TAOFF IperionX Ltd (PK)

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, and achievements to differ materially from any future results, performance, or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, the Company’s ability to comply with the relevant contractual terms to access the technologies, commercially scale its closed-loop titanium production processes, or protect its intellectual property rights, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Criteria

JORC Code explanation

Commentary

Sampling techniques

•    Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

•    Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

•    Aspects of the determination of mineralisation that are Material to the Public Report.

•    In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

•      A roto-sonic drill rig, the Geoprobe 5140LS, utilized a 10 foot core barrel to obtain direct 10-foot samples of the unconsolidated geological formations hosting the mineralization in the project area. All holes were drilled vertically which is essentially perpendicular to the mineralization.  The sonic cores were used to produce a total of ~20,000kg of bulk material for metallurgical test work. Metallurgical test work samples consisted of one main bulk sample and three variability samples. The main bulk sample of 12.7 wet metric tonnes was composed of ~30% Upper McNairy and ~70% Lower McNairy ore, representing the approximate average blend of the first five years of production. Three bulk composite samples of 2-3 wet metric tonnes were prepared for the variability test work, each comprised of different ratios of Upper McNairy and Lower McNairy material to represent the variation in geo-metallurgical characteristics expected within the Mineral Resource.

•      Feed preparation was conducted at IperionX’s operational Mineral Demonstration Facility (“MDF”) at the Titan Project near Camden, TN, with the assistance of Mineral Technologies personnel. The remaining beneficiation and separation of the valuable critical minerals was completed by Mineral Technologies, first at MT’s Florida metallurgical test facility in U.S., and then at MT’s Queensland metallurgical test facility in Australia. The sand fraction, containing the valuable minerals (nominal <2.0mm, >0.045mm), is separated from slimes (<45µm) and oversize waste (>2.0mm).The valuable minerals contained in the sand fraction are recovered in a WCP using a conventional multi-stage gravity separation circuit. The recovered valuable minerals constitute the total Critcal Mineral Concentrate (CMC), which is screened at nominal 130µm to prepare coarse and fine CMC streams. The fine CMC is subjected to mechanical attrition and conditioned with specific reagents in preparation for processing by conventional froth flotation and further gravity concentration. Products are a salable, final Rare Earth Mineral Concentrate (REMC) product, and a fine flotation CMC. The fine flotation CMC is processed by wet gravity separation to produce a zircon and titanium rich stream to feed the Mineral Separation Plant. The coarse and fine CMC are fractionated by multiple dry electrostatic and magnetic separation stages to produce final ilmenite and rutile products. The non-conductive concentrate is processed by wet gravity then further dry electrostatic and magnetic separations to produce final zircon product.

•      All assays are conducted by Bureau Veritas in Perth. Standard XRF mineral sand assays are used except where individual rare earth elements (REE) are required.  These samples undergo the XRF suite as well as Laser Ablation / ICP-MS for determination of individual REE. For mineralogy, QEMSCAN (Qualitative Evaluation of Minerals by Scanning Electron Microscopy) analysis was conducted by SGS Lakefield in Canada.

Drilling techniques

•    Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

•      ~20,000kg of bulk material was collected via roto-sonic drilling. To produce the required bulk sample volume, multiple holes were drilled within in a 10m radius of previously drilled holes that were targeted for their specific geo-metallurgical characteristics. The core barrel utilized for this project is 6” in diameter. The core barrel is retrieved from the ground and the samples are recovered directly from the barrel into 55-gallon drums. All holes are drilled vertically.

Criteria

JORC Code explanation

Commentary

Drill sample recovery

•    Method of recording and assessing core and chip sample recoveries and results assessed.

•    Measures taken to maximise sample recovery and ensure representative nature of the samples.

•    Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Logging

•    Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

•    Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

•    The total length and percentage of the relevant intersections logged.

•      Samples are logged for lithological, geological, and mineralogical parameters in the field to help aid in determining depositional environment, major geologic units, and mineralized zones.  All samples are panned and estimates made for the %HM and %SL.

•       Logging is both qualitative (sorting, color, lithology) and quantitative (estimation of %HM, %SL) to confirm consistency with original drill sample.

•       Total depth of the drillhole and sample interval is recorded.  Samples are collected at regular (10 foot) intervals.

Sub-sampling techniques and sample preparation

•    If core, whether cut or sawn and whether quarter, half or all core taken.

