New Drill Targets Identified at Campo Grande REE Project

Equinox Resources Limited (ASX: EQN) (“Equinox Resources” or the “Company”) is pleased to advise that drilling will shortly commence at Jaguaquara and will also test the Jitauna prospects at its “Campo Grande” Rare Earth Project, located in the REE province in Bahia, Brazil.

• Drilling targets at Jaguaquara and Jitauna blocks identified using anomalous high REE grades identified through integrated geochemical surface assays and airborne radiometric maps, associated with thorium anomalies.
• Drilling to commence at the highly prospective Jaguaquara block testing targets located ~3 km away from Brazilian Rare Earths (ASX:BRE) Sulista discovery which returned up to a 22.4% TREO assay result.
• The high priority targets are also located ~2 kms away from BRE’s Pele Project that has returned high grade assays up to 10.4% TREO.
• An additional and equally prospective target area at the Jitauna Block has also been identified which will also be tested in this new drilling campaign.
• Surface samples from the Jaguaquara target region is interpreted to be linked to a regional-scale linear structure extending over 15 km NW-SE, indicating high prospectivity.
• This linear structure starts from the Rio Negro drill target and continues into the Jaguaquara block. Assays results from recent drilling at the Rio Negro Prospect are still pending.
• This region is geologically located on the Volta do Rio Plutonic Suite unit, known for hosting high grade mineralisations of rare earth elements in hard rock.
• The Company is in the final stages of awarding drilling contracts for a larger scale drilling program targeting REE in hard rock.
• Company recently completed a $4m capital raise and has a strong cash position of $5.3m allowing for uninterrupted drilling campaigns across its identified REE prospects
• Recent drilling has only covered ~1% of the Project tenement areas

These new targets have been generated through the continuous regional surface sampling campaign undertaken by the Company where additional regional surface samples have been received. These results assist the exploration team in mapping the areas and focusing on selected prospective areas within the Amargosa, Jitauna, and Jaguaquara blocks for further exploration and drilling as the Company awaits the drill assays from Rio Negro and additional surface samples from the region.

Based on the geochemical surface assay results integrated with the geology and airborne radiometric thorium, uranium, and ternary maps, the samples with anomalous high grade REE grades are associated with regions of thorium anomalies, sometimes with associated uranium and ternary anomalies.

The surface samples with anomalous REE grades from the Rio Negro Target region are interpreted to be associated with a regional-scale linear structure with a NW-SE direction that crosses the entire Rio Negro Target and extends for more than 15 km in the NW direction and into the Jaguaquara block (refer figure 8 below). In this region, surface samples located very close to this lineament and with anomalous REE grades indicate the high potential of the area. These prospects are further highlighted due to their proximity to the high grade discoveries that have been made by Brazilian Rare Earths (ASX: BRE) at their Pele and Sulista Projects. For instance, the Jaguaquara site is located just ~3 km from the Sulista discovery, which has yielded peak assays of up to 22.4% TREO1. Additionally, the Jitauna site is ~2 km from the Sulista discovery. The true potential of the Jaguaquara and Jitauna prospects can be further understood through drilling, drilling campaigns expect to commence imminently.

Equinox Resources Managing Director, Zac Komur, commented:

"We're in the very early stages of exploring our REE ground at our Campo Grande prospects, with only ~1% of our prospects currently drilled. By working through geochemical and geophysical data to pinpoint new additional drill targets, we have identified some high-priority areas for a drilling campaign aimed at delineating hard rock REE deposits.

This process has focused our efforts on areas within the Amargosa, Jitaúna, and Jaguaquara blocks. We plan to deploy in depth drilling programs on these new drilling targets proximal to Brazilian Rare Earths Discovery imminently."

Amargosa, Jitaúna and Jaguaquara are geologically inserted in the Jequié Complex and Volta do Rio Plutonic Suite that is known for hosting high-grade rare earth mineralisations in hard rock. The Jequié Complex is an assemblage of predominant metatonalites, metatrondhjemites and metagranodiorites closely associated with subordinate metabasic to intermediate rocks, metaultramaic rocks as serpentinites and pyroxenites.

The Volta do Rio Plutonic Suite is composed of three main petrographic rock types: granodiorites and monzogranites with normal contents of mafic minerals, a bimodal association of amphibole- bearing-metaleucogranites and associated pegmatites–aplites, maic-ultramaic to intermediate rocks and cumulates.

The high-grade mineralisation in hard rock of the Volta do Rio Plutonic Suite can occur from the surface in outcrops and extend up to 75 m deep. The Volta do Rio Plutonic Suite is distinguished by a bi-modal formation of light coloured granite gneiss and REE-Nb-Sc-U cumulate mineralization. The high grade REE-Nb-Sc-U cumulate appears to be layered within the province scale and most likely formed via the separation process of the parent magma.

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