Announcement PDF Annual Report RareX Limited 2023 RareX HQ Level 1, 338 Barker Rd Subiaco WA 6008 Australia P +61 8 6383 6593 info@rarex.com.au ASX: REE rarex.com.au Table of Contents Corporate Directory ..................................................................................................................................... 2 Review of Operations .................................................................................................................................. 3 Directors’ Report ....................................................................................................................................... 16 Auditor’s Independence Declaration ........................................................................................................ 30 Financial Statements ................................................................................................................................ 31 Auditor’s Report ......................................................................................................................................... 76 Mineral Resource Statement .................................................................................................................... 79 Schedule of Mining Tenements ............................................................................................................... 81 ASX Additional Information ...................................................................................................................... 82 1 Corporate Directory DIRECTORS LAWYERS Mr Jeremy Robinson Non-Executive Chairman Hamilton Locke Central Park, Level 48 152-158 St Georges Terrace Perth, Western Australia 6000 Mr Danny Goeman Non-Executive Director Mr Shaun Hardcastle Non-Executive Director AUDITOR Mr Cameron Henry Non-Executive Director SW Audit Level 18, 197 St Georges Terrace Perth, Western Australia 6000 Mr John Young Non-Executive Director SHARE REGISTRY CHIEF EXECUTIVE OFFICER Automic Registry Services Level 2, 267 St Georges Terrace Perth, Western Australia 6000 Mr James Durrant Telephone: 1300 288 664 COMPANY SECRETARY Ms Oonagh Malone ASX CODES: REE, REEO REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS Level1, 338 Barker Road Subiaco, Western Australia 6008 Telephone: (08) 6383 6593 Website: www.rarex.com.au 2 Review of Operations The Board of RareX Limited (RareX) is pleased to provide a review of operations across the Company’s asset portfolio for the 2023 financial year and to date. CEO’s Statement ”FY2023 has been a productive year for RareX, with the delivery of a significantly increased Mineral Resource Estimate for our flagship Cummins Range Rare Earths & Phosphate Project and an evolution in our planned development pathway for this unique critical minerals project towards a staged, threephase development approach. We’ve expanded our management and governance team to build a senior leadership team that is highly relevant to the business and its transition towards operations, and we’ve established RareXploration to curate a portfolio of synergistic assets with exciting exploration potential. Our regional presence in the Kimberley is becoming more established as we work with local businesses, community members and government in the region, and our positive relationship with the Jaru Traditional Owners has continued to strengthen. “Whilst these efforts are not yet reflected in our share price performance – in a large part due to macroeconomic factors that are impacting many companies across the junior resources sector – I am confident we have the fundamentals in place for robust growth: We hold the largest undeveloped rare earths deposit in Australia and we’ve developed a low risk, low capital intensity strategy for its development. Our metallurgical pathway is well defined, with first product samples now becoming available for customer feedback, and we’re seeing positive signs of a recovery in rare earth pricing alongside continued strong phosphate prices. The supply of phosphate and rare earths from reliable supply chains is becoming increasingly sought-after, particularly by automotive manufactures where rare earths feed the magnet motors and high-purity phosphate (such as ours) is fed into Lithium-IronPhosphate (LFP) battery technology. These exceptional foundations, coupled with exciting upcoming work programs within our RareXploration initiative, should see improved sentiment in the near term. “I would like to acknowledge the hard work and commitment of the small, but highly skilled RareX team for their efforts over the year and would also like to thank all our shareholders for their continued support.” James Durrant CEO Watch our CEO summarise the year on the Investor Hub 3 Cummins Range Rare Earths & Phosphate Project RareX’s