Announcement PDF Phosphate Enabled Rare Earths James Durrant April 2023 ASX: REE OTCQB: REEEF rarex.com.au Disclaimer & Competent Persons’ Statements Investor Relations James Durrant Chief Executive Officer P: +61 8 6383 6593 E: info@rarex.com.au Media Enquiries Nicholas Read Read Corporate P: +61 8 9388 1474 RareX HQ L1, 338 Barker Rd, Subiaco WA 6008 E: info@rarex.com.au This presentation contains summary information about RareX Limited (REE) and is current as of 14 April 2023 and is authorised for release by the Board. 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. For further information, please contact Chief Executive Officer, James Durrant. 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 disclaims 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. Competent Person’s Statement - Geology: 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 dated 30 March 2023 which was reported in accordance with Listing Rule 5.8. REE confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the Mineral Resource Estimate continue to apply. The Company confirms there have been no material changes to exploration results since first reported in accordance with Listing Rule 5.7. Competent Person’s Statement – Metallurgy: The information in this presentation relating to metallurgy was first reported in accordance with Listing Rule 5.7. REE confirms that it is not aware of any new information or data that materially affects the information included in the original announcement. DSO Phosphate Enabled Rare Earths Wyndham Port Kununurra RareX and the Cummins Range Project Ord River Hydro Plant Mineral Corridor 535km Halls Creek A Direct Shipping Ore (DSO) Phosphate enabled Rare Earths Critical Minerals Project – updated studies imminent. James Durrant CEO 1.5 years with RareX leading studies, heritage, environment, metallurgy and ESG. Operational leader, Quarry Manager and engineer at Tier 1 iron ore miner in the Pilbara – 7 years. RareX Project Cummins Range Previously lead studies for juniors in Africa transitioning fertiliser and bauxite projects from exploration to FID. Close to a mineral corridor and bulkready Wyndham Port in the East Kimberley of Western Australia. Well progressed heritage and environmental approvals with regulator submissions planned in early 2024. Expedited DSO phase represents Stage 1 of a 3-staged pathway to Rare Earths: Stage 1: DSO Phosphate Stage 2: Processed Phosphate Stage 3: Processed Rare Earths RE P 57-71 15 Rare Earths Phosphorus RareX Value Proposition A DSO Phosphate Catalysed Rare Earth Project Cummins Range can be fast tracked to operations, ultimately giving investors access to 2 global mega trends with 2 critical product categories 2 1 Massive deposit 400Mt of Phosphate hosted Rare Earths 17Mt P O 2 5 1.3Mt TREO Fast-track to monetisation A positive evolution of the Project 3 Team adjusted to suit Bulk and fertiliser operational team augmented with RE experts 4 Existing local infrastructure Bulk ready with collaborative industries primed for regional growth DSO Phos Con Bulk Ops Fertilisers Road - mineral corridor RE Con Rare Earths Market - local market on the doorstep and separation Port - mineral export facility 5 Two critical products Two critical products Two strategic markets Two global mega trends Phosphate Food security Constrained supply Rare Earths Electric revolution Concentrated supply Corporate Snapshot Presents a Compelling Time to Invest Capital Structure ASX Code OTCQB Share Price (12.04.2023) Shares on Issue Market Capitalisation Cash & Investments (Dec Qtr) Enterprise Value Shareholders REE REEEF A$0.062 579m A$35.32m A$6.275m A$29.045m Board and Management Chairman CEO Major Assets Cummins Range Project NSW Cu-Au JV with Kincora Copper Cosmos Exploration Limited Canada Rare Earths Corp Various Rare Earth exploration projects Top 40 Shareholders Number of Shareholders Major Shareholders Share Price Information ~39 % ~5,370 Simon Lee AO (6.3%) Jeremy Robinson (4.0%) ASX: REE 0.08 Jeremy Robinson James Durrant 0.07 0.06 100% 35% Free Carried 25% of Issued Capital 12% of Issued Capital 100% 12 April 23 Prev Close: 0.062 0.05 0.04 Nov 22 Note: Cash & Investments does not include AU$ 1.92m R&D rebate. ASX Announcement 18 January 2023 April 23 Mineral Resources 15 P Phosphorus 