Updated MRE Incorporates Heavy Rare Earth Elements

Updated Mineral Resource Demonstrates Potential to Increase Monte Muambe Fluorspar Project Revenues by up to 40% Through Heavy Rare Earth By-Product

NeoTerra (LSE: TERA) (OTCQB: ANRCF), the African critical minerals exploration and development company, is pleased to provide an update to the Mineral Resource Estimate ("MRE") for Fluorite Zone and Python at its Monte Muambe Project in Mozambique.

The updated MRE incorporates Heavy Rare Earth Elements ("HREE") for the first time and demonstrates the potential to recover a valuable HREE-rich concentrate alongside the Company's planned acid-grade fluorspar production. The additional product stream has the potential to increase projected revenues for the fluorspar project by up to 40% over the life of mine, whilst requiring only modest incremental capital expenditure and operating costs.

Highlights

• Updated fluorspar MRE now includes Heavy Rare Earths Elements ("HREE"), confirms potential for a valuable HREE-rich concentrate by-product alongside planned acid-grade fluorspar production.
• Potential annual production of up to 650 tonnes of HREE-rich concentrate, subject to metallurgical optimisation.
• HREE by-product could increase projected fluorspar operation revenues by up to 40%, requiring only modest additional capital expenditure and operating costs, therefore creating the opportunity to materially enhance project economics.
• Further strengthens Monte Muambe's position as a strategically important multi-commodity critical minerals project.

Updated Resource Highlights Opportunity to Materially Enhance Fluorspar Mine Economics

Further to its announcements of 14 April 2026 and 4 June 2026, the Company is pleased to announce an updated MRE for the Fluorite Zone and Python orebodies incorporating rare earth elements.

The updated MRE provides the basis for a first assessment of the quantity of HREE-rich concentrate that could potentially be recovered as a by-product of the Company's planned fluorspar operation.

Table 1 - Fluorite Zone and Python rare earths MRE (cut-off grade 12.5% CaF2 - see Notes1).

Based on the updated MRE and assuming an estimated recovery of approximately 65% into a concentrate grading 70% TREO, the Company estimates that the mining operation has the potential to produce annually up to 650 tonnes of HREE-rich rare earths concentrate, containing approximately 80 tonnes of yttrium oxide, alongside the planned production of 50,000 tonnes of acid-grade fluorspar.

Management believes this additional product stream has the potential to increase overall project revenues by up to 40%. Importantly, recovery of the HREE concentrate would require only modest modifications to the fluorspar flotation circuit and therefore occur after the majority of mining, crushing, grinding and primary flotation costs have already been incurred for fluorspar production. As a result, only modest incremental capital expenditure and operating costs are anticipated, creating the opportunity to materially enhance overall project economics and future cash generation.

Cedric Simonet, CEO of NeoTerra, commented:

"This updated resource estimate indicates the significant value creation potential of recovering heavy rare earths as a by-product of our planned fluorspar operation.

"For the first time, we have quantified the potential impact of recovering a valuable heavy rare earth concentrate alongside our planned fluorspar production.

"While further metallurgical and engineering work remains, these results continue to strengthen the business case for the Monte Muambe fluorspar operation and its importance as a near-term producer of strategically important minerals.

"As development work continues, we look forward to capitalise on the results announced today to unlock further value for our shareholder."

• Notes to Table 1:
• MRE computations cover the same volumes of rock as the measured and inferred CaF2 MRE published on 5 May 2026.
• All REE grades (TREO, HREO, Y₂O₃) are reported at Inferred confidence throughout. REE classification boundaries differ from CaF₂ boundaries due to different variogram parameters and estimation domains.
• Tonnes and density incorporate a 7.8% global cavity depletion factor.
• TREO = La₂O₃ + CeO₂ + Pr₆O₁₁ + Nd₂O₃ + Sm₂O₃ + Eu₂O₃ + Gd₂O₃ + Tb₄O₇ + Dy₂O₃ + Ho₂O₃ + Er₂O₃ + Tm₂O₃ + Yb₂O₃ + Lu₂O₃ + Y₂O₃.
• Rounding: differences may occur in totals.
• 13.6Mt at 2.42% TREO
• 3.48Mt at 20.6% CaF2
• 11.73Mt at 54.7g/t Ga2O3

The project is held under a 25-year mining licence and has received US Government support in the form of a US$ 1.875 million grant from USTDA to advance the rare earths component through the prefeasibility stage.