47MT RESOURCE & MINING APPROVAL

White Swan Kaolin Project

Australian Silica Quartz Group Limited (ASQ) is progressing its objective to become a significant Australian exporter of kaolin – a soft, white clay that is used in the manufacture of porcelain, paper, paint, rubber and a range of other industrial products.

Through its wholly owned subsidiary Australian Kaolin Pty Ltd (AKL), ASQ holds the White Swan Kaolin Project, located in the Esperance region of Western Australia. ASQ completed its acquisition of AKL on 1 July 2026.

The White Swan Project

The White Swan Kaolin Project comprises granted Mining Lease M63/688 together with granted exploration licences E63/1895 and E63/2047, covering a combined 51.5km². The Project is located approximately 35 kilometres from the Cape Class Port of Esperance via sealed, bitumen road, giving it direct and low-cost access to one of Southern Australia's largest bulk export ports.

The kaolin resource sits on freehold, cleared broadacre farmland used for cropping and grazing. Land access for exploration and mining has been secured with the property owners, together with an option to purchase the freehold, providing a clear and low-risk pathway to development.

A Large, Shallow Kaolin Resource

White Swan hosts an Inferred Kaolin Mineral Resource of 47 million tonnes, reported in accordance with the JORC Code (2012 Edition) at a 25% Al2O3 cut-off. The resource is shallow and free-dig, sitting close to surface beneath a thin cover of sand, gravel and minor clay.

White Swan Kaolin Project Inferred Mineral Resource Estimate (August 2023, >25% Al2O3 cut-off). Source: ASQ March 2026 Quarterly Activities Report, ASX Release 29 April 2026.
Total Resource (Mt) Yield (-45μm %) Product Tonnage (Mt) Brightness (%) Al2O3 SiO2 Fe2O3 K2O Na2O TiO2 LOI
47.3 49.2 23.2 71.9 34.5% 49.5% 1.05% 0.90% 0.29% 0.76% 12.4%

Note: The Mineral Resource has been compiled under the supervision of Mr Shaun Searle, a director of Ashmore Advisory Pty Ltd and a Registered Member of the Australian Institute of Geoscientists. Mr Searle has sufficient experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the JORC Code. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results.

Geology

The White Swan deposit lies within the Biranup Zone of the east Albany-Fraser Orogen, on the southern margin of the Archean Yilgarn Craton. Kaolin at White Swan has formed as a residual weathering product — the in-situ kaolinisation of feldspar-rich granitoid and orthogneiss basement rock — and is preserved beneath a thin regolith profile of sand, gravel and minor clay up to four metres thick. This weathering style produces the soft, high-purity, free-dig kaolin clay that characterises the deposit.

Product Quality and Potential Applications

Initial resource-scale testwork indicates a bright, low-iron kaolin product with brightness of 71.9% and yellowness of 15.5%, an alumina (Al2O3) content of 34.5% and low levels of deleterious impurities including iron oxide (Fe2O3 1.05%), potassium oxide (K2O 0.90%) and titanium dioxide (TiO2 0.76%). These characteristics are consistent with the bright, low-iron clay used across ceramics, paper, paint, rubber and other industrial applications.

In May 2026, AKL completed thirteen test pits across the Project to depths of up to 6.4 metres to validate deposit continuity and screen for deleterious characteristics such as iron staining and mottling. An 800kg bulk sample was collected and air-freighted to China for detailed, independent kaolin characterisation testwork, including particle size distribution, XRF and XRD analysis and test firing. Assay results were expected within approximately four months of collection.

Infrastructure and Market Access

White Swan's proximity to Esperance Port is a key strategic advantage. Esperance is the largest bulk export port in southern Western Australia, with capacity for sustainable bulk export operations and the ability to accommodate Cape Class vessels — supporting ASQ's aim of shipping direct shipping ore (DSO) kaolin to international markets.

Path to Production

In May 2026, the Department of Mines, Petroleum and Exploration (DMPE) approved AKL's Mining Development and Closure Proposal (MDCP) for a 250,000 tonne per annum, free-dig, near-surface, open pit DSO mining operation at White Swan – a key regulatory milestone on the path to production.

Following completion of the AKL acquisition on 1 July 2026, ASQ is progressing the Project through:

  • Independent kaolin characterisation testwork to refine target end-use markets
  • Collection of up to 200 tonnes of bulk samples from within the approved mine pit areas
  • Distribution of DSO marketing samples by sea container and bulk bag to potential offtake partners – currently underway, with samples being distributed to potential customers in China
  • Discussions and negotiations with potential offtake partners in Asia and other international markets to determine expected demand
  • The preparation of a feasibility study ahead of a decision to mine

An Experienced Team

ASQ has strengthened its kaolin capability through the acquisition of AKL. Kaolin specialist James Marsh, who spent 14 years with Imerys as Global Technical Officer and more recently served as Managing Director of Andromeda Metals Limited, continues to act as a director of AKL and a consultant to AKL. Jamie Cullen, a highly experienced executive and former CEO of three ASX-listed mining service companies, joined the ASQ Board on 29 June 2026 following completion of the acquisition.

Competent Persons Statement

The information in this document that relates to White Swan Kaolin Project exploration results and technical information was compiled by Mr Nick Algie in his capacity as Exploration Manager for Australian Silica Quartz Group Limited. Mr Algie is a registered member of the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience relevant to the type of deposit and style of mineralisation under consideration to qualify as a Competent Person under the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Algie consents to the inclusion in this page of matters based on his information in the form and context in which it appears.

For full details, see ASQ's ASX announcements: DMPE Approval of White Swan Mine Development and Closure Plan (27 May 2026) and Completion of the Purchase of Australian Kaolin Pty Ltd (1 July 2026).