•    If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

•    For all sample types, the nature, quality and appropriateness of the sample preparation technique.

•     Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

•     Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

•     Whether sample sizes are appropriate to the grain size of the material being sampled.

•      All assays are conducted by Bureau Veritas (formerly Ultra Trace) in Perth. Standard XRF mineral sand suite assays are used except where individual rare earth elements (REE) are required.  These samples undergo the XRF suite as well as Laser Ablation / ICP-MS for determination of individual REE. For mineralogy, QEMSCAN (Qualitative Evaluation of Minerals by Scanning Electron Microscopy) analysis was conducted by SGS Lakefield in Canada.

Quality of assay data and laboratory tests

•    The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

•     For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

•     Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

•      The assay method for the REE was Laser Ablation Inductively Coupled Plasma Mass Spectrometry (ICP-MS) and is considered total.

Criteria

JORC Code explanation

Commentary

Verification of sampling and assaying

•    The verification of significant intersections by either independent or alternative company personnel.

•     The use of twinned holes.

•     Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

•    Discuss any adjustment to assay data.

•      No adjustments or calibrations were made to the primary analytical data reported for metallurgical test work results for the purpose of reporting assay grades or mineralized intervals

Location of data points

•     Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

•     Specification of the grid system used.

•     Quality and adequacy of topographic control.

•      All drillholes are surveyed after drilling with a hand-held GPS unit and the X and Y coordinates recorded in the project’s database by the field geologist.  Elevation data for each collar has been determined using publicly available topographic data.

•      The coordinate system used for the project is UTM (Zone16N).

Data spacing and distribution

•     Data spacing for reporting of Exploration Results.

•     Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

•    Whether sample compositing has been applied.

•      Not applicable.

Orientation of data in relation to geological structure

•     Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

•     If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

•      Work undertaken is of feasibility study level nature and representative of the critical mineral deposit.

Sample security

•     The measures taken to ensure sample security.

•      Samples remain in the custody of the field geologist from time of collection until time of delivery to the project’s temporary storage location which is a secure third-party storage unit.

•      Samples are placed in rice bags and a red security tag secure the top. These tags are verified by the lab to guarantee all sample bags are intact.

Audits or reviews

•     The results of any audits or reviews of sampling techniques and data.

•      No third-party review of the sampling techniques employed have been conducted.  Only internal reviews and site visits by the Competent Person who is considered to have expertise in the drilling/sampling methods has been utilized.

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

•    Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

•    The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

•      All areas reported are held under mining lease option agreements with mineral rights to owner.  Negotiations are ongoing to secure additional parcels within the deposits.

•      No known impediments to obtaining a license to operate.  License to operate is based on obtaining land  access through mining leases with individual landowners as well acquiring local, and State permits.

Exploration done by other parties

•    Acknowledgment and appraisal of exploration by other parties.

•      Several exploration campaigns have focused on this region over the past 60 years, with DuPont reportedly being the first company to investigate this region, followed by Kerr-McGee Chemical Corporation that had exploration success but never commenced mining. BHP Titanium Minerals had an interest in the region in the 1990’s and Mineral Recovery Systems, a company associated with Altair International Inc., had significant activities in the region in the late 1990’s, including land acquisition, drilling and metallurgical studies.

Geology

•     Deposit type, geological setting and style of mineralisation.

•      The deposits are Cretaceous mineral sands deposits located in the Mississippi Embayment region of the U.S.  These deposits consist of reworked deltaic sediments hosting HM mineralization.  The deposits overly other deeper marine sediments and are overlain by more recent fluvial sediments.

Drill hole Information

•     A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o    easting and northing of the drill hole collar

o    elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar

o    dip and azimuth of the hole

o    down hole length and interception depth

o    hole length.

•     If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

•      Not applicable

Data aggregation methods

•     In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

•     Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

•     The assumptions used for any reporting of metal equivalent values should be clearly stated.

•      Not applicable

JORC Code explanation

Relationship between mineralisation widths and intercept lengths

•     These relationships are particularly important in the reporting of Exploration Results.

•     If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

•    If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

•      Not applicable

Diagrams

•     Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

•      Not applicable

Balanced reporting

•     Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

•      The results of all metallurgical tests performed have been reported on. No results have been excluded.

Other substantive exploration data

•     Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

•     Not applicable

Further work

•     The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

•    Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

•      Not applicable