Significant Improvement in Vanadium Grade in Phase 1 Sizing Metallurgical Testwork - Seite 3

Four diamond drill holes were selected to represent the Cambridge Vanadium Deposit (NQP23_002, NQVP23_003, NQVP23_006 and NQVP23_008), with three geological horizons (A,B/C and D) within the Toolebuc Formation being identified from drill logging and assays for testwork:

• Composite 1: Represents horizon A
• Composite 2: Represents horizon B/C
• Composite 3: Represents horizon D

Assays and quantitative XRD analyses of the head size were completed by BML as part of the testwork program.

Metallurgical Testwork Results

The results of the testwork have been assessed by Velox metallurgical consultants, BHM Process Consultants (BHM), with the following key observations identified :

• A strong correlation between the head assays and the drill assays was identified.
• Head grade results for of 0.23% V ₂ O ₅ from Composite 1 and 0.41% V ₂ O ₅ from Composite 2 received.
• Pre-scrub results proved very promising with results including:
• Composite 1 (-9.5mm sub split) within the -38μm fraction returning assays of 0.84% V ₂ O ₅ ;
• Composite 2 (-9.5mm sub split) within the -38μm fraction returning assays of 0.98% V ₂ O ₅ .

These findings indicate a significant improvement of 2.4 - 3.65 times in V ₂ O ₅ grade from the original sample to the mass within the -38μm fraction.

Next Steps

The positive findings from the Phase 1 metallurgical testwork program provide a solid foundation for the next phase of testwork (Phase 2), which will include:

• Receipt of Composite 3 results;
• Bulk scrubbing of Composites 1 and 2; and
• Commencement of sighter flotation testing.

Velox anticipates results from Phase 2 testwork will be concluded by the end of Q2 CY24. Continued updates will be provided as and when results are received.

Sample Analysis and QA/QC Program

Velox uses a quality assurance/quality control (QA/QC) program that monitors the chain of custody of samples and includes the insertion of blanks, duplicates, and reference standards in each batch of samples sent for analysis. The drill core is photographed, logged, and longitudinally cut, then ¼ core sampled and shipped for analysis. The ¾ retained sample is held in a secured location for verification purposes. Sample preparation (drying, crushing and pulverizing) is performed at Mitra PTS Laboratory, an independent (NATA Accreditation No 14525) laboratory, in Gladstone, Queensland, Australia. The entire sample is crushed to 70% passing -6 mm, and a riffle split of 250 grams is taken and pulverized to 75 microns. Pulps are sent to Bureau Veritas, in Perth, Australia (and other independent Laboratories) for analysis with the sample and pulp rejects stored as reserve.