Announcement PDF INTERIM CONSOLIDATED FINANCIAL STATEMENTS RAREX LIMITED ABN: 65 105 578 756 AND CONTROLLED ENTITIES FINANCIAL STATEMENTS FOR HALF YEAR ENDED 31 DECEMBER 2024 RAREX LIMITED AND CONTROLLED ENTITIES CORPORATE DIRECTORY DIRECTORS LAWYERS Mr Jeremy Robinson Non-Executive Chairman Hamilton Locke Central Park, Level 39 152-158 St Georges Terrace Perth Western Australia 6000 Mr James Durrant Managing Director & CEO Mr Danny Goeman Non-Executive Director Mr Shaun Hardcastle Non-Executive Director COMPANY SECRETARY Ms Oonagh Malone PRINCIPAL PLACE OF BUSINESS & REGISTERED OFFICE Level 1, 338 Barker Road Subiaco Western Australia 6008 Telephone: (08) 6383 6593 Website: www.rarex.com.au ASX CODES: REE, REEO AUDITOR Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco Western Australia 6008 SHARE REGISTRY Automic Registry Services Level 5, 191 St Georges Terrace Perth Western Australia 6000 Telephone: (08) 9324 2099 RAREX LIMITED AND CONTROLLED ENTITIES TABLE OF CONTENTS DIRECTORS’ REPORT ..................................................................................................................... 1 AUDITOR’S INDEPENDENCE DECLARATION ................................................................................ 3 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME. 4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION .............................................................. 5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .............................................................. 6 CONSOLIDATED STATEMENT OF CASH FLOWS .......................................................................... 7 NOTES TO THE FINANCIAL STATEMENTS .................................................................................... 8 DIRECTORS’ DECLARATION......................................................................................................... 17 INDEPENDENT AUDITOR’S REPORT ........................................................................................... 18 RAREX LIMITED AND CONTROLLED ENTITIES DIRECTORS’ REPORT The Board of Directors have pleasure in presenting its interim consolidated report of RareX Limited (RareX or the Company) and its controlled entities (the Group or consolidated entity) for the half year ended 31 December 2024. 1. DIRECTORS The names of the Company’s Directors in office during the half year and until the date of this report are set out below. Directors were in office for this entire period, unless otherwise indicated. Mr Jeremy Robinson Mr Danny Goeman Mr Shaun Hardcastle Mr Jame Durrant (transitioned to Managing Director 15 July 2024) Mr Cameron Henry (retired 14 July 2024) Mr John Young (retired 14 July 2024) 2. PRINCIPAL ACTIVITIES The principal activities of the Group are mineral exploration and development. No significant change in the nature of these activities occurred during the half year. 3. REVIEW OF OPERATIONS During the half of the year the Company focussed on de-risking the existing portfolio and on inorganic expansion • Prioritising work towards a standalone startup option for Cummins Range through alternative processing options leveraging the phosphate. • Derisking and consolidating the exploration assts of Mts Mansbridge, Cummins Range Near-Mine and Khaleesi. Including tenement acquisition, access agreements and heritage agreements and technical derisking through geological assessments and modelling. • M&A activity consistent with the rare earth expertise and thematic of RareX. 4. FINANCIAL RESULTS The loss of the Group for the period ended 31 December 2024 was $2,025,220 (six months to 31 December 2023: loss of $709,160). During the half year, total expenses amounted to $2,968,213 (six months to 31 December 2023: $3,937,114). Unrestricted cash and cash equivalents amounted to $1,088,578 as at 31 December 2024 (30 June 2024: $1,895,899). 5. EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD There are no matters or circumstances which have arisen since the end of the half year which significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in subsequent financial periods, other than:  On 12 February 2025, the Company announced it had secured an access agreement for Khaleesi with Deep Yellow aswell as two additional licences, E39/2496 and E39/2415.  On 12 March 2025, the Company announced it acquired additional tenements E80/5942 and E80/5973 which are part of the Mt Mansbridge Heavy Rare Earths project. 