Dr. Michael Gunning reports

VR RESOURCES CONFIRMS ENRICHED MAGNET-REE APATITE WITH NEW METALLURGICAL RESULTS FROM HECLA-KILMER, AND SIGNS MOU WITH NOVAMERA

VR Resources Ltd. has released results from continuing metallurgical work for rare earth element (REE) mineralization at the company's Hecla-Kilmer (H-K) project in Northern Ontario.

New chemical data from laser ablation ICP-MS on the hole 13 bulk sample confirm that the phosphate mineral apatite is uniquely enriched in REE. The apatite plays a dual role in REE mineralization: its crystal structure is uniquely enriched in REE; and it has small inclusions of the phosphate mineral monazite with approximately 60 weight per cent TREO (total rare earth oxides) and parasite/synchysite fluorocarbonate minerals with approximately 30 weight per cent TREO.

Highlights:

• Apatite contains around 80 per cent of all REE mineralization at H-K, with an average concentration of 7.3 per cent TREO.
• Permanent magnet REEs (PMREO) are up to 25 per cent of TREO in the apatite and are enriched in neodymium compared with the finer-grained REE-bearing minerals monazite and parisite.
• Over 75 per cent of remaining REE mineralization occurs as small inclusions of monazite and parasite within apatite vein crystals and in apatite-fenite wallrock alteration.
• Carbonatites are a source of pure, clean magmatic phosphate used in electric vehicle batteries, and the apatite in the 461-metre intersection in hole 13 averages 37 per cent, starting at surface.

VR's chief executive officer, Dr. Michael Gunning, stated: "REE mineralogy is crucial towards the economic viability of any REE deposit. The strongest recoveries are generally achieved from simple phosphate mineralogies, as opposed to complex mineralogy amongst silicate or refractory minerals, augmented further by coarse-grained minerals compared to fine grained, and Hecla-Kilmer is clearly heading down both pathways. As such, we intend to advance the phase I mineralogy work now complete at SGS to phase II beneficiation studies in Q1 2024 in order to evaluate apatite-fluorocarbonate mineral separation and concentration.

"The new data reported here clarify the importance of apatite for the REE hydrothermal system at H-K:

• "First, at 7.3 per cent TREO , the apatite is uniquely enriched in REEs over all, compared to other carbonatite deposits and especially in neodymium, which is used in electric vehicle motors.
• "Second, with 25-per-cent magnet REO [rare earth oxides], the REE mineralization at H-K is uniquely enriched compared to most carbonatite deposits and especially in the heavy rare earths (HREE), which, like neodymium, are essential in permanent magnets, yet there is no domestic HREE production in North America.
• "Third, the apatite is both coarse grained and crystalographically pure compared to apatite in sedimentary-hosted phosphate deposits.
• "Finally, it is the sheer volume and abundance of the phosphate mineral within the overall hydrothermal system at H-K that should not be overlooked as the phosphate itself adds value to the polymetallic mineralization given its increasing role in battery technology variants for EVs.

"We consider these new chemical data from the laser ablation ICP-MS robust because they are consistent with the preliminary results we received from an array of state-of-the-art technologies utilized from the very beginning of our exploration in 2020, including whole-core XRF [X-ray fluorescence] scanning by GeologicAI, QEMSCAN and TIMA mineralogy by SGS, lithium-borate fusion ICP-MS geochemistry for trace REE detection by ALS, and scanning electron microprobe analyses of individual mineral grains by RGS Inc. in London, Ont. Further, and perhaps even more important, the new REE mineral chemistry data are consistent across 2.5 kilometres of the polyphaser igneous complex at H-K, from South Rim to Pike zone.

"Based on these results, we are excited to embark on a partnership with Novamera Inc. to explore the potential of their innovative, surgical mining technologies on the large-footprint REE+P+Nd [rare earth elements plus phosphorus plus neodymium] hydrothermal system which comes to bedrock surface at H-K. We believe this collaboration could help unlock the unusual PMREO value in the REE veins at Hecla-Kilmer and contribute positively to minimizing the environmental impact of the project in the lower James Bay region. In ongoing collaboration with SGS and potentially with the SRC [Saskatchewan Research Council] in Saskatchewan for REE extraction, we look forward to the journey with Novamera to evaluate if H-K can contribute to the growing demands of the energy transition economy.