57-71 RE Rare Earths Cummins Range Deposit Remote but Well Connected Deposit Location Overview 130km SW of Halls Creek access via Tanami Road Deposit at surface ease of exploration Jaru Traditional Owners consulted and supportive Part of the Great Sandy Desert on unused pastoral lease Connected to Wyndham Port via established mineral corridor 1 1 Port Wyndham 2 Lake Argyle, Ord River Hydro Plant 2 Cummins Range Western Australia 2023 JORC Resource Part 1 of 2… 1.3Mt TREO 17Mt P O 2 contained Rare Dyke Resource (JORC 2012) 5 contained Basis of Resource Highlights Estimated by industry experts at CSA Global ü Large igneous, low deleterious, Phosphate deposit discovered from surface Phosphate CoG used to capture the extensive Phosphate mineralisation and low to highgrade rare-earths 44Mt of Indicated resource located within the regolith, top 100m ü High grade Rare Earth core still remains: concentrated around the Dykes ü Underlying fresh rock resource with higher-grade Rare Earths and favourable mineralogy 2.5% P2O5 Grade Cut Tonnes Mt TREO ppm P2O5 % NdPr % Nb2O5 ppm HREO ppm Indicated 44.3 5,800 6.3 1,210 1,020 290 Inferred 352.9 2,960 3.9 630 570 165 Total 397.2 3,270 4.2 700 620 180 Global Resource (Rare Dyke + Phos Dyke) 2.5% P2O5 Grade Cut Indicated Inferred “this new resource reframes the project” Total Tonnes Mt TREO ppm P2O5 % NdPr ppm Expected April 2023 Nb2O5 ppm HREO ppm Pathway to Monetisation Fast Track to Operations with Phosphates De-risking Roadmap to Rare Earths 3 Project Stages • Strategic Advantages Stage 1: DSO ü Organic Rock Phosphate ü High bioavailability Resource from surface ü Stage 2: Phos ü Phosphate Concentrate Low deleterious elements Significant volumes Stage 3: RE ü ü ü RE and Phosphate Concentrate ü Beneficiation plant upgrade Value chain growth ü Existing infrastructure bulk ready with road and port Local product placement opportunities Rare Earth overburden is monetised Clean igneous Phosphate; low in potentially toxic elements Simple beneficiation to high grades Beneficiation plant likely suitable for Stage 3 RE-Phos con with payability of RE credits Suitable for sale to existing refineries; or Feed to RareX own refinery “simpler, faster, staged” Stage 1: DSO Premium Direct Application Fertiliser Favorable Metallurgy ü ü ü Cummins Range Phosphorus Bioavailability Test 5x industry standard reactivity for “high” bioavailable rock Phosphate 50.00% Low deleterious elements < 60 mg Cd / kg P; < 0.02% Cl; < 4% F 35.00% 45.00% 40.00% 30.00% 25.00% 20.00% Near surface deposit 15.00% 10.00% 5.00% Next steps § § § 0.00% Broader scale bioavailability testwork Detailed product definition Market engagement Sources: RareX ASX Announcement: 23 March 2023 RareX ASX Announcement: 13 April 2023 28% P2O5 DSO Sample 34% P2O5 DSO Sample Cummin s Range Samples Industry Low Industry High “the DSO has potential for Organic certification” Stage 2: Phos Low Deleterious Phos Con The proposed installation of a beneficiation plant to upgrade the lower grade Phosphate Metallurgical Highlights ü ü Positive beneficiation performance on Phos optimised floats 35% P2O5 Phosphorus concentrate from 10% feed ü Significant Phosphate upgrade across blended and individual domain samples Better than Industry Limits for Deleterious Elements ü ü ü Igneous rocks Cleaner resource Apatite dominated Sources: RareX ASX Announcement: 04 October 2022 RareX ASX Announcement: 13 April 2023 Upcoming Flowsheet optimisation including: • Mineralogy study • Gangue rejection for premium grade product • Flowsheet simplification • Reagent optimisation Variability program to confirm consistent met performance Detailed product specification analysis and publication Tails Crushing Milling Dewatering Bene Tails Dewatering Phos Con Rougher Float Con Tails Cleaner Float Con “classical flotation beneficiation delivers high grade, low contaminate concentrate” Stage 3: Rare Earths RE-Phos Con and Derivatives The proposed modification of Stage 2 plant and installation of the Rare Earth value chain Regolith: Encouraging results from Stage 2 flowsheets and more optimisation to come: • High deportment of RE into monazite • Potential for RE-Phos concentrate at significant grades • Tests de-prioritised to focus on DSO Minimal monazite and apatite association: