Core Energy Minerals REE Discovery Delivers High-Grade Results at Cummins

Core Energy Strikes REE Gold at Cummins Project with Multiple Zones Exceeding 1,000ppm

Core Energy Minerals Limited (ASX:CR3) has delivered a standout announcement with significant rare earth element discoveries at its Cummins Project in South Australia. The Core Energy Minerals REE discovery represents a major breakthrough, with the company's re-assay programme of 2025 aircore drilling samples revealing broad zones of REE mineralisation exceeding 1,000ppm TREO. Furthermore, these results demonstrate strong magnet rare earth oxide ratios that position the project favourably for Australia's critical minerals strategy.

The results showcase a laterally extensive REE system with multiple intersections demonstrating excellent continuity. Notable zones include 27m @ 505ppm TREO with 4m @ 1,230ppm TREO and 18m @ 402ppm TREO with 2m @ 1,044ppm TREO. Perhaps most importantly, the mineralisation shows consistently strong MREO ratios of 22-27%, with some intervals reaching 35%, highlighting the presence of high-value magnet rare earths critical to renewable energy and artificial intelligence datacentre infrastructure.

Breaking Down the Remarkable Results

The Core Energy Minerals REE discovery has delivered multiple significant intersections across different geological settings, demonstrating the robust nature of the REE system. These results confirm the laterally extensive nature of the mineralisation and its potential for significant resource development.

Key Intersections include:

• CAC010: 6m @ 558ppm TREO (27% MREO), including 2m @ 1,114ppm TREO
• CAC015: 18m @ 402ppm TREO (25% MREO), including 2m @ 1,044ppm TREO (35% MREO)
• CAC019: 27m @ 505ppm TREO (27% MREO), including 4m @ 1,230ppm TREO (31% MREO)
• CAC026: 14m @ 659ppm TREO (24% MREO), including 1m @ 1,388ppm TREO

The mineralisation is hosted within both regolith and weathered basement lithologies, including calcrete, sands, silts, organic clays, and altered schist basement. This geological diversity suggests a robust and extensive mineralising system with multiple exploration vectors.

"The unfolding of REE prospectivity across our South Australian tenure comes at a time when the case for supply of high value MREOs in Australia is becoming paramount. We sit at the intersection of demand from the global energy transition and from the rise of datacentres, in an era of ongoing focus on Australia's critical minerals security," said Tony Greenaway, Managing Director.

Understanding ISR Amenability – A Game-Changing Advantage

In-Situ Recovery (ISR) mining represents a revolutionary approach to mineral extraction that could dramatically reduce the environmental footprint and development costs of the Cummins Project. Unlike traditional open-pit mining, ISR extracts minerals directly from underground deposits through injection and recovery wells.

This method leaves the surface landscape largely intact whilst providing significant operational advantages. However, successful ISR implementation requires specific geological conditions, particularly permeable host rocks and favourable hydrogeological characteristics.

What Makes ISR So Attractive?

ISR offers numerous advantages that make it particularly attractive for rare earth element extraction:

• Lower capital costs compared to conventional mining
• Faster development timelines (2-4 years vs 7-10 years)
• Minimal surface disturbance and waste generation
• Reduced environmental impact
• Lower operational complexity

Core Energy has identified numerous intersections within permeable lithological units that may be suitable for ISR methods. These include significant zones in silty-sands, sandy-silts, and organic sediments. Importantly, South Australia already hosts world-class ISR expertise with two active uranium ISR operations and additional projects in development.

Notable ISR-Amenable Intersections:

• CAC010: 6m @ 558ppm TREO in silty-sand
• CAC021: 29m @ 406ppm TREO in sandy-silt with organics
• CAC022: Multiple zones totalling 8m @ 497-698ppm TREO in permeable units

What Are Rare Earth Elements and Why Do They Matter?

Rare earth elements comprise 17 metallic elements that are essential components in modern technology, despite their name suggesting scarcity. In addition to their technological importance, these elements are actually relatively abundant in the Earth's crust but are rarely found in concentrated, economically viable deposits.

