REG-Pensana Plc: Update on Longonjo Mine Development, Downstream and Offtake

PensanaAnnouncement

Today 07:02

8                               th                                June 2026

THIS                                                              ANNOUNCEMENT
                                                             CONTAINS         
                                                    INSIDE                    
                                         INFORMATION

 

Pensana Plc ("Pensana"                                                        
     or                                                              the      
                                                       "Company")

 

UPDATE ON LONGONJO MINE DEVELOPMENT

DOWNSTREAM AND OFFTAKE

 

 

Pensana Plc (LSE: PRE) is pleased to provide an update on the construction of
the Longonjo Mine in Angola together with details of the downstream separation
and metal conversion strategy which combined with the proposed offtake
arrangements are aimed at establishing an independent mine-to-magnet supply
chain supporting                      U.S. and international magnet makers
and automotive OEMs and other industrial customers.

Highlights at a Glance

·                                         The $250
million development is on target and on budget for first MREC commissioning in
2027 with a 20 year mine life producing initially 20,000 tonnes of clean MREC
expanding to 40,000 tonnes in Year four.

·                                         $36 million has
been spent on the direct mine and processing plant development costs and the
main construction programme is now 22% complete.           The major site
earthworks, geotechnical, drilling and test-piling programmes have been
completed and the on-site concrete batch and aggregate plants have been fully
commissioned.

·                                         Manufacture of
the long-lead process equipment is well advanced, with approximately $135
million of total capex (US$250 million) expenditure currently committed under
the procurement schedule.

·                                         A heavy rare
earth recovery circuit optimisation is underway, targeting a production of
dysprosium and terbium production of over 122 tonnes per year, making Longonjo
one of the western world's largest heavy rare earth producers.

·                                         A modular
separation facility is being engineered which will be scalable with the
planned mine expansion and will include a metallization circuit to convert
both the light and heavy rare earth oxides into metal for direct supply to
magnet manufacturers.

·                                         Longonjo hosts
one of the world's largest undeveloped rare earth mines with a JORC Ore
Reserve containing 139,457 tonnes of NdPrO and 3,689 tonnes of DbTyO with a
mine of life more than 20 years based on near surface resources, with the
potential to increase this to over one billion tonnes after the forthcoming
drilling programme.

·                                         The U.S.
Mine-to-Magnet strategy is anchored by US$165 million strategic investment
from Cascade Natural Resources alongside up to US$160 million ABSA debt
financing underpinned by political and commercial risk insurance by US EXIM.

·                                         A multi-partner
offtake framework has been established anchored by                     
Toyota Tsusho (Japan), ReElement Technologies (US), and VAC/eVAC Magnetics
(US/Germany), spanning the rare earth value chain.

·                                         All the major
Japanese trading houses have been engaged, including Hanwa, who are sponsoring
an investigation into rare earth separation with the Japanese government under
METI's Global South Initiative.

·                                         Currently
engaged partners include all three of the main Japanese magnet producers
(Shin-Etsu, Proterial, and TDK and tier-one suppliers in Japan (Honda, Nissan
and Daido Electronics), and leading automotive OEMs in Europe (Mercedes, JLR,
BMW and VW) and the US (Tesla and General Motors).

·                                         Preparations
for a NASDAQ listing are underway to broaden access to US capital markets.

 

Tim George Pensana CEO commented:                     "We are delighted with
the progress by the team on site led by Kevin Botha and Geraldine Tchimbali
Máquina. Detailed design has progressed well and resulted in securing the
bulk of the procurement program and consequent fabrication processes, thus
significantly reducing possible capital overruns. We now look forward to the
progressive arrival of the main process plant equipment currently being
manufactured offsite and completing the balance of the main construction phase
in the coming year."

Paul Atherley Chairman commented:                     "Longonjo is one of the
largest rare earth deposits ever to be developed and has the advantage of
world class infrastructure of the Lobito Corridor, hydroelectric power and
highly supportive Angolan government and sovereign wealth fund.

