Magnum Mining Appoints Leonardo Fraga to Lead Brazil REE Drilling

Magnum Mining Strengthens Technical Team With Strategic Exploration Manager Appointment as Brazil REE Drilling Advances

Magnum Mining and Exploration appoints Leonardo Fraga as Exploration Manager for Brazil REE drilling, a move designed to accelerate the Company's dual-commodity growth strategy across its Brazilian rare earth element (REE) portfolio and U.S. gold-copper and REE assets. The announcement comes as drilling is already underway at the Azimuth REE Project in Brazil, with significant resource definition milestones targeted before the end of 2026.

A Strategic Hire at a Pivotal Moment

Personnel appointments don't always move markets, but the right hire at the right time can meaningfully de-risk an exploration company's near-term programme. This appointment fits that description. Magnum is currently executing a 10,000-metre auger drilling programme at its Piracanjuba Prospect in Brazil, targeting both an initial JORC Exploration Target and, ultimately, a maiden JORC Mineral Resource Estimate (MRE).

Having a technically credentialled leader on the ground to manage drilling, QA/QC, database integrity and resource estimation workflows is not a luxury at this stage.

Leonardo Fraga brings more than 15 years of exploration geology experience spanning REE systems, gold, copper, uranium, zinc and PGE-bearing mineralisation. His appointment directly addresses the technical demands Magnum faces as its most advanced project enters a critical definition phase.

Managing Director Antonio Vitor commented:

"He brings a highly complementary skill set, with deep technical expertise in rare earth systems and a strong track record progressing projects from early-stage exploration through to Mineral Resource definition. His experience across North American gold and base metals exploration further strengthens our capability to advance our portfolio in both Brazil and the United States. Drilling is in full swing at our Azimuth REE Project and I look forward to reporting a steady stream of results in due course."

Who Is Leonardo Fraga?

Mr Fraga is a registered Professional Geologist (EGBC #61611) whose career spans some of the most respected names in global critical minerals and precious metals exploration. His background is particularly well-suited to Magnum's current priorities in two ways: deep REE systems knowledge in Brazil, and hands-on experience in North American gold and copper exploration.

REE and Critical Minerals Experience

Precious and Base Metals Experience (North America)

His hands-on involvement across the full exploration cycle — from target generation and greenfields work through to drilling, geological interpretation, QA/QC, technical reporting and NI 43-101 review support — means he can contribute from day one across Magnum's entire project pipeline.

The Azimuth REE Project: Why It Matters

Mr Fraga's primary near-term focus will be leading the Azimuth REE Project's drilling programme at the Piracanjuba Prospect in Brazil. Understanding why this project is attracting serious technical investment requires some context on both the discovery itself and the type of mineralisation involved.

What Has Been Found So Far?

The decision to commit to a 10,000-metre drilling programme was underpinned by a series of highly encouraging early-stage results:

• All 13 first-pass auger holes intersected near-surface REE mineralisation, with every hole terminating within mineralised material — a strong indication of lateral and vertical continuity
• Assay results of up to 3,971 ppm TREO and 1,360 ppm MREO from first-pass drilling
• Desorption recoveries of up to 75% TREO and 94% MREO, confirming amenability to mild leaching processes
• An 85 km² geophysical footprint at Piracanjuba North validated by first-pass drill holes at up to 5 km spacing, suggesting a potentially large-scale, laterally extensive ore body
• The project sits within the Azimuth 125° Lineament, a prominent crustal-scale structural feature, approximately 50 km from CMOC's Catalão Project, one of Brazil's highest-grade niobium operations

Understanding Ionic Adsorption Clay (IAC) REE Deposits

What Is an IAC REE Deposit?

An Ionic Adsorption Clay (IAC) REE deposit is a type of weathered, near-surface mineralisation in which rare earth elements are adsorbed (chemically bound) onto clay minerals rather than locked within hard rock. This occurs when primary REE-bearing rocks undergo prolonged tropical weathering, releasing the REEs which then attach to the surface of clay particles in the weathering profile.

Why Does It Matter for Investors?

IAC deposits are highly sought after in the global REE industry for several practical reasons:

1. Shallow mineralisation — the ore typically sits close to the surface, meaning lower strip ratios and potentially simpler, lower-cost mining
2. Mild processing conditions — IAC mineralisation can often be leached using dilute ammonium sulphate or similar reagents under ambient temperature conditions, avoiding the energy-intensive and chemically complex processing required for hard-rock REE ores
3. Magnet rare earth enrichment — IAC systems are frequently enriched in the magnet rare earths (neodymium, praseodymium, dysprosium, terbium), which are the most commercially valuable REEs due to their use in permanent magnets for electric vehicles and wind turbines
4. China's dominance — the world's dominant IAC REE producers are historically located in southern China, making new discoveries outside of China strategically significant from a supply chain diversification perspective

The confirmation of IAC-hosted mineralisation at Piracanjuba, furthermore, together with the desorption recovery rates already reported, elevates the commercial prospectivity of the Azimuth project considerably.

Drilling Programme Structure and Upcoming Milestones

The current 10,000-metre auger programme is structured in two phases across three targets: Piracanjuba North, Piracanjuba, and Piracanjuba South.

Key Milestones and Timeline

• Ongoing (2026): 10,000-metre auger drilling programme in progress across all three Piracanjuba targets
• September 2026 (target): JORC-compliant Exploration Target
• November 2026 (target): Maiden JORC Mineral Resource Estimate (subject to exploration results)
• Ongoing: Assay results from drilling expected to be released progressively

In parallel, Mr Fraga will support the advancement of Magnum's U.S. assets, including gold and copper projects in Arizona and Idaho and an REE asset in Colorado, leveraging his prior North American experience.