supports monazite and apatite separation via • Subsequent flotation • Magnetic separation • Chemical separation Sources: RareX ASX Announcement: 11 October 2022 RareX ASX Announcement: 23 November 2022 RareX ASX Announcement: 13 April 2023 Rare Earth Mineral Deportment Fresh Rock Transition to Fresh Mineralogy revealed: • Higher TREO grade compared to regolith • >90% RE spread across monazite, bastnasite & parasite • Coarser RE particles • RE minerals also not associated with apatite Hypothesis: • Potential to implement ore sorting • High RE & Phos recovery possible • Novel upgrades to Stage 2 float circuit being considered “R&D underway to understand bene plant and hydromet implications” Market Segmentation 3 Product Types +South East Asia 1. DSO Local and National • Growing market on the project doorstep • MOU with OrdCo and market strategy underway • Potential for Organic product certification 15 +Saudi Arabia 2. Phos con +South East Asia P Phosphorus • Existing acid plant operators • Supplies the synthetic fertiliser and LFP markets • Engaging in target product placement support 3. RE-P concentrate +Saudi Arabia Local & National “marketing strategy now a key near-term focus” • Large acid industry and Phosphate consumption • Agreement with UK on critical minerals adding to CPTPP, AUKUS. • Saudi 2030 Vision – diversify from oil, integrate globally Sources: RareX ASX Announcement: 07 November 2022 57-71 RE Rare Earths Monetising in a Sustainable Manner ESG Framework What we’re Currently Doing • WEF consistent designed by Top5 advisor • Aligned to stakeholder’s expectations • Mapped out through exploration, development and into operations ü TO negotiations towards a Mining Heritage Agreement Social Performance Framework • Designed to International standards UN and IFC • Maximises potential for positive indigenous relations • Provides for progressive development of social performance for all project stages ü Environmental Baselines +50% complete ü Aboriginal impact assessment defined for execution ü Recruitment process to remove barriers for aboriginals and minority groups ü Employment and Contracting of local and regional TOs ü Jaru Ranger programme being investigated in conjunction with KLC “doing the right things, the right way and holding ourselves accountable” Team Adjusted to suit “RareX has the potential to become a near term producer of Phosphate fertilizer products on a pathway to Rare Earths. “I joined to help RareX define its product roadmap and to place products into the fertilizer industry. “By getting this right at the beginning of the project, I can foresee the journey to rare earths becoming lower risk, lower capital and more sustainable.” Danny Goeman Non-Executive Director An Evolved Board of Company-Building Directors Danny Goeman Non-Executive Director Offtake, Marketing, Shipping John Young Non-Executive Director Geology, Development, Growth Ex FMG director of sales and marketing and advisor to the CEO, following 20 years with Rio Tinto in management, sales and marketing, strategy development and high level commercial negotiations Jeremy Robinson Chairman Fund raising, Strategy, Corporate Development Founder of RareX and Managing Director for 5 years leading the Company through massive resource expansion 18 years in corporate finance both in investment firms and in-house Bachelor of Commerce from the University of Western Australia majoring in Corporate Finance, Investment Finance and Marketing As Head of Marketing, then CEO; responsible for the 2018, 10-year binding take-or-pay offtake deal for junior SOP developer Danakali (ASX: DNK) Holds a Masters in Business Administration and Postgraduate Diploma in leadership & Management from Curtin University Co-founder and executive director of successful ASX200 lithium producer Pilbara Minerals Limited (ASX: PLS) Cameron Henry Non-Executive Director Engineering, Construction, Operations Founding managing director of EPCM engineering firm, Primero Group Limited Over 20 years experience in development and delivery of global minerals processing, energy and NPI projects Holds a Masters in Project Management from Curtin University and is a Member of the Australian Institute of Company Directors (MAICD) Led the growth of Pilbara from a junior ASX-listed company to a