Highlights

• Astron (ASX: ATR) has received conditional approval of a $180 million Australian Government funding package for the Donald Rare Earth and Mineral Sands Project in regional Victoria, involving Export Finance Australia and the National Reconstruction Fund Corporation.

• An offtake agreement for 100% of the project's heavy mineral concentrate (HMC) has been executed with Xiamen Xiangyu, satisfying lender requirements for project financing.

• The final Investment decision for Donald is planned for before the end of 2026, with first production targeted for the second half of 2028.

• Energy Fuels Inc., the US joint venture partner, has spent approximately $97.2 million on the project to date, including Acquisition of all land required for the first 19 years of operation.

Astron Limited (ASX:ATR), an ASX-listed critical minerals company with over 35 years of experience in mineral sands processing, has provided a comprehensive update at its 2026 Annual General Meeting confirming the Donald Rare Earth and Mineral Sands Project in regional Victoria is approaching its final investment decision. The project, developed through a joint venture with US critical materials company Energy Fuels Inc., has achieved a series of significant milestones over the past financial year, bringing it to the threshold of construction and production.

Government Funding Package and Project Financing

The most recent and significant development is the conditional approval of a $180 million Australian Government funding package, provided through Export Finance Australia and the National Reconstruction Fund Corporation. This follows an earlier $80 million conditional letter of support from Export Finance Australia in October 2025, which evolved through advanced commercial bank negotiations into the larger combined facility. The funding package, combined with advanced negotiations with commercial banks for additional Debt and a $60 million bond Facility for rehabilitation and construction completion guarantees, positions the total project debt funding at approximately $200 million. Astron held $13.8 million in cash and near-cash Assets at the end of the September 2026 quarter, with a further approximately $20 million in Energy Fuels stock receivable upon taking the final investment decision.

Offtake Agreements and Commercial Framework

Astron has also executed an offtake agreement for 100% of the Donald Project's heavy mineral concentrate with Xiamen Xiangyu, an integrated Supply chain and logistics provider based in China. This agreement is structured as a back-to-back arrangement with Astron's HMC offtake agreement with the Donald Joint Venture, satisfying a key lender requirement for the project. Energy Fuels separately holds an offtake agreement for 100% of the project's rare earth concentrate, which will feed its rare earth oxide processing plant in Utah and support its vertically integrated mine-to-magnet operations.

Project Economics and Long-Term Significance

The Donald Project hosts a world-scale, multi-generational resource of zircon, titanium dioxide and rare earth elements, with a heavy rare earth component that includes dysprosium and terbium. Combined Phases 1 and 2 of the project carry a pre-tax net present value and an internal rate of return that position it as a globally significant critical minerals project over a 52-year life. The project has received Major Project Status from the Australian Government, recognising its national significance and its potential contribution to economic growth, employment and regional Australia. A Journey and Understanding Agreement with the Barengi Gadjin Land Council, representing the Traditional Owners of the land, was entered into in early 2026.

Key Insights

The $180 million government funding package represents a critical de-risking step for the Donald Project, significantly reducing the Equity and commercial bank burden required to proceed to construction.

The HMC offtake agreement with Xiamen Xiangyu, combined with Energy Fuels' rare earth offtake, means 100% of the project's output is contracted, satisfying a key condition for lender confidence.

The planned final investment decision before end of 2026 positions first production in the second half of 2028, well ahead of the anticipated structural tightening in global rare earth supply chains.

The board refresh, with the addition of Catherine Costello and Marcelo Bastos with project development and operations experience, strengthens Astron's capacity to manage the construction-to-production transition.