Alien Metals Ltd. announced the results of the Development Study of its' 90% owned Hancock Iron Ore Project, in the Pilbara Region, Western Australia that has confirmed that the Project has excellent project economics and prospectivity with extensive untested mineralisation trends. The Study was coordinated by experts Mining Plus Pty Ltd, Burnt Shirt Pty Ltd. and internal UFO personnel and is based on an updated Mineral Resource Estimate (MRE) containing a JORC Mineral Resource of 8.4Mt @ 60% Fe. Key financial highlights: MRE of 8.4Mt @ 60% Fe JORC Mineral Resource, including an upgraded Indicated Resource of 4.5Mt@ 60.2% Fe.

Based on 8Mt of the Mineral Resource being converted to mining inventory, robust project financials of the base case produced the following: an average annualised EBITDA of A$39 million, a pre-tax NPV10 of $146m and a pre-tax IRR of 133%, All in sustaining cost of $85/t, Production rate of 1.25mtpa, Initial development Capital Cost of $28 million. Other key highlights from the Development Study include the following: High confidence in the Capital and Operational Costs with pricing received through the Early Contractor involvement and Preferred Tenderer process resulting in up-to-date tendered pricing for more than 90% of the Capital Costs and Operational Costs. Initial production plan focussed on current 3.9Mt mining inventory with further upside to mine the entire Mineral Resource of 8.4Mt and beyond to be realised through ongoing exploration upside.

Further work confirmed a 165% increase in Indicated Resources from 2.8mt to 4.5mt as part of an updated Mineral Resource Statement. Ore processing will utilise a mobile dry crushing and screening plant capable of producing 1.25Mt to 1.5Mt of 100% fines product per annum on a single shift basis. Sprint capacity of the plant working on a double shift basis is up to 3.0Mt per annum.

Low start-up cost of A$28 million capital including: A $18.0 million for main roads intersection and access to Site, A $2.5 million for site establishment and pre-production capital, A $6.5 million of owners costs, working capital and contingency allowances. Reduction in costs achieved through the close proximity to the Mining Hub of Newman. The proximity allows the Company to avoid extensive construction capital costs associated with airstrip, mining camp and associated services.

Provisional export capacity through the Port of Port Hedland has been secured and remains on track for final approvals during the first half of 2024. CSA Global conducted an independent review based on existing geological information and a site visit to express an opinion about the Exploration Potential of the Hancock Project. Their findings included: Tenement E47/3954: Significant exploration potential has been identified, in addition to the 8.4Mt Mineral Resource outside of the known Mineral Resource area; Tenement E47/3954: Walk up drill targets, with a potential to increase the existing Mineral Resource o Hancock Project Tenements E47/3954 and E47/5001: Significant strike lengths of Weeli Wolli Formation BIF and Boolgeeda Iron Formations identified and yet to be adequately explored.

Alien has also separately completed an additional internal review of Project Tenement E47/5001, identifying (interpreted from GSWA 250k mapping) significant underlying geological lithologies that are suitable hosts for iron ore mineralisation and exploration potential. Success through accelerating exploration activities could therefore significantly increase the existing 8.4Mt JORC Mineral Resources, resulting in potential for increases to planned production and mine life. Alien plans to conduct additional exploration during 2024 to target an increase in its Mineral Resource while preparing for the mining development and while the requisite approvals are obtained.

Development Approvals currently remain on track to be in place by mid-2024, allowing for site development to commence in 2024 and first ore sales to be achieved in first quarter 2025.