Acquisition of Brazilian Rare Earth Portfolio

Harvest Minerals Limited

21 July 2026

 

21 July 2026

Harvest Minerals Limited

("Harvest" or the "Company")

Acquisition of Brazilian Rare Earth Portfolio

Eight highly prospective ionic clay REE projects across key regions of Brazil

Harvest Minerals Limited (AIM: HMI), the AIM-listed Brazilian fertiliser producer and mineral development company, is pleased to announce that it has entered into a binding agreement to acquire 100% of Scanty Mineração Ltda ("Scanty"), a wholly owned subsidiary of Union Star Metals Limited (ASX: USM), in a cash, shares and milestone related transaction (the "Acquisition").

OVERVIEW

·      Scanty holds a portfolio of eight highly prospective ionic clay rare earth ("REE") projects across 27 exploration tenements in Brazil.

·      Projects include the Capão Bonito and Sguario projects, where geology is considered highly prospective for ionic clay-hosted REE mineralisation.

·      The Acquisition consideration is structured as to:

o  A$200,000 cash payment, and the issue of 40,000,00fa0 new Harvest ordinary shares, on completion

o  Up to a further A$300,000 cash payment for meeting development milestones;

o  The assumption of approximately A$1.5 million of deferred acquisition payments and associated 1.5% royalty obligations due to the previous vendors (see below).

·      Brazil is an emerging global REE jurisdiction, with favourable geology and a growing pipeline of advanced rare earth projects.

·      Builds on Harvest's initial opportunity at the Arapua REE Project in Brazil and leverages its established operating platform and technical expertise in Brazil to build a broader portfolio of highly prospective REE assets.

Brian McMaster, Executive Chairman, commented: "This Acquisition marks the next step in Harvest's expanded critical minerals strategy and provides exposure to multiple high-quality assets. Building on the encouraging REE results at Arapua, we are leveraging our established operating platform and technical expertise in Brazil to build a broader portfolio of REE assets, within a structure that aligns consideration with project success, while maintaining capital discipline.

"Brazil's rare earth sector is attracting strong investor interest due to its potential to deliver large-scale, low-cost ionic clay deposits outside China, supported by favourable geology, established infrastructure, and a growing pipeline of advanced projects. We believe the Scanty tenements provide a strong platform for resource growth and long-term shareholder value creation."

DETAILS

Under the terms of the agreement, Harvest will acquire 100% of Scanty Mineração Ltda from Union Star Metals, adding eight REE projects to complement its existing portfolio. The Acquisition builds on encouraging REE results from Harvest's 100%-owned Arapuá Project, where work undertaken last year returned average Total Rare Earth Oxide ("TREO") concentrations ranging from 2,110.53 ppm to 2,656.99 ppm and confirmed the presence of REE mineralisation within the "Bone" lithotype.

Scanty's portfolio targets both ionic clay-hosted and hard rock rare earth mineralisation across the Cerro Azul, Capão Bonito, Itapeva, Sguario, Mucambo and Guaratinga project areas. The projects are located within established mineral provinces, including the Poços de Caldas Alkaline Complex and the Bahia Rare Earth Province, which host numerous rare earth, niobium, phosphate and bauxite deposits and are recognised as important centres for rare earth exploration in Brazil.

The most advanced assets are the Capão Bonito and Sguario projects, where fieldwork, including portable X-ray fluorescence ("pXRF") testing, has identified anomalous rare earth mineralisation at surface. Both projects are hosted within the Ribeira Orogeny and are associated with fractionated A-type granites, geological settings recognised as favourable for ionic clay-hosted rare earth mineralisation. Follow-up exploration will focus on validating historical work and advancing priority targets.

In addition, Brazil more widely offers highly prospective geology for ionic rare earth elements (REEs), with a growing pipeline of advanced-stage projects. Emerging producers are rapidly positioning the country as a key player in the global shift toward diversified, secure, and non-China-dominated REE supply chains.

The consideration comprises:

·      Initial cash payment of A$200,000, on completion.

·      Issue of 40,000,000 new ordinary shares in Harvest to Union Star Metals, on completion.

·      Deferred cash payment of A$100,000 upon declaration of a qualifying Mineral Resource with minimum content of 20Mt at 1,000ppm REO for the Project.

·      Deferred cash payment of A$200,000 upon achievement of the first development milestone (Pilot Plant, PEA or PFS), or after 60 months if not previously achieved.

·      Harvest will assume approximately A$1.5 million of deferred acquisition payments, to be satisfied in cash and/or Harvest shares (at the discretion of the Company) (subject to satisfaction of the vesting conditions as set out below), and associated 1.5% net smelter return royalty obligations, payable to the original vendors under a novation deed to be entered into.

o  For the AS$1.5 million to become payable, Harvest will need to have:

§ Defined and reported an inferred mineral resource of not less than 20 million tonnes at 1,000 ppm rare earth oxides, within 36 months of completion; and

§ Completed and reported a Scoping Study, which recommends a PFS to be undertaken, within 48 months of completion.

Related party transaction

Brian McMaster and Luis Azevedo, directors and substantial shareholders of the Company, comprised two of the four original vendors, then holding a combined 50% interest (25% each) in Scanty. The assumption of the deferred acquisition payments to Mr McMaster and Mr Azevedo by Harvest therefore constitutes a related party transaction pursuant to the AIM Rules. Mr Azevedo also is party to the royalty agreement. In this context, the Directors other than Mr McMaster and Mr Azevedo consider, having consulted with the Company's nominated adviser, Strand Hanson Limited, that the terms of such assumption of obligations are fair and reasonable insofar as its shareholders are concerned.

Schedule Four Disclosure

As at 31 December 2025, Scanty reported gross assets of approximately A$30k, with a loss before tax of approximately A$800k.

Completion of the Acquisition remains subject to certain customary conditions precedent, including Brazilian regulatory approval. Further announcements will be made as and when appropriate.

**ENDS**

 For further information, please visit www.harvestminerals.net or contact:

Harvest Minerals Limited	Brian McMaster Chairman	Tel: [phone]
Strand Hanson Limited Nominated & Financial Adviser	Ritchie Balmer James Spinney	Tel: [phone]
Tavira Financial Broker	Jonathan Evans	Tel: [phone]

 

END