Australian Rare Earths Limited announced its latest assay results from its infill drilling programme, paving the way for further Resource growth and an upgrade in the confidence level at its 100% owned flagship Koppamurra Project located on the South Australian-Victorian border. The assays confirm substantial widths, thicknesses and grades of mineralisation. The results stem from infill drilling of the current Inferred Mineral Resource and Exploration Target areas.

Importantly, they show strong continuity of mineralisation within the existing Inferred Mineral Resources and Exploration Target areas. The current Exploration and Resource Definition drilling program commenced in mid-September 2022 with 1,111 holes now drilled for 11,844 metres. This work was completed in just 53 days of drilling.

Drilling is spaced at 100m centres along pine forest tracks and at 120m centres within the pine forest along narrow cleared "out rows". To date this drilling program generated over 6,000 samples which were sent to the laboratory for analysis. Results are pending for 2,579 of these samples.

These and the results of current regional drilling samples are expected early 2023. Drilling at 120 metre spacings is currently underway to support an Indicated Resource classification based on previous MRE variography and will allow for further infill drilling to 60 metres to potentially achieve a Measured resource classification. Drilling is targeting resource extension and conversion from Exploration Target/Inferred/Indicated resource classification in this area.

Overall preliminary pXRF geochemistry readings, geology and this next batch of assays have been highly encouraging, with shallow rare earth mineralised clays underlain by limestone. Exploration drilling is planned to continue up until Christmas this year and to resume early in the New Year, targeting a total of 20,000 metres drilled in an effort to expand significantly on the existing mineral resource at Koppamurra. An updated MRE is scheduled for the first quarter of calendar 2023.

The latest assay results from infill drilling support increased confidence levels for continuous clay- hosted rare earth mineralisation at Koppamurra; Results include: KM2539, 2m @ 2,314 ppm TREO from 2m, with 23.4% combined Neodymium/Praseodymium (Nd/Pr) and 1.95% Dysprosium (Dy); KM2548, 3m @ 1,391 ppm TREO from 2m, with 22.0% combined Nd/Pr and 2.87% Dy; KM2549, 4m @ 1,486 ppm TREO from 5m, with 21.9% combined Nd/Pr and 2.42% Dy; KM2563, 3m @ 1,051 ppm TREO from 4m, with 23.0% combined Nd/Pr and 2.82% Dy; KM2599, 2m @ 1,606 ppm TREO from 2m, with 24.9% combined Nd/Pr and 1.91% Dy; KM2612, 3m @ 1,273 ppm TREO from 1m, with 21.1% combined Nd/Pr and 2.49% Dy; KM2728, 3m @ 2,105 ppm TREO from 1m, with 23.1% combined Nd/Pr and 2.29% Dy; KM2767, 6m @ 804 ppm TREO from 4m, with 20.9% combined Nd/Pr and 2.55% Dy.