Once in full production it will be one of the world's biggest producers of
both light and heavy rare earths and will form part of an integrated and
independent rare earth supply chain supporting the Japanese, US and European
economies."

 

Longonjo rare earth mine - Development Update

Project Overview

The Longonjo Rare Earth Mine is located in the Huambo district of Angola,
approximately 350 kilometres southeast of Luanda. The project is situated
within 5 kilometres of the sealed national road and the Lobito Corridor
railway line, providing direct access to the Atlantic Port of Lobito
approximately 300 kilometres to the west, from which MREC product will be
exported globally.

The operation will extract, concentrate, calcine and chemically refine the
near-surface free-dig carbonatite material to produce a high-value mixed rare
earth carbonate (MREC), to be railed to Lobito for international export.

Resource and Reserve

 Parameter              Detail      Unit    Notes                                      
 Ore Reserve (Stage 1)  22 million  tonnes  JORC-compliant, Measured & Indicated only  
 Reserve Grade (TREO)   3.04%       % TREO  One of the highest grades globally         
 NdPrO Content          139,457     tonnes  Magnet metal oxide                         
 DyO + TbO Content      3,689       tonnes  Magnet metal oxide                         
 Mine Life              20+         years   Stage 1 development                        
 ROM Throughput         0.85        Mtpa    Stage 1 design basis                       
 Phase 1 MREC Output    20,000      tpa     Initial production capacity                
 Phase 2 MREC Output    40,000      tpa     Expansion phase from ~2029                 

 

Construction Progress

Main Construction Phase (Active - 2026)

Construction at Longonjo is advancing at full pace and firmly on schedule at
over 20% completion of the full project schedule. Main construction activities
commenced on plan following the successful conclusion of the FSDEA-funded
early works programme.

The site-wide earthworks are now substantially complete, including all
earthworks associated with the plant terrace, and supporting geotechnical and
drilling programmes previously announced have been completed with all
investigations completed and the drilling rig demobilized in April.

The test-piling programme is also complete with an initial 38 piles providing
the data now being used to finalise the full piling design. Second and third
pile batches are on order, with deliveries due over the coming weeks, giving a
total of approximately 1,600m of piling.

The on-site concrete batch and aggregate plants are installed, operational and
in use, and at the office and stores complex the earthworks are complete with
civil works now commenced.

The procurement programme is well underway with the longest-lead process
equipment well advanced and broadly on track. The Sulphuric Acid Plant (Clark
Solutions), the single longest-lead package is around 50% complete and has
been tracking ahead of schedule. The Ball Mill (NCP), the longest-lead process
item, is fully complete.

The main engineering detailed design work by Pro-Process and Lycopodium is
advancing well at above 40% completion.

Among the other major procurement workstreams, the Flash Dryer (Ingetecsa) is
56% complete and running slightly ahead of schedule, the Mixer (Ingetecsa) is
69% complete and on target, and the Calciner (Drytech) 69% complete.

Infrastructure & Logistics

Longonjo enjoys an outstanding infrastructure position. The mine sits nearby
the national grid linked to the 2GW Laúca hydropower scheme, delivering
low-cost, low-carbon electricity that underpins both operating economics and
the Company's strong environmental credentials.

Located just 4km from the Lobito Corridor rail line, which is operated under
concession by the Trafigura, Mota-Engil and Vecturis consortium. The product
will be railed 273km to the Atlantic Port of Lobito, providing fast, efficient
and direct access to customers across the United States, Europe and Asia.

HREE Recovery Circuit - Upgrade Programme

A significant value-enhancement initiative has been initiated to develop a
Heavy Rare Earth Element (HREE) recovery facility alongside the primary MREC
process plant. Technical studies indicate that the current MREC product, which
contains approximately 30 tonnes per annum of HREO, can be upgraded to contain
up to 122 tonnes of HREO comprising of dysprosium oxide (DyO) and terbium
oxide (TbO) in addition to a higher proportion of SEG products than initially
anticipated.

