RareX Ltd’s Gallium Discovery Unveils Exceptional 87g/t Mineralisation

RareX Unveils Extensive Gallium Deposits at Niobe Prospect: Heritage Clearance Paves Way for Major 2026 Drill Campaign

RareX Limited (ASX: REE) has completed heritage clearance for its Khaleesi Project, unlocking a significant RareX Ltd's gallium discovery that could reshape the company's critical minerals portfolio. The company announced that historical review of drilling data has revealed extensive gallium-rich clay deposits spanning a 9km cumulative strike length with exceptional grades reaching 87g/t Ga₂O₃.

RareX Ltd's gallium discovery represents one of the most promising gallium targets in Australia, with a 5km x 3km gallium-enriched clay profile showing consistent mineralisation across both basement syenite granite and overlying weathered clay zones. With heritage approvals now secured, RareX is positioned to commence a 3,000-metre drill programme in Q1 2026, targeting four high-priority geophysical anomalies within the Khaleesi Alkaline Intrusive Complex.

Outstanding Gallium Intersections Define Large-Scale System

Historical drilling at Niobe has intersected remarkable gallium mineralisation, with standout results including:

• 20m at 70g/t Ga₂O₃ in clay (hole RDA204)
• 32m at 67g/t Ga₂O₃ in clay (hole RDA205)
• 28m at 64g/t Ga₂O₃ in clay (hole RDA231)
• 20m at 67g/t Ga₂O₃ in clay (hole RDA203)

The geological profile reveals a consistent structure across the prospect: alluvial sands overlaying a clay cap that sits above altered syenite granite. According to the company's analysis, the syenite averages 54g/t Ga₂O₃ from 35 samples, whilst the clay cap averages 56g/t Ga₂O₃ from 77 samples, with local thicknesses exceeding 30 metres.

Furthermore, the topography creates natural traps where thicker, higher-grade clay zones have developed within granite troughs. This concentrates gallium mineralisation in predictable geological settings, making future exploration more targeted and efficient.

Understanding Gallium: The Critical Metal Powering Next-Generation Technology

Gallium represents one of the most strategically important critical metals in the modern technology landscape. This silvery metal is essential for manufacturing gallium arsenide semiconductors used in 5G networks, LED lighting, solar panels, and advanced radar systems.

Why Gallium Matters for Investors

The strategic importance of gallium cannot be overstated in today's technology-driven economy:

• Global supply is dominated by China (over 80% of production)
• Demand is accelerating with 5G infrastructure rollouts worldwide
• Limited primary sources exist outside China, creating supply security concerns
• Gallium prices have shown significant volatility due to export restrictions

Unlike many critical metals found in hard rock deposits, RareX Ltd's gallium discovery occurs in easily processed clay-hosted zones. This potentially offers lower processing costs and faster extraction timelines compared to conventional mining operations. In addition, the grades identified at Niobe are reported to be exceptionally high compared to typical regolith-hosted gallium systems, positioning RareX's discovery as potentially globally significant.

Key Technical Terms

Understanding the technical aspects of this discovery requires familiarity with several key terms:

• Ga₂O₃: Gallium oxide, the standard reporting unit for gallium content in geological samples
• Syenite: An alkaline igneous rock enriched in potassium and sodium, often hosting rare metal mineralisation
• Clay cap: Weathered surface layer formed by chemical breakdown of underlying rocks, concentrating certain metals

Strategic 3,000-Metre Drill Programme Set for Q1 2026

RareX has designed a comprehensive drill programme targeting multiple mineralisation styles within the Khaleesi Alkaline Intrusive Complex. The $175,000 EIS-funded drilling campaign will test several high-priority targets across different geological settings.

Primary Drilling Targets

The upcoming programme will focus on:

• Four geophysical targets with potential for rare earth and niobium-mineralised carbonatites
• Gallium targets across a 1.6km x 1.2km area on 400m x 400m grid spacing
• Two geochemical anomalies showing elevated alkaline-associated elements

The drilling will focus immediately south of the highest-grade historical intersections, testing along strike from proven high-grade clay zones. Rock chip samples at Niobe have returned up to 0.4% TREO and 81g/t Ga₂O₃. Moreover, end-of-hole assays show exceptional multi-element enrichment including 1.1% Zr, 311ppm Hf, 895ppm Nb and 348ppm Y.

With heritage clearance complete and only flora surveys remaining, RareX has cleared the major regulatory hurdles that have historically delayed the project's advancement. This positions the company to move rapidly into the execution phase.

Khaleesi: A World-Class Alkaline Complex in Prime Territory

The Khaleesi Project occupies a 20km Alkaline Intrusive Complex located 260km northeast of Kalgoorlie. This positions it on the contact between the Yilgarn Craton and Albany Fraser Orogen, a geological setting that mirrors some of Australia's most successful rare earth operations.

