Magnum Mining Confirms IAC Rare Earth Discovery at Piracanjuba, Brazil

Magnum Mining's March Quarter Delivers a Defining Discovery and a Multi-Project Growth Story

Magnum Mining & Exploration Limited (ASX: MGU) has released its Q1 2026 quarterly activities report, providing investors with a comprehensive update on what the company describes as a defining period in its evolution. The headline is unmistakable: a new Ionic Adsorption Clay (IAC) rare earth element discovery at the Magnum Mining Piracanjuba rare earth discovery in Brazil has emerged from first-pass drilling with results that would command attention in any explorer's portfolio.

Backed by exceptional desorption metrics, a 10,000-metre follow-up drill programme now underway, and complementary high-grade gold and copper results from Arizona, the quarter marks a significant step-change in Magnum's trajectory.

A Quarter That Changed the Story: Piracanjuba Confirms a New IAC REE Discovery

The centrepiece of the quarter is the confirmation of a new Ionic Adsorption Clay REE discovery at the Piracanjuba Prospect within Magnum's wholly owned Azimuth REE Project in Brazil. The results from 13 first-pass auger holes are exceptional by any measure — every single hole intersected near-surface REE mineralisation, and every hole ended in mineralisation.

Critically, holes were spaced up to 5 kilometres apart, yet all returned positive results, pointing to a system of potentially significant lateral scale across an ~85km² geophysical footprint.

The best drill intercepts from the programme include:

What stands out beyond the grades is the geometry. Mineralisation commences at surface, runs across broad widths, and occurs consistently. The Piracanjuba Prospect is subdivided into three targets — Piracanjuba North, Piracanjuba, and Piracanjuba South — and all three were tested in this first-pass programme.

Furthermore, these represent just the first three of 19 high-priority targets identified on the Azimuth Project, with the remainder continuing to be systematically evaluated.

"The March quarter represents a defining moment for Magnum, marked by the confirmation of a new Ionic Adsorption Clay REE discovery at Piracanjuba, supported by exceptional assay results and desorption data… Piracanjuba exhibits the hallmarks of a major clay-hosted REE system with the potential to become a globally significant asset."
— Antonio Vitor Junior, Managing Director, Magnum Mining & Exploration

Understanding Ionic Adsorption Clay: Why This Mineralisation Type Matters to Investors

For investors newer to the rare earths sector, understanding why IAC mineralisation attracts such attention is important context.

What Is Ionic Adsorption Clay (IAC)?

Ionic Adsorption Clay deposits are a specific style of rare earth mineralisation where REEs are loosely bound to clay minerals near the surface, typically within weathered profiles of granite or other host rocks. Rather than being locked into hard, crystalline mineral structures, the REEs sit within the clay matrix in an exchangeable ionic form.

Why Does This Deposit Type Matter?

• IAC deposits are amenable to very simple, low-cost extraction. Rather than hard rock mining and intensive processing, REEs can be leached from the clay using mild chemical solutions — often dilute ammonium sulphate — at low temperatures and low pressures.
• Recovery can be achieved quickly. Magnum's own desorption testwork at Piracanjuba returned recoveries under mild conditions with a leach kinetic of approximately 5 minutes, which is remarkably fast.
• The deposits are near-surface, reducing mining stripping and development costs compared to hard rock alternatives.
• IAC deposits are the primary global source of heavy and magnet-critical rare earth elements — such as neodymium, praseodymium, dysprosium, and terbium — which are essential for permanent magnets used in electric vehicle motors and wind turbine generators.

In short, IAC mineralisation offers a combination of processing simplicity, near-surface access, and high-value element profiles that make it one of the most commercially attractive REE deposit types available.

Glossary of Key Terms

• TREO: Total Rare Earth Oxides — the total concentration of all rare earth elements expressed as their oxide equivalents, measured in parts per million (ppm).
• MREO: Magnet Rare Earth Oxides — a subset of TREO focusing on neodymium, praseodymium, dysprosium, and terbium, the four elements critical to permanent magnet manufacturing.
• HREO: Heavy Rare Earth Oxides — elements such as dysprosium, erbium, gadolinium, and yttrium, which command premium pricing due to limited global supply.
• Desorption: A laboratory process that tests how readily REEs can be leached from clay minerals, confirming the IAC character of the mineralisation.

Desorption Results: The Science That Validates the Discovery

On 19 February 2026, Magnum released desorption testwork results that confirmed the IAC nature of the Piracanjuba mineralisation — a critical step in converting a discovery into a commercially meaningful asset.

The results exceeded expectations. Recoveries of up to 75% TREO, 94% MREO, and substantial HREO values were achieved under mild leaching conditions. These are not merely encouraging — they are the kind of results that separate genuine IAC systems from clay-hosted mineralisation that might superficially resemble one.

Selected desorption intercept highlights:

The MREO recovery figure of 94% from a single metre interval is particularly noteworthy, as it demonstrates the potential to selectively concentrate the most commercially valuable rare earth elements — the magnet metals — from a straightforward leaching process.

The ~5-minute leach kinetic reinforces the potential for processing efficiency. Consequently, the combination of high-grade assay results and robust desorption recoveries means the Magnum Mining Piracanjuba rare earth discovery in Brazil now has two of the key pillars needed to underpin a credible resource development pathway.

The 10,000-Metre Drill Programme: Building Toward a Resource

With discovery confirmed and IAC character validated, Magnum moved quickly. By 19 March 2026, the company announced a planned 10,000-metre auger drill programme at Piracanjuba, with the programme officially commencing in April 2026.