At current market pricing, DyO trades at approximately $208,000 per tonne and
TbO at approximately $918,950 per tonne, representing material additional
revenue potential. Capital and operating cost studies for the HREE circuit are
being finalised.

This upgrade materially strengthens Longonjo's position as one of the very few
suppliers outside China capable of delivering both light and heavy rare earth
elements into the full mine-to-magnet supply chain. Encouragingly, offtake
partners have already confirmed both increased demand and enhanced valuation
for MREC with higher HREO content, reinforcing the compelling commercial logic
of the investment.

Exploration & Resource Expansion

An expanded drilling programme has been launched to grow the Longonjo resource
inventory further, with the clear ambition of cementing Longonjo's standing
among the largest rare earth mines in the world.

 

Downstream Strategy - Separation and Metal Conversion

Downstream Separation & Metal Conversion: Saltend Process Design Optimisation

Pensana is actively optimising the process design of the previously engineered
Saltend separation facility, with the objective of deploying that intellectual
property and engineering in the most operationally and commercially
advantageous location. The evaluation draws on the substantial body of Front
End Engineering Design (FEED) work already completed, preserving the value of
the investment made to date whilst ensuring the facility configuration is
right-sized and right-sited for the project's evolving requirements.

A key output of the optimisation programme is the re-engineering of the
facility into a series of modular processing trains. This modular architecture
will allow separation capacity to be scaled precisely to match mine output at
each stage of development, with additional trains commissioned in line with
the planned expansion of the Longonjo mine from initial Phase 1 production of
20,000 tpa MREC towards the Phase 2 target of 40,000 tpa. The modular approach
delivers capital efficiency, operational flexibility, and reduced execution
risk compared to a single-train design.

The optimised facility design will also incorporate a dedicated heavy rare
earth element (HREE) separation circuit, now under active evaluation. This
circuit will complement the HREE recovery upgrade being developed at the
Longonjo mine site (see Section 2), enabling the full range of separated rare
earth oxides - including neodymium, praseodymium, dysprosium and terbium - to
be produced within a single integrated downstream facility and presented
directly to magnet metal conversion and manufacturing customers.

A transformational milestone in the delivery of Pensana's full magnet metal
value chain has been achieved through the successful award of a grant under
the European Union's Horizon Europe programme - specifically the PerMaNet
(Permanent Magnet Network for the European Transition) initiative
(Horizon-CL4-2024-RESILIENCE-01). This grant will enable Pensana to link rare
earth separation directly into a metal conversion facility, delivering a fully
integrated mine-to-magnet value chain - from Longonjo ore, through separated
rare earth oxides and metal alloy conversion, to permanent magnet production -
with first integrated output targeted for 2028. The award positions Pensana as
one of the few fully vertically integrated Western rare earth producers
operating outside of China.

 

US Mine-to-Magnet Strategy

Japan - Separation via Toyota Tsusho / Toyotsu Rare Earth India

In June 2025, Pensana signed a non-binding MOU with Toyota Tsusho Corporation
- the trading arm of the Toyota Group - for the proposed offtake of up to
20,000 tonnes per annum of MREC from Longonjo over a five-year period, with
pricing to be agreed.

Toyota Tsusho intends to deploy Toyotsu Rare Earths India (TREI) - its
established processing subsidiary, operating in India since 2013 - to separate
Longonjo's MREC into individual rare earth oxides, which will then serve
Toyota Tsusho's well-established base of Japanese magnet manufacturer
customers. Both parties are actively exploring deeper cooperation across the
rare earth value chain.

eVAC Magnetics / Vacuumschmelze (VAC) - Magnet Production Partnership

In October 2025, Pensana signed a Memorandum of Understanding with
Vacuumschmelze GmbH & Co. KG (VAC), a global leader in rare earth permanent
magnets, to establish a major mine-to-magnet supply chain in the United
States. VAC recently commissioned its eVAC Magnetics facility in Sumter, South
Carolina.

