IMC Rare Earths Plans Deeper Drilling Program At Its Itarantim Project In Brazil

Diamond Drilling Targets Deeper Block D Plateau Potential

Diamond drilling is commencing in mid-November at 29 widely spaced Block D plateau locations, where the weathered rock and soil layer is interpreted to be thickest. The program is designed to investigate mineralization beyond the 30-meter depth limit of existing mechanical auger drilling and extend approximately 5-10 meters into bedrock, subject to geological conditions. Access work and drill pad construction are underway, with additional drilling planned.

As announced on October 29, 2026, hole AD-00403 returned 13 meters at 1,287 ppm Y2O3 from 14 meters depth and ended in mineralization at 27 meters. Diamond drilling will investigate its deeper continuation and the thickness, continuity and grade distribution of mineralization beneath the plateau, while providing additional material for density testing. Positive results could have a significant impact on the scale and grade profile of a future resource assessment in 2027, subject to drilling outcomes and appropriate resource estimation work.

WSP Leads Block A ISR Field Program and Groundwater Monitoring

WSP, one of the world's leading engineering, environmental and infrastructure consulting firms, was ranked first in Engineering News-Record's 2025 Top 225 International Design Firms. WSP is leading the planning and operation of IMC's small-scale in-situ recovery (ISR) field program at Block A. Well installation is progressing, with injection testing expected to begin in Q1 2027. The trial will assess how effectively rare earths can be recovered from mineralized material through the injection and recovery process.

A program to install 37 groundwater monitoring wells is underway across the project, combining new holes with converted auger holes to strengthen baseline data and hydrogeological assessment.

Unlike conventional mining, ISR involves injecting a solution underground to dissolve target minerals, which can then be recovered through wells for processing at the surface. Its suitability will depend on permeability, hydraulic control, solution recovery and groundwater protection. Successful ISR implementation could offer a pathway toward lower-cost development with a smaller environmental footprint compared to conventional mining methods, although suitability remains subject to ongoing field testing and technical evaluation.

University of Brighton Expands Block D Recovery Insights

The University of Brighton (UK) is testing 16 Block D samples under Professor Martin Smith's supervision. The tests will examine the mineral composition and characteristics of the clay and assess how effectively rare earths can be recovered over time using magnesium sulfate.

IMC previously reported laboratory extraction of 73% of the rare earth elements tested, excluding cerium, including 71.4% terbium and 70.5% dysprosium extraction using acidified magnesium sulfate (September 22, 2026 news release). These are earlier laboratory results, not new Block D results or demonstrated field-scale recoveries.

Expanding Exploration Capacity and Local Operations

Nine auger teams are operating across the project, with over 100 Brazilian workers engaged. IMC has leased four warehouses in Itarantim, providing space for vehicles, equipment, administrative operations, sample preparation and storage, core logging and laboratory work.