Origen Resources signs LOI for Brazilian REE project

Mr. Gary Schellenberg reports ORIGEN SIGNS LOI TO ACQUIRE RARE EARTH PROJECT IN BRAZIL Origen Resources Inc. has entered into a letter of intent (LOI) to acquire a prospective rare earth elements (REE) project in Brazil. The mineral concession package totals 3,978 hectares in two separate parcels and is located in Piaui state in the northeastern region of Brazil. Key highlights 3,978-hectare claim package with right of first refusal on five other exploration concessions also located in Piaui state leading to potential for a district-scale footprint in an emerging area; Sampling completed by the vendor returned one sample grading 1.61 per cent total rare earth oxides (not including Y) with other samples ranging between 0.19 and 0.32 per cent TREO; Exclusive 150-day due diligence period; Two deposit models are being evaluated for this project: REE plus uranium-enriched phosphate beds and the ion absorption clay deposit model (IACD). IACD deposits produce over 80 per cent of all heavy (H)REE supplies worldwide (as estimated in 2024); Initial results indicate that the phosphate concretions are enriched in HREEs making them both an attractive target and a potential source rock for HREE IACD mineralization. "We see this opportunity as a particularly good fit with the experience of our exploration team and an in-demand target that can be evaluated quickly. Early stage, impactful acquisitions have been a key to our success in the past and we are excited to initiate the Due Diligence work on this project in the coming weeks," states Gary Schellenberg, chief executive officer and director. Sampling by Weberte Giovan de Almeida and Associates has indicated potential for REE mineralization on the property. The vendor has provided laboratory analysis of several samples from the property conducted by SGS Societe Generale de Surveillance Samin at its Brazil facility. One sample returned 1.61 per cent TREO (not including Y) with other samples ranging between 0.19 and 0.32 per cent TREO. HREE/LREE ratios were 0.258 for the higher grade sample and between 0.265 and 0.949 for the other samples. SGS is an internationally experienced laboratory in geochemical analysis and assay. Analysis was performed using a lithium metaborate fusion and finished by ICP mass spectroscopy. This is considered a total extraction method suitable for evaluating REE concentrations in rock samples. Devonian Age phosphates are distinctive due to their characteristic of higher REE concentrations than other phosphate generating events. The eastern edge of the Parnaiba basin in northeastern Brazil contains Devonian strata hosting phosphatic concretions. In addition to interest in phosphates for regional farmers, the concretions have been found to contain elevated REE and uranium values. The claim package is located in the eastern edge of the Parnaiba basin and is underlaid by the Devonian Itaim and Pimenteira formations, both of which are known to host phosphate concretions with elevated REE and uranium levels. An additional deposit model being evaluated in the due diligence period is the ion adsorption clay deposit (IACD) model. This model is established as an important source of REE best known in China and now also being identified in South America, Africa and Australia. While carbonatite sources dominate light (L)REE supplies, approximately 80 per cent of heavy (H)REE supply comes from IACD sources (as estimated in 2024). IACD-style mineralization has already been established in Brazil in Goias and Minas Gerais states. A REE IACD deriving from a HREE enriched source rock would be expected to also be HREE enriched. Origen has been granted an exclusive 150-day due diligence period and must enter into a definitive agreement no later than 180 days from the date of signing of the LOI. Fieldwork for the due diligence period will be assisted by the vendor along with consultants associated to the geology department of the Federal University of Ceara and oversight by Coast Mountain Geological Ltd. of Vancouver, Canada. John Harrop, PGeo, a qualified person as that term is defined in NI 43-101, has supervised the preparation or approved the scientific and technical disclosure in the news release. Mr. Harrop is employed by Coast Mountain Geological Ltd. He is not independent of the company as defined in NI 43-101. He is independent of the geochemical analysis laboratory SGS. Terms of the acquisition To acquire a 90-per-cent interest following a positive due diligence outcome and entering into a definitive agreement, Origen will pay the vendor $50,000 (U.S.) and issue two million shares. Within two years of completion of the due diligence period, Origen must incur $1-million of exploration expenditures. After this two-year period, Origen will issue to the vendor a number of shares equal to 15 per cent of Origen outstanding shares and grant the vendor a seat on the board of directors. The total number of shares that will make up 15-per-cent ownership will include the two million shares granted after the due diligence period. The vendor also grants Origen right of first refusal on their five other exploration concessions located in Piaui state that are analogous to the two concessions subject to the LOI. About Origen Resources Inc. Origen is a project generator focused on identifying and advancing high-potential mineral exploration opportunities. The company is currently conducting due diligence on a prospective rare earth element project in Brazil under a recently signed letter of intent, while continuing to advance its 100-per-cent-owned Los Sapitos lithium project in Argentina and the Wishbone gold-silver project in the Golden Triangle of British Columbia. Origen also holds a portfolio of three additional precious and base metal projects in Southern British Columbia for which it is actively seeking partners. We seek Safe Harbor.