Under this partnership, MREC from Longonjo is intended to feed the new eVAC
Magnetics permanent magnet plant in South Carolina, whose NdFeB magnet output
is designed to scale rapidly from an initial 2,000 tpa to 12,000 tpa by 2029.
These magnets will serve high-growth, strategically vital end markets -
automotive, wind energy and the US defence sector. VAC is additionally
developing heavy-rare-earth-free magnet alloys, further reducing reliance on
Chinese supply chains and strengthening the strategic resilience of the
partnership.

ReElement Technologies - US Rare Earth Refining

In June 2025, Pensana signed a non-binding MOU with ReElement Technologies,
the rare earth refining division of American Resources Corporation, for a
proposed offtake of MREC from Longonjo over a five-year period for potential
processing through ReElement's developing Marion facility located in Indiana.

The proposed separation licencing agreement is designed to help establish a
sustainable, independent rare earth supply chain serving US and Allied defence
and commercial industries aiming to convert the Longonjo MREC material to
Oxide for further processing. ReElement's advanced refining platform is
recognised as a low-waste, cost-effective route to producing separated rare
earth oxides, and both parties have agreed to leverage the Lobito Corridor for
low-cost, efficient access to global export markets.

Product Quality and Customer Qualification

A major potential customer has formally approved the product qualification
specifications for Longonjo's mixed rare earth carbonate (MREC) product which
is a key commercial milestone confirming its suitability for downstream
separation processes.

Longonjo's MREC is characterised as `ultra-clean', carrying a notably low
impurity profile relative to other global producers. This is a significant
competitive advantage for downstream separation. The planned HREE upgrade
further enhances the product's appeal to separation and magnet customers.

 

Offtake Landscape and Commercial Framework

Overview of Offtake Position

Pensana is establishing strategic offtake partnerships responding to the
significant global demand for the Mixed Rare Earth Carbonate product but also
the separated oxides and metal. The demand covers the three main geographies
of Japan, Europe and the United States. The Company's pipeline of MOUs has the
potential to cover up to 100% of initial Phase 1 production of 20,000 tpa
MREC, with significant interest also confirmed for Phase 2 production at
40,000 tpa.

 Partner                    Geography                    Volume (tpa)  Duration  Product                 Status          
 Toyota Tsusho Corporation  Japan / India (TREI)         Up to 20,000  5 years   MREC                    MOU (Jun 2025)  
 ReElement Technologies     United States (Indiana)      TBC           5 years   MREC                    MOU (Jun 2025)  
 eVAC Magnetics / VAC       United States (S. Carolina)  TBC           TBC       MREC → NdFeB magnets    MOU (Oct 2025)  
 Undisclosed                Europe                       10,000        5 years   MREC                                    

 

Market Context and Macro Tailwinds

The market backdrop for Western rare earth supply has shifted decisively in
Pensana's favour, with several developments materially increasing both the
urgency and the value of Longonjo's MREC production. On policy, the US
Administration has signaled significant state support for domestic and allied
rare earth production - including guaranteed offtake arrangements for US
producers and a stated commitment to remove Chinese-origin rare earth
materials from American weapon systems by 2027, a timeline that aligns
directly with Longonjo's first production. A reported 25% US tariff on Chinese
rare earth imports from 2026 further improves the economics of Western-sourced
supply.

Simultaneously, export controls on medium and heavy rare earths introduced by
China in late 2025 have driven sharp price increases for controlled materials
outside China, strengthening the commercial case for Longonjo's HREE-enriched
MREC. Demand-side momentum is equally compelling: emerging humanoid robotics
and AI applications represent a substantial new source of NdFeB magnet demand
on top of the established electric vehicle and wind turbine markets,
positioning Longonjo to deliver during a period of accelerating global demand
for NdPr oxides.

Pricing Framework

Offtake pricing across Pensana's current MOU portfolio remains subject to
final agreement and the Company is positioning itself to maximise the value in
implementing offtakes in line with the company strategy. The Company is
engaged in detailed pricing discussions with all offtake partners, with
frameworks expected to reflect market benchmarks for MREC and separated rare
earth oxide and metal products.