Strategic Location Advantages

The project benefits from several locational advantages:

• 45km along strike from the Ponton Dyke rare earth vein system
• Adjacent to established mining infrastructure
• Proven regional endowment with nearby Mt Weld (106Mt at 4.12% TREO)
• 2030Ma age dating confirms potential for significant mineralisation

The complex has been dated at 2030 Ma, consistent with other major alkaline intrusions on the eastern Yilgarn Craton margin. This includes the globally significant Mt Weld deposit, providing geological confidence in the area's potential. This geological timing represents a peak period for rare earth and critical metal concentration in Western Australia.

Management Perspective on Discovery Potential

"The Alkaline Intrusive Complex is a great address to find a rare earth or niobium enriched carbonatite but also geological interpretation of the historical drilling at Niobe has outlined a very large gallium system with clay hosted gallium grades that are well above typical regolith hosted systems," stated CEO James Durrant.

This perspective highlights the dual opportunity that the Khaleesi Project presents. Furthermore, it emphasises the exceptional nature of the gallium grades encountered, which significantly exceed industry benchmarks for similar geological environments.

Investment Thesis: Positioning for Critical Metals Supply Chain Disruption

RareX Ltd's gallium discovery represents a rare opportunity to gain exposure to gallium mineralisation at a scale that could influence global supply dynamics. The 9km strike length of gallium mineralisation combined with exceptional grades up to 87g/t Ga₂O₃ positions this as potentially one of the largest gallium deposits outside China.

Key Investment Drivers

Several factors support the investment case for RareX's gallium discovery:

• Supply Security Play: Gallium discovery in a mining-friendly jurisdiction during global supply concerns
• Scale Potential: 5km x 3km gallium system suggests district-scale opportunity
• Processing Advantages: Clay-hosted mineralisation typically offers lower processing costs
• Multi-Commodity Upside: Carbonatite targets add rare earth and niobium optionality
• Funded Exploration: EIS co-funding reduces dilution risk for upcoming drill programme

The timing of this discovery aligns with increasing Western government focus on critical metals supply security. Australia's position as a stable, democratic mining jurisdiction provides significant advantages for any future gallium production. This is particularly relevant given current geopolitical tensions affecting Chinese supply chains.

However, investors should note that RareX's broader portfolio includes the Cummins Range Project with +$330M NPV8 post-tax. This provides a solid foundation whilst the gallium discovery at Khaleesi develops through the exploration phase. The company's focus on carbonatite-hosted critical metals positions it uniquely in the Australian market.

Why Investors Should Track RareX's Khaleesi Development

The completion of heritage clearance represents a pivotal milestone that transforms Khaleesi from an exploration concept into a drill-ready opportunity. With Q1 2026 drilling approaching, investors have a clear catalyst timeline and well-defined value inflection points ahead.

Compelling Tracking Reasons

Several factors make RareX an attractive tracking opportunity:

• Immediate Catalyst: 3,000m drill programme commencing Q1 2026 with government co-funding
• Proven Mineralisation: Historical drilling confirms large-scale, high-grade gallium system
• Strategic Commodity: Gallium supply security concerns create premium valuation environment
• Infrastructure Advantages: Established mining region with existing access agreements
• Management Execution: Successful navigation of complex heritage and access processes

The convergence of exceptional geology, strategic commodity exposure, and regulatory clearance positions RareX for significant re-rating as drilling results emerge. The company's systematic approach to developing the Khaleesi Complex demonstrates quality management execution that institutional investors typically value highly.

Moreover, the successful navigation of complex heritage and access processes, despite previous logistical challenges, showcases management's ability to advance projects through regulatory frameworks. This execution track record becomes increasingly important as projects move from discovery to development phases.

Looking Ahead: Catalysts and Value Inflection Points

RareX Ltd's gallium discovery has unlocked one of Australia's most promising gallium discoveries at a time when global supply security concerns are driving premium valuations for critical metals projects. With heritage clearance complete and EIS-funded drilling commencing Q1 2026, investors should monitor this development closely.

The upcoming drilling campaign could establish RareX as a major player in the gallium supply chain outside China. With gallium grades significantly exceeding typical regolith systems and a 9km strike length of mineralisation, the Niobe Prospect represents exactly the type of large-scale, strategic critical metals discovery that could reshape investor perceptions.

Furthermore, the project's location in Western Australia, combined with clay-hosted mineralisation that potentially offers processing advantages, creates a compelling investment narrative. As global supply chains for critical metals face increasing scrutiny, projects like Khaleesi become strategically valuable beyond their immediate economic metrics.

The combination of proven high-grade mineralisation, government co-funding for exploration, and cleared regulatory pathways positions RareX for potential significant value creation through 2026 and beyond.

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