Mr. Darrin Campbell reports

NEW MINERALIZED ZONE DISCOVERED DURING INFILL RESOURCE DRILLING ON FLAGSHIP LOFDAL HEAVY RARE EARTH PROJECT IN NAMIBIA

Namibia Critical Metals Inc. has completed the reverse circulation drilling campaign for its PFS study on the large-scale Lofdal 2B-4 heavy rare earth project.

The infill drilling campaign entailed 49 reverse circulation (RC) boreholes for a total of 8,226 metres in the Area 4 main deposit and the Area 2B satellite deposit. Assays were received from Actlabs, Canada. Highlights are:

• The width and grade of the mineralized zones were confirmed by infill drilling.
• Combined mineralized intervals can reach more than 100 m length in total in some boreholes based on a combined cut-off of 0.1 per cent TREO (total rare earth oxides) over wider intercepts as previously used in the preliminary economic assessment (PEA) for Lofdal 2B-4. This averaging over wider mineralized zones reflects assumed consecutive blocks in a potentially large-scale open-pit operation benefiting from economy of scale.
• A larger, previously unknown mineralized zone was intercepted in the western periphery of the pit shell (produced in the Lofdal 2B-4 PEA for Area 4) demonstrating upside for additional mineralization toward the west and depth.
• Test work at SGS Lakefield continues with the pilot-scale flotation test on a five-tonne bulk sample and an extended variability testing program followed by hydrometallurgical tests.

Darrin Campbell, president of Namibia Critical Metals, stated:

"The highly cost-efficient RC infill drill program delivered the expected positive results and the newly established thick zone of heavy rare earth mineralization in the western part of Area 4 highlights again the enormous potential for upside for the district-level Lofdal deposit. With several test programs at SGS at advanced stages and with positive interim outcome, we are optimistic to deliver a highly competitive PFS for Lofdal 2B-4 by mid next year."

RC drilling program 2023

A final drill program was worked out by the company with support by The MSA Group to increase the level of resource categories as required for the PFS for the expanded project, Lofdal 2B-4. Resource drilling commenced at the end of January, 2023, and was completed by June, 2023.

The drilling campaign was significantly expanded from a planned total of 5,240 m. With the excellent drill performance of Prinsloo Drilling in deeper RC holes, it was decided to drill all planned diamond core (DC) boreholes up to 350 m length by the more cost-efficient reverse circulation (RC) method. Eventually, a total of 8,226 m was completed in this RC drilling campaign.

Thirty-seven RC drill holes for a total of 6,446 m were drilled at Area 4. In general, mineralized zones were confirmed in its expected ranges of width and grade. The drill results confirm the geological model of structural zones acting as fluid channels and controlling intensity, pinching and swelling as well as splaying of the wide mineralized zones.

Several intercepts in boreholes drilled in the periphery of the planned pit shell for Area 4 open pit show wide mineralized zones which might form significant additional resources in the planned update of the mineral resource estimate. An example for a mineralized zone currently not included in the pit shell is depicted in the section through the western periphery of planned Area 4 open pit with borehole L4D0207 returning nine mineralized intervals using a cut-off of 0.1 per cent TREO, including 14 m at 0.17 per cent TREO from 295 m and 21 m at 0.11 per cent TREO from 262 m.

Further, sampling was extended to the hangingwall of the main mineralized zone. Assays show wide zones of up to 100 m of additional low- to moderate-grade HREO (heavy rare earth oxides) mineralization which will undergo an assessment for upgrade and beneficiation by sorting technologies, and thus might potentially further increase mine life or throughput of the future Lofdal mine.

Mineralized intercepts are summarized herein. The intercepts were generally selected based on an assumed cut-off of 0.1 per cent TREO as previously used in the PEA for Lofdal 2B-4 (see press release on Nov. 14, 2022). However, the intercepts partly include a significant amount of samples with less than 0.1 per cent TREO in order to reflect the width of the mineralized zone potentially forming consecutive ore blocks in a large-scale open-pit operation. By including lower-grade mineralization, the combined mineralized intervals may reach more than 100 m length in total like in borehole L4R0208 with 63 m length from 275 m and 53 m length from 173 m, and borehole L4R0210 with 51 m length from 285 m, 27 m length from 252 m and 29 m from 213 m. The longest consecutive mineralized interval is 105 m length from 123 m in borehole L4R0199.

