Drilling Expands Mineralized Footprint at Penelope

Libra reports strong near-surface rare earth assays at Penelope, Brazil, with monetization options open.

What the company is saying

Libra Energy Materials Inc. (CSE:LIBR, OTCQB:LIBRF, FSE:W0R0) is highlighting the completion and results of its maiden auger drill program at the 100%-owned Penelope Project in Minas Gerais, Brazil. The company emphasizes the lateral expansion of near-surface rare earth element (REE) enrichment, reporting high-grade intervals such as 2.0 m at 1,421 ppm TREO and 1.0 m at 2,239 ppm TREO in Hole PLE-AD-021, and 1.0 m at 1,263 ppm TREO with 37.3% magnet rare earth oxides (MREO) in PLE-AD-009. Management, including CEO Koby Kushner and VP Exploration Dr. Jérémie Pfister, frame Penelope as non-core but with clear monetization potential through earn-ins, joint ventures, or divestment. The release also references prior high-grade results—up to 8,780 ppm Niobium, 10,900 ppm Tantalum, and 3,103 ppm total REEs—and details a rigorous QA/QC process. The tone is confident, focusing on technical credibility and the breadth of the mineralized footprint, while positioning Penelope as a potential asset for future deals rather than a development priority.

What the data suggests

The program tested a 550 m by 750 m area at Penelope, with 22 auger holes averaging 12 m depth and a total of 261 m drilled. Of the 15 holes reported in this release, 10 returned samples above 500 ppm TREO, with standout intervals including 2.0 m at 1,421 ppm TREO (including 1.0 m at 2,239 ppm), 1.0 m at 2,585 ppm TREO, and 1.0 m at 1,263 ppm TREO with 37.3% MREO. Previous surface sampling confirmed up to 8,780 ppm Niobium, 10,900 ppm Tantalum, and 3,103 ppm total REEs. The mineralization is near-surface (all intercepts within 12 m), with several holes ending in mineralized material, suggesting the full extent of enrichment is not yet defined. Most intercepts show a favorable 21%–37% MREO proportion, except for one cerium-dominated interval. QA/QC was comprehensive, with 167 samples analyzed and protocols aligned to CIM guidelines. No resource estimate or economic assessment is provided, but the technical data supports the presence of a laterally extensive, high-grade REE system. The company also holds a CAD $33 million earn-in deal with KoBold Metals for Ontario lithium projects, indicating access to significant exploration capital.

Analysis

The announcement is a factual and detailed disclosure of assay results from the Penelope Project's maiden auger drill program, with specific intervals, grades, and QA/QC protocols provided. Nearly all claims are realised and supported by explicit numerical data, such as sample counts, grades, and drill hole details. The only forward-looking statement is the mention of potential monetization options for the project, which is clearly framed as a possibility rather than a certainty. There is no exaggerated language or overstatement of the project's current value or near-term impact. The CAD $33 million earn-in deal is referenced as an ongoing arrangement for other projects, not as a capital outlay tied to the Penelope results. No immediate or long-term financial benefits are claimed for Penelope, and no large capital spend is disclosed for this project. The tone is proportionate to the evidence, and the technical data is robust.

Risk flags

• ●Penelope is described as non-core, so management focus and capital allocation may remain limited, potentially slowing further advancement or monetization.
• ●No resource estimate or economic study is disclosed, so the scale, continuity, and economic viability of the REE mineralization are unproven; this is typical for early-stage exploration but means investment is speculative.
• ●Monetization options for Penelope are presented as potential rather than committed, with no binding agreements or timelines, leaving future value realization uncertain.
• ●While QA/QC protocols are robust, the regolith-hosted REE system's metallurgical recoveries and processing characteristics are untested, which could impact future economic outcomes.