The Investment Thesis: Building Toward Value-Creating Milestones

Magnum's strategy is straightforward in concept but technically demanding in execution: advance a dual-commodity, multi-jurisdiction portfolio of critical minerals and precious metals assets through systematic, disciplined exploration. The appointment of a technically credentialled Exploration Manager with directly relevant experience in both REE systems and gold-copper exploration is consistent with that strategy.

Several factors underpin the investment case at this stage:

1. Significant early results already in hand. An IAC discovery with all 13 first-pass holes returning mineralisation, grades up to 3,971 ppm TREO, and a desorption profile dominated by the magnet rare earths provides a compelling foundation for a resource definition programme.

2. Large-scale geophysical footprint. An 85 km² anomaly validated by first-pass drilling at wide spacings suggests the Piracanjuba Prospect could represent a genuinely large-scale system. The maiden MRE, expected by November 2026, will begin to quantify that potential in JORC-compliant terms.

3. Technically appropriate mineralisation type. IAC-hosted REE mineralisation is the most commercially straightforward REE deposit type to advance, given shallow depth, simple mining geometry, and mild processing chemistry. The high MREO recovery rates reported (up to 94%) reinforce this attribute.

4. Experienced technical leadership now in place. With a geologist of Mr Fraga's calibre — who has previously served as Competent Person on a Brazilian REE project and led drilling through to MRE definition — Magnum has materially strengthened its capacity to execute the programme as intended and on schedule.

5. Diversified asset base. Magnum's U.S. portfolio (gold-copper in Arizona and Idaho; REE in Colorado) provides additional optionality, with Mr Fraga's North American experience now available to support those assets as well.

Why Investors Should Watch Magnum Closely

The coming months represent one of the most newsflow-intensive periods in Magnum's recent history. The ongoing drilling programme at Piracanjuba is expected to generate a steady stream of assay results, with two formal JORC milestones targeted within calendar 2026. Each result has the potential to further define or expand the known mineralised footprint of a system that has already demonstrated strong early-stage indicators.

Consequently, the appointment noted when Magnum Mining and Exploration appoints Leonardo Fraga as Exploration Manager for Brazil REE drilling is not simply a corporate governance formality. It signals that Magnum is building the internal technical infrastructure required to progress from discovery to resource, and potentially beyond, in a structured and credible manner.

Key Reasons to Monitor MGU

• Progressive assay results from the active 10,000-metre drill programme expected in the near term
• JORC Exploration Target targeted for September 2026
• Maiden JORC Mineral Resource Estimate targeted for November 2026
• Dual-commodity strategy provides exposure to both critical minerals (REE) and precious/base metals (Au-Cu)
• IAC mineralisation type with high magnet rare earth recovery rates underpins commercial prospectivity
• Experienced technical team now in place to execute the resource definition programme

Key Takeaway:

Magnum Mining and Exploration has positioned itself as a serious emerging player in the critical minerals space, with a confirmed IAC REE discovery in Brazil underpinned by compelling early assay results and an 85 km² geophysical footprint. With a technically credentialled Exploration Manager now leading the programme, two significant JORC milestones targeted before the end of 2026, and a steady flow of drilling results anticipated, investors with an interest in rare earths and multi-commodity exploration should keep Magnum firmly on their radar.

Glossary of Key Terms

TREO (Total Rare Earth Oxide): The combined concentration of all rare earth elements expressed as oxides. Used as a standard measure of REE grade in exploration.

MREO (Magnet Rare Earth Oxide): The subset of rare earth oxides most critical to permanent magnet manufacturing — principally neodymium, praseodymium, dysprosium and terbium. These are the highest-value REEs in current demand.

Ionic Adsorption Clay (IAC): A near-surface REE deposit type where rare earths are adsorbed onto clay minerals. Typically amenable to low-cost, mild-chemistry processing via heap or in-situ leaching.

JORC Exploration Target: A preliminary estimate of the potential quantity and grade of mineralisation, expressed as a range, intended to convey scale potential rather than a formally defined resource. Issued prior to a full Mineral Resource Estimate.

JORC Mineral Resource Estimate (MRE): A formal, publicly reportable estimate of the quantity and grade of mineralisation, prepared in accordance with the Joint Ore Reserves Committee (JORC) Code, a recognised international standard for resource reporting.

Desorption Recovery: The proportion of REEs that can be extracted from IAC mineralisation during laboratory leaching tests. High desorption recovery rates indicate favourable metallurgical characteristics and support the potential for efficient extraction.

ppm (parts per million): A measure of concentration equivalent to milligrams per kilogram. Used to express REE grades in exploration.

QA/QC (Quality Assurance / Quality Control): The systematic process used to ensure data collected during exploration drilling is accurate, reliable and fit for use in resource estimation.

NI 43-101: A Canadian securities regulation governing the disclosure of scientific and technical information about mineral projects. Similar in intent to Australia's JORC Code.

Competent Person: Under the JORC Code, a minerals industry professional with a minimum of five years' relevant experience who takes responsibility for the preparation and reporting of exploration results and resource estimates.

Ready to Dig Deeper Into Magnum Mining's REE Opportunity?

With drilling already underway at the Azimuth REE Project, two major JORC milestones targeted before the end of 2026, and a highly credentialled Exploration Manager now leading the programme on the ground, Magnum Mining and Exploration (ASX: MGU) is entering one of the most significant periods in its history. Investors seeking exposure to a confirmed IAC REE discovery in Brazil — backed by compelling early assay results, an 85 km² geophysical footprint, and a dual-commodity asset base spanning Brazil and the United States — can learn more about the company and its projects by visiting www.mmel.com.au.