"Finally, I wish to convey my sincere appreciation to the Ontario MNDM [Ministry of Northern Development, Mines, Natural Resources and Forestry] for the recognition and support of our Hecla-Kilmer project through the OJEP [Ontario Junior Exploration Program] critical metals exploration program. The grants awarded to Hecla-Kilmer continue to make a material difference to our ability to advance this discovery."

Bulk sample

REE critical metals were discovered at Hecla-Kilmer in the very first reconnaissance drill program in 2020, with 24 holes completed to date across the multiphase alkaline igneous complex.

Crushed drill core assay rejects from the 461-metre intersection of continuous REE mineralization in hole 013 were submitted to the SGS Lakefield laboratory in Ontario in May as a bulk sample for a mineralogical, beneficiation and metallurgical study. SGS is a recognized world leader in mineralogical and metallurgical studies on REE mineral systems. The intersection used for the bulk sample includes:

• 361 metres of 0.96 per cent TREO, of which 20 per cent are PMREO, and 2 per cent P:
• And including 39 metres of 2.01 per cent TREO with 22 per cent as PMREO.

The new chemical data on apatite are from TESCAN Integrated Mineral Analyzer (TIMA) analyses. Eight initial representative samples spanning the 361 metres of REE mineralization were crushed, sorted and analyzed with TIMA for elemental and mineral mapping of grains ahead of beneficiation studies.

Technical information

Summary technical and geological information for the company's various exploration properties is available at the company's website.

VR submits sawn drill core samples for geochemical assay to the ALS Global Ltd. laboratory facilities in Timmins or Thunder Bay, Ont., with final geochemical analytical work done at the ALS laboratory located in North Vancouver, B.C., including lithium borate fusion, ICP-MS and ICP-AES analyses for base metals, trace elements and full-suite REE analysis; as well as gold determination by atomic absorption on fire assay. Analytical results are subject to industry-standard and National Instrument 43-101 compliant quality assurance/quality control sample procedures, including the systematic insertion of sample duplicates, blanks and certified reference material (CRM) done both externally on the project site by the company and internally at the laboratory by ALS, as described by ALS.

Technical information for this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101. Justin Daley, PGeo, vice-president, exploration, and a non-independent qualified person oversees all aspects of the company's mineral exploration projects, and the content of this news release has been reviewed on behalf of the company by the chief executive officer, Dr. Michael Gunning, PGeo, a non-independent qualified person.

About the Hecla-Kilmer property

The Hecla-Kilmer complex is located 23 kilometres northwest of the Ontario hydroelectric facility at Otter Rapids, the Ontario Northland Railway and the northern terminus of Highway 634, which links the region to the towns of Cochrane and Kapuskasing to the south, itself located on the northern Trans-Canada Highway.

The H-K property is large. It consists of 224 mineral claims in one contiguous block approximately six kilometres by seven kilometres in size and covering 4,617 hectares. The property is owned 100 per cent by VR. There are no underlying, annual lease payments on the property, nor are there any joint venture or back-in interests.

Hecla-Kilmer is located on provincial Crown land, with mineral rights administered by the Ontario Ministry of Northern Development, Mines, Natural Resources and Forestry (MNDM). There are no annual payments, but the MNDM requires certain annual exploration expenditures and reporting. The property falls within the traditional territories of the Moose Cree First Nation and Taykwa Tagamou First Nation.

About VR Resources Ltd.

VR is an established junior exploration company based in Vancouver. VR evaluates, explores and advances opportunities in copper, gold and critical metals in Nevada, United States, and Ontario, Canada, and, most recently, a kimberlite breccia pipe discovery in Northern Ontario. VR applies modern exploration technologies and leverages in-house experience and expertise in greenfield exploration to large-footprint mineral systems in underexplored areas/districts. The foundation of VR is the proven record of its board in early-stage exploration, discovery, and mergers and acquisitions. The company is well financed for its mineral exploration and corporate obligations. VR owns its properties outright and evaluates new opportunities on a continuing basis, whether by staking or acquisition.

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