LINDIAN ACQUIRES REMAINING 49% INTEREST FOR 100% OWNERSHIP IN SARECO OPERATING HYDROMET FACILITY

Lindian Resources Limited has announced the acquisition of 100% of the SARECO Mixed Rare Earths Carbonate (MREC) hydrometallurgical processing facility for a total purchase price of US$20 million. This transaction, which was executed on August 10, 2026, increases Lindian's ownership from 51% to full ownership of the facility, previously held by Sumitomo Corporation and Kazatomprom. The acquisition is part of Lindian's strategy to enhance its position in the rare earths sector, particularly as demand for these critical materials continues to grow.

SARECO, located in Stepnogorsk, Kazakhstan, is notable for being the only operational MREC processing facility of commercial scale outside of China. This facility has been validated for its metallurgical performance, achieving a 96% overall recovery rate of neodymium and praseodymium (NdPr) from Kangankunde concentrate. The acquisition not only secures Lindian full operational and marketing control over SARECO but also enables the company to capture 100% of the higher-value MREC product, enhancing its potential for free cash flows and future growth in downstream applications.

The strategic rationale behind this acquisition is multifaceted. By consolidating its ownership of SARECO, Lindian positions itself to capitalize on the increasing global demand for rare earth elements, which are essential for various high-tech applications, including electric vehicles and renewable energy technologies. The company has indicated strong inbound interest from end users in the United States, Europe, and Japan, underscoring the strategic importance of diversifying rare earth supply chains outside of China. Lindian's full ownership allows for a more streamlined operational approach and the potential for vertical integration into downstream processing.

Furthermore, the acquisition aligns with Lindian's broader strategy to advance its Kangankunde Rare Earths Project, which is expected to commence production in the fourth quarter of 2026. The company is fully funded to complete the SARECO acquisition and advance its production capabilities, following a recent A$100 million institutional capital raising. The additional land and facilities acquired through this transaction provide substantial capacity for future expansion, further supporting Lindian's integrated mine-to-MREC strategy.

Overall, this acquisition reflects a significant step for Lindian Resources as it seeks to enhance its competitive position in the rare earths market. With the ongoing global push for sustainable technologies and the increasing need for reliable supply chains, Lindian is well-positioned to benefit from the anticipated growth in demand for rare earth elements. The successful execution of this acquisition may serve as a catalyst for further consolidation in the sector, as companies look to secure strategic assets that can provide value in an increasingly competitive landscape.