The programme is structured in two grids, each with a distinct purpose:

Five auger drill crews are deployed across all three Piracanjuba targets. The planned timeline to key milestones includes:

• JORC Exploration Target: Targeted by September 2026 (subject to exploration results)
• JORC Mineral Resource Estimate: Targeted by November 2026 (subject to exploration results)

These are meaningful near-term catalysts that, if delivered, would represent a substantial de-risking event for the asset and provide the foundation for further development studies.

Parker Gold Project, Arizona: High-Grade Gold and Copper Enter the Picture

While Brazil dominates the narrative, Magnum's Parker Gold Project in Arizona added meaningful newsflow during the quarter. Surface geochemical results confirmed high-grade gold and copper across multiple target areas.

A high-resolution aeromagnetic and radiometric survey — flown at 40-metre line spacing at a nominal altitude of 20 metres — identified four high-priority exploration targets across the Red Breccia, Eagle Nest, and NSW Detachment blocks.

Standout surface geochemical results included:

Post-quarter re-assay results confirmed 142 g/t Au and 178 g/t Au — exceptional grades for surface rock chip sampling that confirm the presence of high-grade gold structures at the project. The Parker Project sits at the intersection of the Walker Trend and the Colorado River Extension Zone, both recognised as significant structural corridors for gold, copper, and REE mineralisation in Arizona.

Wet Mountain REE Project, Colorado: Acquisition Completed

On 2 February 2026, Magnum completed the acquisition of Wyoming Critical Minerals, Inc. (WCM), giving the company full ownership of the Wet Mountain REE Project in central Colorado.

The project carries historical surface sampling data from the United States Geological Survey (USGS), with assays of up to 7.99% (79,900 ppm) Total Rare Earth Elements from outcropping carbonatite dykes. Zones of over 1% TREE have been delineated, along with notable heavy and magnet REE components including up to 20,000 ppm Nd and 5,000 ppm Pr.

It is important to note that these are historical USGS results and must be treated with appropriate caution until resampled using modern techniques and QA/QC protocols. However, the host lithology — carbonatite dykes — is one of the most prolific REE-hosting rock types globally.

Leadership Reinforced: New Managing Director Brings Proven IAC Expertise

Antonio Vitor Junior was formally appointed Managing Director effective 1 April 2026, bringing a directly relevant skill set to the role at a critical juncture for the company.

Mr Vitor Junior's credentials include:

• Hands-on experience in the discovery and advancement of IAC-style rare earth mineralisation in Goiás State, Brazil — the same geological province as Piracanjuba
• Previously served as Country Manager of Appia Rare Earths and Uranium Corp and Managing Director of Ultra Rare Earth Inc
• Instrumental in the discovery of the PCH Project, located within the Azimuth 125° lineament — the same structural trend hosting Magnum's Azimuth Project
• CEO of Bahia Graphite Corp, which has executed a Letter of Intent with Marubeni Corporation

The appointment of someone with direct, in-country IAC discovery experience at this precise moment — as Magnum deploys a 10,000-metre programme on the Magnum Mining Piracanjuba rare earth discovery in Brazil — is a strategically well-timed move that should accelerate exploration execution.

Financial Position: Funded and Focused

Magnum's financial position at the end of the March quarter provides a clear picture of a company actively investing in its exploration pipeline while maintaining a responsible cash runway.

With approximately 5.8 quarters of estimated funding available at the current run rate, Magnum has sufficient runway to progress through its planned Exploration Target and Mineral Resource Estimate milestones without immediate capital pressure. There are no loan facilities or credit standby arrangements drawn, leaving the balance sheet unencumbered.

The Investment Case: Multiple Catalysts, Coherent Strategy

Magnum enters the second quarter of 2026 with a portfolio that has moved materially in terms of quality and near-term newsflow potential. The investment case rests on several distinct pillars:

1. A confirmed, scalable IAC REE discovery at Piracanjuba — one of the few confirmed IAC occurrences along the Azimuth 125° trend, with a 100% drill-hole success rate and holes open along strike and at depth.
2. Desorption data that validates commercial potential — recoveries of up to 75% TREO and 94% MREO under mild, low-kinetic conditions represent strong early-stage metallurgical indicators.
3. A 10,000-metre programme actively underway — designed to deliver a JORC Exploration Target by September 2026 and a JORC MRE by November 2026.
4. 19 high-priority targets on the Azimuth Project — only three have been tested to date, leaving a substantial pipeline of potential exploration newsflow beyond Piracanjuba.
5. High-grade gold and copper results at Parker, Arizona — rock chip grades of up to 178 g/t Au and 18.35% Cu confirm the presence of high-grade structures.
6. Wet Mountain REE Project in Colorado — a third REE asset with historical USGS-documented high-grade surface anomalism, awaiting systematic modern exploration.
7. In-country leadership — the appointment of a Managing Director with direct IAC discovery experience in Goiás State materially strengthens operational execution capability.

In addition, the rare earths sector is increasingly defined by the distinction between project types. IAC deposits sit at the premium end of this spectrum, and confirmed IAC discoveries with clean desorption metrics are rare. The Magnum Mining Piracanjuba rare earth discovery in Brazil has delivered exactly that — a first-pass programme with 13 out of 13 holes intersecting near-surface REE mineralisation, with desorption recoveries that confirm the system is genuinely ionic adsorption in character.

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