4.5 Million Investment

Highlights

• $4.5m investment in Ark Mines by the QIC Critical Minerals and Battery Technology Fund (QCMBTF) to advance development at the Sandy Mitchell Rare Earth and Heavy Mineral Project located 230km north-west of Cairns.

• The QCMBTF’s primary objective is to support businesses across the critical minerals supply chain in Queensland.

• The QCMBTF is managed by QIC, a Queensland government owned corporation with A$131.2bn (~US$86bn) in funds under management (as of 30 June 2025)

• The QCMBTF’s investment will comprise $4m in up-front funding tied to royalties based on future product sales from Sandy Mitchell and a $500,000 equity investment, subject to shareholder approval.

• Agreement follows a collaborative due diligence process between the parties and reflects the Queensland Government’s commitment to providing support for Queensland-based resources projects which meet strict criteria for government investment.

• QCMBTF funding will facilitate the rapid acceleration of project development at Sandy Mitchell; stage-3 infill drilling now underway with results to be incorporated into upcoming Pre-Feasibility Study, with Ark Mines now targeting production in late-2027.

• QCMBTF funding in line with the Queensland Government’s strategy to strengthen domestic supply chains for critical minerals, with expectations for ~80 local jobs to be created when production at Sandy Mitchell commences.

• Near-term, Ark Mines is targeting a significant increase to the Mineral Resource at Sandy Mitchell from the current Measured Mineral Resource Estimate (MRE) of 71.8 Mt @ 1,732.7ppm Monazite Equivalent (MzEq), calculated using a 700ppm MzEq lower cut-off grade.

Ark Mines Limited (ASX: AHK) (‘AHK’ or the ‘Company’) is pleased to announce it has received a
$4.5m investment from the QIC Critical Minerals and Battery Technology Fund (‘QCMBTF’) – to support development at the Company’s flagship Sandy Mitchell Rare Earths Project in North Queensland.

Managing Director Ben Emery said: “We are pleased to announce this funding agreement with the QCMBTF, which follows an extensive period of engagement with the Fund and marks a significant step forward in our strategy to develop Sandy Mitchell through to production. With a busy works program scheduled for the second half of 2025, this investment provides Ark with an effective non-dilutive source of funding to accelerate development.”

“Strategically, it also delivers long-term alignment with the state government’s policy objective to position the North Queensland region as a key supplier of the critical minerals used in global clean energy supply chains. Our goal now is to establish Ark Mines as a leading Australian rare earths supplier, serving end users in domestic and international markets.”

“We look forward to updating our investors on more key developments in the coming months, led in the near-term by a comprehensive infill drill program which we expect will deliver a significant increase to the current Measured resource of MzEq at Sandy Mitchell.”

The contract for the resource upgrade drill program was awarded in early July (refer ASX Announcement 1 July 2025) and followed the commissioning of specialist consultants, IHC Mining, to commence a detailed metallurgical testing program to improve both the beneficiation process and mineral separation process for rare earths and heavy minerals at Sandy Mitchell (refer ASX Announcement 17 June 2025).

Development works in the second half of 2025 will be incorporated into a comprehensive Pre-Feasibility Study (PFS) scheduled for early 2026, which is expected to deliver significantly improved economics across all key project metrics.

As agreed between the parties, the QCMBTF investment will assist Ark Mines accelerate development at Sandy Mitchell, with first production – resulting in the creation of at least 80 jobs – currently scheduled for late 2027.

About QCMBTF

The primary objective of the $150m QCMBTF is to support businesses across the critical minerals supply chain in Queensland, through debt, equity and/or hybrid investment in growth-stage businesses. More specifically, the fund’s mandate includes investment in projects that will create Queensland-based jobs, deliver economic growth in Queensland, and support development to allow the growth of the critical minerals sector within Queensland.
The QCMBTF is managed by QIC.

About the Queensland Investment Corporation

QIC is a long-term specialist manager in alternatives offering infrastructure, real estate, private capital, private debt, liquid strategies and multi-asset investments. It is one of the largest institutional investment managers in Australia, with A$131.2bn (~US$86bn) in funds under management (as of 30 June 2025). QIC has over 900 employees and serves approximately 120 clients (as of 30 June 2025). Headquartered in Brisbane, Australia, QIC also has offices in Sydney, Melbourne, New York, San Francisco, London, and Singapore.

QCMBTF investment

The QCMBTF’s investment comprises:

• $4,000,000 in up-front funding on completion, in consideration for the grant of royalties based on future product sales from Sandy Mitchell; and
• $500,000 equity investment, with completion subject to shareholder approval for the purposes of ASX Listing Rule 7.1.

Other key terms include:

• in respect of the royalty:
• royalty investment conditional upon completion of the equity investment;
• royalties payable to the QCMBTF will be calculated and paid quarterly and based on 2% of gross revenues calculated in Australian dollars from the future sale of products from Sandy Mitchell;
• security granted over tenements relevant to Sandy Mitchell; and
• customary terms and conditions, including periodic reporting;
• in respect of the equity component:
• issue of 2,994,012 new ordinary fully paid shares in Ark Mines at an issue price of A$0.167 per share to raise $500,000 (before costs), subject to shareholder approval for the purposes of ASX Listing Rule 7.1; and
• customary terms and conditions, including representations and warranties given by the Company and termination rights if certain circumstances arise prior to completion (including in the event there is a material adverse change in respect of Ark Mines); and
• funding to be used to develop Sandy Mitchell in accordance with the agreed budget.

The agreement follows an extensive period of collaboration between the parties and a comprehensive due diligence process by the QCMBTF, and reflects the Queensland government’s commitment to providing support for Queensland-based resources projects which meet strict criteria for government investment. The QCMBTF’s advisers on this investment are BurnVoir Corporate Finance and Allens. (Announcement 2 October 2024).

Project Development – Sandy Mitchell

Funds raised from the QCMBTF’s investment will be deployed to accelerate investment at Sandy Mitchell, with the Company now fully funded to advance its near-term works program over the remainder of CY2025. Near-term, this will be led by the commencement of stage-3 infill drilling, with Ark now targeting a significant increase to the existing Measured resource at Sandy Mitchell of 71.8 Mt @ 1,732.7ppm Monazite Equivalent (MzEq), calculated using a 700ppm MzEq lower cut-off grade.