The REE family includes three main categories:

• Light REE (LREO): Including cerium, lanthanum, neodymium, and praseodymium
• Heavy REE (HREO): Including yttrium, dysprosium, and terbium
• Magnet REE (MREO): The most valuable subset, primarily neodymium, praseodymium, dysprosium, and terbium

Critical Applications Driving Demand

REE elements serve critical functions across numerous high-tech applications:

• Permanent magnets in electric vehicle motors and wind turbines
• Display screens for smartphones and computer monitors
• Battery technologies for energy storage systems
• Defence applications including radar and guidance systems

The Core Energy Minerals REE discovery is particularly significant because of its strong MREO ratios. These target the highest-value segment of the rare earth market driven by the global transition to renewable energy and electric vehicles.

Western Eyre Peninsula Expansion Amplifies Opportunity

Core Energy's strategic decision to extend REE exploration to its Western Eyre Peninsula Project demonstrates the company's systematic approach to unlocking value. This expansion across its South Australian portfolio shows the potential for district-scale REE mineralisation.

Historical drilling has already identified REE-rich alkaline and pegmatitic intrusives in basement rocks. Furthermore, organic-rich sediments provide ideal trap sites for REE leached from the basement, suggesting favourable geological conditions for REE concentration.

The company is leveraging the world-class South Australian Core Reference Library to analyse historical samples. This approach effectively unlocks millions of dollars worth of historical drilling data whilst exemplifying Core Energy's capital-efficient exploration strategy.

Why South Australia Is the Ideal Location

South Australia offers several competitive advantages for REE development:

• Established mining jurisdiction with supportive regulatory framework
• Existing ISR expertise from uranium operations
• World-class geological database and core reference library
• Strategic proximity to infrastructure and processing facilities
• Skilled mining workforce and technical expertise

Investment Thesis: Positioning for Australia's Critical Minerals Future

The Core Energy Minerals REE discovery comes at a critical juncture when global supply chain security for critical minerals has become a national priority. The company's focus on magnet rare earth oxides directly targets the most valuable segment of the REE market.

This market segment is driven by explosive growth in electric vehicle motors, wind turbine generators, and artificial intelligence datacentre infrastructure. Moreover, the broad, laterally extensive nature of the mineralisation suggests potential for a substantial resource base.

The ISR amenability could provide a competitive advantage through lower development costs and faster production timelines. This combination of factors positions Core Energy favourably in the competitive REE development landscape.

Timeline and Catalysts Ahead

Core Energy has outlined a clear path forward with multiple near-term catalysts that should maintain investor interest throughout 2026. These milestones represent significant value creation opportunities for shareholders.

Q2 2026 Objectives:

• Additional assay results from remaining 2025 aircore intervals
• Section analysis and geological interpretation
• ISR amenability assessment including leach testing
• Resource estimation and exploration targeting

Ongoing Activities:

• Western Eyre Peninsula historical sample analysis
• Correlation of lithologies between drill holes
• Resource modelling and exploration vectoring
• Metallurgical test work planning

The company's systematic approach to unlocking both immediate value from existing drilling and expanding the exploration footprint positions shareholders strategically. This dual approach provides multiple value creation opportunities as the project advances through various development stages.

What This Means for Investors

The Core Energy Minerals REE discovery has positioned the company as a major player in Australia's critical minerals sector. The combination of significant REE discoveries, high-grade potential, and ISR amenability creates a compelling investment proposition.

Furthermore, with upcoming milestones throughout 2026 and expansion into the Western Eyre Peninsula, investors should closely monitor this emerging REE story. The project's location in one of the world's premier mining jurisdictions adds additional confidence to the development pathway.

The strategic importance of rare earth elements, particularly magnet rare earths, continues to grow as the global economy transitions towards renewable energy and advanced technologies. Core Energy's discovery positions the company at the forefront of this critical materials revolution in Australia.

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