1 RAREX LIMITED AND CONTROLLED ENTITIES 6. AUDITOR’S INDEPENDENCE DECLARATION The auditor’s independence declaration under Section 307C of the Corporations Act 2001 is set out on page 3 and forms part of the Directors’ Report for the half year ended 31 December 2024. This report is made in accordance with a resolution of the Directors. On behalf of the Directors. Jeremy Robinson Non-Executive Chairman Signed this 14th day of March 2025. 2 To the Board of Directors, AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 As lead audit Director for the review of the financial statements of RareX Limited and its controlled entities it controlled for the half year ended 31 December 2024, I declare that to the best of my knowledge and belief, there have been no contraventions of:  the auditor independence requirements of the Corporations Act 2001 in relation to the review; and  any applicable code of professional conduct in relation to the review. Yours Faithfully, HALL CHADWICK WA AUDIT PTY LTD Dated this 14th day of March 2025 Perth, Western Australia MARK DELAURENTIS CA Director RAREX LIMITED AND CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2024 Consolidated Notes 6 months ended 31 December 2024 $ 6 months ended 31 December 2023 $ Other income 3 115,204 1,251,057 Grant Income 3 827,789 1,976,898 942,993 3,227,955 Administration expenses (356,289) (296,765) Consultants & management expenses (705,394) (1,227,134) Depreciation, amortisation and impairment expense (48,597) (82,302) Finance costs (2,178) (6,756) Legal expenses (88,913) (119,353) (274,271) (126,539) Exploration expenses (438,318) (1,746,380) Foreign exchange (loss) (3,410) (438) (945,773) 54,662 (105,070) (386,110) Total expenses (2,968,213) (3,937,114) Loss from continuing operations before income tax expense (2,025,220) (709,160) - - (2,025,220) (709,160) Exchange rate differences on translating foreign operations (12,058) (1,270) Total comprehensive loss attributable to owners of the parent (2,037,278) (710,430) (0.25) cents (0.10) cents Income Total Income Expenses Share based payments expense 15 (Loss) / Gain on revaluation of financial assets Share of loss from associate 7 Income tax expense Loss from continuing operations after income tax expense Other comprehensive income Loss per share - basic and diluted The above Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the accompanying notes 4 RAREX LIMITED AND CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE HALF YEAR ENDED 31 DECEMBER 2024 Consolidated 31 December 2024 30 June 2024 $ $ Notes ASSETS Current Assets Cash and cash equivalents 4 1,088,578 1,895,899 Other financial assets – term deposits 4 40,000 40,000 Trade and other receivables 5 146,192 213,536 1,274,770 2,149,435 Total Current Assets Non-current Assets Financial assets at fair value 6 1,753,995 2,699,769 Investment in associate 7 307,283 412,353 172,574 209,481 21,281 9,562 Total Non-current Assets 2,255,133 3,331,165 TOTAL ASSETS 3,529,903 5,480,600 584,590 915,128 69,113 83,519 21,342 9,426 Total Current Liabilities 675,045 1,008,073 TOTAL LIABILITIES 675,045 1,008,073 2,854,858 4,472,527 Plant and equipment Right of use asset 8 LIABILITIES Current Liabilities Trade and other payables 9 Employee provisions Lease liability 10 NET ASSETS EQUITY Contributed equity 11 52,132,819 51,987,481 Reserves 12 10,075,901 9,813,688 (59,353,862) (57,328,642) 2,854,858 4,472,527 Accumulated losses TOTAL EQUITY The above Condensed Consolidated Statement of Financial Position is to be read in conjunction with the accompanying notes. 5 RAREX LIMITED AND CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2024 Ordinary CONSOLIDATED Notes Shares Options Reserve Share Based Payments Reserve $ $ 51,987,481 Other comprehensive income / (loss) (Accumulated Losses) Total Equity $ Foreign Currency Translation Reserve $ $ $ 5,874,212 3,934,922 4,554 (57,328,642) 4,472,527 - - - (12,058) - (12,058) Loss for the period, net of tax - - - - (2,025,220) (2,025,220) Total comprehensive loss for the period, net of tax - - - (12,058) (2,025,220) (2,037,278) At 1 July 2024 Transactions with owners in their capacity as owners Share issues 11 150,000 - - - - 150,000 Transaction costs 11 (4,662) - - - - (4,662) Share based payments 15 - 148,500 125,771 - - 274,271 At 31 December 2024 52,132,819 6,022,712 4,060,693 7,504 (59,353,862) 2,854,858 At 1 July 2023 49,739,062 5,874,212 3,954,370 (4,501) (54,046,940) 5,516,203 Other comprehensive income / (loss) - - - (1,270) - (1,270) Loss for the period, net of tax - - - - (709,160) (709,160) Total comprehensive loss for the period, net of tax - - - (1,270) (709,160) (710,430) Share issues 500,000 - - - - 500,000 Transaction costs (6,989) - - - - (6,989) - - 126,539 - - 126,539 (210,000) - - - 3,870,909 (5,771) (54,756,100) 5,425,323 Transactions with owners in their capacity as owners Share based payments Conversion of Performance Rights At 31 December 2023 210,000 50,442,073 5,874,212 The above Condensed Consolidated Statement of Changes in Equity is to be read in conjunction with the accompanying notes. 