Announcement PDF ASX Release 25 January 2024 Cummins Range Mineral Resource Estimate Update 2023 infill drilling increases the indicated resource 10% to 77Mt, improving definition in readiness for DFS mine scheduling Highlights • Updated Mineral Resource Estimate delivered for the Cummins Range Rare Earths & Phosphate Project: o 524Mt at 0.31% TREO and 4.6% P2O5 for 1.6 million tonnes of contained TREO and 24 million tonnes of contained P2O5 • High-value NdPr content represents an excellent 22% of total contained TREO, with 353Kt of NdPr contained • Cummins Range remains the largest undeveloped rare earths project in Australia • 2023 infill drilling has underpinned a 10% increase in the Indicated Resource category to 77Mt at 0.46% TREO and 6.7% P2O5, principally in the early mine life pit shell area • Phosphate mineral characteristics are highly favourable for use in lithium iron phosphate (LFP) batteries • Potential resource growth following the identification of a potential proximate carbonatite swarm 1 • Rare earth prices expected to rebound to c. $100/kg NdPr oxide in the short to medium term after a period of protracted suppression, with a very strong forecast compound annual growth rate (CAGR) of 6% out to at least 2035 2 Engage with this announcement at the RareX investor hub. Australian rare earths and phosphate developer, RareX Limited (ASX: REE) (RareX or the Company), is pleased to report an update to the Mineral Resource Estimate (MRE) for its 100%-owned Cummins Range Rare EarthsPhosphate Project in the Kimberley region of Western Australia. The 2023 drill program was focused on gaining further understanding of the metallurgical domains and continuity of high grade phosphate in the regolith. Drilling was also completed on the eastern edge of the Resource where pit designs required definition. This drilling has underpinned an updated Resource estimate totalling 524Mt at 0.31% TREO and 4.6% P2O5, including a higher-grade TREO Resource of 44Mt at 1.02% TREO and 5.8% P2O5 based on a 6,500ppm TREO cut. The updated Resource confirms Cummins Range’s status as Australia’s largest undeveloped rare earths deposit and the second-largest rare earths deposit overall, and makes Cummins Range a significant potential source of NdPr magnet and LFP battery quality phosphate in northern Western Australia. Cummins Range is a unique rare earths project due to its favourable phosphate mineralisation, which makes peer comparison analysis difficult. The Project’s exposure to the two major sectors of the green energy transition energy generation/use and energy storage - means the deposit underpins a rare project opportunity with reduced development and operational risk. 1 ASX Announcement 13 November 2023: Geophysical Surveys Identify Potential New Ultramafic Pipes 2 https://reachmarkets.com.au/news/rare-earths-industry-review/ RareX Limited ASX:REE ABN: 65 105 578 756 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 info@rarex.com.au rarex.com.au RareX Limited (ASX:REE) @rarex_asx Table 1. Cummins Range Mineral Resource Estimate, P2O5≥2.5% RARE DYKE Classification Indicated Inferred Total Tonnes (Mt) 44.4 363.7 408.2 P2O5 (%) 6.0 3.9 4.1 TREO + Y2O3 (ppm) 5560 2960 3240 HREO (ppm) 280 160 180 Nd2O3 (ppm) 880 480 520 Pr6O11 (ppm) 260 140 160 Nb2O5 (ppm) 990 570 610 Sc2O3 (ppm) 90 70 70 ThU (ppm) 80 40 40 PHOS DYKE Classification Indicated Inferred Total Tonnes (Mt) 33.0 83.1 116.2 P2O5 (%) 7.6 5.6 6.2 TREO + Y2O3 (ppm) 3430 2390 2690 HREO (ppm) 290 200 230 Nd2O3 (ppm) 670 460 520 Pr6O11 (ppm) 170 120 140 Nb2O5 (ppm) 500 450 460 Sc2O3 (ppm) 80 60 70 ThU (ppm) 100 60 70 COMBINED Classification Indicated Inferred Total Tonnes (Mt) 77.4 446.9 524.3 P2O5 (%) 6.7 4.2 4.6 TREO + Y2O3 (ppm) 4,650 2,860 3,120 HREO (ppm) 280 170 190 Nd2O3 (ppm) 790 480 520 Pr6O11 (ppm) 230 140 150 Nb2O5 (ppm) 780 550 580 Sc2O3 (ppm) 90 70 70 ThU (ppm) 90 40 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 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. Substantial quantities of phosphate, now classified by the Australian Federal Government as a Strategic Mineral 3, will be mined with the rare earth mineral and RareX intends to extract value from both the phosphate and rare earths. In the 2023 field season 4 an improved geological model was created, which defined several domains within the regolith that will allow accurate mining study work to be completed for the production of rare earths phosphate concentrate (REPC), potentially preceded by monetised rock phosphate direct shipping ore (DSO). Metallurgical studies5 have shown lower grade rare earths and phosphate are easily upgraded to a high grade REPC. The rare earths can then be extracted from the REPC at a phosphoric acid production plant, potentially supplying the LFP (lithium ferro phosphate) battery supply chain 6. Using this product approach allows RareX to extract the most value from the two commodities within the large Cummins Range resource. 