Namibia Critical Metals Secures C$11 Million for Lofdal Heavy Rare Earth Project DFS and Awards SGS Metallurgical Contracts

Strategic Partnership and JOGMEC’s Role in Project Advancement

Namibia Critical Metals holds a 95% stake in the Lofdal project, with 5% reserved for Historically Disadvantaged Namibians. The project is advanced through a strategic partnership with the Japan Organization for Metals and Energy Security (JOGMEC) and Toyota Tsusho Corporation. Under the JOGMEC agreement, the agency provides staged funding to earn incremental ownership, structured across multiple terms with defined expenditure milestones.

JOGMEC has completed Term 2, earning a 40% interest by meeting the C$10 million expenditure threshold. Total funding so far is C$19,973,000 of the C$23,000,000 required to achieve a 50% stake. Term 3 requires an additional C$13,000,000 in expenditures to gain a further 10% interest. JOGMEC may also purchase an extra 1% for C$5,000,000 and holds first right of refusal to fully fund the project through commercial production and to buy all production at market prices. The combined interests of NCMI and historically disadvantaged Namibians cannot be diluted below a 26% carried working interest upon payment of C$5,000,000 to JOGMEC for dilution protection.

Comprehensive Metallurgical Testing Program

The newly awarded contracts represent one of the most extensive metallurgical development campaigns on the Lofdal Project. This program will deliver critical engineering and operational data needed to complete the DFS for the expanded "Lofdal 2B-4" project. It includes multiple interconnected testing streams to validate processing methods and develop commercial-scale design specifications.

A pilot-scale flotation program will process about 30 tonnes of representative ore continuously to validate the flowsheet, optimize conditions, and produce concentrate for downstream hydrometallurgical processing. This includes variability testing, reagent optimization, site water evaluation, and environmental characterization to support commercial plant design. An integrated hydrometallurgical pilot plant will demonstrate the full flowsheet, including acid bake, leaching, impurity removal, solvent extraction, and precipitation stages. The campaign aims to produce mixed rare earth carbonate, then separate light and heavy rare earth carbonate products, generating engineering criteria for commercial-scale facilities.

Rare Earth Separation and Geometallurgical Development

A dedicated rare earth separation program will utilize laboratory and pilot-scale solvent extraction to optimize separation of light and heavy rare earth elements using advanced reagent systems. This will establish operating parameters for producing separate LREC and HREC products while identifying ways to reduce reagent use and improve economics. Solvent extraction optimization is vital to proving the economic viability of producing higher-value intermediate products rather than exporting concentrates.

A detailed geometallurgical program will analyze 98 representative samples from the Lofdal deposit to refine geometallurgical domains and develop predictive processing models. These models support mine planning, process optimization, and long-term operational forecasting by understanding spatial ore variability and its impact on processing performance and costs. This data will guide both short-term processing and long-term mine planning.

Value Addition Strategy Supporting Namibian Economic Goals

The expanded metallurgical program aims to demonstrate production of higher-value intermediate rare earth products within Namibia. Unlike typical projects exporting mineral concentrates, Lofdal will evaluate producing separate Light Rare Earth Carbonate (LREC) and Heavy Rare Earth Carbonate (HREC) through integrated hydrometallurgical processing. This approach enhances value addition domestically and lays the technical foundation for future downstream processing opportunities in Namibia.

This strategy aligns with the Government of Namibia’s objectives to increase local beneficiation of critical minerals, foster industrial development, facilitate skills transfer, and create long-term economic value. Advancing processing capabilities locally supports national economic growth, creates jobs, enables technology transfer, and promotes downstream mineral processing industries.

Diversifying Critical Minerals Supply Chains

The Lofdal project is among the few advanced heavy rare earth projects offering an alternative supply source for dysprosium, terbium, yttrium, and other critical rare earth elements essential to electric vehicles, renewable energy, electronics, and defense. Diversifying supply is strategically important for Japan and allied nations seeking to reduce reliance on concentrated sources.

Namibia Critical Metals is developing Lofdal, one of the largest undeveloped heavy rare earth projects globally, with significant resources of dysprosium, terbium, and yttrium. Located in Namibia, a stable mining jurisdiction, the fully permitted project offers geographic diversification benefits for global supply chains critical to energy transition and defense technology.

JOGMEC and Toyota Tsusho’s Strategic Partnership

JOGMEC, a Japanese government independent agency, aims to secure stable resource supplies for Japan and is a recognized long-term strategic partner in global mineral projects. It supports Japanese private companies in securing natural resources vital to the country’s economic development, with extensive experience in rare earth investments.

Toyota Tsusho Corporation, the Toyota Group’s trading and business development arm, operates across metals, energy, chemicals, mobility, and advanced materials sectors. It plays a key role in global critical mineral supply chains for automotive electrification, renewable energy, and advanced manufacturing. Their involvement underscores the strategic importance of Lofdal’s heavy rare earth resources to Japanese industry and government.

DFS Completion Goals and Risk Mitigation

The announced programs will validate pilot-scale flotation and hydrometallurgical processing across representative ore samples and conditions. They will demonstrate pilot-scale production of separated light and heavy rare earth carbonate products, proving the integrated processing approach. The data will inform detailed process plant design and cost estimation, facilitating the transition to commercial-scale specifications.

The DFS work aims to optimize recoveries, reagent use, and operating costs. Predictive geometallurgical models will enhance mine planning by clarifying ore variability impacts. The programs also support environmental and permit amendments by demonstrating regulatory compliance for expanded processing. Collectively, these efforts will significantly de-risk the processing phase ahead of DFS completion, reducing technical and commercial uncertainties for financing and stakeholders.

Leadership Perspective on Project Progress

Darrin Campbell, President and CEO of Namibia Critical Metals, stated this announcement marks the start of the next major execution phase of the Lofdal DFS for the expanded "Lofdal 2B-4" project. He highlighted the ongoing commitment of NCMI, JOGMEC, and Toyota Tsusho to advancing one of the world’s most strategically important heavy rare earth projects. The approval of approximately C$11 million in DFS funding enables a thorough metallurgical development program to de-risk processing and generate essential engineering data for design and financing.

Campbell emphasized the shift from conventional mineral concentrate production toward higher-value mixed and separated rare earth products, supporting Namibia’s vision for downstream critical mineral industries and secure, diversified supply chains for Japan and allied countries. He also praised SGS as an outstanding technical partner and expressed enthusiasm for continuing collaboration with one of the world’s leading metallurgical organizations as the DFS progresses.

Next Steps and Project Timeline

The approved DFS programs are underway with SGS Canada Inc. as the primary metallurgical testing contractor. Testing components—including pilot-scale flotation, integrated hydrometallurgical processing, rare earth separation optimization, and geometallurgical characterization—will proceed on established schedules to support DFS completion. Specific timelines for individual tests or overall DFS completion were not disclosed.

The immediate impact on share price remains unclear. Investors will likely monitor future updates on DFS milestones, pilot testing results, and project financing or partnership developments. No guidance was provided on DFS completion timing or decisions regarding subsequent project development phases beyond the feasibility study.