flagship, 100%-owned Cummins Range Project is a nationally significant rare earths and phosphate project located in the Kimberley region of Western Australia, 135km southeast of the town of Halls Creek. Halls Creek is well provisioned for infrastructure with power, water and a sealed airstrip. The Cummins Range Project is serviced by the Great Northern Highway which connects to the Port of Wyndham. Mineral Resource Update RareX reported a substantial increase in the Mineral Resource Estimate (MRE) for the Cummins Range Project during the reporting period. The update, which was released in two stages for the Rare Dyke and Phos Dyke, delivered a total Indicated and Inferred Mineral Resource of 519Mt at 0.32% TREO (total rare earths oxide) and 4.6% P2O5 (phosphate) with appreciable quantities of niobium and scandium. The amount of contained TREO is 1.6Mt with 360Kt of contained NdPr oxide. This MRE makes Cummins Range the second-largest rare earths deposit, and the largest undeveloped rare earths deposit, in Australia. Within the large phosphate resource are significant tonnes of high-grade TREO including 52Mt at 1.02% TREO from a 0.6% cut-off. This accounts for one-third of the total contained TREO for the MRE and shows there are significant tonnages of high-grade rare earth veins within the phosphate Resource. Table 1. Cummins Range Mineral Resource Estimate, P2O5 ≥2.5% RARE DYKE Classification Tonnes (Mt) P2O5 (%) TREO + Y2O3 (ppm) HREO (ppm) Nd2O3 (ppm) Pr6O11 (ppm) Nb2O5 (ppm) Sc2O3 (ppm) ThU (ppm) Indicated 45.9 6.2 5700 290 910 270 1000 90 90 Inferred 368.9 4.0 3030 160 490 150 570 60 40 Total 414.8 4.2 3320 180 540 160 620 70 50 PHOS DYKE Classification Tonnes (Mt) P2O5 (%) TREO + Y2O3 (ppm) HREO (ppm) Nd2O3 (ppm) Pr6O11 (ppm) Nb2O5 (ppm) Sc2O3 (ppm) ThU (ppm) Indicated 20.8 8.0 3580 300 720 190 470 80 100 Inferred 83.8 5.4 2340 200 470 120 450 60 60 Total 104.6 5.9 2590 220 520 140 450 70 70 COMBINED Classification Tonnes (Mt) P2O5 (%) TREO + Y2O3 (ppm) HREO (ppm) Nd2O3 (ppm) Pr6O11 (ppm) Nb2O5 (ppm) Sc2O3 (ppm) ThU (ppm) Indicated 66.6 6.8 5010 290 850 250 830 90 90 Inferred 452.7 4.2 2900 170 490 140 550 60 40 Total 519.3 4.6 3170 190 540 160 580 70 50 Notes: 1. Due to effects of rounding, the total may not represent the sum of all components. 2. TREO (ppm) includes: Light Rare Earth Oxides (LREO): La2O3, CeO2, Pr6O11, Nd2O3; and Heavy Rare Oxides (HREO): Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3; + Y2O3 3. ThU comprises ThO2 + U3O8 (ppm) 4. Mineral Resource is reported from all blocks, classified as either Indicated or Inferred, where interpolated block grade is >2.5%P2O5 4 The relatively high NdPr and HREO (heavy rare earth oxide) content at Cummins Range is consistent with that of monazite dominant mineralisation, resulting in an attractive Basket Price of US$34.20/kg for the Project as shown below: Table 2. Mineral Resource-Based Basket Price Element LREO La2O3 CeO2 Pr6O11 Nd2O3 Sub-Total HREO Sm2O3 Eu2O3 Gd2O3 Tb4O7 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 Sub-Total Total Basket Price US$/kg Price US$/kg % of TREO Basket Price US$/Kg % of Basket Price 1.1 1.1 110.0 110.0 24.1% 45.5% 4.9% 16.9% 91.4% 0.3 0.5 5.4 18.6 24.7 0.8% 1.5% 15.8% 54.3% 72.4% 2.5 26.0 36.0 2,300.0 595.0 10.0 2.4% 0.6% 1.5% 0.2% 0.8% 0.1% 0.2% 0.02% 0.1% 0.02% 2.7% 8.6% 0.1 0.2 0.5 3.9 4.5 0.3 9.4 0.2% 0.4% 1.6% 11.4% 13.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.8% 27.6% 34.2 The Rare Dyke and Phos Dyke MRE includes 67Mt at 0.5% TREO and 7% P2O5 in the higher-confidence Indicated category, which is mostly contained in the upper 100m. Importantly, the concentration of the high value metals Neodymium and Praseodymium is 73kt. A phosphate cut-off was chosen for the MRE as it better represents the geology and economic potential of the deposit in that it captures the phosphate and almost all of the rare earths. Full details of the Cummins Range MRE were provided in the Company’s ASX announcements dated 30 March and 1 May 2023. Revised Development Strategy Exploration and resource development programs undertaken throughout FY2023 re-framed the Cummins Range Project as a highly significant phosphate-hosted rare earths deposit commencing from surface. This new understanding of the resource, coupled with metallurgical testwork undertaken during the reporting period (see below), suggested the option for an initial fast-tracked DSO (direct shipping ore) phosphate fertiliser phase (Stage 1), followed by phosphate-RE beneficiation (Stage 2) and subsequently beneficiation from the underlying fresh rock and potential value chain development (Stage 3). 