Monte Alto Indicated Ultra-High Grade Mineral Resource Grows by 41%

The proposed staged development route aims to reduce reliance on external capital through earlier concentrate sales.

Rhea-AI Summary

Brazilian Rare Earths (BRELY) increased Monte Alto’s Indicated ultra-high-grade mineral resource tonnes by 41% in an updated estimate. The Bahia, Brazil deposit now holds 3.5 million tonnes at 10.7% total rare earth oxides (TREO) in that category. Total Indicated and Inferred ultra-high-grade resources rose 29% to 4.4 million tonnes at 9.9% TREO, above a 1% TREO cut-off. Indicated material accounts for 87% of contained TREO.

Monte Alto South’s Indicated tonnes increased approximately 200% to 1.9 million tonnes. A 5,000-metre drilling programme is underway to extend recent high-grade additions. The company plans to assess concentrate exports ahead of the Camaçari refinery, aiming for earlier cash flow to support downstream development. That pathway remains preliminary, without a completed feasibility study, and subject to further work and approvals. Inferred material has low geological confidence.

6 points · 0 major

PositiveiHow this balance works

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0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointIndicated ultra-high-grade resource tonnes increased 41% to 3.5 Mt at 10.7% TREO.
• Minor pointTotal ultra-high-grade resource tonnes increased 29% to 4.4 Mt at 9.9% TREO, above a 1% cut-off.
• Minor pointMonte Alto South Indicated resource tonnes increased approximately 200% to 1.9 Mt.
• Minor pointIndicated resources now account for 87% of contained TREO within the ultra-high-grade resource.
• Minor pointA 5,000 m drilling programme is underway to extend recent high-grade additions.
• Minor point. Forward-looking: it has not happened yet and may not happen.The company plans to assess concentrate exports before Camaçari, aiming for early cash flow to fund downstream development.

Negative

• Minor pointThe concentrate-sales development pathway is preliminary and indicative, without a completed feasibility study, requiring further work and approvals.
• Minor pointInferred resources comprise 20% of tonnes and 13% of contained TREO, with low geological confidence.

Key Figures

Indicated ultra-high-grade resource: 3.5 Mt at 10.7% TREO; increased 41% Total ultra-high-grade resource: 4.4 Mt at 9.9% TREO; increased 29% Indicated share of contained TREO: 87%

Indicated ultra-high-grade resource

3.5 Mt at 10.7% TREO; increased 41%

Monte Alto updated Mineral Resource Estimate

Total ultra-high-grade resource

4.4 Mt at 9.9% TREO; increased 29%

Indicated and Inferred material, above a 1% TREO cut-off grade

Indicated share of contained TREO

87%

Within the ultra-high-grade resource

Historical Context

1 past event · Latest: Aug 19

1 event

1. Aug 19

   Scoping study

   24h Move

   -4.0%

   Monte Alto-Camaçari scoping study reported integrated project economics and production targets.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

cut-off grade, inferred mineral resources, ore-sorting

3 terms

cut-off grade technical

"reported above a cut-off grade of 1% TREO"

The cut-off grade is the minimum concentration of a mineral in rock that makes extraction and processing economically worthwhile; material below that level is treated as waste. It sets the boundary between ore and waste and directly affects reported reserves, projected mine life, and expected profits. Think of it like deciding which fruit on a tree is worth picking after accounting for the time and cost to harvest — raising or lowering that threshold can change how much “good” product a project appears to have.

inferred mineral resources technical

"Inferred Mineral Resources comprise 20% of the tonnes"

An inferred mineral resource is an estimate of the quantity and grade of minerals in the ground based on limited sampling and geological information, where confidence is low and continuity is uncertain. For investors it signals potential value but also higher risk—like a rough sketch of a hidden treasure that requires much more exploration and testing before you can reliably judge its size or economic worth.

ore-sorting technical

"Monte Alto’s ultra-high grades and ore-sorting performance"

A mechanical separation process used in mining to remove waste rock from ore by sorting individual rock particles or fragments based on measurable physical properties (for example color, density, brightness under X-ray or infrared, magnetic susceptibility, or electrical conductivity). Machines feed crushed or coarse material across sensors that detect target properties and use air jets, mechanical gates or conveyors to divert particles, with the result of increasing the feed grade and reducing the volume sent to downstream milling; its effectiveness depends on how well valuable minerals are liberated at the particle size presented and on the chosen sensor technology.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Larger resource base strengthens potential to extend mine life

SYDNEY, Oct. 26, 2026 (GLOBE NEWSWIRE) -- Brazilian Rare Earths Limited (ASX: BRE / OTCQX: BRELY) ('BRE') announces a major Mineral Resource Estimate (MRE) upgrade for the flagship Monte Alto deposit in Bahia, Brazil, delivering a 41% increase in Indicated ultra-high-grade resource tonnes to 3.5 Mt at 10.7% TREO.

