Name of the Project
Longonjo neodymium/praseodymium project.

Location
The project is located in Angola – 4 km from a modern rail line leading directly into the Atlantic Port of Lobito.

Project Owner/s
Pensana Metals holds an 84% interest in Longonjo through its 84% holding in Angola-registered company Ozango Minerais, which owns 100% of the prospecting licence.

The Angolan government holds a 10% interest and the company’s Angolan partners hold the remaining 6%.

Project Description
Longonjo has indicated and inferred mineral resources of 226-million tonnes grading 1.47% rare-earth oxides and 0.33% neodymium/praseodymium. A prefeasibility study (PFS) has indicated the viability of a long-life, low-cost openpit operation based on a weather-zone component of the Longonjo resource estimate.

The focus of the PFS is on the initial development of the highest-grade portion of the near-surface weathered-zone mineralisation, which is a subset of the total project mineral resource estimate.

The PFS envisages openpit mining and the two-phase development of a two-million tonne-a-year processing plant and associated infrastructure, producing on average 56 000 t/y of neodymium/praseodymium concentrate for export.

The openpit will be a free dig operation with a very low strip ratio. The processing plant will use flotation to produce a high-grade rare-earth concentrate. The project has a nine-year life-of-mine.

The investment has been designed to meet Equator Principles and Scope 1, 2 and 3 emissions under the Green House Gas Protocol. Access to low-carbon power from the Luaca hydroelectric dam, as well as local photovoltaic and storage facilities, will allow for a very low carbon footprint, combined with closed-circuit zero discharge for process water and tailings, with full end-of-life rehabilitation.

Potential Job Creation
The project will provide training for about 260 jobs at the mine.

All-in Sustaining Costs/All-in Costs
Not stated.

Net Present Value/Internal Rate of Return
In the base case scenario, the project has an internal rate of return of 101%, with a payback of 13 months.

Capital Expenditure
Initial capital costs are estimated at $130.6-million.

Planned Start/End Date
The project is expected to take 14 months to implement – from construction to commissioning.

Latest Developments
Pensana’s operations have been unaffected by the Covid-19 virus to date as it advances to the definitive feasibility study on the project. Pensana continues to monitor the situation closely.

The study is expected to confirm Longonjo’s status as one of the world’s only major rare earth mines being developed at a time when demand for magnet metals from electric vehicles and offshore wind turbines manufacturers are expected to take off.

Based on the results from 57 out of 195 holes of the recently completed drill programme and subject to the usual caveats that drilling results can downgrade, as well as upgrade, a resource estimate, the company is expecting that the resource will be substantially upgraded and is targeting a mine life of more than 15 years.

The studies into the downstream production of a carbonate, which will open up markets in

Europe, Japan, Korea and China, will form part of the definitive feasibility study that will be reported on in the September quarter.

Chinese rare earth processing companies have returned to work, following a longer than usual Chinese New Year break. The company has received further expressions of interest in

becoming potential partners in developing the Longonjo project.

Pensana is well advanced in the documentation, and regulatory and shareholder

approvals for listing on the LSE and once the current turmoil in the financial markets has abated, it will complete the standard listing on the main board.

The company has recently welcomed the Angolan Sovereign Wealth Fund as a shareholder

and notes the fund’s intention to further support and work with Pensana and its

management in the development of this important national project.

Key Contracts and Suppliers
Wood Group (lead engineer, TSF, infrastructure, mining, process plant engineering, cost estimation, surface water management); SRK Consulting (mineral resource estimate and model); HCV Africa (environmental- and social-impact assessment and baseline studies); Grupo Simples (environmental and social assessment, stakeholder engagement – Angola); AVM Advogadas (Angola legal); DLA Piper (Australia legal); Vic McLaglen (legal consultant); Auralia Metallurgy (metallurgical testwork facility – flotation); Bureau Veritas Minerals (metallurgical testwork – comminution); ALS Mineralogy (mineralogy testwork);

Dr Wally Witt (geological consultant); ARQ Consulting (geotechnical studies); HCV Africa (hydrology, borefield testing and modelling); Conrad Partners (transport and rare earth concentrate market); and Nagrom Laboratories (sample assays).

Contact Details for Project Information
Pensana Metals CEO Tim George, tel +61 8 9221 0090 or email contact@pensanametals.com.