Spark Expands Drilling at Arapaima with Follow-Up 2,000-Metre RC Program

• Most Recent Release (April 16, 2026): Spark Energy Minerals launched a follow-up 2,000-metre reverse circulation (RC) drilling program at its Arapaima Project in Minas Gerais, Brazil. The program targets near-surface rare earth element (REE) and gallium mineralization identified during the initial five-hole RC campaign.
• Program Scope: Approximately 20 holes with an average depth of 100 metres each. Objectives include refining the geological model, evaluating priority target areas, and assessing distribution/continuity of mineralization.
• Historical Context (February 2026): The company released maiden drilling results on February 13, 2026, showing consistent REE and gallium mineralization across all five holes. Highlights included up to 33% Magnet Rare Earth Oxides (MREO) and grades as high as 6,682 ppm TREO over 2 metres.
• Financing Context (March 2026): On March 10, 2026, the company closed an upsized private placement raising $579,960 in gross proceeds and received approximately $1.8 million from warrant exercises under its incentive program. Proceeds are designated for exploration at Arapaima and working capital.
• Strategic Progression: The April 16 announcement confirms the execution of the drilling plan announced on March 25, 2026 ("Resumption of RC Drilling"), utilizing funds raised in February and March to advance toward a future maiden inferred mineral resource estimate under NI 43-101.

• Expectation vs. Reality: The news is consistent with previous expectations set by the February maiden results and the March financing announcements. Management explicitly stated in February that expansion was contingent on results, which were positive. Therefore, this is not a surprise discovery but a confirmation of execution.
• Market Impact: While positive for long-term project viability, the market likely priced in the follow-up drilling following the strong maiden assay data and the capital raise. The stock price has consolidated around $0.05 since the February spike to $0.08, suggesting the initial excitement has normalized into a "wait-and-see" phase regarding resource definition.
• Materiality Classification: This is classified as Routine - Positive because it represents incremental progress in an exploration cycle rather than a fundamental change in asset value (e.g., no resource estimate announced yet). It validates management's ability to deploy capital effectively but does not alter the risk profile significantly compared to March 2026.
• Dilution Risk: The company has raised significant equity and warrant-based capital recently ($1.8M+ from warrants, ~$580k private placement). Continued drilling requires further funding, implying potential future dilution if additional financings are needed before a resource estimate is defined.

• Company Name: Spark Energy Minerals Inc.
• Flagship Project: Arapaima Project, Minas Gerais, Brazil.
• Project Size: 91,900 hectares within the "Lithium Valley" district.
• Target Commodities: Rare Earth Elements (REE), Gallium, and Lithium.
• Mineralization Style: Ionic Adsorption Clay (IAC) hosted REE and gallium mineralization in saprolite overlying Caladão Granite. Also targeting pegmatite-hosted spodumene zones for lithium.
• Management: Dr. Fernando Tallarico serves as CEO and Chairman, bringing experience from Axel REE Ltd. and Vale S.A., focusing on critical minerals supply chains.