Mr. Darrin Campbell reports

NAMIBIA CRITICAL METALS PARTNER JOGMEC ACCELERATES FUNDING FOR DEVELOPMENT OF LOFDAL HEAVY RARE EARTHS PROJECT

Namibia Critical Metals Inc.'s joint venture partner, JOGMEC (Japan Organization for Metals and Energy Security), has approved an additional $1.25-million in financing, bringing the total budget for the period until March 31, 2024, to $13.05-million.

Darrin Campbell, president of Namibia Critical Metals, expressed his satisfaction, stating: "We are extremely pleased with the continued strong support of our partner, JOGMEC. This accelerated funding will allow us to complete pilot plant hydrometallurgical test work as well as other important technical studies to finalize our prefeasibility study for the large-scale Lofdal 2B-4 project. The milestones achieved by our dedicated technical teams in 2023 in drilling and beneficiation have been clearly recognized as outstanding by our partners.

"This increased budget underscores the confidence and commitment shared by NCMI and its partner JOGMEC. By injecting additional funds, the joint venture aims to fast-track the progression of crucial projects, ensuring timely execution and achieving key milestones ahead of schedule.

"With the accelerated commencement of the pilot plant hydrometallurgical test work, NCMI intends to leverage advanced technologies and innovative methodologies to optimize processes and enhance the efficiency of mineral extraction and refining. Parallel technical studies will be conducted to support the ongoing prefeasibility study, fostering a comprehensive understanding of the mining potential of Lofdal and paving the way for future success.

"NCMI's impressive achievements in exploration and pioneering beneficiation have laid a solid foundation for the company's continued growth. Recognizing this success, NCMI's partnership with JOGMEC demonstrates the shared vision to capitalize on the immense potential of Lofdal and unlock significant value."

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.

The Lofdal project is fully permitted with a 25-year mining licence and is under a joint venture agreement with JOGMEC.

The company filed a robust updated preliminary economic assessment for Lofdal 2B-4 on Nov. 14, 2022, with an after-tax 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 tax over a 16-year mine life.

About Japan Organization for Metals and Energy Security (JOGMEC) and the joint venture

JOGMEC is a Japanese government independent administrative agency that seeks to secure stable resource supplies for Japan. JOGMEC has a strong reputation as a long-term, strategic partner in mineral projects globally. JOGMEC facilitates opportunities with Japanese private companies to secure supplies of natural resources for the benefit of the country's economic development.

Rare earth elements are of critical importance to Japanese industrial interests and JOGMEC has extensive experience with all aspects of the sector. JOGMEC provided Lynas with $250-million (U.S.) in loans and equity in 2011 to ensure supplies of the light rare earth metal suite to the Japanese industry.

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 NCMI 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. Namibia Critical Metals 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 $3.05-million budget for Term 3 through to March 31, 2024. Total approved project financing to date is $13.05-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.

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.

The common shares of Namibia Critical Metals trade on the TSX Venture Exchange under the symbol NMI and the OTCQB market under the symbol NMREF.

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