5 This staged approach is expected to lower the risk associated with building the full rare earth value chain outright at the beginning, by delivering a simpler and lower-cost DSO phosphate operation using existing infrastructure, whilst maintaining development towards a large scale, strategic, rare earth and phosphate critical minerals project. Feasibility studies commenced during FY2023 to investigate this pathway, with a specific emphasis on accelerating the DSO phase while maintaining a technical pathway towards the ultimate goal of producing rare earth critical metals. Enhanced Scoping Study Subsequent to the end of the reporting period, RareX delivered an enhanced Scoping Study for Cummins Range as a DSO start-up, 3-stage phosphate-enabled rare earth critical minerals project. The enhanced Scoping Study built upon learnings and recommendations from an earlier Scoping Study completed in September 2022, metallurgical testwork and the 2023 updated Mineral Resource Estimate (outlined above). The Study’s main contributors were Primero, Mining Plus, Ausenco, Shawmac and MBS Environmental. Cautionary Statement The Scoping Study referred to in this report was completed to determine the viability of a combined mine, DSO operation and regolith beneficiation processing plant, under a staged development approach, in the East Kimberly region of Western Australia, using phosphate and rare earth deposits at Cummins Range to produce phosphate and rare earth concentrate products. It is a preliminary technical and economic study of the potential viability of the Project. This Scoping Study is an order of magnitude technical and economical assessment and is supported by Indicated and Inferred Mineral Resources 1. The Study is based on the material assumptions outlined below. These include assumptions about the availability of funding. While RareX considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Study will be achieved. To achieve the range of outcomes indicated in the Study, initial funding of approximately A$45M will likely be required for Stage 1 followed by A$304M for Stage 2 and A$63M for Stage 3. Investors should note that there is no certainty that RareX will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive or otherwise affect the value of RareX’s existing shares. It is also possible that RareX could pursue other value realisation strategies such as a sale, partial sale or joint venture of the Project. If it does, this could materially reduce RareX’s proportionate ownership of the Project. The Study includes appropriate assessment of realistically assumed modifying factors together with other relevant operational factors. The production target disclosed in the Study is underpinned by ore feed classifications of 73% Indicated Resources and 27% Inferred. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The Study demonstrates a potentially viable project and has given the Board of RareX the confidence to approve the commencement of a Definitive Feasibility Study (DFS) for Stage 1 and Pre-Feasibility Study (PFS) for Stage 2 which will commence in Q3 2023. Additionally, the Board supports the on-going environmental baseline studies and the finalisation of Native Title Agreement negotiations. 1 ASX Announcement 1 May 2023: Cummins Range Resource Soars to 519Mt 0.32% TREO, 4.6% P O . The Company confirms that it is 2 5 not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed. 6 The project concept outlined in the Scoping Study comprises: Stage 1: Low CAPEX (A$45M), direct shipping ore (DSO), direct application (DA), high-bioavailability, organic rock phosphate fertiliser for agricultural purposes. A production rate of up to 300ktpa of 23% P2O5 is forecast for a period of 3 years. Stage 2: Installation of a mid-sized beneficiation plant of A$304M to produce 550ktpa phosphate-rare earth mineral concentrate from the weathered resource for the phosphoric acid and rare-earth concentrate market. Stage 3: A$63M upgrade of the Stage 2 plant in year 13 to produce a concentrate from the unweathered, fresh, rock below c.130m RL. This staged development approach has the benefits of initiating early cashflows, building confidence with the regulators on environmental management, furthering community relationships and social performance, providing greater mineral resource definition, allowing bulk samples for metallurgy and piloting, and establishing a functioning supply chain; all of which substantially de-risk Stage 2 which transitions the project into a rare-earth critical mineral mine. Key project metrics are presented in the table below. Table 3: Enhanced Scoping Study Results Summary Key project metrics Physicals Product type Av. prod. rate (dry) (ktpa) Average grade (%) Duration (yr) Costs CAPEX (A$M) OPEX (A$M/a) OPEX (A$/t product) Total SUSCAP (A$M/a) Closure (A$M) Products Average TREO production (ktpa) Average P2O5 production (ktpa) Product price (A$/t) Financial outcomes Payback (pre-tax) (yr) Average EBITDA LOM (A$M/a) Total EBITDA (A$M) Government tax (30%) (A$M) Government royalty (A$M) Native title contributions (A$M) NPV8 (pre-tax / post-tax) (A$M) IRR (pre-tax / post-tax) (%) Notes: • • Stage 1 DSO 270 23% P2O5 3 Stage 2 Phos-RE Con 503 33% P2O5; 2.3% TREO 10 Stage 3 Phos-RE Con 480 32% P2O5; 1.6% TREO 5 45 35 122 1 - 304 139 259 7 - 63 171 328 8 41 63 254 12 169 553 7 156 468 1.65 1.41 81 1,450 406 205 84 549 / 333 39% / 27% 1.69 Government royalties: 7.5% DSO, 5% Con Native title (NT) contributions per currently negotiated outcomes - note the agreement has not been executed 7 The production target disclosed in the Study is underpinned by ore feed classifications of 73% Indicated Resources and 27% Inferred. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. Full details of the Cummins Range Enhanced Scoping Study were provided in the Company’s ASX announcement dated 22 August 2023. Based on the positive outcomes of the Enhanced Scoping Study, the RareX Board has resolved to now commence a Definitive Feasibility Study for the Stage 1 DSO phosphate operation and a Pre-Feasibility Study for the Stage 2 phosphate concentrate operation. Metallurgical testwork Metallurgical test work programs continued throughout the reporting period. Following positive results from a 2022 sighter testwork program 2, a bulk flotation program was carried out to assess if similar, or better, flotation performance can be achieved at larger scale with the same simple flotation circuit. The bulk flotation using larger float cells is a good intermittent step to simulate pilot testing and to assess if similar flotation kinetics can be achieved. The test was performed on the same regolith composite that were tested in the sighter program and was undertaken at Auralia Metallurgy in Perth. Results were reported subsequent to the end of the reporting period, with a summary of the flotation testwork results with comparison to the sighter float results shown in Table 4. Table 4: Flotation Results Summary Bulk Float Product Rougher Concentrate Cleaner Concentrate FINAL Head Grade Grade % P2O5 Recovery % Grade % 22.6 96.3 0.51 34.4 91.1 12.9 100 Sighter Float1 TREO Recovery % Grade % P2O5 Recovery % Grade % TREO Recovery % 81.7 23.8 94.3 0.55 79.1 0.72 70.7 34.1 85.7 0.70 63.9 0.33 100 12.9 100 0.33 100 As shown, excellent results were achieved from the bulk flotation test producing a phosphate concentrate of 34.4% aligning to the sigher float performance. The bulk float P2O5 recovery of 91.1% was also encouraging and was better that the sighter program. The flotation tests were not focused on concentrating rare earths and the TREO head grade is relatively low for this composite, however, the recovery trend of the rare earth showed high similarities, albeit slightly lower recoveries, to the phosphate (as shown in Figure 1) for this composite. This is in line with expectations and further supports the Scoping Study 3 assumptions for the product recoveries and the production of a combined concentrate of apatite and monazite. 2 ASX announcement 04 October 2022: Met Testwork Delivers Premium Phosphate Concentrate 3 ASX announcement 22 Aug 2023: Enhanced Scoping Study for Cummins Range 8 100 %REO Recovery 90 80 70 60 50 40 30 20 20 30 40 50 60 70 80 90 100 % P2O5 Recovery AM204-1 - CRCS4a Phosphate Bulk Float AM134-3 - CRCS4a Phosphate Float Figure 1: TREO recovery vs. P2O5 recovery The bulk float results have further demonstrated the potential of producing a premium phosphaterare earth mineral concentrate from the Cummins Range deposit using a simple, proven beneficiation technique. Phosphate Bioavailability Testwork Testwork on samples from Cummins Range confirmed the strong potential of the Direct Shipping Ore (DSO) phosphate product to be used as direct-application agricultural fertiliser. 88 samples were selected from the two main geological units, the Rare Dyke (RD) and the Phos Dyke (PD). The samples were selected to ensure broad coverage of different P2O5 grades, locations within the orebody, and different weathering profiles. The testwork program comprised industry-standard 2% citric acid leach test and was conducted at LabWest Mineral Analysis. The phosphorus bioavailability results were compared with industry “high” standard for the citric acid method and are shown in Figure 2 and Figure 3 for Rare Dyke and Phos Dyke respectively. As indicated, the majority of the 88 samples were shown to have very high phosphorus bioavailability which was 2-4 times the industry high standard (>9.4% P2O5 dissolution in 2% citric acid). Good bioavailability is also observed across all grades and weathering zones revealing potential for increased production volumes. These exceptional results demonstrate the potential of Cummins Range DSO material for use as direct application fertilisers. 