globally significant $2 billion lithium producer in the Pilbara region of Western Australia Holds a Bachelor of Geology from Curtin University and is a director on a number of ASX listed companies Shaun Hardcastle Non-Executive Director Corporate Law, Finance Law, Governance Partner at Hamilton Locke Lawyers covering corporate and finance law, corporate governance, risk management and compliance Involved in a broad range of crossborder and domestic transactions including joint ventures, corporate restructuring, project finance, resources and asset/equity sales and acquisitions Bachelor of Law from UWA and currently a non-executive director of a number of ASX listed companies Team Continuity Maintained Focus: Development & Ops James Durrant Chief Executive Officer Mining and Mechanical Engineer with nearly 20 years across Tier 1 operations and junior company project development in Africa and Australia Guy Moulang Head of Geology Geologist and AIG Member with nearly 20 years experience in technology metals, base metals and gold exploration. 5 years with RareX on Cummins Range Kay Hofmann Study Manager Ex Mineral Resources Limited and BHP. Lead engineering and operational teams across mine planning, production, drill & blast, A&I, hydrogeology and environmental baselines Greg Wynne Senior Geologist Geologist, project manager and mines rescue qualified Lu Zhang Process Engineer Metallurgist and process engineer. Ex Mets Group Damien Krebs Lead Metallurgist Rare Earth and Phosphate metallurgist Gavin Beer Consultant Metallurgist Rare Earth process designer and metallurgist Supported by Preeminent Team of Partners with Mining DNA and Execution Capability Existing Local Infrastructure Infrastructure in Place Ready for Bulk Operations and Future Processing B 2 Wyndham C Kununurra Hydro Power Fundamentally Good Infrastructure 1 Enabling the Proposed Approach ü Bulk commodities need good transport corridors, efficient ports ü Speed to market needs established infrastructure, with spare capacity and ready markets ü Processing facilities need access to low-cost power and water A road network becoming sealed from mine to port 2 An established port rising in stature 3 Reticulated hydro electric power to 2 industrial locations “good existing infrastructure and a market on the doorstep is a real luxury” 390 km Tanami Intersection to Wyndham Western Australia Great Northern Hwy. 3 1 D Lake Argyle Ord River Hydro Plant Northern Territory Halls Creek 95 km AA RareX Project Cummins Range 50 km Tanami Rd. 100 km N Mineral Corridor in Place Sealed Roads being Installed Mine to Tanami 50km of station fence-line Great Northern Highway 390km of existing sealed highway Miscellaneous License process about to commence, heritage agreement includes road • Linking The Tanami turn off to Wyndham Port Local Aboriginal companies from Jaru and Gilganyem to participate in installation; quotes received Phased build up from track to all weather track to product haul road • Past Halls Creek, ADM Tanami Road 95km of existing gravel highway Creek crossings and sealing commencing this year Progressive construction by year driven by Main Roads WA and the Shire with State and Federal support Opportunity to utilise pre-mobilized equipment and plant for Project “the sealing of the Tanami Road helps, but doesn’t enable our Project” Port Wyndham 1 3 Cummins Range Bulk Ready Port Wyndham 3 Lake Argyle, Ord River Hydro Plant 1 Western Australia Good facilities Tactical Integration Vacant land primed for industrial development Securing requisite industrial land for RareX infrastructure Mineral loading infrastructure already in place – owned by others Completion of studies with Horizon Power for 8MW for future processing Transshipment operations conducted regularly RareX Port Development Managed by CGL with operations for haulage, fuel, and roll on roll off among others Deep water offshore anchorage Strategic Upgrades KPA applied to Commonwealth Government for POFE Collaborating group of future users across agriculture and mining advocating for higher status MOU with Agrimin (ASX: AMN) to develop integrated infrastructure may short-cut development In basic alignment to the 3 Stages of Project development: 1. Bulk handing infrastructure 2. Mineral separation 3. Mineral processing – RE and P Good Corporate Citizen in a Collaborative Region OrdCo MOU Collaborating to develop and place Phosphate products locally • Product R&D • Product development roadmap • Local distribution Agrimin MOU Collaborating across the supply chain from trucking to OGV loading • Infrastructure integration study • Infrastructure sharing • Implementation roadmap Community Membership Becoming locals • Sponsors of the Kununurra Muster • Members of EKCCI • Working with TAFE and EastKimberley Job Pathways Strategic Products Global Demand Double Exposure 2 Strategic Markets 15 P Phosphorus 2 Global Mega Trends 57-71 RE Rare Earths Food Security The Electric Revolution • Population growth Another 1.7B people by 2050 to a total of 9.7B • Wind farms 200kg NdPr per MW of turbine Net Zero goals by 2050 • Depleting soils Intensive farming and inefficient applications • Electric Vehicles 1kg NdPr per vehicle $1T invested in electrification Net Zero goals by 2050 • Local demand Kununurra agricultural sector pastoral cattle licks • LFP Batteries Doubled market penetration last year Strategic Drivers Constrained supply - Russia Export loss resulted in a global supply shortfall • Consumer electronics Population growth and increased technology Strategic Drivers Concentrate supply - China Government mandates for independent supply chains Sources United Nations Department of Economic and Social Affairs https://www.reuters.com/business/autos-transportation/exclusive-global-carmakers-now-target-515-billion-evs-batteries-202111-10/ CRU research The EV Transition Translating into an Emerging Deficit of NdPr Supply Drivers of EV demand: Global Passenger Car Outlook - Bloomberg NEF Government commitments by 2050 Internal combustion Consumer trends technology adopters, conscientious buyers Improving affordability government incentives, fuel price, mass production US$1 trillion in investments spent to transition towards EVs Hybrid Fuel Cell Plug-in hybrid Battery electric Lynas annual output in 2021: 5,462 NdPr oxide Million 100 15 13 9 50 5 1 0 2015 2020 2025 2030 Sources https://bnef.turtl.co/story/evo-2021/page/4/1?teaser=yes Lynas annual report 2035 2040 “15x the production of Lynas required by 2040 to meet EV demand for NdPr magnets” Growing Phosphate Fertiliser Demand Augmented with LFP Battery Expansion High Value LFP Battery & Phosphate Market percentage of global market share of LFP batteries in 2021 projected ARK forecast for 2026 August 2022 320 USD/Mt Rock demand, Mt Rock 350 projected UBS forecast for 2030 Phosphate Rock, USD/Mt 350 300 300 47% 250 250 40% 2045 295 Mt Rock 33% 200 150 150 100 50 1991 200 100 2010 130 USD/Mt 50 2000 2009 2018 Sources Rock demand: CRU Phosphate Rock: Arianne Phosphates corporate presentation, June 2022 Market share and forecast information: ARK & UBS 2027 2036 2045 What’s Next? The Future is Bright… Fast Track to DSO Operations Catalysing a Large Critical Minerals Project 2023-24 2025 2026+ Confirm the DSO resource (Part 2) Confirm the business case Close infrastructure gaps Develop the DSO marketing strategy Complete approvals FID Installation Operations Continued operations Stage 1 – DSO Stage 2 & 3 – Phos & Rare Earths Define resource and geometallurgy Pre feasibility study Market segmentation and target analysis Approval submissions Pilot plant Advanced resource definition Definitive feasibility Strategic offtake FID Construction Board of Directors Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Jeremy Robinson John Young Danny Goeman Shaun Hardcastle Cameron Henry Company Secretary Oonagh Malone Chief Executive Officer James Durrant RareX HQ L1, 338 Barker Rd, Subiaco WA 6008 ABN 65 105 578 756 T: (08) 6383 6593 E: info@rarex.com.au rarex.com.au ASX: REE OTCQB: REEEF Thank you Facts, Figures & Analysis RareX Value Proposition A DSO Phosphate Catalysed Rare Earth Project Cummins Range can be fast tracked to operations, ultimately giving investors access to 2 global mega trends with 2 critical products 1 Massive deposit ü 1.3Mt of contained RE, 280kt of NdPr ü 17 Mt of igneous Phos, ultra-low contaminants ü Surface deposit with DSO potential overburden 2 3 Team adjusted to suit Fast-track to monetisation ü James Durrant, ex BHP & DNK now as CEO (ex COO) ü 3 phased process from rock Phosphate, to