Announcement PDF Super-charging our rare eart hs grow t h st rat egy in 2021 NEW partners and NEW opportunities at a time of rising REE prices 121 Mining Investment APAC│ March 2021 Jeremy Robinson │ Managing Director Disclaimer & Compet ent Person St at ement This presentation contains summary information about RareX Limited (REE) and is current as of 17th March 2021. The information in this presentation is of a general background and does not purport to be complete. This presentation is not investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. The information contained in this presentation has been prepared without taking into account the objectives, financial situation or needs of individuals. Investors should obtain their own advice before making any investment decision. REE has prepared this document based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in this presentation. This presentation contains certain “forward-looking statements”. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, “should”, “could”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This presentation contains statements that are subject to risk factors associated with REE and the mining exploration industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially. REE disclaim any intent or obligation to publicly update any forward-looking statements, whether as a result of new information, future events or results or otherwise. To the maximum extent permitted by law, REE, their related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth)) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the presentation or its contents or otherwise arising in connection with it. Competent Person Statement: The information in this presentation relating to the Mineral Resource estimate for the Cummins Range Rare Earths Project is extracted from the Company’s ASX announcement entitled ‘Globally Significant Maiden Resource of 13Mt at 1.13% TREO’ as updated by the ASX announcement entitled ‘Update to Mineral Resource Estimate Announcement’, both released on 15 October 2019. REE confirms that it is not aware of any new information or data that materially affects the information included in the previous announcements and that all material assumptions and technical parameters underpinning the Mineral Resource estimate in the previous announcements continue to apply and have not materially changed. This announcement has been authorised for release by the Board of RareX Limited. For further information, please contact Jeremy Robinson, Managing Director, on +61 8 6143 6720 or info@rarex.com.au. Invest ment Overview • Strategically located asset: 100% owned Cummins Range Rare Earths Project in Western Australia – Tier-1 mining jurisdiction • Significant maiden JORC 2012 Inferred Rare Earths Mineral Resource: 13Mt at 1.13% TREO with 22.1% NdPr • Assays of up to 70m at 5.4% TREO and 0.64% Nb2O5 from in-fill drilling in late 2021 – work now underway on Resource upgrade • Landmark MoU with US$4.6B rare earths producer Shenghe Resources • Rare Earths Prices surging in recent months due to strong demand growth in green-energy industry, global trade tensions • High-quality exposure to Lachlan Fold Belt exploration, NSW: 35% stake in Trundle Project with Kincora Copper (RareX owns 7.8% of Kincora) Highly leveraged t o t he boom ing global rare eart hs sect or, w it h a qualit y asset in a Tier-1 locat ion, Tier-1 part ners and a clear grow t h st rat egy Corporat e Snapshot Capital Structure Shareholders ASX Code REE Share Price (16th March 2021) $0.135 Shares on Issue 433m Market Capitalisation $58.5m Net Cash $5.5m Listed Investments (TSX-V: KCC and TSX-V: LL) $5.5m Enterprise Value $47.5m Board and Management Chairman John Young Managing Director Jeremy Robinson Non-Executive Director Shaun Hardcastle Non-Executive Director Cameron Henry Exploration Manager Guy Moulang Consultant Metallurgist Gavin Beer Consultant Geophysicist Jayson Meyers Top 40 Shareholders ~40% Number of Shareholders ~5,200 Substantial Shareholder Simon Lee AO (5.8%) Share Price Rare Eart hs Market Global End Market Growth End Market Applications Electric Vehicle motors Consumer electronics and appliances Automotive parts and sensors Passenger, commercial. Electric trains and other transportation. Approx. 