Demand Pipeline - Phase 2

The Company has confirmed high interest in proposed Phase 2 production, which
would double MREC output to 40,000 tpa from approximately 2029. Discussions
are underway with existing and new offtake partners regarding capacity
allocations for Phase 2 production                     .

 

Financing and Corporate Developments

Financing Structure

Cascade Natural Resources Strategic Investment - US$165 million

In December 2025, Pensana announced a US$165 million strategic equity
investment from Cascade Natural Resources Limited to support the development
of the Company's US Mine-to-Magnet strategy. The investment has since been
revised and updated, with the transaction structure subject to finalisation of
long-form documentation.

On completion, Cascade is expected to hold approximately 4% of Pensana and
38.2% of Sable Min., the Company's wholly owned Portuguese subsidiary.
Proceeds are earmarked to accelerate construction at Longonjo, advance the
HREE drilling programme, progress early downstream initiatives in the USA,
fund NASDAQ listing costs and cover corporate expenditure ahead of first
production in 2027.

ABSA Debt Financing - US$160 million (US EXIM Guaranteed)

Together with the Cascade equity investment, Pensana has a proposed US$160
million debt financing package being arranged by ABSA, guaranteed by the
Export-Import Bank of the United States (US EXIM), intended to support
construction of the Longonjo mine.

FSDEA - Angola Sovereign Wealth Fund

The Angolan Sovereign Wealth Fund (FSDEA) has been Pensana's primary
construction finance partner. The FSDEA-funded early works programme was
successfully concluded in 2025, with the final tranche of a US$25 million
equity facility having been received by subsidiary Ozango Minerais SA and     
                fully deployed toward Longonjo main construction activities.

FSDEA remains a committed shareholder and strategic partner in the Longonjo
project providing continual support across all facets of the Longonjo Project
development and Angolan landscape.

 

NASDAQ Dual-Listing

The Company's Board is actively evaluating a potential listing on the NASDAQ
Stock Market in the United States, in addition to the existing LSE listing
(LSE: PRE), to broaden the Company's investor base and deepen access to US
institutional capital in the context of the Company's US Mine-to-Magnet
strategy.

 

About Pensana

Pensana is developing one of the world's largest and highest-grade magnet
metal rare earth deposits which will initially produce 20,000 tpa of a clean
high value MREC including both LREE and HREE. The plan is to expand production
to 40,000 tpa of MREC once initial operations have been established.

The Longonjo operation will extract, concentrate, calcine and chemically
refine the free dig material to produce a high-value MREC which will be railed
273km in containers to the Atlantic port of Lobito for export.

Pensana is looking to establish a world class fully integrated U.S.
Mine-to-magnet supply chain in partnership with eVAC magnetics South Carolina
with backing from the U.S. Government.

The Longonjo rare earths deposit is located adjacent to the Lobito rail
Corridor approximately 60 km west of the provincial capital of Huambo in
central Angola.

The project currently under development comprises an open pit, concentrator
and recovery plants, tailings storage facility (designed to meet the
requirements of the Global Industry Standard on Tailings Management), process
water supply, bulk power supply, mine infrastructure, workshops, offices,
accommodation village, recreational facilities, and other associated
infrastructure.

The information contained within this announcement is considered by the
Company to constitute inside information as stipulated under the Market Abuse
Regulations (EU) No.596/2014. Upon the publication of this announcement via a
Regulatory Information Service, this inside information will be               
    considered                    to                    be                   
in                    the                    public                    domain.
                   The                    person                   
responsible                    for                    arranging               
    for                    the                    release                   
of                    this announcement on behalf of the Company is Paul
Atherley (Chairman).

-                               ENDS-

For                                                              further      
                                                       information,           
                                                  please                      
                                       contact:

Shareholder/analyst                                                           
  enquiries:

Pensana                                                              Plc

Paul Atherley, Chairman

IR@pensana.co.uk

Tim George, Chief Executive Officer

Rob                    Kaplan,                    Chief                   
Financial                    Officer



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