9 Figure 2: Phosphorous Bioavailability Results vs. Industry Standard - Rare Dyke Figure 3: Phosphorous Bioavailability Results vs. Industry Standard - Phos Dyke Note: CW – Completely Weathered; SW – Strongly Weathered; MW – Moderately Weathered, WW – Weakly Weathered; FR – Fresh 10 The Cummins Range Resource is an igneous deposit which means the rocks are naturally lower in impurities and deleterious elements when compared with sedimentary rocks. The results from the 88 samples confirm very low levels of deleterious elements including fluorine (F), chlorine (Cl), cadmium (Cd) and lead (Pb) which are well below industry limits as shown in Table 5. Table 5: Deleterious Elements Results Summary Deleterious Element Unit Assay Range Average Level Industry Limit for Phosphorus Fertilisers 4 F % 0.18 - 4.00 1.02 <4 Cl % 0.01 - 0.11 0.03 <2 Cd mg/kg P 3.31 - 137.64 32.82 <300 Pb mg/kg 1.70 – 208.00 24.32 <500 Following the positive results, additional formic acid and water leach tests are planned to further assess the phosphorus bioavailability of the potential DSO material. RareX has appointed a fertiliser consultant to leverage current and future DSO testwork results, assist with better understanding of the agronomic effects of the Cummins Range DSO material and support the development of product marketing and offtake agreements. In addition to the DSO analysis, phosphate mineral beneficiation studies for both the Rare Dyke and Phos Dyke materials are underway, with the rare earth deportment also being studied. Phosphateoptimised beneficiation is a strong alternative to rare earth-optimised flotation and may deliver greater value realisation from the Cummins Range Resource. Geotechnical Assessment Geotechnical tests were performed on diamond core from along a near surface high-grade zone within the orebody to provide some high-case strength parameters of the rocks to be mined. Note that for near-surface material in the weathered zone of the deposit, core at Cummins Range is quite friable and as such most core is not suitable for strength testing at the lab; therefore, core sections that are sufficiently coherent for lab testing are representing a rock strength high-case for processing feed. Sections of phoscorite and ultramafic sample that were sufficiently coherent were tested at E-Precision Laboratory, Perth. Results returned UCS values in the range of 70 MPa for the phoscorite samples, which are the likely higher grade ore feed for the Project. The ultramafic sample failed at 22 MPa, albeit a microfracture appears to be the release mechanism in this case not the rock mass. This warrants further testing as part of a broader geotechnical campaign, required for detailed designs and approvals which seeks to assess slope mechanics as well as ore parameters. The comparatively low rock strength within the pit shell presents an opportunity towards reduced operating costs via surface-mining, thus eliminating drill and blast operating operations. RareX has reached out to potential providers of surface miners and surface mining services to establish the viability of this operational pathway. Surface miners could provide further upside to mining and 4 Industry limit as stated in “National Code of Practice for Fertilizer Description and Labelling”, Fertiliser Australia 2018 11 processing costs through pre-screening and crushing of ore in-situ and reduce environmental impacts common with regards to blasting operations. MoU with OrdCo RareX signed a collaboration Memorandum of Understanding (MoU) with Ord River District Cooperative Ltd (OrdCo) during the reporting period to develop a phosphate product roadmap to support the Kununurra agricultural sector with a portion of Cummins Range’s phosphate product mix. OrdCo, which has been in operation since 1963, is the leading independent agricultural co-operative based in the Ord River Irrigation Area (ORIA) and provides a complete range of farming inputs and services to the local region and greater surrounds. The east Kimberley is the largest producer of irrigated horticulture in the region, powered by the Ord Irrigation Scheme as water from Lake Argyle and Lake Kununurra is diverted and gravity fed through kilometres of open channels to irrigate farmlands. In the process, sustainable hydroelectricity is produced to power the east Kimberley. The ORIA has expanded from a historical base of around 15,000 ha to approximately 21,000 ha. Developments that will bring the area to 28,000 ha are underway with the potential to increase to 60,000 ha or more. Outside the ORIA, value add developments on many stations, such as dryland cropping using wet season rainfall, are now resulting in significant cropping areas. This means the total area of intensive agriculture and therefore demand for fertilisers is increasing quickly across the