Mr. Tom Drivas reports

INITIAL RESULTS CONFIRM WIDESPREAD MINERALIZATION AT APPIA'S IONIC CLAY PROJECT IN GOIAS STATE, BRAZIL

Appia Rare Earths & Uranium Corp. has provided an update on its newly acquired Cachoeirinha rare earths project (PCH project), located near Ipora in the state of Goias, Brazil. This update results from a due diligence field visit and project review by Appia personnel, including Don Hains, an expert in industrial minerals.

The PCH project hosts rare earth element (REE) mineralization in both ionic clays developed from the weathering of alkaline granites, and in situ rare earth mineralization associated with the underlying granite and a carbonatite intrusion to depths more than 100 metres (m).

"Mineralization is widespread across the property with the most advanced target being a two-kilometre-wide zone in the southwest corner of the tenements known as target 4," stated Don Hains, senior consulting geologist and qualified person (QP). "The exploration work by the vendor showed REE enrichment in the soils to depths of eight to 26 m, with the majority in the upper eight to 10 m. Total REE grades in numerous auger holes drilled at target 4 ranged from 274 parts per million to 16,648 ppm (1.66 per cent), with an average of 1,291 ppm total REE and, importantly, the valuable rare earths used in magnet applications (Pr (praseodymium), Nd (neodymium), Tb (terbium) and Dy (dysprosium) plus Y (yttrium) accounted for approximately 14 per cent of total rare earths, with a maximum of 28.4 per cent."

Appia completed 110 duplicate samples from twin auger holes distributed across target 4 as part of its due diligence program and found comparable results to the original assays. Due diligence samples were also collected from trenches (17 samples) and diamond drill holes (76). Assay data for these samples also showed comparable results with the original sample data.

Due diligence samples were assayed at the same laboratory (SGS Geosol in Vespasiano, Brazil) using the same methods as the original samples (IMS95R and ICM40B). SGS Geosol is an ISO 17025-registered laboratory. Certified standards from OREAS were used to measure laboratory accuracy and precision. Supervision of the due diligence assays was under the control of Mr. Hains.

He continued: "The average heavy REE value is 145 ppm or 13.93 per cent of the total rare earths. In contrast, the Serra Verde project currently under construction in northern Goais state has total average REE values of 2,138 ppm (0.2138 per cent) but HREE values of only 155 ppm or 7.26 per cent of total rare earths. Thus, the PCH project has a relatively higher content of HREE in the deposit than Serra Verde."

"The overall assay values of samples obtained to date are considered comparable to other ionic clay-type rare earth deposits in Brazil such as Serra Verde and Araxa," stated Stephen Burega, president of Appia.

"Such deposits generally have relatively low rare earth values compared to hard rock deposits but typically present more easily processed material with good recoveries and can thus be highly cost competitive against high-grade, hard rock rare earth projects. The relatively high assay values for Pr, Nd, Tb and Dy, the most valuable magnetic rare earth elements, are positive for development of the project," he concluded.

Next steps for 2023

The proposed 2023 exploration program will include high-resolution topographic surveying across the eastern claim blocks followed by a reverse circulation (RC) drill program, including approximately 300 holes at 100 m by 100 m spacing totalling 4,500 metres on target No. 4. Additional auger drilling will further delineate the extension of the rare earths potential to the west of target No. 4. The RC drill program is planned to reach an average depth of 15 metres per hole and will be sampled at one-half-metre intervals.

The available data indicate that there is considerable exploration potential throughout this large property. Significant areas in both the western and eastern portions of the property show high relative radiometric values indicative of potential rare earth mineralization, but these areas remain untested by drilling. It is reasonable to expect that the overall potential of the project can be increased significantly with further work in these areas.

"Preliminary metallurgical testwork has involved mineralogy studies at Actlabs and SGS Mineral Services in Canada and geometallurgical and flotation testwork at the Federal University of Goias (UFG). La (lanthanum), Nd and Nb (niobium) were successfully floated in these tests, with recoveries of La and Nd typically averaging about 50 per cent for the best collector conditions even without any upfront processing," according to Mr. Hains. "Importantly, the flotation concentrates averaged 127 ppm Th and 38 ppm U, indicating radioactivity issues associated with mineral processing should be very manageable."

Very preliminary leaching tests undertaken at SGS Mineral Services in Canada indicate the potential to successfully leach rare earths using ammonium sulphate, thus demonstrating the ionic clay nature of the mineralization. The company advises that substantial additional metallurgical testwork will be required as the project advances; however, these very preliminary results do indicate that either flotation and/or leaching may be viable recovery schemes. It is likely that a combination of the two recovery processes may be required to maximize the recovery and produce a suitable concentrate as feed for further processing.

Appia's local partner has been active on the PCH project for the past two years, and the team has compiled a significant data set, including geophysics and geochemical results, as well as auger, drill and trenching samples across nine delineated targets on the western limb of the project area. There remains more that 50 per cent of the project area still to be explored and assessed for its potential.

Location

The PCH project is located approximately 30 kilometres from Ipora, a medium-size city in the state of Goias, with a population of approximately 31,500 and well-developed infrastructure. The region around Ipora has significant continuing mineral exploration and mining activity, including active mines operated by Dundee Precious Metals and Yamana Gold. The property is well connected by a series of roads and is mainly used for farming. Local and community relations with mining and exploration companies, including Appia's predecessors at PCH are excellent.

Background on the PCH project

The Cachoeirinha project is located within the Tocantins structural province in the Brasilia Fold belt, more specifically the Arenopolis magmatic arc. The PCH project is 17,551.07 hectares in size and located within the Goias state of Brazil. It is classified as an alkaline intrusive rock occurrence with highly anomalous rare earth element (REE) and niobium mineralization. This mineralization is related to alkaline lithologies of the Fazenda Buriti plutonic complex, and the hydrothermal and surface alteration products of this complex by supergene enrichment in a tropical climate. The positive results of the recent geochemical exploration work carried out to date indicates the potential for REEs and niobium within lateritic ionic adsorption clays.

The technical content in this news release was reviewed and approved by Don Hains, PGeo, consulting geologist and a qualified person as defined by National Instrument 43-101.

About Appia Rare Earths & Uranium Corp.

Appia is a publicly traded Canadian company in the rare earth element and uranium sectors. The company is currently focusing on delineating high-grade critical rare earth elements and gallium on the Alces Lake property, as well as exploring for high-grade uranium in the prolific Athabasca basin on its Otherside, Loranger, North Wollaston and Eastside properties. The company holds the surface rights to exploration for 113,837.15 hectares (281,297.72 acres) in Saskatchewan. The company also has a 100-per-cent interest in 12,545 hectares (31,000 acres), with rare earth element and uranium deposits over five mineralized zones in the Elliot Lake camp in Ontario.

Appia has 130.5 million common shares outstanding (143.5 million shares fully diluted).

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