January 12, 2024 Erin

Serra Verde Enters Commercial Production

11 January 2024: Serra Verde (the “Company”), is pleased to announce that it has commenced commercial production of Mixed Rare Earth Concentrate (“MREC”) from Phase I of its Pela Ema deposit in Minaçu, Goiás State, Brazil. Once it has ramped up to full production, Serra Verde is expected to produce at least 5,000 tonnes per year of rare earth oxide used in the manufacture of high-efficiency permanent magnets required for electric vehicle motors and wind turbine generators.

MREC samples from Serra Verde have already been accepted by major customers, and offtakes for a large proportion of planned production are in place with established processing companies. The Company has begun work to increase Phase I capacity at Pela Ema through plant optimization and is assessing the potential for a Phase II expansion which could double run-of-mine production before 2030.

Pela Ema is a large, long-life ionic clay deposit that contains an elevated proportion of high value heavy and light REEs, primarily neodymium (Nd), praseodymium (Pr), terbium (Tb) and dysprosium (Dy) that are key to the energy transition. Serra Verde also aims to be the most sustainable supplier of rare earth materials in the world by leveraging the superior sustainability credentials of its operations and applying world class operating standards.

Serra Verde uses low operating risk open mining techniques and simple, established processing technologies with no hazardous chemicals resulting in lower operating costs and reduced environmental impacts. Serra Verde’s electricity supply is entirely sourced from renewable energy sources and the operation is in an established mining district with access to technical skills and developed road and port infrastructure.

Thras Moraitis, CEO of Serra Verde said:
“The start of commercial production is a critical milestone in our development and means we are now the only company outside Asia to produce at scale all four critical rare earths used in the production of permanent magnets. Our product can play a critical role in supporting the growth in production of electric vehicles and wind turbines that are vital to the energy transition. As we ramp up to achieve nameplate capacity, Serra Verde is also working to build downstream partnerships to support the development of long-term, sustainable supply chains.”

Ricardo Grossi, President of Serra Verde Pesquisa e Mineração and COO of the Serra Verde Group commented:
“We are proud to become Brazil’s first large scale rare earths producer, starting a new phase in the country’s proud mining history. As we develop our operations, we aim to become the most sustainable rare earths operation in the world and create measurable benefits for all stakeholders. The start of commercial production is a very important achievement, and Iwould like to thank all the members of the Serra Verde team who have helped us reach this critical milestone.”

Aura Financial
Michael Oke, Andy Mills
Tel: +44 207 321 0000
Email: serraverde@aura-financial.com

About Serra Verde
Serra Verde is a large, long-life deposit containing an elevated proportion of high value heavy and light REEs, primarily neodymium (Nd), praseodymium (Pr), terbium (Tb) and dysprosium (Dy) that are key to the energy transition. Serra Verde will be the first scale operation outside Asia to produce all four critical magnetic REEs essential to the manufacture of permanent magnets used in electric vehicle motors and wind turbine generators. This makes Pela Ema a strategic asset within the emergent global magnet-producing value chains. Commercial production has commenced, and the operation is currently ramping up to reach nameplate capacity. The operation is located in an established mining area with access to a skilled workforce and close to existing transport, power, water and other infrastructure. Serra Verde is an ionic-clay REE deposit, one of relatively few such deposits found outside of China. Ionic clays can be mined with low-cost open mining techniques and processed using simple technologies with no hazardous chemicals, crushing, milling, or acid leaching. As a result, our environmental impacts are lower than at other rare earth operations. Furthermore, the operation is located close to significant hydropower installations, providing access to reliable and clean energy. serraverde.com

Forward-Looking Statements
This release contains forward-looking statements. Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as “expects,” “believes,” “intends,” “anticipates,” “plans,” “estimates,” “aims,” “forecast,” “guidance,” “potential,” “possible,” or “probable” or statements that certain actions, events or results “may,” “will,” “should,” or “could” be taken, occur or be achieved. The forward-looking statements include statements about increasing Phase I production and Phase II expansion of the Pela Emma deposit, expected benefits and uses of REEs, production, operations, financial position and business strategy. Forward-looking statements are based on current expectations and assumptions and analyses made by Serra Verde and its management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to the ability to timely and within budget complete increases in production during Phase I , the success of expansion of Phase II and the market for and prices of REEs. Serra Verde undertakes no obligation