mineral con Phosphate to Rare Earths – starting with Bulk DSO ü Danny Goeman, ex marketing FMG, DNK and RIO joins Board with Jeremy Robinson, corporate strategist, now as Chairman ü Traditional Owner negotiations underway with environmental submission in 1H2024 ü Met work supporting high beneficiation, high bioavailability and high RE upgrades ü Management team augmented with Kay Hoffman, ex MinRes and BHP, with Guy Moulang continuing as Exploration Manager 4 Existing local infrastructure ü Sealed and major roads from mine road to port with Tanami upgrade ü Strategic and underutilised port, powered by hydro, on pathway to POFE with space for industrial infrastructure ü MOU with OrdCo and Agrimin. to develop local phosphate placement products and to share supply chain and transhipping infrastructure 5 Two critical products ü Rare Earths feed the global electric revolution, particularly in the generation and use of clean energy ü Phosphates feed an ever growing global population where depleting soils need to deliver higher productivity ü Both Rare Earths and Phosphates are in sharp focus for local production and independent, strategic supply chains NdPr Enabling Decarbonisation of our Society NdFeB permanent magnet motors are crucial in reducing greenhouse gas emissions as they are at the heart of so many electric mobility solutions. Green, clean electric mobility solutions require ethical, sustainable, transparently produced NdPr. Each direct drive permanent magnet wind turbine requires ~200 NdPr oxide per megawatt kg NdPr Enabling Decarbonisation of our Society Each electric vehicle contains ~1 kg of NdPr oxide of all automotive applications, including hydrogen vehicles, have selected a Rare Earth NdFeb permanent magnet electric motor for their default driveline solution Global EV Mega Trend Continues to Accelerate The global automotive industry surpassed in 2022 1 trillion USD in investments to transition towards EVs “Global carmakers now target to spend USD 515b* for EVs & batteries. Including Tier 1 suppliers, investments should have surpassed USD 1 trillion.” Jeremy Robinson MD RareX * https://www.reuters.com/business/autostransportation/exclusive-global-carmakers-now-target-515billion-evs-batteries-2021-11-10/ Supported By Global Legislation To Meet Net Zero Targets By 2050 More and more countries have a clear roadmap to phase out internal combustion engine (ICE) vehicles. More than 30 countries have clear electrification targets or ICE bans for cars. Source https://cleantechnica.com/2021/01/02/31-countries-states-and-cities-have-ice-bans-in-place/ by 2050 Translating into an Emerging Deficit of NdPr Supply Global BEV & PHEV Sales / EV volumes Plug-In Hybrids Battery Electric Vehicles EV Market Share in % 8,3 6750 4,2 2,5 2,2 0,2 0,2 125 2012 YtY Growth in % 792 543 321 64 % 2015 +55 +69 +46 2276 2082 1263 208 3240 1,3 0,9 0,6 0,4 71 % 70 % 75 % 69 % 67 % 2018 +59 +65 +9 2021 +42 “With every incremental, additional sale of 5.5 million EVs the world needs another Rare Earth producer equivalent to the annual output of Lynas.* By 2030 the world needs ~9, by 2040 ~15 additional producers.” Jeremy Robinson Chairman RareX WW passenger card outlook / BNEF Internal combustion Hybrid Fuel Cell Plug-in hybrid Lynas annual output in 2021: 5,462 NdPr oxide Million 100 15 13 9 50 5 1 0 2015 2020 2025 2030 +108 Source https://www.ev-volumes.com/country/total-world-plug-in-vehicle-volumes/ Battery electric Source https://bnef.turtl.co/story/evo-2021/page/4/1?teaser=yes 2035 2040 NdPr Pricing And Market Information The Market Overall market sentiment is positive, due to significant progress in the Emobility industry and rising EV sales volumes. The price has been declining since March 2022, impacted by global economic sentiment and geopolitical risk. We predict that the volatility of the NdPr oxide price will continue, and that when global economic sentiment improves, the Rare Earth price will recover, since majority of industry experts agree that shortage is looming. Rare Earth Material Pricing from Asian Metals (USD per kg) Cummins Range basket price distribution SEG 2 % CeLa 3 % Tb 9 % Dy 11 % NdPr 75 % NdPr Oxide domestic China RMB converted to USD Price (USD/kg) 200 175 April 10 76.34 USD/kg 150 125 100 75 50 Sep 21 Mar 22 April 23