Magnetite Mines (ASX: MGT) owns 100% of the Razorback Iron Ore Project in South Australia. Razorback hosts a 3.8 billion tonne Mineral Resource, including about 2.0 billion tonnes of Probable Ore Reserves. It can produce premium Direct Reduction (DR) grade concentrate, the key feedstock for green iron.

Magnetite is offering a Shortfall and Top-up Placement at A$0.012 per share. Each share comes with one free attaching listed option, exercisable at A$0.015.

Magnetite Mines is advancing the Razorback Iron Ore Project in the Braemar Iron Formation, 240km north-east of Adelaide. It is one of a small number of undeveloped magnetite projects globally with the scale and product quality to make DR grade concentrate.

Unlike Pilbara hematite, magnetite is processed on site into a high-grade concentrate with very low deleterious elements. Direct reduction ironmaking needs that specification. Most seaborne supply cannot meet it.

A new scoping study on 4 September 2026 set out a simpler development pathway. Razorback won Major Project Status in February 2026. The company is working with the South Australian Department of Energy and Mining on its Mining Lease application. ProspEx Group is evaluating potential royalty funding.

The wider portfolio includes Ironback Hill. Maiden air-core drilling there returned shallow clay-hosted rare earth assays of up to 4,937 ppm TREO.

• Tier 1 scale: 3.8 billion tonne Mineral Resource at Razorback, including about 2.0 billion tonnes of Probable Ore Reserves.
• Green iron feedstock: Razorback can produce DR grade concentrate with very low deleterious elements. Most seaborne iron ore supply cannot meet that specification.
• Simpler, cheaper pathway: the September 2026 scoping study uses saline water processing. That removes the coastal desalination plant and water pipeline from earlier studies. It also prioritises higher-grade ore early and adds a dedicated 55km rail spur to the main line.
• Approvals moving: Major Project Status awarded in February 2026. Mining Lease engagement is under way with the South Australian Department of Energy and Mining.
• Funding options in play: ProspEx Group is evaluating royalty funding. Talks continue with strategic, financial and industry parties on funding and partnering.
• Free options: one free attaching listed option for every share, exercisable at A$0.015 until 31 December 2029.
• Rare earths upside: Ironback Hill returned shallow clay-hosted rare earth assays of up to 4,937 ppm TREO.
• Experienced board: led by former senior executives of BHP, Anglo American, Xstrata and ArcelorMittal Mining.

• Offer: Shortfall and Top-up Placement following the recent Share Purchase Plan of up to A$1 million. It is on the same terms as the SPP.
• Price: A$0.012 per share, a 10% discount to the 5-day VWAP of A$0.0133.
• Attaching options: one free listed option for every share. Exercise price A$0.015. Expiry 31 December 2029.
• Option approval: the options are subject to shareholder approval at the AGM, expected on 30 November 2026.
• Size: set by investor demand and placement capacity under Listing Rules 7.1 and 7.1A. The raise is up to A$1.5 million. The company may accept oversubscriptions.
• Lead Manager: GBA Capital.
• Eligibility: sophisticated and professional investors only (s708(8) and s708(11)).

Funds raised will go to:

• Advancing Razorback through targeted technical and project development work towards the next stage of study
• Strategic partnering, including joint venture partners, strategic investors, funding and offtake partners
• Evaluating strategic acquisitions that complement the existing business
• Selective, capital-efficient exploration across the South Australian portfolio, including Ironback Hill
• General working capital and costs of the raising

• Market cap: A$3.9 million (as at 25 September 2026)
• Shares on issue now: 229,014,221
• Quoted options on issue: 111,512,603 (various exercise prices)
• Unquoted options on issue: 32,774,919 (various exercise prices)
• Convertible notes: 2,714,280 at A$1 face value, with a A$0.02 floor conversion price
• SPP shares: up to about 68.7 million
• Top-up Placement shares: about 57.2 million, based on Listing Rule 7.1 and 7.1A capacity
• Attaching options: up to about 125.9 million (1:1, subject to approval)
• Pro forma shares on issue: up to about 354.9 million