St George Mining’s Araxá Project: Critical Minerals Investment Opportunity

St George Mining Delivers World-Class Niobium and Rare Earth Resource at Araxá Project

St George Mining (ASX: SGQ) has announced a maiden JORC-compliant Mineral Resource Estimate (MRE) for its Araxá Project in Brazil, positioning the company as a significant player in the global niobium and rare earth elements (REE) market.

Globally Significant High-Grade Resource Established

The maiden resource defines:

• Niobium Resource: 41.2 million tonnes at 0.68% Nb₂O₅ (6,800ppm)
• Rare Earths Resource: 40.6 million tonnes at 4.13% TREO (41,300ppm)
• Valuable Magnetic Rare Earths: High-value magnetic rare earth oxides (MREOs) comprise 19.09% of the TREO in the measured resource

This resource puts St George at the forefront of the next generation of potential niobium and REE producers, with a resource containing 280,000 tonnes of niobium oxide and 1.7 million tonnes of total rare earth oxides – critical materials highly sought after in today's technology-driven economy.

Exceptional Development Potential

The St George Mining Araxá Project offers substantial advantages that position it for accelerated development:

• Free-Digging Mineralisation: 100% of the resource is within weathered material and 95.8% is within 100m of surface, supporting potential low-cost open-pit mining
• Significant Expansion Potential: Mineralisation remains open in all directions, with grades up to 8.29% Nb₂O₅ and 32.98% TREO
• Strategic Location: Situated in Brazil's premier niobium-producing region with established infrastructure and skilled workforce
• Development Pathway: St George has already attracted a global leader in EPC+F contracts for project development

Executive Chairman John Prineas highlighted the significance of the resource, stating: "The announcement of the initial JORC resource for the Araxá Project firmly establishes St George as a significant player in the global niobium and rare earths sector."

Understanding Niobium and Rare Earth Elements

What Are Magnetic Rare Earth Elements?

Magnetic rare earth elements (MREOs) are a subset of rare earth elements that are critical for manufacturing permanent magnets used in electric vehicles, wind turbines, and electronics. At Araxá, these high-value MREOs – including neodymium, praseodymium, dysprosium, and terbium – make up 19.09% of the total rare earth content, significantly enhancing the project's economic potential.

Unlike many REE deposits, where low concentrations of magnetic rare earths diminish economic viability, the St George Mining Araxá Project's high MREO content positions it as a potentially key supplier to the clean energy transition and high-tech manufacturing sectors.

Next Steps for Resource Growth

St George has outlined an ambitious plan to further develop the Araxá Project:

• Resource Expansion: Significant drilling planned for 2025 to expand the resource and convert inferred resources to higher confidence categories
• Economic Assessment: Advanced studies for permitting, mine planning, and economic evaluation
• Development Studies: Progressing with mining and processing optimisation to unlock the project's world-class potential

Investment Thesis: Why Araxá Stands Out

The St George Mining Araxá Project represents a compelling investment opportunity for several reasons:

1. Grade Advantage: With exceptional niobium grades averaging 0.68% and REE grades of 4.13%, Araxá ranks among the highest-grade deposits globally
2. Strategic Commodities: Niobium and rare earths are critical minerals for the energy transition
3. Development Ready: Located in an established mining jurisdiction with infrastructure and workforce in place
4. Expansion Potential: Current resource likely represents just a fraction of the total deposit size
5. De-Risked Development: Strategic partnerships in mineral supply chains already in place for accelerated development

With a strong foundation now established through this maiden resource estimate, St George Mining is positioned to rapidly advance the Araxá Project toward development, potentially emerging as a significant player in the critical minerals supply chain at a time when secure sources of these materials are increasingly valuable.

Why Investors Should Track St George Mining

Araxá's world-class resource, combined with its location advantages and significant expansion potential, positions St George Mining at the forefront of critical minerals development. As demand for niobium and rare earths continues to grow, particularly for clean energy applications, companies with advanced, high-grade projects in stable jurisdictions are likely to command premium valuations.

The company has demonstrated its ability to execute by delivering this significant resource milestone and attracting strategic development partners, suggesting a clear pathway from exploration to potential production. With further drilling planned to expand and upgrade the resource, near-term catalysts could provide substantial value creation opportunities for investment strategies in rare earth elements.

Understanding the Geology and Mineralisation of the Araxá Project

The Araxá Project is situated within the Barreiro Carbonatite Intrusive Complex, a circular geological structure approximately 5 km in diameter. Formed approximately 90 million years ago, this intrusion occurred within quartzites and schists of the Araxá Group, creating a domed structure with concentric radial fractures.

The mineralisation at Araxá is primarily driven by weathering and residual enrichment processes. As the fresh carbonatite weathers, more soluble components are dissolved, leaving behind a concentration of valuable minerals in the saprolite zone. This weathered zone extends from surface to over 150m in depth and hosts the primary niobium and rare earth mineralisation.

The project area covers just over 2 km², with limited outcropping rock, though strongly weathered carbonatite is visible in small pits. Historical drilling has identified the base of weathering at around 100m depth on average, reaching below 150m in some locations. Current known niobium and REE mineralisation concentrates within an 800m by 500m target area in the saprolite.

Pyrochlore remains the primary source of niobium, while monazite hosts REEs, and apatite is the main phosphate-bearing mineral at the property.

Technical Details of the Mineral Resource Estimate

The Mineral Resource Estimate was completed by E2M Ltd (Sahara), an independent geological consultancy engaged by St George Mining. The estimation was conducted using Ordinary Kriging methodology, which is considered appropriate for this style of mineralisation.

Resource Classification Breakdown

The resource has been classified according to the JORC 2012 guidelines into the following categories:

Measured Resource (0.2% Nb₂O₅ cut-off):

• 1.90 million tonnes at 1.19% Nb₂O₅ and 5.44% TREO

Indicated Resource (0.2% Nb₂O₅ cut-off):

• 7.37 million tonnes at 0.93% Nb₂O₅ and 4.76% TREO

Inferred Resource (0.2% Nb₂O₅ cut-off):

• 31.93 million tonnes at 0.59% Nb₂O₅ and 3.82% TREO

The classification reflects the level of confidence in the geological model and grade continuity, with the measured and indicated categories representing areas with higher drilling density and more consistent grades.

Future Drilling Programme

St George Mining plans to conduct a comprehensive drilling programme at the Araxá Project in 2025, with the objectives of:

1. Expanding the resource footprint through step-out drilling
2. Converting inferred resources to indicated and measured categories through infill drilling
3. Testing the depth potential below the current resource envelope
4. Improving understanding of the mineralogical characteristics to support processing studies

This drilling programme will provide essential data for advancing the project toward development decisions and further economic studies.

Conclusion

The maiden resource at the St George Mining Araxá Project represents a significant milestone in the company's evolution, establishing it as a potential major player in the critical minerals sector. With a high-grade, strategically valuable resource now defined, and clear pathways for expansion and development, Araxá offers investors exposure to two of the most important mineral commodities for modern technology applications.

As St George continues to advance the project through resource expansion, technical studies, and sustainable extraction methods, the Araxá Project stands as one of the most promising critical minerals developments in the value of critical mineral supply chains.

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