If You Invested in AMERICAN RARE EARTHS LTD (ARRNF)

American Rare Earths Limited (OTCQX: ARRNF) is a critical minerals company focused on advancing rare earth element projects in the United States. Through its wholly owned subsidiary Wyoming Rare (USA) Inc. ("WRI"), the company is progressing the Halleck Creek Rare Earths Project in Wyoming, which it describes as a world-class rare earth deposit with the potential to support U.S. critical mineral independence for generations.

American Rare Earths is listed on the Australian Securities Exchange under the symbol ARR, trades on the OTCQX market in the United States under ARRNF, and has an ADR program under the symbol AMRRY. The company positions Halleck Creek as a cornerstone asset for a domestic mine-to-magnet supply chain, with a focus on supplying both light and heavy rare earth elements that are essential for permanent magnets, defense applications, advanced technologies, and broader economic security.

Core business focus

The company’s primary business focus is the exploration, evaluation and technical de-risking of the Halleck Creek Project. According to company disclosures, Halleck Creek hosts a JORC-compliant mineral resource of 2.63 billion tonnes, representing a portion of the greater project area, and is described as one of the largest rare earth deposits in the United States. Within Halleck Creek, the Cowboy State Mine (CSM) area on Wyoming State land is the initial development focus, offering cost-efficient open-pit mining methods and a clearer permitting pathway compared to projects on federal land.

American Rare Earths is working toward establishing a mine-to-magnet value chain centered on Halleck Creek. The company reports that it has completed test mining at the Cowboy State Mine, extracting and crushing thousands of tonnes of ore to support comminution and beneficiation optimization tests. These bulk samples are intended to underpin the design of a beneficiation demonstration plant and to validate technical assumptions for a forthcoming Pre-Feasibility Study (PFS).

Halleck Creek Project and Cowboy State Mine

The Halleck Creek Project is described by the company as a vital national asset for the United States. The resource is hosted in allanite-based mineralization and is located in a mining-friendly jurisdiction on Wyoming State land. The Cowboy State Mine area is central to the company’s near-term development plans, with the goal of progressing from exploration and test work toward eventual commercial production of rare earth products, subject to technical and economic viability.

American Rare Earths highlights several features of the Halleck Creek Project:

• A large JORC-compliant resource at Halleck Creek, with the Cowboy State Mine representing an initial development area.
• Location on Wyoming State land, which the company notes offers a streamlined permit-to-mine process relative to typical federal approvals.
• Planned onsite mineral processing and separation facilities intended to produce rare earth products from mined ore.
• Potential to supply both light rare earths such as Neodymium-Praseodymium (NdPr) and heavy rare earths such as Dysprosium (Dy) and Terbium (Tb) used in permanent magnets.

Mineral processing and technical program

A key part of American Rare Earths’ business model is the development of a mineral processing flowsheet for Halleck Creek ore. The company has reported a series of metallurgical milestones, including:

• Leach testing: Extensive leach tests on Halleck Creek ore showing recoveries for light and heavy rare earth elements under atmospheric tank leach conditions, which the company has selected as its preferred leach method.
• Impurity removal breakthrough: Completion of impurity removal neutralization tests on allanite-based ore, using magnesium oxide (MgO) as the neutralizing reagent. The tests showed effective removal of iron, silica, aluminum, thorium, titanium and other deleterious elements with minimal formation of gypsum and silica gel, which has historically been a challenge for allanite processing.
• Mixed rare earth oxide (MREO) production: Production of a mixed rare earth oxalate and subsequent mixed rare earth oxide (MREO) from Halleck Creek ore using the updated preliminary PFS mineral processing flowsheet. This step demonstrates that rare earths can be extracted into metallic oxides from the ore and provides feed for solvent extraction simulation.
• Beneficiation optimization: Preliminary testing of a Reflux Classifier Concentrator (RCC) as a primary beneficiation method, in series with induced roll magnetic separation (IRMS). Initial results indicate lower mass yield and higher rare earth recoveries compared to spirals, which may provide operating benefits in downstream hydrometallurgy.
• Comminution optimization: Dispatch of bulk ore samples to multiple vendors in the U.S., Canada and Germany to evaluate different milling approaches, with the aim of reducing fines generation and improving overall recoveries.