3 https://www.industry.gov.au/news/updates-australias-critical-minerals-list 4 ASX Announcement 05 September 2023: Cummins Range 2023 Drilling Campaign Complete 5 ASX announcement 29 August 2023: Cummins Range Project Metallurgical and Geotechnical Update 6 ASX announcement 12 Octover 2023: Cummins Range Project Product Strategy Update RareX Limited ASX:REE ABN: 65 105 578 756 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 info@rarex.com.au rarex.com.au RareX Limited (ASX:REE) @rarex_asx Overview RareX is pleased to present an updated Mineral Resource Estimate (MRE) for its 100%-owned Cummins Range Rare Earths-Phosphate Project in Western Australia. The Rare Earths and Phosphate MRE is based on the Cummins Range Carbonatite Pipe at the Cummins Range Project, located 130km south-west of Halls Creek in the Kimberley region of Western Australia. The 2km x 2km carbonatite pipe is entirely contained in tenement E80/5092, which also contains multiple geochemical and geophysical anomalies which are being prepared for exploration in mid-2024 7. In April 2023, RareX announced an MRE which included drilling from 2020-2022. This 2024 updated Resource includes an additional 50 drill holes that were drilled in 2023 for a total of 4,451m, including five diamond drill holes into the Rare Dyke and the Phos Dyke, and 45 RC holes into the Phos Dyke. Collar details and significant intercepts are shown in Tables 5, 6 and 7. An enhanced Scoping Study was announced in August 2023 8, which outlined a staged approach to phosphate and REPC production delivering an economically robust project, which would be viable even in current rare earth pricing scenarios in part due to the phosphate content contained within a clean apatite mineral. The additional value of the phosphate significantly enhances the economics of the Project considering the pervasive occurrence of the mineral apatite throughout the 2km x 2km pipe and the ease of processing. Subsequent to the enhanced Scoping Study, RareX has signed terms sheets to de-risk the bulk supply chain, including with Newhaul for product haulage services, MudArk for 4Ha of land adjacent to the bulk loading facility (BLF) at Wyndham Port, and with KMG, the owner of the BLF, for loading capacity 9. These terms sheets provide for accurate cost modelling, with the negotiation of long form binding operational contracts now underway. An MOU is also in place with Agrimin (ASX: AMN) to collaborate on product haulage, port handling and transshipment facilities. Compared to other phosphate deposits in Australia and the world, Cummins Range has a significant advantage given its proximity to Wyndham Port on the northern Kimberley coast, on a mostly sealed highway. The Kimberley Port Authority has applied for Wyndham Port to be licenced as a port of first entry. RareX Chief Executive Officer, James Durrant, said: “The Resource is now well defined in the early pit shell giving us confidence in our metallurgical and economic modelling – critical for a rare earth project. Near term drilling at Cummins Range can now focus on the potential presence of a nearby carbonatite cluster which, if appropriately mineralised, has the potential to contribute to higher project valuations from either scale or mine life. “I would like to acknowledge the exceptional efforts of the RareX team under the leadership of our Exploration Manager, Guy Moulang, in safely and cost effectively delivering improved Resource definition to what remains Australia’s largest undeveloped rare earths project by contained tonnes of rare earths, and what is shaping up to be one of Australia’s most capitally efficient and lowest operating cost rare earths developments. “We look forward to continuing to de-risk the project though the next milestones of offtake, definitive engineering and project approvals, which we’re confident will occur in parallel with a recovery in rare earth prices from their current unsustainable levels.” 