region. Under the terms of the MoU, the parties agreed to discuss and negotiate the terms of a binding offtake agreement and distribution agreement, and to jointly develop a product roadmap for the phosphate products to be produced from the Cummins Range Project. This work is ongoing with crop trials being initiated. The MoU also contemplates undertaking studies to evaluate the potential to capture carbon credits as part of general R&D-based activities. Heritage and Environmental Update Flora and fauna surveys for both the dry and wet seasons were completed during the June 2023 Quarter in line with Federal and State regulatory guidance, with strong input on ecological cultural values from the Jaru people, the Traditional Owners of the land on which the Project is located. Information collected during the field surveys is now being compiled and analysed, with preliminary observations consistent with expectations of floral and faunal assemblages for the project area. The results of the survey will be used to inform regulatory approvals and drive the development of an environmental management plan for the project. The management plan will ensure that any future mining activities are undertaken in a way that minimise the impact on the environment. The survey results and study outcomes will be used to develop a project description with the relevant information to engage the regulator for pre-referral discussions. The Company believes that by focussing approvals on the above water table portion of the resource, demonstrating a relatively low impact project and by developing robust environmental and cultural management plans, approvals can be secured through the Environmental Protection Authority (EPA) at State level. If the Project is deemed high impact, it will be referred for federal review through the Department of Climate Change, Energy, the Environment and Water (DCCEEW). 12 Negotiations with the Jaru Traditional Owners are on track with a draft Mining Agreement and compensation proposal complete. The RareX team, with support from Allens law firm, will continue to meet with the Traditional Owners Negotiation Committee (TONC) and the PBC board with the goal of completing negotiations before the start of the 2023 wet-season. RareX thanks the Jaru TONC for a constructive, collaborative, and pragmatic approach to the negotiations. Exploration Drilling and exploration programs were undertaken throughout the reporting period aimed at infilling and extending the Cummins Range Mineral Resource Estimate (MRE). Results from these programs fed into the MRE updates announced for the Rare Dyke and Phos Dyke, announced on 30 March and 1 May 2023 respectively. A new program of diamond drilling commenced at Cummins Range late in the reporting period. The program was undertaken by Kalgoorlie-based drilling company, Kal Drill, and comprised PQ drilling targeting the Indicated portion of the Mineral Resource within both the Rare and Phos Dykes, which totals 67Mt at 0.5% TREO and 7% P2O5. The drilling program supports all three proposed stages of the Cummins Range development roadmap (see ASX announcement 13 April 2023). A program of reverse circulation (RC) drilling by Stark Drilling was completed at Cummins Range in August 2023, focused on infilling and upgrading the shallow high-grade phosphate DSO Resource to support the Stage 1 DSO phosphate operation. Non-core Projects RareXploration is the internal division of the Company which focusses on the non-core projects of RareX including investments and tenement holdings. RareX holds material ownership in 3 listed companies: Kincora Copper (ASX:KCC), Cosmos exploration (ASX:C1X) and Canada Rare Earths Corporation (LL.V). During the reporting period, RareX agreed to adjust its interest in KCC from project level to corporate level. This transaction is expected to complete later in the year. New South Wales Gold Projects Throughout the reporting period, RareX held a 35% free-carried interest in six tenements in joint venture with Kincora Copper Limited (ASX: KCC). The tenements are located in Australia’s foremost porphyry region in the Lachlan Fold Belt, NSW, and include the Trundle, Fairholme, Jemalong, Cundumbul and Condobolin Projects. In addition to its 35% asset level interest, RareX also held 3% of Kincora Copper shares. Weld North A lithogeochemical soil survey was completed over the Weld North Project. Soil samples were taken on a 1km grid. Assay results were still awaited at the end of the reporting period, with results to be used to create a geochemical assessment of lithologies and identify potential anomalies. 13 Hong Kong Project No work was undertaken during the reporting period and the Hong Kong tenement E47/3566 was relinquished during the June 2023 Quarter. The gold tenement was plainted and, following