The company is using these results to refine a preliminary updated mineral processing flowsheet for Halleck Creek. Remaining steps outlined by American Rare Earths include completing optimization tests, running bulk ore through the flowsheet (excluding final separation), and using MREO results to simulate solvent extraction for the PFS.

Resource definition and exploration

American Rare Earths continues to update and refine its geological understanding of Halleck Creek. At the Cowboy State Mine area, the company has reported an updated Mineral Resource Estimate based on channel sampling and modeling work by Odessa Resources Ltd. The updated model incorporates over one hundred channel samples, reclassifies a portion of the resource from inferred to indicated, and modestly increases total tonnage at a specified cut-off grade.

The company has also obtained new exploration drilling permits from the Wyoming Department of Environmental Quality – Land Quality Division. These permits cover multiple drill hole locations at the Cowboy State Mine for development drilling beyond the PFS, and additional holes at the Bluegrass exploration area, which the company indicates could add meaningful tonnage to the overall Halleck Creek resource base. Surface sampling and mapping at areas such as Red Mountain and Bluegrass provide further geological context and potential targets for future drilling.

Strategic positioning and U.S. critical minerals focus

American Rare Earths frames Halleck Creek as part of a broader U.S. strategy to diversify and secure domestic rare earth supply. Company communications emphasize that the United States currently has only one producing rare earth mine and that additional upstream sources are needed to support emerging domestic magnet manufacturing capacity. The company has highlighted U.S. government interest in critical minerals, collaboration with research programs such as the SynBREE consortium under the DARPA EMBER program, and engagement with federal and state agencies.

The company has also expanded its relationship with engineering firm Tetra Tech, which has been involved in mineral processing testing and engineering for Halleck Creek. Tetra Tech is expected to continue technical support and to assist in exploring U.S. government funding opportunities for the project. American Rare Earths notes that it is pursuing a permit-to-mine application in Wyoming and planning a beneficiation demonstration plant to further de-risk the project.

Corporate development and governance

American Rare Earths has reported several corporate developments related to its growth plans. These include board changes such as the appointment of a non-executive director with extensive geological and rare earth sector experience, and the planned appointment of a new Chief Executive Officer to lead the next phase of U.S. growth. Company statements describe a focus on advancing the Halleck Creek PFS, designing and delivering a demonstration plant, assessing additional projects such as La Paz in Arizona, Searchlight in Nevada and Beaver Creek in Wyoming, and evaluating a potential U.S. listing to align its capital markets presence with its U.S. asset base.

The company has also described funding initiatives, including equity placements, option exercises and support from a Wyoming State matching grant, aimed at financing project development activities such as demonstration plant construction, in-fill drilling and engineering programs.

Industry and sector classification

Based on the provided classification, American Rare Earths operates in the Mining, Quarrying, and Oil and Gas Extraction sector, with an industry classification of Dimension Stone Mining and Quarrying. In its own disclosures, the company consistently describes itself as a critical minerals company focused on rare earth elements and on reshaping the U.S. rare earths industry through the development of the Halleck Creek Project.

Risk profile and project stage

American Rare Earths is in a resource development and pre-feasibility stage rather than operating as a producing mining company at Halleck Creek. The company notes that Mineral Resources are not Ore Reserves and do not have demonstrated economic viability, and that there is no certainty that all or any part of the Mineral Resource will be converted into an Ore Reserve. Technical, permitting, funding and market factors will all influence whether Halleck Creek advances to construction and production.

Investors analyzing ARRNF therefore focus on exploration results, metallurgical test work, resource updates, permitting progress, funding developments and strategic partnerships as key indicators of project advancement. The company’s ongoing technical work, demonstration plant planning and regulatory engagement are central to its effort to move Halleck Creek along the development pipeline.