In Area 2B, 12 RC holes were drilled for a total of 1,780 m. Drilling was expanded by 4 four boreholes to cover the mineralized zone extending to the east of the currently planned pit shell.

Infill drilling at Area 2B is completed for the update and increase of resource categories of the mineral resource estimate as suggested by The MSA Group for the PFS/DFS level for Lofdal's planned satellite open-pit Pit 2B while Area 4 requires a further 6,000 m of DC drilling in 16 boreholes for the deeper portion of this subdeposit.

Sampling, analysis and quality assurance/quality control

A total of 4,495 samples of average 1.8 kilograms per sample were collected at the drill rig's cyclone (A-sample) and submitted to Actlabs preparatory laboratory in Windhoek, Namibia, in batches of 200 to 300 samples.

The samples were dried and crushed to two millimetres, split using a riffle splitter and pulverized to 105 micrometres. Pulverized subsamples were homogenized in a stainless-steel riffle splitter and a 15-gram sample and duplicate were drawn for analysis. The pulverized sample aliquots were shipped to the ISO/IEC 17025 accredited Actlabs analytical facility in Ancaster, Ont., Canada. The samples were assayed using lithium metaborate-tetraborate fusion and inductively coupled plasma mass spectrometry (ICP-MS). Actlab's analytical code, 8-REE, includes 45 trace elements, 10 major oxides, loss on ignition and mass balance.

The samples were subjected to a quality assurance and quality control (QA/QC) program consisting of the insertion of blank samples and certified reference materials at Lofdal and the preparation of a laboratory duplicate at the sample preparation facility in Windhoek. The primary laboratory assay values were confirmed by umpire sample analysis by ALS. A selection of 263 samples (every 20th sample of the original sample set) was sent to ALS Okahandja, Namibia, for further shipment to ALS Johannesburg, South Africa. Samples were analyzed using analytical code ME-MS81h (lithium metaborate fusion and ICP-MS).

The qualified person is satisfied that the assay results are of sufficient accuracy and precision for use in the future update of the mineral resource estimation.

Progress on test work program

SGS Canada started the pilot plant testing with the preparation of the five-tonne bulk sample for the pilot-scale flotation test planned for October to November, 2023. The objective of the current program is to scale up tests, conduct locked cycle testing for a higher level of confidence in metallurgy, and confirm engineering design criteria for PFS capital and operating cost estimation.

The locked cycle tests were completed and confirm a steady circuit. No significant detrimental effect was observed due to the recirculation.

Variability tests on nine samples from the peripheries of planned Area 2B and Area 4 pits were completed. With the low-grade nature and varying mineralogy of the first set of variability samples taken from RC boreholes in the periphery of Area 4 and at TREO grades near cut-off, it was decided to extend the variability test program by a further nine samples.

To further simplify the flowsheet and improve recoveries, future testing will abandon magnetic separation (WHIMS) and focus on iron removal with optimal temperatures during acid bake.

Management change

The company is pleased to advise that Teri Anderson has been appointed as chief financial officer of the company, effective today.

Ms. Anderson previously served as the company's CFO from 2012 to 2017. She is a seasoned finance professional with 30 years experience with both public and private companies in various industries. Ms. Anderson established her finance and accounting consulting practice in 1999, and most recently was CFO with NowVertical Group Inc. Earlier in her career, Ms. Anderson was as a senior financial manager at Nova Scotia Power, and prior to that, in public accounting practice with Ernst & Young. Ms. Anderson holds a CPA (CA) designation, an MBA from Dalhousie University and a BSc from Acadia University. She is a member of the Institute of Chartered Accountants of Nova Scotia and the Canadian Institute of Chartered Accountants.

Ms. Anderson replaces Susanne Willett, who has served as CFO for the past two years. The board thanks Ms. Willett for her contribution to the company.

About Namibia Critical Metals Inc.

Namibia Critical Metals is developing the Tier 1 heavy rare earth project, Lofdal, a globally significant deposit of the heavy rare earth metals dysprosium and terbium. Demand for these critical metals used in permanent magnets for electric vehicles, wind turbines and other electronics is driven by innovations linked to energy and technology transformations. The geopolitical risks associated with sourcing many of these metals has become a repeated concern for manufacturers and end-users. Namibia is a proven and stable mining jurisdiction.

Dr. Rainer Ellmies, PhD, MScGeol, EurGeol, AusIMM and vice-president of Namibia Critical Metals, is the company's qualified person and has reviewed and approved this press release.

We seek Safe Harbor.