LONDON: GreenX Metals Limited has entered into an rarn-in agreement through which GreenX can earn a 90% interest in Group 11 Exploration GmbH, a private German company which holds the Tannenberg exploration licence and is highly prospective for sediment-hosted (Kupferschiefer type) copper deposits.

GERMANY & EU MINING INDUSTRY
· Germany has been a significant mining jurisdiction in the past and continues its mining tradition, including:

o The K+S potash mines which operate 4 km away from the license area and are located in the State of Hesse.

o Anglo American are actively exploring the Löwenstern and Leine-Kupfer copper projects nearby. Löwenstern is 25 km away to the south in the German state of Thüringia, where drilling targeting the Kupferschiefer commenced in 2023. Leine-Kupfer was granted in January 2024 and is 60 km away to the north in the state of Lower Saxony.

o AMG Graphite operates a graphite mining and processing complex at Kropfmühl near Passau, Bavaria

o Vulcan Energy is successfully permitting lithium brine and geothermal power projects in the German states of Rheinland-Pfalz, Baden-Württemberg, and Hesse.

· Copper is a designated a Strategic Raw Material (“SRM”) under the EU’s Critical Raw Material Act, that entered into force on 23 May 2024. The CRMA signals the EU’s political commitment to strengthen EU supply of SRM’s (including copper) by giving the European Commission the power to designate Strategic Projects that will benefit from easier access to financing, expedited permitting processes and matchmaking with off-takers.

· The manufacturing sector, including the automotive, mechanical engineering, chemical and electrical industries, accounts for over 25% of Germany’s economic output, and 18% of GDP; these figures are significantly higher than in most other advanced economies

o The manufacturing sector provides 16% of national employment, some 8 million jobs, with mechanical engineering being the largest segment and dominated by SMEs.

o The automotive sector is a key industry and with around four million automobiles produced in 2023. Electric Vehicles are being adopted in Germany with numerous OEM’s investing in new production facilities and supply chains, such as Volkswagen’s Battery and Electric Drive production facilities and Tesla’s Berlin Gigafactory.

o Many of these industries are reliant on critical raw materials such as copper.

The German government recently announced creation of a EUR 1.1 billion (A$1.8 billion) investment fund to fortify Germany’s access to SRM’s (including copper) essential for high-tech and green projects. The fund will be managed by the state-owned KfW Development Bank.

GreenX Metals’ Chief Executive Officer, Mr Ben Stoikovich, commented: “We are very excited to be adding the Tannenberg project to our exploration portfolio.

Kupferschiefer style deposits are widely acknowledged as the most prolific source of modern-day copper production, with copper mining from the Polish Kupferschiefer deposits (KGHM) presently being Europe’s largest domestic source of strategic copper supply.

We believe that Tanneberg has the potential to host large scale and high-grade copper deposits located in the heartland of German industry in the vicinity of major OEM’s such as Volkswagen’s Battery and Electric Drive production facilities and Tesla’s Berlin Gigafactory.

Copper is officially recognised by the EU as a strategic raw material for European industry and ongoing decarbonisation in Europe.

This acquisition comes at a time when the German government and the EU have recently announced major policy initiatives to enhance security of supply of strategic raw materials such as copper by facilitating expedited permitting processes and access to project development funding.

Germany, and in particular the State of Hesse, has a well-established mining industry with practical and efficient mine permitting processes.

Furthermore, we anticipate increased political support for new copper projects in accordance with Germany’s Federal Ministry of Economic Affairs and Climate Action critical raw materials policies and the EU’s newly introduced Critical Raw Material Act.

Tannenberg is complementary to our Arctic Rift Copper project in Greenland and provides GreenX shareholders with enhanced exposure to strategic raw materials that are now a policy priority in both Germany and the wider EU. We are looking forward to updating shareholders over the coming months as we commence our exploration activities in Germany.”