American Rare Earths Forges a New Path to Accelerate Development of Key

American Rare Earths Limited, (ASX: ARR | OTCQX: ARRNF | ADR: AMRRY) (“ARR” or the “Company”) is pleased to advise that following an extensive strategic review focusing on the development of the Halleck Creek resource, the Board has undertaken operational and structural changes to best position the Halleck Creek Project as a strategic resource to US markets. These changes will make Halleck Creek more accessible to major US investors to help facilitate its development while enhancing value to our existing shareholders.

Highlights

• A new focus on the development of the Halleck Creek Project to enhance shareholder value.
• 100% owned subsidiary, Wyoming Rare USA Inc., dedicated to developing the Halleck Creek Project.
• Subsidiary allows for US based investment and partnerships.
• A Wyoming project with Wyoming leadership to continue with growth trajectory.

As part of these changes, the Project will be developed under 100% ARR owned, Wyoming Rare (USA) Inc. (“WRI”) with its own dedicated capital structure and funding sources, positioning it as an attractive prospect for US based investment and partnerships.

WRI will focus on development of the Cowboy State Mine on a portion of the Halleck Creek Wyoming State Tenements. With the recent energy fund grant from the State of Wyoming and pathway to permitting, WRI is positioned to accelerate development of one of the largest rare earth deposits in North America. The Project has significant upside potential with less than 75% of mineralised zones yet to be drilled and deposit remaining open at depth. As released to the market on 18 March 2024, the Scoping Study identified the fundamental commercial viability of this approach, with an NPV of US$673.9m, an IRR of 22.5% and payback period of 2.9 years, with total initial capex of US$456.1m¹.

ARR Chairman, Richard Hudson commented: “This new focus represents a pivotal moment for ARR. By creating a dedicated subsidiary for the Halleck Creek Project, we are positioning the Company to unlock significant value and accelerate the development of a critical resource for the US. These changes will not only streamline our operations but enable us to better increase shareholder value long term.”

Enhanced Operational Focus for Wyoming Rare (USA) Inc.

To advance the development of the Halleck Creek Project, WRI will be led by the following highly experienced leadership team:

Sten Gustafson, Vice Chair of the American Rare Earths Board, has been appointed Chairman of WRI. Sten is currently the Chief Executive Officer and a Director of Pyrophyte Acquisition Corp. (NYSE: PHYT), a SPAC focused on companies that provide products, services, equipment and technologies that support a variety of energy transition solutions. Sten is a highly experienced energy service industry executive, investment banker and corporate securities attorney. With over 25 years of experience in the global energy sector, Sten has advised on more than 100 corporate transactions worldwide for over…