Appia begins drilling at Target IV

Executive Summary

• Appia Rare Earths & Uranium Corp. has begun a diamond drilling program at Target IV (PCH project, Goiás, Brazil) to extend and delineate high‑grade REE mineralization.
• The company accelerated the expiry of its remaining common share purchase warrants (exercisable at $0.15), with 456,250 warrants already exercised; 12.15 million warrants now set to expire on 2025‑11‑19 if unexercised.
• Ultra Rare Earth Inc. is proceeding with a binding term‑sheet transaction that will give it a 50 % interest in Appia Brasil Rare Earths Mineracao Ltda.; the deal includes a $2 million USD private placement of 5.52 M units at C$0.50 per unit, closing expected on 2025‑10‑31.

Key Details

• Drilling Program
• Commences in southwestern corner of Target IV; aims to extend high‑grade REE zone southwest, northwest, and at depth.
• Planned minimum of 600 m total drilling across three 200‑m holes; expected completion ±25 days, with potential continuation if mineralization persists.

• Prior results: Hole intersections previously reported 92,758 ppm (9.28 % TREO) over 2 m and continuous high‑grade TREO from surface to ~150 m depth in three earlier holes.

• Warrant Acceleration

• Remaining common share purchase warrants (exercisable at US$0.15) issued on 2024‑10‑29 are accelerated because Appia’s shares traded ≥ US$0.25 for ten consecutive days as of 2025‑10‑20.
• Exercised: 456,250 warrants.

• Unexercised balance: 12.15 million warrants; new expiry date 5 p.m. on 2025‑11‑19.

• M&A / Transaction with Ultra Rare Earth Inc.

• Binding term sheet dated 2025‑08‑29 among Appia, Beko Invest Ltd., Antonio Vitor Jr., and Ultra.
• Upon closing, Ultra will acquire a 50 % interest in Appia Brasil Rare Earths Mineracao Ltda., holder of the PCH project.
• Closing scheduled for 2025‑10‑31.
• Transaction includes Ultra’s investment of US$2 million into an Appia unit private placement: 5.52 M units at C$0.50 per unit (based on USD/CAD $1.38). Each unit = 1 common share (C$0.50) + ½ warrant; full warrant exercisable at C$0.70 for 24 months.

• Proceeds earmarked for general working capital.

• Resource Update Timeline

• Initial mineral resource estimate for Target IV and Buriti zone filed on 2024‑03‑01 (NI 43‑101).
• Updated mineral resource estimate to be prepared after completion of current drilling programs; anticipated by end of Q1 2026.

Notable Quotes

• Tom Drivas, CEO: “We have been eager to get a drill back to the high‑grade mineralized area discovered… This extraordinary mineralization included 92,758 ppm or 9.28 % TREO across two metres…”

All forward‑looking statements are subject to risks and uncertainties; actual results may differ.