E-Tech Resources, a rare earth exploration and development company developing its Eureka Rare Earths Project in Namibia, has entered into a definitive agreement to acquire an 85% interest in exclusive prospecting license 8748 (EPL 8748). EPL 8748 is located in the Erongo Mining Corridor of Namibia which lies adjacent to, and surrounds, thecCompany’s 100% owned exclusive prospecting license 6762 (EPL 6762).

E-Tech will acquire an 85% interest in EPL 8748 from a Namibian citizen on an arm’s length basis through its Namibian wholly owned subsidiary E-Tech Kalapuse Mining (Pty).

EPL 8748 (165.2 km²) contains a significant portion of the prospective Eureka Dome, the geological feature hosting the mineralized REE-bearing carbonatites of which Zones 1 to 4 (~1 km²) on EPL 6762 form part. The Dome is ~12.5 km long (NE) and ~6 km wide (NW), ~56 km². Approximately a third (~20.7 km²) of the Dome falls within the EPL 6762 boundary whereas the remaining proportion (~35.3 km²) falls on the adjoining license EPL 8748.

Overview satellite image of the EPL 6762 (black outline) and EPL 8748 (purple outline) showing the extent of the Eureka Dome (blue dashed outline).

E-Tech will acquire the 85% interest in EPL 8748 for aggregate cash consideration of $210,000 and the issuance of an aggregate of 1,200,000 common shares of E-Tech.

E-Tech has contracted Excel Dynamic Solutions, an independent consulting firm specializing in the natural resource sector, to apply for an Environmental Clearance Certificate (ECC). During this period E-Tech will conduct non-invasive exploration activities that will include desktop interpretation of the government-flown airborne regional geophysical data and reconnaissance ground truthing and evaluation of anomalies. It iis expected that this work will highlight additional areas with anomalous REE.

The Eureka Project is located approximately 250 km north-west of Namibia’s capital city Windhoek and 140 km east of Namibia’s main industrial port Walvis Bay. The project is situated next to the national B1 highway in the Erongo Region of Namibia.

The Eureka deposit lies in the Southern Central Zone of the Neoproterozoic Damara Belt within EPL 6762.