Mr. Darrin Campbell reports

NAMIBIA CRITICAL METALS SUCCESSFULLY COMPLETES FLOTATION PILOT PLANT TEST WORK ON LOFDAL HEAVY RARE EARTH DEPOSIT

Namibia Critical Metals Inc. has successfully completed the pilot plant flotation test work for its Lofdal 2B-4 heavy rare earth project.

From October to December, 2023, rigorous tests were conducted on a five-ton representative bulk sample from the Lofdal Area 4 starter pit at SGS Lakefield. Based on preliminary data, the pilot plant program confirms the reproducibility of the grinding and flotation regime for the Lofdal flowsheet, and the ability to scale up the design with confirmation of engineering design criteria.

Through an extensive flotation optimization program conducted at SGS in 2023, several adjustments were undertaken to the flotation parameters developed in 2022 (see preliminary economic assessment (PEA) report "Lofdal 2B-4" on SEDAR). The applied optimization steps aimed at decreasing operating expenditures (opex) compared with the PEA and increasing recovery of the heavy rare earth mineral xenotime into the concentrate.

Darrin Campbell, president of Namibia Critical Metals, stated:

"We are extremely pleased with the completion of the flotation pilot plant test work, which has yielded highly positive results. This groundbreaking achievement of scaling up from bench-scale to pilot-scale marks a significant milestone in the journey toward unlocking the immense potential of the Lofdal deposit. The uniqueness of our Lofdal heavy rare earth deposit, with its complex xenotime mineralization, required us to pioneer novel beneficiation methods. Based on the preliminary data, it appears that the hard work invested by our metallurgy teams over the past months will result in a substantial cumulative reduction in opex compared to previous financial estimations.

"The outstanding work accomplished by our dedicated team in drilling and metallurgical test work has been recognized and validated by our esteemed partner, JOGMEC, whose continued funding commitments demonstrate their confidence in the Lofdal project.

"This remarkable progress underscores Namibia Critical Metals' commitment to developing the globally significant Lofdal project, which hosts the highly sought-after heavy rare earth metals dysprosium and terbium. As the demand for these critical metals skyrockets due to their pivotal role in electric vehicles, wind turbines and various other technological applications, the Lofdal project stands as a vital solution to meet these growing needs."

Pilot-scale flotation tests in Q4 2023

Flotation pilot plant test work was conducted at SGS Lakefield from October to November, 2023. The flotation flowsheet developed in 2022 by SGS (see PEA report on SEDAR and press release of Nov. 22, 2022) formed the basis of the pilot plant tests. Several adjustments to the flotation parameters were undertaken based on the flotation optimization program conducted at SGS in 2023. Among the optimization parameters are lower temperature flotation, lower collector dosages and usage of newly developed reagents with high concentrations of active ingredients. The applied optimization parameters aimed to significantly decrease operating expenditures (opex) compared with the PEA and increase recovery of the heavy rare earth mineral xenotime into the concentrate.

Continuous piloting tests were conducted on a five-ton representative bulk sample from the Lofdal Area 4 starter pit. The tested material had slightly lower rare earth element (REE) grades than the samples used for the bench-scale test work in 2022 and 2023. This is to reflect the potential to process the large amounts of slightly lower grade material referred to as stockpile in the Lofdal 2B-4 PEA, which would allow further increased throughput and life of mine. Based on preliminary data, the pilot plant program confirms the reproducibility of the grinding and flotation regime for the Lofdal flowsheet, and the ability to scale up the design with confirmation of engineering design criteria.

The flotation tailings produced in the pilot runs provided material for solid/liquid separation testing, including filtration to investigate opportunities for dry tailing deposition as well as slurry rheology testing for pumping a thickened tailing. Final reporting from SGS Lakefield is expected in February, 2024.

The flotation pilot runs produced circa 100 kilograms of flotation concentrate, which is ready to facilitate effective scale-up of the hydrometallurgical testing, including acid bake and water leach followed by a thorough investigation into optimizing downstream REE recovery steps to produce a mixed rare earth oxide product. This hydrometallurgical scale-up test is planned at SGS Lakefield in Q1 2024.

About Namibia Critical Metals Inc.

Namibia Critical Metals is developing a Tier 1 heavy rare earth project, Lofdal, a globally significant deposit of two 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 have become a repeated concern for manufacturers and end-users. Namibia is a proven and stable mining jurisdiction.

The Lofdal project is fully permitted with a 25-year mining licence and is under a joint venture agreement with Japan Organization for Metals and Energy Security (JOGMEC).

The company filed a robust updated preliminary economic assessment for Lofdal 2B-4 on Nov. 14, 2022, with a posttax net present value of $391-million (U.S.) and an annual internal rate of return of 28 per cent with a capital expenditure of $207-million (U.S.). The project is projected to generate a life-of-mine nominal cash flow of $698-million (U.S.) after taxes over a 16-year mine life.

About the joint venture

Namibia Critical Metals owns a 95-per-cent interest in the Lofdal project with the remaining 5 per cent held for the benefit of historically disadvantaged Namibians. The terms of the JOGMEC joint venture agreement with the company stipulate that JOGMEC provides $3-million in Term 1 and $7-million in Term 2 to earn a 40-per-cent interest in the Lofdal project. Term 3 calls for a further $10-million of expenditures to earn an additional 10-per-cent interest. JOGMEC can also purchase another 1 per cent for $5-million, and has first right of refusal to fully finance the project through to commercial production and to purchase all production at market prices. The collective interests of Namibia Critical Metals and historically disadvantaged Namibians cannot be diluted below a 26-per-cent carried working interest upon payment of $5-million to JOGMEC for the dilution protection. The company may elect to participate up to a maximum of 44 per cent by financing pro rata after the earn-in period is completed.

To date, JOGMEC has completed Term 2 and earned a 40-per-cent interest by reaching the $10-million expenditure requirement. JOGMEC has approved an additional $1.8-million budget for Term 3 through to March 31, 2024. Total approved project financing to date is $11.8-million of the $20-million earn-in requirement to reach 50-per-cent interest.

Other exploration projects

The company's exclusive prospecting licences (EPLs) prospective for gold are located in the Central Namibian gold belt, which hosts a number of significant orogenic gold deposits, including the Navachab gold mine, the Otjikoto gold mine and the Twin Hills deposit. At the Erongo gold project, stratigraphic equivalents to the metasediments hosting the Osino gold discovery at Twin Hills have been identified and exploration is progressing over this highly prospective area. The Grootfontein base metal and gold project has potential for magmatic copper-nickel mineralization, Mississippi Valley-type zinc-lead-vanadium mineralization and Otjikoto-style gold mineralization.

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.