Highlights

• Xenora Minerals has released its quarterly report for the three months to 30 September 2026.

• Xenora plans up to 600 metres of RC drilling to pass beneath the weathered cap and test primary.

• The company describes Dudley as the largest known pegmatite in a swarm on the Dudley Peninsula.

• Under an option agreement dated 14 October 2024, Xenora can earn up to 90 per cent of the.

Xenora Minerals (ASX:XRA) — has released its quarterly report for the three months to 30 September 2026. The report contains no new drilling results. Its main message is that the company is in the final planning stages for first-pass reverse circulation (RC) drilling at the Dudley Lithium Project on Kangaroo Island, South Australia.

Dudley lithium project

Xenora plans up to 600 metres of RC drilling to pass beneath the weathered cap and test primary mineralisation for lithium minerals such as spodumene or petalite, and to examine zonation within the pegmatite. Drilling remains subject to the renewal of permits, which were originally granted in early 2025. The company says it expects renewal to proceed without complications, but that is an expectation and not a granted approval.

The company describes Dudley as the largest known pegmatite in a swarm on the Dudley Peninsula. It is deeply weathered, with most primary minerals altered to clay, which is why it was previously mined for kaolin. Surface rock chip sampling shows high-tenor lithium and anomalous rubidium, caesium, tantalum, beryllium and tin across an area of about 400 by 100 metres, with lithium reaching up to 0.3 per cent lithium oxide. Xenora suggests some of the lithium may sit in mica minerals on the pegmatite margins. These are surface sample results, not a resource.

Under an option agreement dated 14 October 2024, Xenora can earn up to 90 per cent of the project through a two-stage farm-in from South Australia Lithium Pty Ltd. The report also describes the company as earning in for 51 per cent in one place, and does not state its current interest.

Other projects

At Halo Yuri in Canada's Northwest Territories, about 220 kilometres north-east of Yellowknife, a 2024 mapping campaign identified extensive spodumene mineralisation, including pegmatite outcrop estimated at more than 150 metres long and up to 30 metres wide. Xenora plans another field phase next season and is starting the process to secure permits for first-pass drilling in 2027.

At Petermann Range in the Northern Territory, four licence applications lodged in 2021 have been under a five-year moratorium set by the Central Land Council. The moratorium expires on 9 December 2026, and Xenora says it will restart negotiations in December 2026.

At Mt Hardy, a renewal application for licence EL27892 was lodged during the quarter, and rehabilitation is under way with the aim of recovering cash-backed bonds. The Hendrix deposit holds an Inferred Mineral Resource from July 2019 of 2.6 million tonnes at 10.5 per cent zinc equivalent, containing 175,000 tonnes of zinc, 22,500 tonnes of copper, 40,000 tonnes of lead and 2.9 million ounces of silver. It is an older estimate.

Cash position

Opening cash was A$2.171 million. Net operating cash outflow was A$227,000, of which exploration and evaluation was A$57,000. There were no investing or financing flows, and closing cash was A$1.944 million. Payments to directors were A$45,000. The company says it has no financing facilities and raised no equity in the quarter, and estimates about 8.56 quarters of funding at the current rate of spending.

Risks and next steps

The projects remain at an early stage. Drilling timing and permit approvals carry the uncertainty described in the report's forward-looking statements.

Xenora lists its next steps as finalising planning and starting RC drilling at Dudley once permits are renewed, completing the next field season at Halo Yuri and applying for 2027 drilling permits, resuming negotiations with the Central Land Council before the Petermann moratorium expires, monitoring the Mt Hardy renewal, and continuing to evaluate new projects. No new projects were announced.