Discovery of Rare Earth Elements in South Greenland, in surface grab samples

On November 4, 2025, Amaroq announced the discovery of rare earth element (REE) mineralization at its Nunarsuit licence area in South Greenland. The discovery was made from surface grab samples at the Ilua Pegmatite Zone. Key findings include: - High grades of up to 2.31% Total Rare Earth Oxide (TREO). - The mineralization has a favorable composition, with 21% comprising key magnet metals, an average of 27% Heavy REEs, and 73% Light REEs. - The outcrop is several meters wide and strikes for approximately 5km, with potential for parallel structures. - The mineralization is believed to be hosted in monazite, a mineral that typically lends itself to conventional processing, and importantly, appears to have low associated uranium content. - The company is planning a scout drilling campaign for the Spring of 2026.

This news is materially positive as it introduces a new and highly strategic commodity to Amaroq's portfolio, but its immediate impact is tempered by the very early stage of the discovery.

To assess the materiality, we must review the company's progression over the past year. Amaroq's primary focus has been the redevelopment and commissioning of its flagship Nalunaq gold mine. Key milestones were achieved, including the first gold pour in November 2024 and a significant 51% increase in the Nalunaq Mineral Resource Estimate announced in March 2025.

Operationally, the company has been executing well. The October 7, 2025 update confirmed that the Nalunaq production ramp-up was ahead of expectations, with 5,000 ounces produced year-to-date and a target of 300 tonnes per day throughput by the end of 2025. This operational progress is the core driver of the company's value.

Financially, the company fortified its balance sheet with two major equity raises: £27.5 million in December 2024 and a significantly oversubscribed £45.0 million in June 2025. This funding was critical to support the Nalunaq ramp-up, expand exploration, and acquire the Black Angel zinc mine to create a new "West Greenland Hub".

The new REE discovery stems from the company's broader strategic minerals exploration program, conducted through its Gardaq JV. While previous updates focused on copper and nickel, this adds a new vertical. The discovery's characteristics are highly encouraging: - High Grade: 2.31% TREO in grab samples is a strong start. - Favorable Metallurgy: The potential for low uranium monazite hosting is a major de-risking factor, as high uranium can create significant permitting and processing challenges. - Scale Potential: A 5km strike length suggests the potential for a large system.

However, as a risk-averse analyst, it is crucial to note that these are selective surface grab samples. They are not representative of the entire system, and significant work, including systematic channel sampling and drilling, is required to prove continuity, grade, and economic viability.

Conclusion: The REE discovery is an excellent addition to the Amaroq story and provides another potential long-term value driver. It demonstrates the prospectivity of their land package beyond gold. However, it does not alter the immediate investment thesis, which remains entirely dependent on the successful and profitable ramp-up of the Nalunaq gold mine. The value of this REE asset is, for now, purely speculative. The news is positive, but the company must continue to execute on its core asset, Nalunaq.

Amaroq Ltd. is a Greenland-focused resource development company. Its flagship asset is the 100%-owned Nalunaq Gold Mine, a past-producing, high-grade operation. The company achieved its first gold pour in November 2024 and is currently ramping up to a target nameplate capacity of 300 tonnes per day by the end of 2025. Beyond Nalunaq, Amaroq holds a large portfolio of gold exploration projects (e.g., Nanoq) and a 51% interest in the Gardaq JV, which explores for strategic minerals, including copper, nickel, and now Rare Earth Elements. It recently acquired assets to form a new West Greenland Hub focused on zinc and nickel.