Sunrise Energy Metals (SRL) Status Update summary

Project update and resource expansion

• The scandium project has nearly doubled its measured and indicated resource, with high-grade zones increasing by 161% to 1,155 tonnes at 665 g/t, and over 99% now in Measured and Indicated categories.

• The resource is shallow, enabling low-cost, simple mining with a long-term supply outlook, and is adjacent to major infrastructure with freehold land rights secured.

• All key permits, including mining lease, development consent, environmental approvals, and water rights, are secured, with electrical connection application filed.

• Metallurgical test work and piloting completed, with scandium patents secured and excellent results achieved.

• Feasibility study is on track for release by late September 2025, with capital and operating costs largely defined.

Market dynamics and strategic importance

• Scandium is classified as a critical raw material with both civilian and military applications, now subject to Chinese export restrictions and new US tariffs disrupting global supply.

• China controls the majority of global scandium supply, mainly from environmentally problematic TiO2 pigment waste, and has halted exports since April 2025.

• The project’s Australian location and high-grade resource offer strategic value as governments seek secure, diversified supply chains.

• Demand for scandium is expected to rise sharply, especially for advanced alloys and semiconductors, with the U.S. and other governments considering direct support and price floors.

• A stand-alone high-grade scandium mine is positioned to address supply risk and market concentration concerns.

Technology and industrial applications

• Scandium-aluminum alloys are essential for additive manufacturing, aerospace, defense, and high-performance consumer products.

• Aluminium scandium nitride thin films are critical for 5G and future 6G wireless communications, with no viable alternative for radio frequency filtering chips.

• The U.S. is a key market for scandium metalization, with plans to build or partner for metalization capacity domestically to support the semiconductor industry.

• The project is critical for modern semiconductor and alloy technologies, with strong government and community support.

• Growing patent portfolio in scandium alloy applications, including battery foils and welding wire.