IperionX Response to Short Seller Report

Core Viewpoint - IperionX Limited is responding to a short seller report from Spruce Point Capital Management, emphasizing its commitment to transparency and adherence to regulatory obligations while highlighting its advancements in titanium production and government support [1][3]. Government Support and Validation - IperionX's titanium technologies have received validation and support from various U.S. Government programs, including ARPA-E, DPA Title III, and a recent U.S. Army SBIR Phase III contract for procurement-ready titanium products [4][5]. - The company has secured significant funding, including US$12.7 million from the Defense Production Act to increase titanium production for defense supply chains and US$47.1 million under the IBAS program to develop a resilient titanium supply chain [9][10]. Production Capacity and Expansion - The Virginia Titanium Manufacturing Campus has completed commissioning, with an increased projected capacity from 125 metric tons per annum (tpa) to 200 tpa, and plans to scale up to approximately 1,400 tpa by mid-2027 [16][17]. - The Titan Critical Minerals Project is advancing towards 'shovel-ready' status, supported by U.S. Government funding, with a Definitive Feasibility Study expected by mid-2026 [11][20]. Customer Engagement and Revenue Generation - IperionX is actively working on SBIR Phase III task orders for titanium components, leveraging its advanced manufacturing technologies to meet U.S. military needs [18]. - The company has secured multiple commercial agreements, including a disclosed Ford program valued at approximately US$11 million over 45 months, and has delivered titanium fasteners for U.S. Army testing [29][24]. Feedstock Strategy and Technology Validation - IperionX aims to procure and upgrade underutilized titanium scrap feedstock using patented technologies, having already procured over 70 metric tons of titanium scrap for production requirements [26][28]. - The company's technologies have been validated by third parties, including the U.S. Air Force Research Laboratory, for their ability to upgrade titanium scrap into high-quality products [27]. Management and Operational Focus - IperionX's management team possesses extensive experience in natural resources and advanced manufacturing, with a focus on delivering major mineral developments and managing complex industrial programs [30]. - The company is committed to optimizing its processes to reduce unit costs and increase production yields, maintaining alignment with prior disclosures [19].