Variability testing is critical to confirm that the 59-fold upgrade is representative of the entire deposit rather than isolated samples.

Data from these activities will inform engineering design for future commercial plants, guiding circuit design, equipment sizing, and operational settings to reliably handle ore grade and mineralogical variability. Victory’s commitment to publishing results indicates continued data generation in coming quarters. The improvement from a 48-fold to a 59-fold upgrade evidences methodological progress, with further refinements anticipated as optimisation continues.