Diamond Hole Delivers Thick and High Grades - Exercise of Bluebush Ionic Clay REE Option

Alvo Minerals Limited (ASX: ALV) (“Alvo” or the “Company”) is pleased to announce the exercise of the binding agreement to purchase the Bluebush Ionic Adsorption Clay (IAC) Rare Earth Project (“Bluebush IAC” or “The Project”) as well as exploration results. Bluebush is located on the northern half of the Serra Dourada granite, the same host rock of the Serra Verde Ionic Clay REE deposit (“Serra Verde”), believed to be the only ionic clay project currently being commissioned outside of China.

HIGHLIGHTS

• As a result of the exceptional first diamond drilling assay result, previous reported exploration results and excellent ionic adsorption testwork recoveries, Alvo has exercised the purchase option over 100% of the Bluebush Ionic Adsorption Clay REE Project (“Bluebush IAC”).
• First diamond drill hole BLD004 returned a broad intercept of 34m at 1,090ppm TREO (24% MREO) from surface (0.5m), containing shallow, high-grade intervals including:
  • 18.5m @ 1,396ppm TREO (25% MREO) from 0.5m
    • Inc. 10.5m @ 1,868ppm TREO (26% MREO) from 0.5m
      • Inc. 3.5m @ 2,961ppm TREO (28% MREO) from 4.1m
• All Intervals contain significant Dysprosium (Dy) and Terbium (Tb), the most valuable of the Magnet rare earths.
• Grades compare favourably to neighbouring Serra Verde IAC deposit which hosts an MRE¹ of 911Mt @ 1,200ppm TREO
• Remaining 5 diamond drill hole assay results are expected to be received in the coming weeks
• Auger results across Bluebush confirm the Boa Vista as the priority prospect, highlights include:
  • 11m @ 1,045ppm TREO from 2m to EOH (25% MREO) in BLG0029
    • Inc. 6m @ 1,179ppm TREO (26% MREO) from 3m
  • 8m @ 1,155ppm TREO (25% MREO) from 0m in BLG0198
    • Inc. 4m @ 1,428ppm TREO (26% MREO) from 2m
• Bluebush IAC due diligence has successfully delivered against Alvo’s key acquisition criteria, being:
  • Grade: Identified high-grade TREO and MREO zones at Boa Vista²
  • Scale: Mineralisation defined over an initial 3.5km strike and 3.0km width (and open), with Alvo diamond drilling intercepting saprolite clay depths of up to 28m
  • Ionic Clay Extraction: Magnet rare earth extractions up to 83% (averaging 56%) using weakly acidic (pH 4), ammonium sulphate wash at ambient temperatures³

“Our outstanding first diamond drilling assay result and results of exploration across the Project over the last few months have given us great conviction to exercise the option over Bluebush IAC.

“We signed the option believing the area could contain a project like our neighbours at Serra Verde and the results delivered to date have confirmed that potential. Our acquisition criteria of Scale, Grade and Ionic Adsorption Clay Mineralisation have been met and we are very comfortable in formalising the purchase of the Project. We will continue to expand our understanding of the broader Bluebush IAC REE Project and plan to progress towards a maiden Mineral Resource Estimate in the new year.

“Alvo is now poised to take advantage of the critical minerals thematic, having been able to demonstrate broad and thick zones of high-grade ionic clays. Bluebush has the added advantage of high levels of the more valuable magnet rare earths, which are the most critical for supply chain security across the world. We believe Bluebush represents a truly unique investment opportunity that we were able to secure through our strong in-country relationships.”

Bluebush IAC Exploration Update

Alvo has completed 6 diamond holes (145m) across the Bluebush IAC REE Project, all of which intersected saprolite clay zones⁴ with widths of up to 28m and averaging 18m (See Figures 1 and 2).

Results from hole BLD004 were prioritised at the lab and the results have included mineralisation from surface (0.5m) to the interface of saprock and fresh rock at ~35m, averaging 1,090ppm Total Rare Earth Oxides (TREO) of which, 24% were the more valuable Magnet Rare Earth Oxides (MREO) (no lower cut-off applied - see Table 1 for more information).

Within the broad saprolite clay interval of 34m @ 1,090ppm TREO (24% MREO), high grade intervals included:

• 18.5m @ 1,396ppm TREO (25% MREO) from 0.5m;
  • Inc. 10.5m @ 1,868ppm TREO (26% MREO) from 0.5m;
    • Inc. 3.5m @ 2,963ppm TREO (28% MREO) from 4.1m.
• 6m @ 1,019ppm TREO (21% MREO) from 29m

Diamond drilling is considered fundamental for understanding the thickness and type of saprolite in the oxidised profile. Diamond drill hole BLD004 was drilled approximately 4m east of auger drill hole BRL0008 that delivered exceptional TREO values of 6m @ 2,537ppm TREO (21% MREO) (12% Dy+Tb/MREO), including 3m @ 3,415ppm TREO (24% MREO) (12% Dy+Tb/MREO).

The saprolite thickness in the diamond drilling has varied from a minimum of 9.4m in hole BLD006 to 28.3m in hole BLD004, with an average interval of clay intercepted of 18.3m. It is worth noting that the average depth of the auger drilling completed to date across the Bluebush Project is 8.3m and is often not intercepting the full saprolite profile. Many of the auger holes also end in mineralisation indicating that it’s an excellent tool for first pass exploration, but follow-up exploration using diamond, aircore or reverse circulation drilling is required to fully define the Project’s potential.

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