Power Minerals Limited has executed an agreement with the Government of the State of Minas Gerais in Brazil, securing official priority-project status for the Morro do Ferro Rare Earth Project located in the Poços de Caldas district.

The agreement places the project under the State’s specialized priority framework governed by Law No. 21,972/2016. In practical terms, the arrangement directs environmental licensing for the asset to the specialized SUPPRI pathway within SEMAD, rather than remaining in the standard regional queue. FEAM will handle technical environmental reviews, including site inspections and assessments of environmental studies.

In addition, the Minas Gerais State Secretariat for Economic Development, operating through SEDE and Invest Minas, will provide coordinated support for investment facilitation, engagement across State and municipal bodies, supplier introductions, and assessments of applicable State incentive instruments.

Power completed due diligence for the acquisition of the project in April 2026. The company subsequently secured a A$1.7 million strategic equity investment in June 2026 to support ongoing exploration and development activities across the asset.

"This is a new agreement between Power Minerals and the Government of Minas Gerais. It is an important institutional step for Morro do Ferro. The State has agreed to apply its priority-project framework to our rare earth project at Poços de Caldas, and to coordinate the economic-development and environmental agencies as we move from drilling into studies and, in due course, licensing."

— Alistair Stephens, Chief Executive Officer

The agreement does not grant a Preliminary Environmental Licence, Installation Licence, or Operation Licence, nor does it confer tax exemptions, offtake, project finance, or a construction timetable. Those authorizations and commercial milestones remain subject to ordinary statutory application processes.

Power is continuing its maiden diamond drilling campaign at Morro do Ferro as part of ongoing technical work to advance the asset toward a maiden JORC Mineral Resource Estimate.

"We will keep advancing Morro do Ferro in the right order - finish the current drill program, complete mineralogical and metallurgical test work, and work toward a maiden JORC Mineral Resource. The agreement supports that work. It does not replace it."

— Alistair Stephens, Chief Executive Officer

Work at the project continues alongside broader regional activity in the Poços de Caldas district, where several developers are advancing rare earth exploration and resource delineation programs.

Read the full announcement: MORRO DO FERRO GRANTED MINAS GERAIS PRIORITY PROJECT STATUS