Signing of strategic technology supply and offtake agreement with Carester, US$20 million equity investment from the Industrial Development Corporation, and commencement of DFS for the Zandkopsdrift magnet rare earths and battery grade manganese project in South Africa

LUXEMBOURG, Feb. 5, 2026 /PRNewswire/ — Frontier Rare Earths Limited (“Frontier” or the “Company”), which is developing the Zandkopsdrift magnet rare earths and battery grade manganese project in South Africa, is pleased to announce the signing of a Technology Supply Agreement with Carester SAS (“Carester”), one of the leading western rare earths separation specialists, and an investment of US$20m from South Africa’s Industrial Development Corporation to finance a Definitive Feasibility Study (“DFS”), with first production targeted for 2030.

HIGHLIGHTS

Strategic technology supply and offtake agreements signed with leading rare earth  specialist Carester

Carester’s proprietary rare earth solvent extraction technology to be deployed at Zandkopsdrift
Will enable production of high-purity NdPr oxide and mixed heavy rare earth carbonate (“MHREC”) at Zandkopsdrift
Includes 7-year offtake for MHREC, which will be processed at Carester’s Lacq facility in France

Updated Prefeasibility Study (“PFS”) on Zandkopsdrift project completed in 2025

Expected to be lowest-cost producer of battery-grade manganese globally and lowest-cost producer of magnet rare earths outside China
Battery-grade manganese by-product revenue expected to cover ~90% of rare earth production costs, with neodymium-equivalent net production cost of $100/kg
Post-tax NPV10%: US$2.0bn; post-tax IRR (ungeared): 28%; post-tax IRR (50% geared): 34%; average annual revenue: US$727m; average operating margin: 72%

Long-life, magnet-focused production profile

Expected average annual production (first 25 years): ~3,038 tpa NdPr oxide, and 114 tpa of Dy oxide and 25 tpa of Tb oxide separated by Carester
Magnet rare earths (Nd, Pr, Dy, Tb) represent ~94% of contained rare earth value
Proven and Probable Reserves support >45-year mine life at planned production rates

US$20 million strategic equity investment from Industrial Development Corporation of South Africa

Investment to fund DFS and corporate development activities
Conditions precedent satisfied in September 2025, with DFS under way and completion scheduled for H1 2027
IDC holds an option for offtake up to 10% of production at prevailing market prices, subject to being used in further downstream processing in South Africa

Zandkopsdrift designated as EU Strategic Project; multiple potential EU funding pathways under evaluation

Designated a Strategic Project under the EU’s Critical Raw Materials Act (June 2025)
Aligned with objectives of EU–South Africa Clean Trade and Investment Partnership (signed November 2025) and the EU’s RESourceEU Action Plan financing (announced December 2025)

First production targeted for 2030

Zandkopsdrift project fully permitted with Mining Right and Environmental Authorisation in place
Infrastructure planning (roads, power, process water) already completed, supporting a smooth transition from DFS into mine development

For more details view the full press release on Frontier’s website here.

Media enquiriesTavistock
Jos Simson/ Jade Davenport: +44 (0) 207 920 3150
[email protected]

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SOURCE Frontier Rare Earths Limited

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