6 RAREX LIMITED AND CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2024 Consolidated 6 months to 31 December 2024 6 months to 31 December 2023 $ $ Notes CASH FLOWS USED IN OPERATING ACTIVITIES Payments to suppliers and employees (1,881,421) (3,927,405) 20,878 33,120 (252) (6,756) Proceeds from research and development tax incentives 827,789 - Other income 93,766 11,540 (939,240) (3,889,501) Payments for property, plant and equipment - (1,011) NET CASH FLOWS USED IN INVESTING ACTIVITIES - (1,011) Proceeds from share issue 150,000 500,000 Costs of share issue (4,662) (6,989) - (14,500) Reduction in finance lease liabilities (13,419) (44,761) NET CASH FLOWS USED IN FINANCING ACTIVITIES 131,919 433,750 NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (807,321) (3,456,762) Cash and cash equivalents at beginning of period 1,895,899 4,310,662 - (1,956) Interest received Interest paid NET CASH FLOWS USED IN OPERATING ACTIVITIES CASH FLOWS USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Share application funds Effect of movement in exchange rate CASH AND CASH EQUIVALENTS AT END OF PERIOD 4 1,088,578 851,904 Add: Other financial assets – term deposits at bank 4 40,000 56,942 CASH AND CASH EQUIVALENTS AND OTHER FINANCIAL ASSETS – TERM DEPOSITS AT END OF PERIOD 4 1,128,578 908,846 The above Condensed Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes. 7 RAREX LIMITED AND CONTROLLED ENTITIES 1. CORPORATE INFORMATION The consolidated financial report of RareX Limited (the Company) for the half year ended 31 December 2024 was authorised for issue in accordance with a resolution of the Directors on 14th March 2025. RareX Limited is a company incorporated in Australia and limited by shares which are publicly traded on the Australian Securities Exchange. The principal activities during the year of the entities within the consolidated entity were mineral exploration and development. 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES The general purpose consolidated financial statements for the interim half year reporting period ended 31 December 2024 have been prepared in accordance with Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Act 2001, as appropriate for ‘for-profit’ orientated entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. This interim consolidated financial report does not include all notes of the type normally included in an annual financial report and therefore cannot be expected to provide a full understanding of the financial performance, financial position and financing and investing activities of the entity as the full financial report. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2024 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the policies stated below. (a) Basis of Preparation In the half year ended 31 December 2024, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to the Group’s operations and effective for annual reporting periods commencing on or after 1 July 2024. The Group has adopted all the new or amended Accounting Standards and Interpretations issued by the AASB that are mandatory for the current reporting period. It has been determined by the Directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group and, therefore, no change is necessary to accounting policies. Future effects of the implementation of these standards will depend on future details. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted by the Group. Going concern As at 31 December 2024, the Group had net current assets of $599,724 (30 June 2024: $1,141,362) and returned a loss attributable to owners of $2,025,220 (31 December 2023: $709,160). The ability of the Group to continue as a going concern is dependent upon the future successful raising of the necessary funding through disposal of assets, equity and/or debt and the successful exploitation of the Group’s tenements. In the event that the Company is unable to secure sufficient funding, there is a material uncertainty relating to the Group’s ability to continue as going concern and it may be