Execution of Purchase and Sale Agreement to Acquire the Highly Prospective Prophet River Gallium-Germanium Project

Rapid Lithium Limited (‘Rapid Lithium’ or ‘Company’) is pleased to announce, further to its recent announcements to the ASX dated 20 December 2024, 17 February 2025 and 27 February 2025, that it has executed a Purchase and Sale Agreement (‘Agreement’) with Broadstone Resources Inc. (‘Broadstone’) to acquire certain mineral claims that comprise the Prophet River Gallium-Germanium Project (‘Mineral Claims’) located in British Columbia, Canada (‘Transaction’).

Overview of the Gallium Market

Gallium continues to grab news headlines around the world due to the dominance of China in the global gallium market, in which China controls 98% of global gallium production. Gallium is on the critical mineral list for Europe, America and Australia and, with the growth of electronics, semi-conductors and solar panels, it is anticipated the gallium market will grow significantly from US$2.45B in 2024 to US$21.53B by 2034¹.

Beyond China, production alternatives are limited. Russia ranks as the second-largest producer globally, however, only represents 0.81% of global production—its output is negligible compared to China's dominance. No other countries are significant producers of primary gallium, creating a near-monopoly situation that heightens supply risk for importing nations.

The demand for gallium has expanded dramatically across numerous high-tech sectors, contributing significantly to the upward pressure on prices. The global gallium market is projected to grow from $2.32 billion in 2024 to $2.91 billion in 2025, representing a compound annual growth rate CAGR of 25.4%. More aggressive forecasts suggest the market could reach $17.0 billion by 2032, expanding at a CAGR of 24.5%. Upward price pressures are likely to persist as demand continues to expand across the semiconductor, telecommunications, defense, and renewable energy sectors.

The most significant factor driving recent price increases has been China's strategic export restrictions. Beijing implemented initial controls on gallium exports in August 2023, which immediately disrupted global supply chains and pushed prices higher. By December 2024, China had escalated these measures, announcing a comprehensive ban on gallium exports to the United States, further intensifying market pressures. Since China accounts for approximately 98% of global gallium production, these export restrictions have had outsized impacts on global availability and pricing.

China's production advantage stems from its integration of gallium recovery with its massive aluminum industry, as gallium is typically extracted from the alumina processing stream.

Most of the world’s gallium is produced as a byproduct of aluminum and zinc refining.

About the Prophet River Project

The Prophet River project (the Project) is comprised of ten (10) granted mineral claims located in British Columbia, Canada and covers an area of 2,110 Ha (21km²) covering the historic Cay Mine and surrounding prospective areas.

Access to the Project is facilitated through a network of exploration trails into the main workings of the Project, including the historic Cay Mine. Access to established infrastructure including power and main roads is also in close proximity to the Project as well as large gauge rail lines which link the project area to the deepwater ports of Vancouver and Prince Rupert.

Previous exploration at the Project has demonstrated a number of high-grade zinc, germanium and gallium mineralised zones with mineralisation being identified across twenty-one (21) previous drill holes.

In addition to previous drilling, at the Wolverine Zone, a bulk sample collected assayed 6.28% Zn, 0.36% Pb, 400ppm Ge, 30ppm Ga over a 2.1m interval. At the Nose Zone, a bulk sample collected assayed 22.69% Zn, 1,500ppm Ge, 40ppm Ga over 1.3m interval.

The Nose Zone sample reported some of the highest germanium values recorded globally, underpinning the key strategic value of the project.

The mineral claims cover the main workings of the Cay Mine as well as those areas north and south of the Cay Mine, including the historical workings at the Alpha Zone covering those extensions of the main Dunedin Contact which is interpreted to be the main mineralising conduit depositing zinc, germanium, gallium and lead along that contact.

The total strike length of the Dunedin Contact on the Prophet River claims exceeds 6km remaining open to the south-east.

Importantly, there is interpreted to be two parallel units of the Dunedin Contact, both of which are mineralised.

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