Viridis Demo Plant Beats Recovery Targets at 79% as DFS Looms in August

Viridis demonstration plant beats PFS recovery assumptions in continuous production milestone

Viridis Mining and Minerals (ASX: VMM) has achieved steady-state continuous production of Mixed Rare Earth Carbonate (‘MREC’) from its Colossus Demonstration Plant, with July 2026 MREO recoveries exceeding 80%, materially outperforming Pre-Feasibility Study (‘PFS’) assumptions. Average July 2026 recoveries reached 79% MREO and 64% TREO, compared with PFS assumptions of 76% and 57% respectively.

Every percentage point of recovery improvement translates directly into higher rare earth production from the same ore feed, pointing to potential upside in project economics as these enhanced results feed into the Definitive Feasibility Study (‘DFS’). The milestone marks a significant de-risking step as the Company advances toward a Final Investment Decision (‘FID’) in the coming months.

The 100kg/hr demonstration facility has operated reliably on a continuous 24-hour basis since May 2026, leveraging fully automated Programmable Logic Controller (‘PLC’) systems, integrated water and reagent recycle circuits, and an on-site laboratory to optimise feed blends, ore types, pH operating windows, and other key process parameters influencing rare earth recoveries.

The recovery numbers that matter for Colossus economics

The July 2026 recovery performance demonstrates consistent metallurgical performance above the PFS baseline established through extensive test work at the Australian Nuclear Science and Technology Organisation (‘ANSTO’). These results were achieved following process optimisation initiatives conducted in June 2026, with further optimisation work ongoing.

Several process enhancements and operating initiatives remain to be implemented that are expected to further improve metallurgical recoveries, though the Company frames these as potential upside rather than guaranteed gains. The recovery improvements achieved to date create the potential for meaningful improvements in project economics as the enhanced recovery factors are incorporated into the DFS and financial model due for completion in August 2026.

Rafael Moreno, Managing Director

“Every percentage point improvement in recovery translates directly into higher rare earth production from the same ore feed, creating the potential for meaningful improvements in project economics as we progress towards the DFS.”

Understanding MREC and why recovery rates drive rare earth value

Mixed Rare Earth Carbonate (‘MREC’) is a semi-processed rare earth product containing concentrated rare earth oxides extracted from ore. It represents a critical intermediate step in the rare earth supply chain, sitting between raw ore and the separated rare earth oxides used in permanent magnets, batteries, and advanced electronics.

Metallurgical recovery refers to the percentage of contained rare earth oxide successfully extracted from ore during processing. Higher recovery rates mean more saleable product from the same ore body, directly improving project margins and economics. The Demonstration Plant is believed to be among the largest of its kind outside China, underscoring the strategic and geopolitical importance of developing non-Chinese rare earth processing capability.

The distinction between MREO and TREO drives value in rare earth projects:

• MREO (Magnetic Rare Earth Oxides): Neodymium, Praseodymium, Dysprosium, and Terbium — the high-value magnet metals used in electric vehicle motors and wind turbine generators.
• TREO (Total Rare Earth Oxides): All 17 rare earth elements, including both magnetic and non-magnetic varieties such as Lanthanum, Cerium, and Yttrium.

A de-risking tool built to mirror the commercial plant

The Demonstration Plant replicates the proposed commercial facility’s process flowsheet, running continuous 24-hour automated operation via PLC control systems, integrated water and reagent recycle circuits, and an on-site laboratory. This scale and design enables rigorous validation of critical process equipment, operating parameters, and capital and operating cost assumptions for the commercial plant.

Run-of-mine (‘ROM’) feed has been sourced from the Northern Concessions — specifically mine pits CW-01 and CW-02, which represent the Company’s first 18-24 months of commercial plant feedstock. Using early-production-year ROM ensures that representative recovery factors flow into the DFS and financial modelling.

Achieving MREO recoveries under steady-state continuous operations with feed grade on the low side of the life-of-mine (‘LOM’) average generates an additional layer of conservatism in the financial modelling.

The demonstration feed grades sit materially below the PFS life-of-mine average, reinforcing the conservatism of recovery assumptions being carried into the DFS. Successful continuous operation has validated several critical technical scopes for the commercial plant:

1. Counter Current Decantation (‘CCDs’): Target underflow solids content and overflow clarity proven, supporting optimal residue filtration and MREC product quality.
2. Residue and MREC precipitation filters: Competent filter cakes produced at target moisture content, de-risking residue backfill design and product bagging specifications.
3. Water treatment: Successful operation of the water treatment package skid to prove zero liquid discharge operation, water recycling, and Ammonium Sulphate (‘Amsul’) reagent recovery.
4. Coupon testing: Materials of construction for the commercial plant confirmed under continuous operating conditions.

Offtake, financing and validation momentum

Product qualification work is progressing with strategic offtake partner Solvay. High-grade MREC samples have been produced to specification and shipped to Solvay’s La Rochelle facility in France.

The Rare Earth Research and Processing Centre (‘CPTR’) facility continues to demonstrate its strategic importance:

• Offtake validation: MREC samples delivered to Solvay’s La Rochelle facility for product qualification testing.
• Financing due diligence: The CPTR hosted technical due diligence by independent lenders’ engineers supporting the banking consortium’s Project Financing scope.
• Government and institutional engagement: High-level delegations, including European Union Commissioner Jozef Síkela, visited the facility, reinforcing the strategic and geopolitical relevance of developing non-Chinese rare earth processing capability.

What comes next on the road to FID

The DFS and financial modelling are due for completion in August 2026, with ongoing demonstration plant optimisation focused on further enhancing metallurgical recoveries and refining operating parameters. Future work streams include:

• Process optimisation: Reagent consumption reduction, recovery refinement, and testing of various process sensitivities.
• Vendor and EPCM engagement: Equipment suppliers and EPCM contractors will access the Demonstration Plant following long lead item equipment orders (‘LNTP’) to support design optimisation and performance guarantees.
• Product qualification: Further MREC samples for Solvay product qualification testing.
• Workforce readiness: Ongoing training of operations and maintenance teams.

With financing, permitting, commercial negotiations, and DFS activities all progressing in parallel, the Company is advancing toward a Final Investment Decision in the coming months, with the Demonstration Plant’s enhanced recovery performance strengthening confidence in the Colossus Project’s economic potential.

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