required to realise its assets at amounts different to those currently recognised, settle liabilities other than in the ordinary course of business and make provisions for other costs which may arise as a result of cessation or curtailment of normal business operations. The Directors believe it is appropriate to prepare the Financial Statements on a going concern basis as the Group has sufficient funds available to meet its committed and required expenditure over the following year. The Group has a strong historical record of raising funds and can raise working capital through the issue of debt or equity securities and/or other funding over the next 12 months. Additionally, the Group can revise the scope of their exploration activities in line with the funds available to the Group. These Financial Statements have been prepared on the basis that the Group can meet its commitments as and when they fall due and can therefore continue normal business activities and the realisation of its assets and settlement of its liabilities can occur in the ordinary course of business. 8 RAREX LIMITED AND CONTROLLED ENTITIES 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (b) Changes in accounting policies The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group’s annual financial statements for the year ended 30 June 2024. The Group has adopted all mandatory new and amended standards and interpretations applicable for the current period. The adoption of these standards and interpretations had no material impact on these financial statements or on the financial position or performance of the Group. The Group has not elected to early adopt any other new standards or amendments that are issued but not yet effective. Certain amounts in the comparative financial statements have been reclassified to conform to the current period presentation. (c) Basis of consolidation The half year consolidated financial statements comprise the financial statements of RareX Limited and its controlled subsidiaries. (d) Critical Accounting Estimates and Judgements The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Key estimates (i) Impairment – general The Group assesses impairment at the end of each reporting period by evaluation of conditions and events specific to the Group that may be indicative of impairment triggers. Where impairment has been triggered, assets are written down to their recoverable amounts. (ii) Options and Share Based Payments value The options and share based payments issued by the Group during the half year (refer Note 15) have been valued by the Directors using the Monte Carlo model based on the inputs shown at Note 15. (iii) Tenement acquisition costs The Directors have elected to expense certain tenement acquisition costs in relation to the Cummins Range Rare Earths Project. (iv) Investment in Cosmos The Group has assessed its investment in Cosmos as an investment in an associate and has accounted for under the equity method. The assessment has included consideration of the fact that the Company has a board representation in Cosmos and the director appointed by RareX is also the executive director of Cosmos, and as such exercises significant influence over this entity. (v) Investment in Kincora The Group has invested 44 million CDIs in Kincora, representing 18.20% of the total issued shares (note 6). The Group has a board representation on the Kincora board. Despite the presence of board representation, the Group’s influence on Kincora is limited, given that the Group’s appointed director also has a personal interest in Kincora. Furthermore, there is no management involvement, and there are no material transactions between the Group and Kincora. On the basis of the foregoing, the Group has assessed its investment in Kincora as a financial instrument and has recognised the carrying value at its fair value. Kincora’s shares are listed on both the ASX and TSXV. To determine the fair value of the investment, the Group is required to determine which of the aforementioned markets is the principal market. The ASX has been determined to be the principal market, as it has higher trading volumes. In addition, Kincora’s most recent capital raising was performed on the ASX. 9 RAREX LIMITED AND CONTROLLED ENTITIES 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (e) New Standards and Interpretations In the half year ended 31 December 2024, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Group’s operations and effective for annual reporting periods commencing on or after 1 July 2024. It has been determined by the Directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group and, therefore, no change is necessary to accounting policies. Future effects of the implementation of these standards will depend on future details. