Osmond Resources Doubles Drill Rigs at Orión to Speed Up Resource Upgrade

Second drill rig arrives at Orión, doubling drilling capacity

Osmond Resources has confirmed a second drill rig has arrived at the Orión EU Critical Minerals Project in Spain, with two rigs expected to be operational during the week commencing 12 October 2026. The extra rig matters because drilling pace is what sets how quickly the company can test whether its resource can grow.

The first hole, SOR-08B, is currently at a depth of 158m. It is expected to intersect the targeted stratigraphy (the rock layer the company is aiming for) at approximately 210m beneath surface.

The announcement reports no new mineralised intersections, and SOR-08B remains in progress, so there are no new assay results to assess. What the second rig does is add capacity to a program aimed at upgrading the maiden Mineral Resource Estimate (MRE).

Key points

• Second drill rig has arrived at the Orión EU Critical Minerals Project
• Two rigs expected to be operational in the week commencing 12 October 2026
• SOR-08B at 158m, expected to intersect targeted stratigraphy at approximately 210m
• Program expected to total 15 to 20 drill holes
• Updated Scoping Study completion targeted for Q1 CY27, subject to drilling results

Expanded drilling program targets MRE upgrade

Program scope

The original 13-hole program has been broadened with additional infill drilling, bringing the expected total to between 15 and 20 drill holes. Infill drilling means adding holes between existing ones to tighten the geological picture.

The program targets MRE expansion and increased confidence levels. That would let the company upgrade the maiden MRE and assess options for a longer mine life and potentially greater throughput in an updated Scoping Study, subject to drilling results and further technical and economic studies.

Why it matters

Only 15.3Mt (~26%) of the 60.0Mt maiden MRE sits in the Measured and Indicated categories. The MRE also covers only about 3.4% of the company’s roughly 232km² tenure, so most of the ground is yet to be tested at that level.

The table below shows the maiden MRE dated 30 September 2026, reported on a 100% Project basis using a 4% TiO₂ cut-off. Mineral Resources are not Ore Reserves.

Figure 1 in the announcement is a map of the project area. It shows planned drill holes in maroon and completed holes in blue, with SOR-08B in progress.

Understanding resource upgrades: why Inferred to Indicated matters

Mineral Resources are sorted by how confident geologists are in them. Higher confidence generally means more drilling data supports the estimate.

1. Inferred: the lowest confidence level
2. Indicated: a middle level of confidence
3. Measured: the highest level of confidence

At Orión, 44.7Mt of the resource is Inferred. The Scoping Study production target comprises 10% Measured, 61% Indicated and 29% Inferred Mineral Resources.

The company notes that confidence in Inferred Resources is low, and further exploration may not upgrade them to Indicated Resources. For you as an investor, that is the key risk and the key opportunity: infill drilling is the tool that can convert Inferred material to higher categories, which is what the company needs for its study work and mining licence application.

Scoping Study backdrop and Q4 CY26 priorities

Scoping Study snapshot (2 October 2026 release, 100% Project basis)

The Scoping Study released on 2 October 2026 produced the following base case metrics:

• Plant throughput (Module 1) of 2Mtpa
• Initial mine life of 9 years
• Initial capital of US$299m (±35%, including 25% contingency)
• Post-tax NPV8 (ungeared) of US$2,309m
• Post-tax IRR (ungeared) of 145%

The study is preliminary and relies on technical and economic assessments of limited confidence. Approximately US$300 million of development funding would be required. Funding is not assured, may be available only on terms that dilute existing shareholders, and the development plans may not proceed.

For readers wanting to see how the headline NPV, IRR and capital figures were built, our full explainer on the Orión Scoping Study economics covers the cost structure, by-product credits and EU demand share assumptions behind the base case.

Priorities for Q4 CY26

The company listed the following key priorities for the balance of calendar year 2026:

1. Complete additional drill holes with a view to upgrading the MRE
2. Subject to drilling results, progress preparations of an updated Scoping Study assessing a longer mine life, with completion targeted for Q1 CY27
3. Progress the Spanish secondary listing
4. Progress downstream product studies, with a focus on Rare Earth Oxides and Titanium and Zirconium Metal Powder
5. Additional applications for Project recognition and support schemes in Andalucia, Spain and the EU

The mining licence application is currently being targeted for submission in 1H CY27. The company’s stated objective is to become the first producer of rare earth-bearing monazite, titanium, zirconium and hafnium minerals in the EU.

Osmond controls an 80% interest in 95% of the Project, a 76% beneficial interest.

Ready to Learn More About the Orión EU Critical Minerals Project?

With a second rig doubling drilling capacity, Osmond Resources is accelerating a program of up to 20 holes aimed at upgrading its 60.0Mt maiden Mineral Resource Estimate. Only about 3.4% of the roughly 232km² tenure is covered by the current resource, leaving significant ground still to be tested.

Investors tracking this EU rare earth, titanium and zirconium opportunity can explore the Osmond Resources company page for the latest updates and announcements. Stay informed as drilling progresses towards the updated Scoping Study targeted for Q1 CY27.