Bottom line

Libra Energy Materials has delivered detailed and credible assay results from its first auger drill program at the Penelope Project in Brazil, confirming laterally extensive, high-grade near-surface REE mineralization with up to 2,239 ppm TREO and strong magnet REE proportions. The technical data is robust, but the project remains at an early stage with no resource estimate or economic analysis, and management has signaled that Penelope is non-core, seeking monetization rather than direct development. Investors should see this as a technical de-risking step that could support future earn-in, JV, or sale discussions, but there is no near-term value trigger or binding transaction yet. The $33 million Ontario lithium earn-in deal with KoBold Metals provides financial runway for core projects, but Penelope's future depends on third-party interest and deal execution. The key takeaway is that Penelope is now a technically validated, non-core asset with real but unquantified optionality for Libra.

Announcement summary

(CSE:LIBR) (OTCQB:LIBRF) (FSE:W0R0) Libra Energy Materials Inc. reported the remaining assay results from its maiden auger drill program at its 100%-owned Penelope Project in Minas Gerais, Brazil. The results from Holes PLE-AD-008 through PLE-AD-022 extend near-surface rare earth element (REE) enrichment beyond the initial holes at the Elena target, with extensions approximately 125 to 250 metres to the east, northeast, and west, and approximately 650 metres to the northwest. Hole PLE-AD-021 returned 2.0 m at 1,421 ppm total rare earth oxides (TREO) from surface, including 1.0 m at 2,239 ppm TREO. The program has now tested an area of approximately 550 m east-west by 750 m north-south, and 10 of the 15 holes reported in this release returned at least one sample above 500 ppm TREO. Dr. Jérémie Pfister, Vice President of Exploration, stated that the auger program has expanded the footprint of REE enrichment at Penelope, with Hole PLE-AD-021 returning one of the highest-grade samples and Hole PLE-AD-010 mineralized from surface to the bottom of the hole. CEO Koby Kushner commented that while Penelope is non-core to Libra's long-term strategy, the project offers opportunities for monetization, potentially through earn-ins, joint ventures, or divestment. Previous prospecting at Penelope confirmed high-grade critical minerals in pegmatites, with samples returning up to 8,780 ppm Niobium (Nb), 10,900 ppm Tantalum (Ta), and 3,103 ppm total REEs. The 22-hole mechanical auger drilling program totaled approximately 261 m. Results for the first seven holes, which returned multiple intervals above 1,000 ppm TREO near the Elena target, were reported on June 11, 2026. Highlight results from the final 15 holes include: 2.0 m of 1,421 ppm TREO from surface, including 1.0 m of 2,239 ppm TREO (PLE-AD-021); 12.0 m of 801 ppm TREO from surface to end of hole, including 4.0 m of 1,075 ppm TREO and 1.0 m of 1,690 ppm TREO at 6 m depth (PLE-AD-010); 1.0 m of 2,585 ppm TREO in the last sample of the hole (PLE-AD-020); 1.0 m of 1,263 ppm TREO with 37.3% MREO (magnet rare earth oxides), the highest magnet rare earth proportion of the program (PLE-AD-009); 1.0 m of 1,045 ppm TREO (PLE-AD-015); 8.5 m of 675 ppm TREO from surface to end of hole (PLE-AD-013); 4.0 m of 38 g/t Gallium (Ga) from surface (PLE-AD-014); and 1.0 m of 43.5 g/t Ga at 7 m depth (PLE-AD-022). All intercepts occur within 12 m of surface. Except for PLE-AD-020, the intercepts contain a favourable proportion of magnet rare earth oxides (MREO) of 21% to 37% of TREO. The holes averaged approximately 12 m in depth, and several ended in mineralized material, indicating the base of the REE-enriched profile was not reached at those locations. A total of 167 samples from Holes PLE-AD-008 to PLE-AD-022 were submitted to SGS Geosol Laboratórios S.A. in Vespasiano, Minas Gerais, including 152 regolith samples and 15 blanks, certified reference materials, and field duplicates. Sample preparation and analytical methods included sodium peroxide fusion with ICP-MS, lithium metaborate fusion with ICP-OES and ICP-MS, and loss on ignition at 1,000 °C. The QA/QC program followed Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Exploration Best Practice Guidelines. Libra's Flanders North, Flanders South, and SBC lithium projects in Ontario are being explored under a CAD $33 million earn-in deal with KoBold Metals Company. The company also holds a broader portfolio of battery metals projects across Canada and Brazil.

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