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted by the Group. 3. OTHER INCOME Consolidated 6 months 6 months ended 31 ended 31 December December 2024 2023 $ $ 4. Interest received 20,878 33,120 Sundry income 83,211 17,937 Gain on disposal of investments 11,115 - Gain on disposal of tenements - 1,200,000 Total other income 115,204 1,251,057 R&D tax incentive 827,789 1,976,898 Total income 942,993 3,227,955 CASH AND CASH EQUIVALENTS AND OTHER FINANCIAL ASSETS – TERM DEPOSITS Consolidated 31 December 30 June 2024 2024 $ $ Cash at bank 1,088,578 1,895,899 Term deposits* 40,000 40,000 1,128,578 1,935,899 * Term deposits are restricted cash used as security for credit cards. 5. TRADE AND OTHER RECEIVABLES Consolidated 31 December 30 June 2024 2024 $ $ Trade Debtors 26,268 37,356 Other Debtors 119,924 176,180 146,192 213,536 10 RAREX LIMITED AND CONTROLLED ENTITIES 6. FINANCIAL ASSETS For all financial instruments held as at 31 December 2024, the carrying value approximates fair value. Consolidated 31 December 30 June 2024 2024 $ $ Financial assets at fair value through profit or loss Non-Current Shares in listed corporations, at fair value 7. - Kincora Copper Ltd (ASX: KCC) (44,983,333 CDIs; 2023 4,983,333 shares) 1,214,550 2,159,200 - Canada Rare Earth Corp (TSXV: LL.V) (24,064,658 shares; 2023 24,579,658 shares) 539,445 540,569 1,753,995 2,699,769 INVESTMENT IN ASSOCIATE In accordance with AASB 128, the Group has recognised its initial investment in Cosmos Exploration Ltd less its share of Cosmos’ post divestment loss. At disposal of subsidiary, RareX have sold their tenements (6) to Cosmos and consideration was received by shares. RareX’s shareholding of Cosmos as at 31 December 2024 is 11.98%. Consolidated 31 December 2024 $ 30 June 2024 $ Cosmos Exploration Ltd (10,000,000 shares) 2,000,000 2,000,000 Loss brought forward (1,587,647) (1,030,078) (105,070) (557,569) 307,283 412,353 Less: Share of Cosmos’ post divestment loss for the period 8. RIGHT OF USE ASSET Consolidated 31 December 30 June 2024 2024 $ $ Opening balance 9,562 216,574 Additions 23,408 - Disposals - (156,061) (11,689) (50,951) 21,281 9,562 Amortisation 11 RAREX LIMITED AND CONTROLLED ENTITIES 9. TRADE AND OTHER PAYABLES Consolidated 31 December 30 June 2024 2024 $ $ 10. Trade and other payables 485,618 860,294 Accrued Expenses 98,972 54,834 584,590 915,128 LEASE LIABILITIES Consolidated 31 December 30 June 2024 2024 $ $ Current liability 21,342 9,426 - - 21,342 9,426 21,342 9,426 1-2 years - - 2-5 years - - Over 5 years - - 21,342 9,426 Opening balance 9,426 240,121 Initial recognition of new lease 23,409 - Interest 252 7,300 Principal (11,745) (46,712) - (191,282) 21,342 9,426 Non-current liability Maturity Within 1 year Derecognition on disposal 12 RAREX LIMITED AND CONTROLLED ENTITIES 11. ISSUED CAPITAL Consolidated 31 December 30 June 2024 2024 $ $ Ordinary shares 52,132,819 51,987,481 52,132,819 51,987,481 Fully paid ordinary shares carry one vote per share and carry the right to dividends. 12 months ended 30 June 24 Movement in ordinary shares on issue No. shares $ No. shares $ As at beginning of period: 790,131,550 51,987,481 668,775,462 49,739,062 - - 4,000,000 240,000 10,714,286 150,000 107,539,682 1,849,005 - - 9,816,406 186,512 Less: Transaction costs - (4,662) - (27,098) As at end of the period: 800,845,836 52,132,819 790,131,550 51,987,481 Shares issued on conversion of performance rights Shares issued via placement Shares issued in connection with the Khaleesi Project 12. 6 months ended 31 December 2024 RESERVES Consolidated 31 December 30 June 2024 2024 $ $ Options reserve 6,022,712 5,874,212 Share-based payment reserve 4,060,693 3,934,922 (7,504) 4,554 10,075,901 9,813,688 Foreign currency translation reserve Balance as at 1 July 2024 Options Performance Rights (Number) (Number) 54,500,030 15,000,000 - 20,000,000 Issue of unquoted Options 33,000,000 - Balance as at 31 December 2024 87,500,030 35,000,000 Movements during the period: Issue of Performance Rights 13 RAREX LIMITED AND CONTROLLED ENTITIES 13. COMMITMENTS AND CONTINGENCIES The only changes to the commitments and contingencies disclosed in the most recent annual financial report are specified below: (a) Exploration Expenditure Commitments Consolidated 31 December 30 