Lomiko Metals (TSX.V: LMR) reveals high-grade REE anomalies at Yellow Fox: Can Newfoundland become a new hub in Canada’s critical minerals strategy?

Lomiko Metals Inc. (TSX.V: LMR) has announced the identification of significant rare earth element anomalies at the Yellow Fox property in central Newfoundland, revealing elevated values of neodymium, praseodymium, and dysprosium across soil samples collected during its Phase II exploration program. This confirmation of both light and heavy rare earth elements across the site may signal a strategic shift for Lomiko Metals, which had initially targeted the property for antimony and base metals. The company’s decision to rerun seven samples using a specialized REE assay package uncovered Total Rare Earth Element (TREE) values reaching 5,176 parts per million, comparable to mineralized systems seen in advanced-stage deposits.

These findings mark an inflection point for the Yellow Fox project and come amid intensifying geopolitical focus on diversifying REE supply chains beyond China. If further validated through trenching and drilling, Yellow Fox could emerge as one of Eastern Canada’s most promising mixed rare earth element targets—aligning with national policy priorities on critical minerals security and positioning Lomiko Metals as a strategic player in the energy transition economy.

What do the latest REE results at Yellow Fox reveal about the project’s mineral potential?

The seven soil samples tested with the expanded REE assay suite yielded results far exceeding baseline thresholds typically observed in early-stage exploration. Values for neodymium ranged between 186 and 890 parts per million, while praseodymium concentrations spanned 46 to 192 parts per million. Dysprosium, a key heavy rare earth used in high-temperature magnets, was found at levels between 36 and 191 parts per million. These results place Yellow Fox’s soil anomaly data well above regional norms, especially for surface samples, and closely mirror concentrations reported in rock chip assays from known REE-bearing systems.

In terms of spatial footprint, the anomalous zones extend across two well-defined corridors. The eastern zone spans approximately 175 meters in width and 1,000 meters in length, while the western anomaly stretches 400 to 500 meters wide and approximately 1,300 meters long. These anomalies trend in a north to northeast orientation, aligning with previously mapped critical metal soil signatures including antimony, zinc, lead, silver, and gold. Their structural parallelism further strengthens the case for an integrated mineralized system, with rare earth elements potentially forming a geochemical halo or structurally coincident deposit type.

The host geology—Mount Peyton monzogranite—is emerging as a fertile intrusive body, with REEs interpreted to be emplaced near its contact with neighboring volcanics and sediments. The presence of thorium, a common pathfinder for REEs, alongside elevated values of cerium and lanthanum recorded earlier in 2025, reinforces the interpretation of a mixed LREE-HREE mineral system. In the broader REE exploration context, a discovery showing such compositional balance is relatively rare and adds premium exploration value.

Why is this development timely for Canada’s critical minerals strategy and global REE supply chains?

The confirmation of mixed light and heavy rare earth elements at Yellow Fox could not come at a more strategic time. With the global REE supply chain still heavily reliant on China—particularly for heavy rare earths such as dysprosium and terbium—Western nations are accelerating efforts to build domestic mining and processing capacity. Canada’s critical minerals strategy explicitly prioritizes REE development as part of its industrial response to electrification, advanced manufacturing, and national security objectives.

Yellow Fox offers geographic diversification within Canada’s known REE landscape, which is typically concentrated in the Northwest Territories, northern Quebec, and parts of Labrador. Newfoundland has not traditionally been considered a REE hotspot. However, Lomiko Metals’ discovery could challenge that view, particularly given the site’s logistical advantages. The property lies just 10 kilometers southwest of the town of Glenwood and has direct access via logging and skidder roads connected to the Trans-Canada Highway. This ease of access materially reduces the cost and complexity of early-stage exploration work, including trenching and drilling.

Strategically, if Lomiko Metals can establish a compliant mineral resource estimate, the Yellow Fox project may qualify for downstream federal incentives, such as flow-through share structures or project-level co-funding under the Canada Growth Fund. This would be especially relevant for any strategic alliance the company may seek with magnet manufacturers or defense supply chain participants.

What are the next exploration phases and how do they de-risk or validate the REE potential?

Lomiko Metals has already secured the necessary permits for line cutting, ground geophysics, and surface trenching, laying the groundwork for a multi-stage de-risking process. The next technical steps include infill soil sampling between previously tested lines to better define the true orientation and continuity of the anomalies. Additional re-assaying of archived soil samples will also be conducted using the REE-specific assay package.

Surface trenching and stripping will allow for more detailed geological mapping and channel sampling, which will be crucial to confirm whether the anomalous REE values translate into coherent mineralized structures at depth. Given the scarcity of outcrop in the area, these field activities will serve as proxies for lithological mapping, with boulder trains already noted as a potential indicator of sub-surface continuity.

In terms of timeline, ground geophysics and surface work in 2026 will likely precede any maiden drilling program. The goal of this sequence is not only to validate the soil assay signatures but to establish geophysical vectors that can guide targeted core drilling. If trenching reveals consistent REE mineralization across multiple zones, Yellow Fox could rapidly graduate from a prospective antimony site to a flagship REE asset with regional importance.

What are the limitations and risks associated with early-stage REE findings at Yellow Fox?

Despite the strength of the assay results, Yellow Fox remains at a pre-resource stage with no defined mineral inventory. The current data is limited to selective soil and grab samples, which are inherently non-representative and cannot substitute for drill-confirmed grades. Lomiko Metals has appropriately cautioned that results from adjacent properties such as the Beaver Brook antimony mine should not be interpreted as indicative of Yellow Fox’s future performance.

Another key risk is capital availability. Advancing REE projects from soil anomalies to resource stage typically requires multi-year funding and sustained technical execution. Lomiko Metals may need to raise capital in the public markets or secure strategic partners to finance the next phase of exploration. While critical minerals assets have attracted significant investor interest, sentiment remains volatile, especially for early-stage ventures with no near-term production horizon.

Moreover, the broader REE market is susceptible to price volatility driven by opaque Chinese supply policies and cyclical demand from end-use sectors such as electric vehicles and wind turbines. Any pricing disruptions could affect the economic modeling of REE projects, even if the underlying geology proves favorable. Regulatory risk, while lower in Canada compared to many jurisdictions, could still manifest in permitting timelines or environmental compliance for future drilling or development work.

Nonetheless, the scale and quality of anomalies discovered at Yellow Fox may warrant a reassessment of Newfoundland’s REE potential and serve as a foundational proof point in expanding Canada’s rare earth asset base.

Key takeaways on what this development means for the company, its competitors, and the industry

• Lomiko Metals has identified high-concentration soil anomalies for both light and heavy rare earth elements at its Yellow Fox property in Newfoundland.

• The latest assays show Total REE values as high as 5,176 parts per million, with strong enrichment in neodymium, praseodymium, and dysprosium.

• The anomalies align structurally with previously mapped critical metal trends, suggesting potential for a cohesive mineralized system.

• Yellow Fox sits on a fertile monzogranite intrusion and shares geological similarities with the past-producing Beaver Brook antimony mine.

• Next steps include expanded re-assaying, infill sampling, ground geophysics, surface trenching, and channel mapping to define drill targets.

• Canada’s national focus on critical mineral self-sufficiency increases the strategic relevance of this discovery.

• The project offers a rare combination of light and heavy REEs, improving its attractiveness to downstream industries like defense and EV manufacturing.

• Execution risk remains due to early-stage data and financing needs, but follow-up trenching and geophysics could rapidly unlock institutional interest.