Mt Clere Rare Earth Project: 9 October 2020

• New Exploration Licence Applications have significantly expanded the Company’s Mt Clere Project to 1,780km²

• Mt Clere is prospective for:

  • Rare Earth Elements;

  • Heavy Mineral Sands; and

  • Intrusion hosted Ni-Cu-PGEs

• The Project is considered prospective for three Rare Earth Elements (REE) deposit styles:

  • Monazite sands in vast alluvial terraces;

  • Chinese-type ion adsorption clays in extensive laterite areas; and

  • Carbonatite dyke swarms e.g. Hasting’s Yangibana Project

• The Project covers extensive, enriched monazite sands identified by BHP almost 30 years ago (monazite abundance over 50% in >20% of the heavy-mineral concentrate samples)

• Substantial monazite (up to 48%) in heavy-mineral concentrates from drainages was confirmed by Astro Mining NL roughly a decade later

• Considerable ilmenite (up to 29%) and zircon (up to 60%), with lesser rutile, leucoxene and xenotime are historically located within the Project

• All tenements, including those originally pegged for their rare earth’s potential, to also be explored for magmatic nickel-copper-PGE discoveries like the recent Julimar discovery by Chalice Gold Mines

Krakatoa has now substantially expanded its size and scope at its Mt Clere Project, located in the Gascoyne Region of Western Australia. The new exploration licence applications cover regions of structural complexity within dense rocks of the Narryer Terrane thought to represent reworked remnants of greenstone sequences that are prospective for intrusion-hosted Ni-Cu-(Co)-(PGE’s). Krakatoa initially applied for Mt Clere based on the tenure containing significant Rare Earth Element (REE) geochemical anomalies  originally delineated by BHP Minerals and subsequently confirmed by Astro Mining in the 1990s.

The new tenement applications (Table 1) increase the Company’s total holdings over the prospective geology in the Gascoyne Region of Western Australia to approximately 1780 km².