ASM's Quarterly Activities Report to 30 June 2024

Australian Strategic Materials Ltd. (ASX: $ASM) has reported significant progress in its Dubbo Project and strategic agreements in its Quarterly Activities Report to 30 June 2024. The company delivered successful optimisations of the flowsheet and design of the Dubbo Project, executed an Option Agreement with Caspin Resources Limited, and strengthened its balance sheet by completing a capital raising of approximately A$16.6 million. Additionally, ASM received a non-binding and conditional Letter of Interest from Export Development Canada to provide a debt funding package of up to A$400 million for the construction and execution phase of the Dubbo Project.

Executive Commentary on Quarterly Activities

The Company has made significant strides in optimizing the Dubbo Project, demonstrating a simplified flowsheet design for the production of high-purity hafnia and identifying economic benefits in an alternative niobium oxide circuit. The strategic Option Agreement with Caspin Resources Limited aligns with ASM's mine to metals strategy to broaden its rare earth supply. Furthermore, the strengthened balance sheet positions ASM to undertake activities for the progression of final stage engineering for the Dubbo Project in 2024. The non-binding Letter of Interest from Export Development Canada reflects growing support for the Dubbo Project's funding process.

Summary of Quarterly Report and Outlook

ASM's Quarterly Activities Report showcases the company's commitment to advancing the Dubbo Project and expanding its rare earth supply. The successful optimisations of the flowsheet and design of the Dubbo Project demonstrate ASM's capacity to meet growing global demand and reduce capital and operating expenditures. The strategic Option Agreement with Caspin Resources Limited presents an opportunity to earn up to 75% of the rare earth element rights in Caspin's Mount Squires Project. Additionally, the strengthened balance sheet and the non-binding Letter of Interest from Export Development Canada position ASM for the construction and execution phase of the Dubbo Project. Looking ahead, ASM aims to continue its focus on sustainable and responsible business practices, while fostering an environment of accountability and continuous improvement.