VHM Limited announced the results of the Definitive Feasibility Study (DFS) Refresh for the Goschen Rare Earths and Mineral Sands Project (the Project) which confirm the Project as a potential world-class operation delivering robust economics. Development of the Project will produce critical minerals of zircon-titania heavy mineral concentrate, a rare earth mineral concentrate (Phase 1), and a mixed rare earth carbonate (Phase 1A). Based on a forecast 20 year life of mine production schedule, the Project is expected to deliver compelling economics with a pre-tax NPV of approximately AUD 1.5 billion and a 44% IRR and a pay-back of 2.8 years from commencement of production3.

The Project is at an advanced pre-production stage with Final Investment Decision (FID) for Phases 1 and 1A scheduled for H2 2023 upon receipt of regulatory approvals and permits. The DFS Refresh describes a well-defined and low-risk project across a number of categories including Mineral Resources, and Ore Reserves, mining methods, processing, land access, capex, life-of-mine, and operating costs. The DFS is based on mining and processing a total of 98.8Mt Ore Reserves4, which is only a subset of the Company's Ore Reserves of 198.7Mt5.

The Goschen Project footprint and Ore Reserve subset of 98.8Mt sits within the freehold land envelope secured by purchase agreements. Critical works undertaken during first quarter 2023 which contribute to the outlook for the Project and prompted the DFS Refresh, include: Updates to capital and operating cost estimates based on 2023 market conditions and influences. Market study pricing updates (Q1 2023) for rare earths, zircon, and titania products.

Completion of front-end engineering and design (FEED) optimisation studies for Process engineering, and design and optimisation for a mineral separation plant (MSP) and related process assets. Completion of metallurgical testwork and process design and engineering for the construction and commissioning of a hydromet circuit to upgrade the REMC to a MREC. Completion of Hydrogeology and Hydrology studies for surface and sub-surface water management.

Progressing Geotechnical studies in the areas of pit design, surface waste dump design, foundation engineering and tailings disposal and engineering. Progressing toward Environmental Statement decision, and subsequent Mining License grant. Tailings disposal and management.

VHM proposes to develop a 20 year, 5Mtpa operation to mine and process zircon, titania, and rare earths mineral deposits in Victoria's premiere mineral sands province. The development will involve the mining and processing of heavy mineral sands containing valuable heavy minerals and rare earth minerals (REM) to be extracted from two areas, covering an area of approximately 1,534ha. The proposed Project comprises three phases, with the DFS Refresh only relating to Phases 1 and 1A detailed below: Phase 1 - production of zircon- titania concentrate, and rare earths mineral concentrate (REMC) products.

Phase 1A - construction of a hydrometallurgical (hydromet) circuit to convert the REMC into a mixed rare earths carbonate (MREC) product. Phase 2 - construction of a mineral separation plant (MSP) to further separate the zircon- titania concentrate into final zircon, ilmenite, HiTi rutile and leucoxene mineral products. Phase 2 of the Project is not included in the FID process for H2 2023.

Phase 2 will only proceed if prevailing market conditions, financial considerations, and sufficient additional funding support that decision at the time. The Project will bring direct and indirect downstream jobs to the Mallee Loddon Region and initial execution works are forecast to bring 200 construction jobs and 400 new, full-time jobs.