Altona Rare Earths Plc announced that it has entered into a binding option agreement (the ?Agreement?) with Ignate African Mining P/L, with respect to exploration for copper and silver on Prospecting Licence PL2329/2023 (the ?Tenement?), located in the Northwest District of Botswana, known as the Sesana project (the ?Project?). The Tenement has a surface area of about 274 km2 and is valid until 31 March 2026, after which it can be renewed twice for periods of up to 2 years each. It is valid for copper, cobalt, gold, silver, lead, zinc, aluminium, chromium, iron, titanium and platinum group metals.

The Project is located along the eastern margin of the KCB, a continental-scale geological feature stretching in a Southwest-Northeast direction across Namibia and Botswana hosting sedimentary copper-silver deposits. Copper-silver mineralisation typically occurs along the contact between the D'Kar Formation, which is mostly made up of reduced siltstones, and the Ngwako Pan Formation, which consists mainly of oxidised sandstones. The contact is repeated across strike at the favour of isoclinal folds.

The position of copper-silver mineralisation is controlled by the lithology and oxidation state contrast along the contact, as well as the presence of folds and associated structures. The KCB is home to the low-cost Khoemacau copper-silver mine which started production in June 2021. The mine has a full rate production rate of ca.

60ktpa Cu and ca. 1.6Mozpa Ag, extracted from ore from the Zone 5 underground mining operation, which is located about 25 km from the Tenement. The Tenement is located next to Galileo Resources licence PL039/2018 and near ARC Minerals licence PL135/2017 (Virgo Copper-Silver Project), where a 3km long soil anomaly associated to the D'Kar /Ngwako Pan formations contact has been recently identified.

Recent interpretation of regional airborne magnetic data shows that a ca. 10km long stretch of the contact between the D'Kar and Ngwako Pan formations contact is passing through the northern part of the Tenement, along the eastern margin of a fold structure, which makes it a perfect setting for copper-silver mineralisation. The Agreement gives Altona an exclusive option to acquire an up to 85% interest in the Tenement in consideration for payments in three tranches spread over a period of four years totalling USD 110,000 in cash and USD 250,000 in Altona shares, with phased exploration technical and expenditure commitments.

These payments will be broken down as follows: USD 10,000 in cash and USD 50,000 in Altona new ordinary shares (?Shares?) upon satisfaction of the final agreement's conditions precedent. The Shares will be issued at the VWAP for the 10 days before the signature of the final agreement, USD 50,000 in cash and USD 100,000 in Shares 12 months later, upon start of phase 2. The Shares for this phase will be issued at the VWAP for the 10 days before the start of phase 2. USD 50,000 in cash and USD 100,000 in Shares 18 months later upon start of phase 3. The Shares for this phase will be issued at the VWAP for the 10 days before the start of phase 3. In addition, Altona has paid an exclusivity fee of USD 10,000 upon signing of the option agreement. Initial exploration work will include a combination of geochemical and geophysical exploration methods which will be deployed during the course of 2024.

Soil sampling associated to ionic leach assays is particularly suitable for the KCB context, in which the substratum is blanketed by a sand cover of varying thickness. Detailed magnetometer survey will allow a detailed mapping of lithology and structures while induced polarization will allow the direct localisation of disseminated sulphides to allow accurate reconnaissance drilling planning.