Toyota Tsusho Corporation ("Toyota Tsusho") announced today that it will participate as a joint development partner in the rare earth exploration project being advanced by Japan Organization for Metals and Energy Security ("JOGMEC") in the Republic of Namibia in Africa.

Critical minerals, including rare earths, are produced and refined in only a limited number of countries and regions, raising concerns about supply stability and economic security. In response, the Japanese government and JOGMEC have been strengthening collaboration with resource-rich countries and private-sector companies to secure a stable supply of critical minerals and build more sustanable supply chains.

Since 2020, JOGMEC has been conducting a joint exploration project with Namibia Critical Metals Inc. (TSXV:NMI) in the Lofdal area of the Kunene Region in northern Namibia, where it confirmed inclusion of heavy rare earths(dysprosium,terbium and etc) which are essential for the permanent magnets used in electric vehicle motors. JOGMEC then proceededexploration toward developmentand completed Preliminary Feasibility Study (PFS) in January this year.

Location map of the Lofdal area

Toyota Tsusho will assume part of JOGMEC's option interest and, with a view to future supply to Japan, will conduct Definitive Feasibility Study (DFS) jointly with JOGMEC, drawing on the experience it has built up in rare earth refining and in magnet and rare earth supply chains.

A final decision on investment is expected during FY2026, based on the survey results and the business environment.

Through this project, Toyota Tsusho aims to work with JOGMEC and other relevant parties toward future commercialization and the start of development, while contributing to the strengthening of Japan's critical mineral supply chains.