Announcement PDF ASX / MEDIA ANNOUNCEMENT 20 May 2020 MINERALISATION ENCOUNTERED IN FIRST DRILL HOLE AT TRUNDLE LACHLAN FOLD BELT HIGHLIGHTS • First hole of current drill program at Trundle Park target has intersected multiple mineralised zones including shallow 28 metre interval from 55 metres • Hole confirms the targeted setting of skarn and adjacent porphyry intrusion, analogous to Cadia and multiple other world-class porphyries • Prospectivity and scale of the target zone significantly expanded at Trundle Park, the first of three targets of the ongoing drilling program • Trundle is the only brownfield project held by a listed junior in Australia’s foremost porphyry belt, being within the same mineralized complex as Australia’s second largest porphyry mine at Northparkes Kincora Copper Ltd. ( “Kincora”) (TSXV:KCC) has advised RareX Limited (“RareX” or “the Company”) that the first diamond drill hole at the Trundle Park target, at the Trundle project, has been completed at 685 meters depth. Hole TRDD001 has confirmed the targeted setting of an adjacent porphyry system to a near surface skarn, analogous to Cadia and multiple other world-class porphyries. Figure 1: Highly mineralized and multiple skarn zones intersected at Trundle Park Targeted geological setting of adjacent porphyry to near surface skarn confirm in first hole, analogous to Cadia and multiple Tier 1 porphyries LHS: Coarse pyrite in skarn @ 64.5m. RHS: Native copper, chalcocite, chalcopyrite & black chlorite in skarn @ 61m RareX Limited Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756 LHS: Qz-Ch-Ser altered skarn with patchy chalcopyrite & bornite @ 286m RHS: Altered quartz-monzodiorite with quartz-py-cpy veining & vein selvage potassic alteration @ 415m John Holliday, Chairman of Kincora’s Technical Committee, and Peter Leaman, Senior Vice-President of Exploration, commented: “While early days in our ongoing drilling program, and awaiting assay results, multiple noteworthy positive developments have been achieved from the first hole at Trundle Park. The zones of moderate to higher grade mineralised skarn intersected are thicker than expected, illustrating significant magmatic fluids associated with the adjacent porphyry intrusion system. The mineral zonation in the well-developed and quite intense skarns supports, and may provide vectors to, a primary porphyry orebody target within the porphyry intrusion system. The visual results of this hole confirm our exploration model and significantly increases both the scale and prospectivity of Trundle Park, with multiple large targets for follow up.” Hole TRDD001 has intersected multiple skarn zones, including 28 meters of visually interpreted moderate mineralization from 55 meters, including a higher-grade 6.5 meter interval. Previous assay results at Trundle Park include a higher-grade interval of 2 meter at 20g/t gold, 6.97% copper and 81g/t sliver from 64 meters. An adjacent monzonite and monzodiorite intrusion has been intersected, with disseminated chalcopyrite and pyrite supportive of proximity to a potential higher grade porphyry system/core. The skarn and porphyry intrusion system setting is analogous to Cadia where the Big and Little Cadia skarns were mined and were important to the discovery of multiple adjacent deposits that make up the largest porphyry system in Australia. The average depth of prior drilling at the Trundle Park target is only 28 metres, and a high priority follow up hole is planned post assay results for TRDD001. In the interim, drilling has commenced at the Mordialloc target, approximately 12.5 km north of Trundle Park, where previous drilling has returned metal grades comparable to the peripheral parts of the Northparkes deposits, with improving grades down hole, open and coincident with an untested deeper geophysical target. RareX Limited Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756 Figure 2: Potential vectors and analogues to Cadia underpin favourable geological setting Skarn alteration at Big and Little Cadia helped focus exploration at Cadia toward the largest porphyry system in Australia, and now are expected to assist exploration at Trundle Park Figure 3: Second hole - Mordialloc target Metal grades comparable to the peripheral parts of the Northparkes deposits, with improving grades down hole, open and coincident with an untested deeper geophysical target The Trundle Project The Trundle project is located 30km west of the China Molybdenum Company Limited (CMOC) operated Northparkes copper-gold project, in the same Northparkes Igneous Complex. Past explorer drilling has been extensive with the completion of 2208 holes for 61,146 metres but deeper drilling into the basement utilising modern exploration knowledge has been very limited. Over 92% of prior drilling has been to less than 50 metres depth with just 11 holes beyond 300 metres (0.5% of holes drilled). Existing significant drill intersections supports vectoring to very compelling targets for Kincora’s ongoing phase 1 drilling program at three existing mineralised systems – Trundle Park, Mordiallic and Bayleys. These systems have not been drilled since industry leading Induced Polarisation survey's, including HPX’s proprietary Typhoon system, and magnetic modelling were completed. RareX Limited Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756 Collar Table Hole ID TRDD001 Easting Northing RL (m) (MGA) (MGA) 570048.78 6352082.08 270.3 Dip 70 Azimuth (MGA) 251 Total Depth (m) 685.05 Comments Completed This announcement has been authorized for release by the Board of RareX Limited. 