Pensana (PRE) Corporate presentation summary

Strategic importance of rare earths

• 78% of U.S. weapons programs rely on rare earth components, with no recycling options, making supply critical for defense systems including missiles, jets, drones, and satellites.

• Rare earth magnets are a key battleground in U.S.-China competition, with supply chain security a top priority.

Market dynamics and pricing

• Rare earth prices, especially NdPr oxide, have more than doubled in the past year due to global supply shortages and China's tightening supply.

• Ex-China rare earth prices command significant premiums, with NdPr, Dy, and Tb prices up to five times higher than in China.

• No floor price is needed as current prices are well above U.S. government-backed levels.

Project highlights and resource scale

• Longonjo is among the world's largest and highest-grade rare earth mines, with a JORC Reserve of 22Mt at 3.04% TREO and a targeted resource of over one billion tonnes.

• Initial production targets 2,400tpa NdPr and 73tpa Dy+Tb, expanding to 4,200tpa NdPr and 122tpa Dy+Tb by 2030.

• The mine benefits from low capital and operating costs due to high grade and strong infrastructure, including hydro power and direct export routes.