Rocky Gully Project

Overview

Figure 1: Location of Narryer Metals Limited’s Titanium and REE projects in Australia

The Rocky Gully Project in the Great Southern region of Western Australia has the following significant advantages over many other critical minerals projects and could become a low-cost Sc-Ga-REE producer –

1. location in a low sovereign risk jurisdiction of Western Australia;
2. sits on disturbed land used for bluegum and pine plantations and farming, with minimal natural forest;
3. proximity to existing infrastructure (including roads, power and port) which support a lower capital intensity project;
4. near surface mineralisation with no overburden potentially supporting a low-cost mining
5. mineralisation is in soft, easily mineable clays; and
6. magnetic REE, gallium and scandium to be in high demand, with current Chinese export bans.

Rocky Gully Project Mineralisation

The Rocky Gully is a clay-hosted critical minerals project that overlies high grade metamorphic rocks of the Albany Frazer Belt, WA. The bedrock shows evidence of carbonatite intrusive dykes, and alteration associated with a potential alkaline intrusive complex1. The geophysics (magnetics, EM, gravity) also identifies significant anomalism^1.2, which has been the delineation for previous drilling.  Multiple drill programs^3,4,5 at the Ivar Prospect has identified an area of significant mineralisation, with:

1. Extensive scandium mineralisation over 1.6km in strike, 900m width, with 2 to 28m interval thicknesses, and near surface and in soft clays, making it attractive for low-cost strip mining. Grades typically above 100 ppm Sc₂O₃ and up to 518 ppm Sc₂O₃, in a defined high-grade zone the Company plans to target with its next drilling program (Figure 2 and 3),
2. High grade REE intersections typically above 1,000 ppm TREO (Total Rare Earth Oxides) and often above 1,500 ppm TREO, with assays over 1% TREO, containing high-value Magnet Rare Earths (Neodymium, Praseodymium, Dysprosium, Terbium). The REE tend to occur in the upper saprolite zone and range from 2 to 31m interval thicknesses, and often below the main scandium mineralisation horizon (Figure 2 and 3).
3. Vanadium and gallium mineralisation (typically > 50 ppm Ga₂O₃ and up to 104 ppm Ga₂O₃) also evidence and with 2 to 34 m interval thickness, which have the potential to add significant value to the Project; and
4. Mineralisation remains open in multiple directions, and there is evidence from previous magnetics and surface geochemistry that an additional target area is present to the west of the Ivar Prospect⁶, ready for drilling in the next aircore program.

Figure 2. Cross section showing scandium and TREO distribution in the regolith clays

Rocky Gully Exploration Target⁷

The next phase of drilling will press towards a maiden resource. Studies by the Narryer geology team has estimated an Exploration Target set around the 3 key commodities –

• Scandium oxide (Sc₂O₃) target of 18 to 23 million tonnes of 140 to 170 ppm Sc₂O₃
• Total Rare Earth Oxide (TREO) target of 26 to 33 million tonnes of 850 to 1300 ppm TREO
• Gallium oxide (Ga₂O₃) target of 30 to 50 million tonnes of 40 to 60 ppm Ga₂O₃

The potential quantity and grade of the Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource

Exploration Targets are developed to assist prioritizing of exploration drill planning and metallurgical testwork which will enable identification of the optimum pathway to development of the project. They are based on the best and most realistic estimates of likely future estimates of clay hosted resources.

Rocky Gully Metallurgy⁸

Metallurgical studies continued at the Rocky Gully Sc-Ga-REE Project, with the results used to work towards developing a potential flowsheet. This encompasses work underway “inhouse” by the Narryer geological team and consultant metallurgist; and a government co-funded MRIWA (Mineral Research Institute of Western Australia) study that focusses on the extraction of clay-hosted REE deposits in Australia, using organic acids.

Results from the MRIWA study includes⁸ –

• The application of methanesulfonic acid (MSA), a common organic acid which has low environmental impacts, has demonstrated in leaching of representative Rocky Gully samples, extraction rates of the magnet REEs of up to 78% in NdPr (neodymium and praseodymium), and up to 84% in Tb (terbium) and 82% Dy (dysprosium).
• These results compared well to hydrochloric acid (HCl) as a reagent, a common acid applied as a baseline in clay REE extraction studies, which have similar levels of REE dissolution, with extraction of magnet REE with up to 84% in NdPr, up to 90% in Tb and as much as 88% Dy.
• Importantly, the MSA dissolved less major gangue elements (Fe, Al, Si) when compared to the HCl solution, which may lead to benefits in hydrometallurgy once optimised.
• Further work is underway to further refine this organic leaching
• Narryer is also continuing other leach work studies, focusing on scandium.

Figure 3. Map showing A) meter x Sc₂O₃ and B) metre x TREO grades (ppm*m) for drilling at the Ivar Prospect, Rocky Gully Project. Note outline of the exploration target for TREO and Sc₂O₃ mineralisation. Background image is of high resolution TMI ground magnetics. (Co-ords: GDA94 Zone 50)

Figure 4: Location of the Rocky Gully and Pingrup Project, showing infrastructure

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¹ Narryer Metals Limited ASX announcement 20 March 2023
² Narryer Metals Limited ASX announcement 8 May 2023
³ Narryer Metals Limited ASX announcement 20 November 2024
⁴ Narryer Metals Limited ASX announcement 22 November 2022
⁵ Narryer Metals Limited ASX announcement 16 April 2025
⁶ Narryer Metals Limited ASX announcement 23 January 2025
⁷ Narryer Metals Limited ASX announcement 25 November 2025
⁸ Narryer Metals Limited ASX announcement 19 November 2025