Mining Licence Application Process Commences For The Makuutu Central Zone

The Board of Ionic Rare Earths Limited (“IonicRE” or “The Company”) (ASX: IXR) is pleased to advise the Mining Licence Application (MLA) process for the Makuutu Rare Earths Project (“Makuutu” or ‘the Project”) has been initiated. Makuutu is being developed by Rwenzori Rare Metals Limited (“RRM”), a Ugandan private company which owns 100% of the Makuutu Project. IonicRE is a 51% owner of RRM and moving to 60%.

• Application commenced for a Mining Licence over RL 1693, submitted to Ugandan DGSM
• Focus on plan to de-risk and accelerate Makuutu development through modular expansion
• Government approval for the Makuutu Environmental and Social Impact Assessment (ESIA) study expected shortly

The MLA will focus on the Makuutu Central Zone (MCZ), located within Retention Licence (RL) 1693, and will provide the basis for initial mining at Makuutu. This area contains an Indicated Resource of 259 million tonnes at 740 ppm TREO-CeO2 (Table 2 and ASX: 3 May 2002). Advice received indicates that with an initial focus on this 44km² licence the Company will be able to accelerate development as opposed to a MLA over the total Makuutu Project area of approximately 300km² where mining in some areas would not take place for well over 20 years in the future.

Managing Director Mr Tim Harrison stated “the MLA application marks a significant milestone for the Company and comes only 3 years after IonicRE obtained an interest in the project. My congratulations and thanks go to the Makuutu team who have delineated one of the world’s largest rare earth ionic clay deposits and can now look forward to an accelerated and de-risked development project.”

The MLA comes after two ESIA public hearings were completed in early August 2022 in Bugweri and Mayuge Districts, Uganda. The total registered attendees at the hearings over the two days amounted to 3,800 persons with significant turnout from the National Environmental Management Authority, Ministry of Energy and Mineral Development, government representatives, district leadership, local communities and other stakeholders. Strong support for the project was evident during those hearings.

Discussion with Ugandan government officials indicate that the ESIA submitted in December 2021, which also focused on RL 1693, is in the final stages of assessment and is expected to be approved shortly.

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