Announcement PDF Exploring and developing rare earths projects in Australia Plus, high-potential copper-gold exploration in NSW Investor Presentation, September 2020 │ Jeremy Robinson, Executive Director Disclaimer & Competent Person Statement This presentation contains summary information about RareX Limited (REE) and is current as of 15 September 2020. The information in this presentation is of a general background and does not purport to be complete. This presentation is not investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. The information contained in this presentation has been prepared without taking into account the objectives, financial situation or needs of individuals. Investors should obtain their own advice before making any investment decision. REE has prepared this document based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in this presentation. This presentation contains certain “forward-looking statements”. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, “should”, “could”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This presentation contains statements that are subject to risk factors associated with REE and the mining exploration industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially. REE disclaim any intent or obligation to publicly update any forward-looking statements, whether as a result of new information, future events or results or otherwise. To the maximum extent permitted by law, REE, their related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth)) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the presentation or its contents or otherwise arising in connection with it. This presentation has been approved for release by the Board of RareX Limited. Competent Person Statement: The information in this presentation relating to the Mineral Resource estimate for the Cummins Range Rare Earths Project is extracted from the Company’s ASX announcement entitled ‘Globally Significant Maiden Resource of 13Mt at 1.13% TREO’ as updated by the ASX announcement entitled ‘Update to Mineral Resource Estimate Announcement’, both released on 15 October 2019. REE confirms that it is not aware of any new information or data that materially affects the information included in the previous announcements and that all material assumptions and technical parameters underpinning the Mineral Resource estimate in the previous announcements continue to apply and have not materially changed. Investment Overview • Strategically located asset: 100%-owned Cummins Range Rare Earths Project in Western Australia – Tier-1 mining jurisdiction • Significant maiden JORC 2012 Rare Earths Mineral Resource: Inferred Resource of 13Mt at 1.13% TREO with 22.1% NdPr • Drilling program recently completed and awaiting assays • High-quality exposure to Lachlan Fold Belt exploration: via 35% stake in Trundle Project with Kincora Copper (RareX owns 9.6% of Kincora) • Exciting drilling underway: Assays up to 51m at 1.17g/t Au and 0.54% Cu and funded for additional 17 holes • 100%-owned Project at Orange East: 15km along strike from 2Moz McPhillamys Gold Project with strong geological similarities A Rare Earth explorer and developer with significant exposure to copper-gold exploration in the world-class Lachlan Fold Belt of NSW Corporate Snapshot Capital Structure ASX Code Shareholders REE Share Price (14 September 2020) $0.059 Shares on Issue 356m Market Capitalisation $21.0m Net Cash $3.4m Listed Investments (14.95m TSXV:KCC) $2.6m Enterprise Value $15.0m Board and Management Chairman John Young Executive Director Jeremy Robinson Non-Executive Director Shaun Hardcastle Non-Executive Director Cameron Henry Exploration Manager Guy Moulang Consultant Metallurgist Gavin Beer Consultant Geophysicist Jayson Meyers Top 20 Shareholders 40% Number of Shareholders 1,873 Rare Earths • Rare Earths are a group of 17 elements essential to the new world economy – grouped in to Light Rare Earth Elements (LREE) and Heavy Rare Earth Elements (HREE) • RareX is focused on the production of LREE’s Neodymium-Praseodymium (NdPr) which are critical to the manufacture of Neodymium-Iron-Boron (NdFeB) Rare Earth Permanent Magnets (REPM) which contain approximately 32% NdPr. Rare Earth Permanent Magnets (REPMs) Electric Vehicles • Whatever the type of EV (BEV, HEV PHEV) or the power source (Li Batteries, H Fuel Cells etc) they all use REPM motors. • Each EV requires approximately 1kg to 2kg of REPM which is used in rare earth magnets forming part of an EVs electric motors. EVs expected to grow from 3m to 35m by 2030. Wind Turbines • Wind power and Solar power set to dominate the renewable energy economy as cost effective mass deployable technologies. • Wind power historically dominated by onshore capacity now increasingly moving to offshore capacity as turbines become larger and more efficient. Offshore has greater use of REPM’s compared to onshore. • Each MW of direct drive REPM wind turbine capacity contains 600kg of REPM containing 200kg of NdPr. Rare Earths Market • China dominates production of rare earths and rare earth magnets accounting for 80% of global production representing a strategic weakness for the United States of America. • China has recently become significant importer of Rare Earths concentrates for processing – In 2019 China supply dropped to only 61% (essentially 100% 2015) following ongoing crackdown on illegal supply. • Rare earth prices extremely sensitive to trade disputes such as in 2011 when NdPr traded above US$280/kg (600% above current prices). Cummins Range Rare Earths Project • Tier-1 mining jurisdiction: Located in the Kimberley region of Western Australia • Airstrip and township nearby: 130km from Halls Creek Township and Airstrip. • Good access: Accessible via Great Northern Highway, Tanami Track and pastoral tracks. • Established mining district: Located near Northern Minerals’ Browns Range Rare Earth Mine and Pantoro’s Nicholson's Gold Mine • Port Facilities: Potential access to Wyndham and Darwin Ports Advanced, high-quality Rare Earths Project located in a Tier1 mining jurisdiction Substantial Maiden JORC 2012 Resource • Significant maiden JORC 2012 Inferred Resource of 13Mt at 1.13% TREO released 15 October 2019 • Neodymium and Praseodymium “NdPr” content of 22.1% and ultra low thorium of 50ppm ThO2 equals premium product • Weathered carbonatite with REE mineralisation mostly hosted within laterite horizon (same at Mt Weld) • Deposit outcrops and has dimensions amenable to low strip ratio open pit mining • Recently completed 6,143m of drilling and awaiting assays Cummins Range Inferred Mineral JORC 2012 Resource Tonnes (Mt) Grade (TREO) TREO (kg) 13.0 1.13% 147,300,000 Low Capital Strategy • Rare Earth mineralogy dominated by monazite – the most well understood Rare Earth Mineral from a processing perspective • RareX is working with industry experts to review test work and plan further optimisation to improve un-optimised concentrate grade and recoveries • Strategy is to produce a saleable monazite concentrate to sell on an FOB / CIF basis to China – Working with Talaxis Group (subsidiary of Noble Group) • This approach will significantly reduce CAPEX RareX has a low CAPEX development strategy for Cummins Range, based on production of a monazite concentrate SIMPLIFIED FLOWSHEET Exploration – Weld North • Tenement recently granted and Programme of Work “PoW” lodged with DMIRS – Expecting to be on the ground in October • Contains a 5km wide airborne magnetic circular anomaly which RareX considers to be prospective for being caused by an REE-bearing circular carbonatite intrusive complex • Sits below regolith cover which masks the buried bedrock source for this magnetic anomaly • Part of Greenfields exploration strategy to discover another world-class rare-earth carbonatite deposit in Australia NSW Copper-Gold Assets • RareX retains a 35% free-carried interest multiple projects and owns 7.2% of TSXV-listed Kincora Copper • Kincora is currently completing successful 3,800m drill program at flagship Trundle project comprising six deep holes with assays up to 51m at 1.17g/t Au and 0.54% Cu • Kincora recently raised C$5.3m capital raise to fund 17 hole program at Trundle • Kincora exploration led by John Holliday, principal discoverer of the world-class Cadia deposit • RareX recently retained 100% ownership of Orange East Project Trundle Project – 35% Free-Carried • The only brownfield porphyry project held by listed juniors in the Macquarie Arc • Trundle is the western section of the Northparkes intrusive complex, that hosts the second largest porphyry mine in Australia • Exploration being driven by highly experienced team at Kincora Copper Limited led by John Holliday • Confirmed similar geological settings/controls as Cadia and Northparkes, Australia’s largest and second largest porphyry mines • Seeking to discover a cluster of new porphyry deposits Trundle Project – Trundle Park Target • 51m at 1.17g/t Gold and 0.54% Copper from 39m in skarn at Trundle Park • Similar in style to the Big Cadia skarn that is peripheral to the Cadia porphyry copper-gold deposits • Highly encouraging 21.5m at 0.25g/t Gold and 0.03% Copper to EOH in lower porphyry zone Trundle Project – Further Drilling • Drilling to date has confirmed mineralized porphyry intrusion systems • Confirmed better widths, alteration and mineralization than previous drilling at the Trundle project • Following recent capital raise by Kincora it is fully funded for additional • 9 Holes at Mordiollac • 8 hole at Trundle Park • Expecting 2nd rig to mobilize to site soon Other Free-Carried NSW Projects • Highly prospective for new undercover discoveries • Fairholme and Jemalong, located near Evolutions Cowal Gold Mine: • Condobolin – Prospective for VHMS style Base Metal and Gold Deposits • Cundumbul – located south of exciting new Boda Discovery Orange East – 100% Owned • Located ~15km along strike from Regis Resources’ 2Moz McPhillamys Gold Deposit • Strong geological and geochemical similarities to McPhillamy’s including:  Both hosted in the Silurian volcaniclastic rocks of the Anson Formation adjacent to the GCFZ;  Both have coincident Au-As-Ba-Bi-Pb-Cu-Mo-Te surface anomalies, with the Gunnarbee geochemical anomaly extending over an area ~1,000m north-south by 200m east-west  Both have K radiometric high anomalies • Gunnarbee Prospect never drilled Currently reviewing project data before planning next steps Key Investment Takeaways  High-quality, advanced Rare Earth Project in WA  Recently completed major drilling program and awaiting assays  Building a portfolio of high-quality Rare Earth assets  Significant exposure to NSW porphyry copper-gold exploration  100%-owned NSW gold exploration project in Tier-1 address With a $21.0m market capitalisation, strongly leveraged to exploration success and growth on two fronts For further information, please contact: RareX Limited Jeremy Robinson Executive Director Ph: 08 6143 6720 Media Enquiries Nicholas Read Read Corporate Ph: 08 9388 1474