U.S. EXIM Bank expresses interest in financial support for Syerston Scandium Project

Rhea-AI Summary

Sunrise Energy Metals (OTC:SREMF) has received a Letter of Interest from the U.S. Export-Import Bank (EXIM) for potential financing of up to US$67 million (A$103 million) for its Syerston Scandium Project in New South Wales, Australia.

The financing would cover approximately half of the project's estimated development costs. The support highlights scandium's strategic importance following China's rare earth export controls implemented in April 2025. The project contains the world's largest and highest-grade scandium deposit.

The company has delayed its Feasibility Study completion to mid-to-late October 2025 to incorporate new metal inventories in the Ore Reserve Estimate and optimize the mine plan, following a substantial increase in the Mineral Resource Estimate announced on September 9, 2025.

Positive

• Potential US$67 million EXIM financing with attractive 15-year repayment terms
• Project contains world's largest and highest-grade scandium deposit
• Strategic positioning as key supplier following China's export controls
• Substantial increase in contained metal within Mineral Resource Estimate

Negative

• Feasibility Study completion delayed to October 2025
• EXIM financing subject to due diligence and final approval
• Project still requires securing off-take arrangements

Insights

Mining & Critical Minerals Finance Expert

U.S. EXIM Bank's $67M financing interest validates Syerston Scandium Project's strategic importance following China's rare earth export restrictions.

The Export-Import Bank of the United States (EXIM) has issued a Letter of Interest to potentially provide up to US$67 million (A$103 million) in debt financing for Sunrise Energy Metals' Syerston Scandium Project. This represents approximately 50% of the estimated development cost, with attractive repayment terms of up to 15 years.

This development carries significant strategic implications in the wake of China's export controls on rare earth metals implemented in April 2025. The U.S. government's willingness to financially back this project underscores scandium's growing importance to American industrial supply chains, particularly in wireless communications technologies and advanced alloys for civilian and defense applications.

The timing is particularly noteworthy as it positions Australia, a key U.S. ally, to become a reliable alternative supplier of strategic metals. Sunrise Energy Metals' Syerston deposit is characterized as the world's largest and highest-grade scandium resource, giving it substantial competitive advantages in the global critical minerals landscape.

While this Letter of Interest represents preliminary interest rather than a final commitment, it significantly strengthens the company's position in ongoing offtake and financing discussions. The company has slightly delayed its Feasibility Study completion to mid-to-late October 2025 to incorporate substantial new metal inventory data and optimize the mine plan, which should enhance project economics rather than indicate challenges.

Securing this potential EXIM financing would substantially de-risk the project's capital requirements and signal strong governmental support, potentially attracting additional investment partners and customers seeking secure, non-Chinese supply chains for critical minerals.

Highlights:

• Sunrise Energy Metals has received a Letter of Interest from the Export-Import Bank of the United States for up to US$67 million (A$103 million) in financing support for its Syerston Scandium Project, an amount representing approximately half the estimated development cost for the Project.
• United States Government support highlights the strategic importance of scandium to its industrial supply chain since the imposition of China's export controls on rare earth metals in April 2025.
• The Syerston Feasibility Study is scheduled for completion in mid- to late- October to allow incorporation of the substantial new metal inventories in the Ore Reserve Estimate and optimisation of the mine plan.

MELBOURNE, Australia, Sept. 15, 2025 /PRNewswire/ -- Sunrise Energy Metals Limited ("Sunrise Energy Metals" or the "Company") (ASX:SRL) and (OTC:SREMF) Co-Chair Robert Friedland, and Managing Director, Sam Riggall, are pleased to announce the receipt of a Letter of Interest from the Export-Import Bank of the United States ("EXIM") outlining the potential to provide up to US$67 million in debt financing for the Syerston Scandium Project in central New South Wales, Australia.

The Syerston Scandium Project, containing the world's largest and highest-grade scandium deposit, has been identified as a candidate for financing for its potential to support development of reliable and secure supply chains for US industry under several EXIM programs, including its Supply Chain Resiliency Initiative and the China Transformational Exports Program. Project debt provided by EXIM is eligible for an attractive repayment term of up to 15 years.

If Sunrise Energy Metals proceeds with a formal application, EXIM will conduct requisite due diligence to determine if a final lending commitment would be made. A lending commitment will depend on meeting EXIM's underwriting criteria, authorisation process and finalisation of agreed terms and conditions that comply with EXIM policies and eligibility requirements.

Mr. Friedland commented: "This Letter of Interest underscores the importance of scandium to the United States, both as a critical component in wireless communications technologies, and advanced alloys supporting the civilian and defence sectors. As a key ally of the United States, Australia's significant endowment of strategic metals positions it to be an important supplier in the future."

Managing Director, Sam Riggall, commented: "We are encouraged by this strong show of support by EXIM for the financing and development of the Syerston Scandium Project. We expect it to strengthen our engagement with customers to secure off-take arrangements as we move the project towards a final investment decision and development."

Feasibility Study Update

While the Feasibility Study is progressing well, the substantial increase in contained metal within the Mineral Resource Estimate at Syerston, announced on 9 September 2025, requires additional work for conversion to an Ore Reserve Estimate and an optimized mine plan.

Accordingly, the Company now anticipates completion of the Feasibility Study in mid- to late-October 2025. This will not affect the Company's ongoing discussions regarding offtake and financing.

This announcement is authorised for release to the market by the Board of Directors of Sunrise Energy Metals Limited.

For more information, please contact:

Media Ross Larsen Thirty Three Communications sunriseem@thirtythreecomms.com

Investors Craig Sainsbury Automic Group craig.sainsbury@automicgroup.com.au

About Sunrise Energy Metals Limited (ASX:SRL; OTCQX:SREMF) – Sunrise Energy Metals Limited is developing the Syerston Scandium Project in New South Wales, Australia, with the aim of delivering the world's first source of mineable, high-grade scandium. Sunrise also owns the Sunrise Nickel-Cobalt Project, one of the largest and most cobalt-rich nickel laterite deposits in the world. For more information, visit www.sunriseem.com.

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SOURCE Sunrise Energy

FAQ

How much financing has the U.S. EXIM Bank offered to Sunrise Energy Metals (SREMF) for the Syerston Project?

The U.S. EXIM Bank has issued a Letter of Interest for up to US$67 million (A$103 million) in potential debt financing, representing approximately half of the project's estimated development cost.

When will Sunrise Energy Metals complete the Syerston Scandium Project Feasibility Study?

The Feasibility Study is expected to be completed in mid-to-late October 2025, delayed to incorporate new metal inventories and optimize the mine plan.

Why is the Syerston Scandium Project considered strategically important?

The project is strategically important as it contains the world's largest and highest-grade scandium deposit and could provide a secure supply chain alternative following China's rare earth export controls implemented in April 2025.

What are the main conditions for SREMF to receive the EXIM financing?

The financing depends on meeting EXIM's underwriting criteria, completing the authorization process, and finalizing terms that comply with EXIM policies and eligibility requirements.

What is the significance of scandium for the United States?

Scandium is considered a critical component in wireless communications technologies and advanced alloys supporting both civilian and defense sectors in the United States.