June 2024 2024 $ $ Estimated commitments for which no provisions were included in the financial statements are as follows: Payable - not later than one year - later than one year and not later than two years - two to five years 502,377 318,355 1,626,812 390,716 18,479 - 2,147,668 709,071 (b) Contingent liabilities As the Company has not completed a positive bankable feasibility (BSF) within 36 months of the acquisition of the Cummins Range Rare Earths Project, the further deferred consideration of $1,000,000 payable in cash or shares to Element 25 Ltd has been replaced by a royalty of 1% of the net smelter return on commercial production. As this royalty is subject to commercial production at the Cummins Range Rare Earths Project, it is disclosed as a contingent liability and has not been brought to account as a liability in the financial statements as at 31 December 2024. 14. SEGMENT REPORTING Operating segments are reported in a manner that is consistent with the internal reporting to the chief operating decision maker (CODM), which has been identified by the Group as the Board of directors. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. RareX has reports its segmental information in accordance with AASB 8 Operating Segments, At 31 December 2024, the Group had the following segments: Operating Profit/(Loss) Total Assets Total Liabilities 31/12/2024 $ 31/12/2023 $ 31/12/2024 $ 30/06/2024 $ 31/12/2024 $ 30/06/2024 $ Rare Earths (Western Australia) (438,321) (1,746,380) 152,647 182,494 (215,117) (408,055) Cobalt (Morocco) (17,311) (17,313) 147 150 - (9,872) Corporate (1,569,588) 1,054,533 3,377,109 5,297,956 (459,928) (590,146) (2,025,220) (709,160) 3,529,903 5,480,600 (675,045) (1,008,072) 14 RAREX LIMITED AND CONTROLLED ENTITIES 15. SHARE BASED PAYMENTS Performance rights valuation During the period the company issued 20m performance rights to employees and 33m options to Directors of the Company. The following performance rights, which were issued to Directors, key management personnel and employees, were recorded at their fair value in the share-based payment reserve. The performance rights have been valued by the Directors at the closing share price on the grant date, less discounts to reflect the effects of any market based vesting conditions as detailed in the below table. The expected vesting period for each performance right for performance-based vesting conditions is the period until expiry of the performance right. KMP Class Grant date No. performance rights Issued J Durrant Other Employees Converted Fair value per performance right Total fair value of performance rights issued Balance Expense to Statement of Profit or Loss for period end 31 Dec 2024 ($) E 10/02/2023 2,000,000 - 2,000,000 ($) 0.0600 ($) 120,000 F 10/02/2023 2,000,000 - 2,000,000 0.0600 120,000 - 4,000,000 - 4,000,000 240,000 - - D 10/02/2023 2,000,000 - 2,000,000 0.0600 120,000 13,750 E 10/02/2023 3,500,000 - 3,500,000 0.0600 210,000 13,750 F 10/02/2023 4,000,000 - 4,000,000 0.0600 240,000 13,750 E 8/12/2023 500,000 - 500,000 0.0280 14,000 3,241 F 8/12/2023 500,000 - 500,000 0.0280 14,000 3,240 G 8/12/2023 500,000 - 500,000 0.0280 14,000 3,240 H 29/11/2024 4,000,000 - 4,000,000 0.0055 22,000 22,000 I 29/11/2024 4,000,000 - 4,000,000 0.0055 22,000 22,000 J 29/11/2024 4,000,000 - 4,000,000 0.0011 4,400 4,400 K 29/11/2024 4,000,000 - 4,000,000 0.0011 22,000 4,800 L 29/11/2024 4,000,000 - 4,000,000 0.0055 22,000 22,000 31,000,000 - 31,000,000 704,400 125,771 35,000,000 - 35,000,000 926,800 125,771 Total The 20m performance rights issued during the year have the following conditions: Class Vesting Conditions Expiry Number 27 December 2027 4,000,000 H Announcement of an Ore Reserve for Cummins Range with 3-year term. I Safe completion of a 3,600m drilling program at Khaleesi Project with 3-year term. 27 December 2027 4,000,000 J Successful project acquisition in Saudi Arabia with 3-year term. 27 December 2027 4,000,000 K Safe completion of a 3,600m drilling program at a project in Saudi Arabia with 3-year term. 27 December 2027 4,000,000 L Successful acquisition of a project with an existing JORC-compliant resource with 3year term. 27 December 2027 4,000,000 On meeting the vesting conditions, each performance right will convert into one ordinary share at the request of the holder with no further consideration. Performance rights were valued at the closing share price on the grant date. The expected vesting period for each performance right for performance-based vesting conditions is the peri