1kg NdPr per EV1 Smart speakers, computer speakers, headphones, fridges, air conditioners. Forecast Passenger EV Sales (m) 40 30 20 10 0 Micromotors, sensors, speakers 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2025 2026 2027 2028 2029 2030 Forecast Wind Power Installation (GM) 100 W ind generat ion Indust rial Elect ronics Elect ric mot ors At least 150kg per MWs 50 Robot s, welders, elevat ors, escalat ors 0 2020 2021 2022 2023 2024 Rare Eart hs Prices on t he Rise Magnet Metals – Neodymium (Nd) Praseodymium (Pr), Dysprosium (Dy) and Terbium (Tb) Prices have risen sharply over past 3 months. These account for +90% of the potential revenue for Cummins Range. NdPr Market Balance Forecast NdPr Oxide market balance (kt) NdPr Price US$/t 10 100,000 5 80,000 0 60,000 -5 40,000 -10 20,000 -15 2020 + + 2021 2022 2023 2024 2025 NdPr supply shortage to occur in 2022-2023 2020-2030 demand growing at 9.6% p.a 2026 2027 2028 2029 2030 Jan Feb Mar Apr May Jun Jal Aug Sep Oct Nov Dec Jan Feb Mar 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Cummins Range Rare Eart hs Project • Tier-1 mining jurisdiction: Located in the Kimberley region of Western Australia • Government Support Available: Critical Minerals Facilitation Office, NAIF EFA, etc. • Committed to high ESG standards: Good relations with Kimberley Land Council • Good access: Accessible via Great Northern Highway, Tanami Track and pastoral tracks, potential access to Wyndham and Darwin Ports Advanced, high-qualit y Rare Eart hs Project locat ed in a Tier-1 m ining jurisdict ion Recent ly Complet ed Drill Program • • Recently completed 6,143m of drilling: • Neodymium and Praseodymium “NdPr” content of 22.1% and ultra low thorium of 50ppm ThO2 equals premium product • Weathered carbonatite with REE mineralisation mostly hosted within laterite horizon (same at Mt Weld) • Deposit outcrops and has dimensions amenable to low strip ratio open pit mining Spectacular recent results from 2020 drill program include • • • • 109m at 3.6% TREO and 0.44% Nb2O5 90m at 3.8% TREO and 0.29% Nb2O5 41m at 4.0% TREO and 0.21% Nb2O5 Recent drilling highlights high-grade NW trending channel Project Timeline March Quarter June Quarter September Quarter December Quarter Drill Planning Drilling Underway Scoping Study Complete BFS Underway Resource Underway Resource Upgrade Further Drilling Off-Take Negotiations Metallurgy Underway Metallurgy Stage 1 Commercialisat ion – Low Capit al St rat egy • Rare Earth mineralogy dominated by monazite – the most well-understood Rare Earth Mineral from a processing perspective • RareX consulting metallurgist Mr Gavin Beer to lead metallurgical testwork on completion of final assays • Strategy is to produce a saleable monazite concentrate to sell to new Australian refineries and existing capacity in SE Asia and China • This approach will significantly reduce CAPEX RareX has a low CAPEX development st rat egy for Cummins Range, based on product ion of a monazit e concent rat e Proposed Aust ralian Refineries MoU w it h Shenghe Resources • Shenghe Resources Holdings Co is a vertically integrated US$4.6Bn global rare earths producer, major shareholder of MP Materials and supplier to Apple Inc. • Non-Binding MoU executed with Global Rare Earths Producer Shenghe Resources on 4th February 2021 • Establishes framework for the formation of a jointly owned Rare Earths Trading Company sourcing rare earths concentrates globally (ex-China) • Potential for Shenghe investment in RareX’s flagship Cummins Range Rare Earths Project • Potential for joint investment by RareX and Shenghe in existing and proposed rare earths refineries located outside of China NSW Copper-Gold Asset s • RareX retains a 35% free-carried interest over multiple projects and owns 7.8% of TSX:V-listed Kincora Copper • Kincora currently focussing on Trundle Project with two diamond drill rigs • About to list on ASX with A$8-10m raise • Kincora exploration led by John Holliday, principal discoverer of the world-class Cadia deposit • RareX recently retained 100% ownership of Orange East Project Key Invest ment Takeaw ays 1 High-quality, advanced Rare Earths Project in WA 2 Recently completed major drilling program with significant assays 3 Significant global partner in Shenghe Resources 4 Rare Earths prices rising strongly 5 Free-carried in exciting NSW copper-gold exploration projects W it h a $50.0m market capit alisat ion, st rongly leveraged t o explorat ion success and grow t h on t w o front s