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 Competent Persons Statement Information in this release that relates to current Exploration Results is based on and fairly represents information and supporting documentation prepared and compiled by Mr Guy Moulang, an experienced geologist consulting for RareX Limited. Mr Moulang is a Member of the Australian Institute of Geoscientist and has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Moulang consents to the inclusion in this release of the matters based on his information in the form and context in which it appears. RareX Limited Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756 Appendix 1: JORC Code, 2012 Edition – Table 1 Cummins Range Section 1 Sampling Techniques and Data Criteria JORC Code Explanation Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Not reporting on assaying or sampling – not required Not reporting on assaying or sampling – not required Logging Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. Subsampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Not reporting on assaying or sampling – not required Drilling Techniques Drill Sample Recovery RareX Limited Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756 Diamond Drilling (DD) completed using PQ diameter 0.0-50.85m; HQ3 50.85-185.80; NQ2 185.80-273.00m; HQ3 273.00-685.05 Systematic geological and geotechnical logging was undertaken Kincora geologists and consultants Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. Quality of assay data and laboratory tests Verification of sampling and assaying Location of data points Data spacing and distribution Orientation of data in relation to geological structure Sample security The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. The verification of significant intersections by either independent or alternative company personnel. Discuss any adjustment to assay data. Not reporting on assaying or sampling – not required Not reporting on assaying or sampling – not required Mineralisation identified by Kincora Copper Geologists and consultants Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. Drill hole collars were located by handheld GPS All coordinated are in MGA Zone 55H 1994 Topographic control is maintained by the use of widely available government data sets. Ground is gently undulating. Drill holes are preferentially located in prospective areas The mineralised areas are yet to demonstrate sufficient grade or continuity to support the definition of a Minerals Resources per the JORC 2012 code Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The angled drill holes were directed as best possible across the known lithological and interpreted mineralized structures The measures taken to ensure sample security Core is handled by Kincora Copper RareX Limited Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756 Cummins Range Section 2 Reporting of Exploration Results Criteria JORC Code Explanation Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The trundle Project is located on EL8222 in which RareX is 35% free carried in a JV with Kincora Copper until pre-feasibility study is completed. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. Exploration has been conducted by multiple previous explorer include Newcrest Mining, HPX and Clancy Exploration Geology Deposit type, geological setting and style of mineralisation. As per body of announcement Drill hole information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: As per body of announcement easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth RareX Limited Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756 hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Not reporting on assaying or sampling – not required Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. Not reporting on assaying or sampling – not required Relationship between mineralisation widths and intercept lengths These relationships are particularly important in the reporting of Exploration Results Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Maps and diagrams are included in the body of the announcement Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Reporting is considered balanced If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). RareX Limited Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756 Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Nothing further Further work The nature and scale of planned further work (eg tests for lateral extensions or large scale step out drilling. Exploration is ongoing . Exploration activities are to be undertaken by Kincora Copper, the Company's joint venture partner. The results the subject of this announcement is the first of three targets of the ongoing drilling program. Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. RareX Limited Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756