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 <US$15/kg, compared to current market price 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 enquiries
Tavistock
Jos Simson/ Jade Davenport: +44 (0) 207 920 3150
frontierrareearths@tavistock.co.uk

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