Total ultra-high grade resource tonnes, comprising Indicated and Inferred material, have increased by 29% to 4.4 Mt at 9.9% TREO, reported above a cut-off grade of 1% TREO. Indicated resources now account for 87% of contained TREO within the ultra-high-grade resource.¹

HIGHLIGHTS

• Major expansion of ultra-high grade resource: Updated Mineral Resource Estimate (MRE) expands Monte Alto Indicated Resource tonnes by 41% to 3.5 Mt at 10.7% TREO.¹
• Monte Alto southern extension drives growth: Indicated resource tonnes at Monte Alto South have increased by approximately 200% to 1.9 Mt¹, supported by repeated intersections of thick, stacked mineralised horizons.
• Improved geological confidence: Indicated resources now account for 87% of contained TREO¹ within the resource, providing a strong foundation for upcoming feasibility-level mine planning and economic studies.
• Extensive drilling foundation: Over 43,000 m of diamond drilling across 255 drillholes underpins a high-quality MRE and a more detailed understanding of the deposit’s geology and heavy rare earth rich mineralisation.
• Further resource growth targeted: Mineralisation remains open in all directions and further significant regional upside across the district. A 5,000 m drilling programme is underway to extend recent high-grade additions.
• Monte Alto Concentrate Sales Feasibility Study: The expanded MRE directly underpins mine planning for a fast-tracked, low-capex Monte Alto development producing a high-grade concentrate for export markets. Fast-tracked concentrate exports could generate cash flow before the downstream Camaçari refinery development.²
  
  

FIGURE 1: 3D VIEW OF UPDATED MONTE ALTO MINERAL RESOURCE

Bernardo da Veiga, CEO & Managing Director commented:

“This major resource upgrade strengthens the foundation for a longer-life Monte Alto operation and a staged, low-capex development route to first production and exports. The Monte Alto concentrate sales feasibility study will assess an initial rare-earth concentrate export business, with the opportunity to commit capital in stages and generate cash flow ahead of Camaçari’s refinery construction and commissioning.

This simple mineral concentrate operation would draw on Monte Alto’s ultra-high grades and ore-sorting performance to produce a direct-ship export product through conventional mining and dry processing. By establishing this operation ahead of the Camaçari refinery, we aim to generate early cash flow to fund downstream development and reduce our reliance on external capital.

We are advancing this development work while continuing to explore the full limits of Monte Alto’s scale. Mineralisation remains open to the south, and drilling beyond the current resource boundary offers further scope to increase the resource available for a longer-life project.”

A link to the full announcement can be found here.

Contacts

Bernardo Da Veiga
Managing Director and CEO

investors@brazilianrareearths.com
www.brazilianrareearths.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6180e4aa-38a3-4f5a-8869-7e29414fe0d9

__________________________________
_{1   Inferred Mineral Resources comprise 20% of the tonnes and 13% of the contained TREO of the updated Mineral Resource. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources.
2   See BRE’s ASX announcement dated 18 August 2026, which described a potential staged, low-capex development pathway to generate earlier cash flow from Monte Alto concentrate sales. Preliminary and indicative only, not based on a completed feasibility study, and subject to further work and approvals.}

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Brazilian Rare Earths increase Monte Alto’s mineral resource?

Monte Alto’s Indicated ultra-high-grade resource tonnes increased 41% to 3.5 Mt at 10.7% TREO, meaning total rare earth oxides. Total ultra-high-grade resources, including Indicated and Inferred material, increased 29% to 4.4 Mt at 9.9% TREO, reported above a 1% TREO cut-off.

What drilling supports Brazilian Rare Earths’ updated Monte Alto resource estimate?

Over 43,000 m of diamond drilling across 255 drillholes underpins the updated mineral resource estimate. The drilling also supports a more detailed understanding of the deposit’s geology and heavy rare earth mineralisation.

Could Monte Alto’s Inferred resources become Indicated resources?

There is no certainty that further exploration will result in Inferred resources being classified as Indicated resources. Inferred material has low geological confidence and comprises 20% of tonnes and 13% of contained TREO in the updated resource.