Lindian's Quarterly Activities Report: Exceptional Rare Earth Results and Bauxite Offtake Agreement

Lindian, a prominent mining company, has released its Quarterly Activities Report for the three months ended 30 June 2023. The report highlights significant developments in the Kangankunde Rare Earths Project located in Malawi.

Outstanding Rare Earths Assay Results from Phase 1 Drill Program

During the quarter, Lindian has delivered exceptional rare earths assay results from its Phase 1 Drill program. The company has published assay results for all remaining holes in the program, showcasing high-grade rare earths mineralization. Notably, the assays demonstrate high levels of rare earths critical metal elements, such as neodymium-praseodymium (NdPr), averaging more than 20%, as well as extremely low levels of thorium and uranium, indicating non-radioactive mineralization.

The mineralization is consistently high throughout all holes, from surface to the end of each hole. The grades reach as high as 18.

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8% Total Rare Earth Oxide (TREO). Some exceptional assay results include 55 meters at 4. 7% TREO, 58 meters at 4. 5% TREO, and 21 meters at 6. 8% TREO, among others. These outstanding results are expected to have a positive impact on Lindian's maiden Mineral Resource Estimate (MRE) for the Kangankunde project.

The Phase 1 mineral resource definition drilling program is now complete, with a total of 91 holes drilled equalling 14,163 meters. All assays have been reported.

Completion of Phase 2 Drill Program and Metallurgy Evaluation

Lindian has also completed the Phase 2 Drill Program for the Kangankunde project. This program consisted of two deep drill holes, each reaching a depth of 1,000 meters. The drillholes were designed to test the depth continuity of the carbonatite mineralization between 300 meters and 800 meters below the hill-top. Assay results for these drillholes are expected in early August 2023 and September 2023 respectively.

Visual observations from both drillholes have shown textual features consistent with surface mineralization throughout the entire hole, further demonstrating the depth extension potential at Kangankunde.

In terms of metallurgy, preliminary testwork results have shown that water-only, low-cost gravity and magnetic beneficiation techniques are suitable for Kangankunde's mineralization. The evaluation of gravity and magnetic separation techniques, including WHIMS and MGS separators, has yielded a recovery rate of approximately 70% with a concentrate grade of 60%. These early-stage results are highly encouraging, and further metallurgical optimization programs are underway.

Mineral Resource Estimate and Stage 1 Processing Plant

Kangankunde is a globally significant rare earths deposit with close proximity to logistical infrastructure and tenured to mining license MML0290. The final data for resource estimation, including a high-resolution LiDAR topography survey and all Phase 1 drilling assay, geological, and bulk density data, has been collected. Lindian is on track to report its maiden Mineral Resource Estimate in the coming days.

The company is also making progress in planning and designing a Stage 1 processing plant, which will be located on the Kangankunde site. The design criteria for this plant, which comprises a mobile screening and crushing operation and a fixed plant milling and concentration circuit, are well advanced.

BAUXITE ASSETS, GUINEA

In addition to the Kangankunde project, Lindian has made significant strides in its bauxite assets. The company signed a six-year Supply Agreement for 23 Million Wet Metric Tonnes (WMT) of bauxite from its Gaoual Bauxite Project with C&D Logistics during the quarter. C&D Logistics, a subsidiary of Xiamen C&D Inc, a China-based conglomerate listed on the Shanghai Stock Exchange, provides considerable balance sheet strength that can assist Lindian in fast-tracking the development of its Gaoual Bauxite Project.

Lindian is also in discussions with other parties to commercialise its bauxite assets, which comprise approximately 1 billion tonnes of high-quality product. Given the Indonesian government's ban on bauxite exports from June 2023, Guinea is expected to play a crucial role in supplying world markets. Lindian, well positioned in Guinea, is capitalizing on this opportunity.

Corporate Updates and Funding

Post the end of the quarter, Lindian successfully completed a $35. 0M Placement, issuing 106 million new shares at 33c. The Placement was managed by Euroz Hartleys and attracted the participation of numerous overseas and local institutions. This funding has positioned Lindian well to advance the development of its Stage 1 Processing Plant at Kangankunde and execute its current work programs and strategic objectives effectively.

In conclusion, Lindian's Executive Chairman, Asimwe Kabunga, expressed satisfaction with the company's progress across all areas. The completion of the Phase One Drill Program and the outstanding assay results set the stage for Lindian's maiden Mineral Resource Estimate. Additionally, the advancements in commercialising the bauxite assets in Guinea align with Lindian's strategic objective of operating two world-class projects highly sought-after in the electric vehicle industry. With sufficient funding, Lindian is well-positioned to proceed with its current work programs and strategic goals.

Lindian's Chief Executive Officer, Alistair Stephens, commended the team's dedication and hard work in achieving significant milestones in an impressively short period. The Phase 2 Deep Drill Program assays and subsequent release of an Exploration Target are highly anticipated. With drilling complete, Lindian's focus has shifted to the construction of the Stage 1 Processing Plant, which is gaining momentum. The signing of the bauxite offtake agreements further reinforces the commercialization of Lindian's valuable assets.

Investors can expect updates on Lindian's progress in the near future as the company continues to advance its projects and strategic objectives.

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