Origen to Proceed with the Acquisition of Brazilian REE Project

Executive Summary

• Origen Resources announced the successful completion of due‑diligence fieldwork and will acquire two licences (3,978 ha) in a nascent rare‑earth element (REE) district in Piauí State, Brazil.
• The acquisition terms: $50,000 USD cash plus 2,000,000 Origen shares for a 90% interest; additional commitments of $1 M exploration spend within two years and a future issuance of shares equal to 15% of outstanding equity plus a board seat.
• Fieldwork identified REE enrichment in laterite overlying sandstone, radiometric anomalies, and phosphate nodules as effective prospecting tools, supporting basin‑scale target generation.

Key Details

• Licences Acquired: Two licences covering 3,978 ha in an emerging REE district, Piauí State, Brazil.
• Acquisition Consideration:
• Cash payment of US$50,000 to vendors.
• Issuance of 2,000,000 Origen shares (≈90% interest).
• Within two years: US$1 M of exploration expenditures required.
• After the two‑year period: issuance of additional shares representing 15% of outstanding shares and a vendor board seat; this includes the initial 2,000,000 shares.
• Right of First Refusal: Vendor grants Origen first refusal on five additional concessions (~9,903 ha) in the same region.
• Fieldwork Findings:
• REE enrichment located in laterite overlying REE‑bearing sandstone and in soils deeper in the profile.
• Radiometric responses increase near prospective strata; phosphate geochemistry aids target delineation.
• Handheld XRF on all soil samples and selected rocks confirmed REE presence; SEM analysis identified REE mineral in sandstone/siltstone.
• Soil/talus fines sampling deemed effective for mapping REE enrichment and phosphate nodules.
• Radiometric methods useful for identifying follow‑up soil survey sites.
• Mapped phosphate nodule outcrops and radiometric anomalies show substantial spatial distribution across licences.
• Consistently shallow‑dipping bedding facilitates prediction of prospective strata trace.
• Next Steps: Pending confirmatory laboratory analytical results; results to be released once received.
• Qualified Person: John Harrop, P.Geo., Coast Mountain Geological Ltd., supervised and approved the scientific disclosure (not independent per NI 43‑101).

Notable Quotes

“Based on our initial observations, this project has all the ingredients to turn into something significant and launch this region of Brazil into the REE spotlight… we will be moving forward with the acquisition to exploit first mover advantage and secure a basin‑scale land position,” – Gary Schellenberg, CEO.