Allup Silica Ltd. Announces Acquisition of Major Mineral Sands Project

Allup Silica Limited is pleased to announce that it has acquired full ownership of an advanced Valuable Heavy Mineral Sands Project situated near Eucla, WA.

The McLaren VHMS Project (E69/2388 and E69/2386) spans 333 square kilometers and is situated on the western side of the Eucla Basin, adjacent to the Fraser Range in Western Australia.

McLaren is an advanced-stage exploration project with an indicated and inferred Mineral Resource estimate of 280 million tonnes at 4.8% Heavy Mineral, totaling 13.5 million tonnes of in-situ Heavy Mineral, as completed in 2022.

Allup Silica Managing Director Andrew Haythorpe stated: "This project offers a significant opportunity for Allup Silica to advance towards production. While the sand differs from silica sand, the mining and washing processes for ilmenite are quite similar, including the near-surface mineralization and low strip ratios. The higher product price and lower shipping volumes make this a compelling development opportunity. Given the previous work done and the rising value of titanium minerals, this opportunity provides a faster and more confident pathway for Allup Silica and its shareholders. The site is accessible year-round, enabling quicker progress. We plan to begin infill drilling and additional metallurgical work as soon as possible to advance towards a Pre-Feasibility Study and then a Bankable Feasibility Study for the project."

The Company has agreed to the following terms:

•             A$150,000 in cash for 100% of the Exploration Licenses (ELs).

•             A 1.5% royalty granted to the vendors (Westover Holdings Pty Ltd and Wild Side (WA) Pty Ltd).

•             Issuance of 2 million options exercisable at $0.20 per share within 5 years from the date of issue, with an exercise price of $0.001 per APS share. The options are contingent on the completion of a Bankable Feasibility Study and Ilmenite concentrate sales exceeding US$500 per tonne from the Project.

•             Issuance of 4,241,571 shares upon the completion of the Pre-Feasibility Study (PFS) (PFS Milestone).

•             Issuance of an additional 4,300,583 shares upon the completion of the Feasibility Study (FS Milestone).

The PFS Milestone is considered achieved upon the completion of a Pre-Feasibility Study on commercially viable terms and any other criteria agreed upon by the Parties in writing. If the PFS Milestone is not met within 24 months, the Parties will engage in good faith negotiations for 5 business days to agree on an alternative basis for issuing the PFS Milestone Shares (or a portion thereof) to the Vendors. Following the PFS Period, the Purchaser agrees to make all reasonable efforts to conduct a Bankable Feasibility Study for the Tenements.

The acquisition will be financed using internal cash reserves. Additionally, the Company has opted to conduct a placement and has secured binding commitments for approximately A$360,000 (before costs) through the issuance of 9,000,000 shares at an offer price of A$0.04 per share to sophisticated, professional, and institutional investors. Directors Mr. Haythorpe, Mr. Ball, and Mr. Smyth have agreed to contribute $50,000 to the placement, pending shareholder approval at an upcoming meeting.