7 ASX Announcement 13 November 2023: Geophysical Surveys Identify Potential New Ultramafic Pipes 8 ASX Announcement 22 August 2023: Enhanced Scoping Study for Cummins Range 9 ASX Announcements on 10 January 2024, 27 November 2023 and 08 November 2023 RareX Limited ASX:REE ABN: 65 105 578 756 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 info@rarex.com.au rarex.com.au RareX Limited (ASX:REE) @rarex_asx Project Location The Cummins Range Rare Earth Project is located in the Kimberley region of Western Australia, south-west of the town of Halls Creek, as shown below. Access to the Project from Halls Creek is via the Great Northern Highway and then the Tanami Road to Ruby Plains Station. From there, access is along station tracks. Halls Creek also has a sealed airstrip and connects to the ports of Wyndham and Darwin via the Great Northern Highway. On 12 May 2022, the Western Australian Government announced the decision to seal the Tanami Road. The Western Australian State Budget 2022/23 has allocated an additional $100 million, alongside the recently announced $400 million Federal allocation, to completely seal the Tanami Road in Western Australia. Figure 1. Map of Project Location and Key Project Infrastructure RareX Limited ASX:REE ABN: 65 105 578 756 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 info@rarex.com.au rarex.com.au RareX Limited (ASX:REE) @rarex_asx The decision to seal the Tanami Road will improve safety, accessibility and flood resilience to better support communities and industries in the north-east of Western Australia. The Tanami upgrade will help RareX develop steady-state operations throughout the year, in particular, during the wet season. The first ten-kilometre section of Tanami Road has been sealed and is now open to traffic, Construction and sealing of the 41km section, through the hills south of Great Northern Highway, is continuing and planned to be completed in 2024/25. Detailed road design for the next 73km of road to Wolf Creek Crater is continuing along with preliminary road design for a further 45 kilometres of road to Billiluna and work to secure the remaining Environmental and Heritage Approvals. Heritage surveys by Jaru Traditional Owners for the first 114km of road and materials sources to 60km mark have been largely completed, and further environmental surveys are progressing. Development of concept designs for the remaining 200km of road to the Northern Territory Border has commenced 10. The infrastructure is ideally suited for bulk commodity transport and logistics with the Tanami Road upgrade meaning the whole supply chain will be on sealed roads. Wyndham Port is being upgraded and improved as a strategic port and the Ord River Hydro Power Station has reserve capacity for energy supply. The Kimberley Port Authority is working through the process with the Commonwealth Government for Wyndham Port to be licensed as a port of first entry, setting the scene for a strategic upgrade of this important piece of infrastructure, which is already powered by hydro-electricity. Rare Dyke and Phos Dyke Resource RareX engaged ERM to estimate an updated Mineral Resource Estimate (MRE) for the Cummins Range carbonatite dykes. The MRE is reported in accordance with the JORC Code (2012) and is shown in full in Table 1. ERM is satisfied that the techniques and methods used by RareX are consistent with industry standards as stipulated by the JORC Code (2012). The quality assurance and quality control (QA / QC) supports the data that RareX has provided. The MRE is considered to have reasonable prospects for eventual economic extraction on the following basis: • • • • the resource is situated in a favourable mining jurisdiction, with no known impediments to land access or tenure status; the volume, orientation and grade of the Mineral Resource is amenable to mining extraction via bulk tonnage open pit or underground mining methods; preliminary metallurgical test work shows extraction and concentration of rare earths and phosphate can be achieved using traditional processing techniques; and an enhanced Scoping Study was completed in August 2023 (ASX release: 22 August 2023), which outlines an open cut mine and flotation beneficiation facility at site producing a phosphate mineral concentrate and a rare earth-phosphate mineral concentrate, which can be hauled along mainly sealed roads to Wyndham Port. The Scoping Study further demonstrated potential for economic extraction. The phosphate Mineral Resource was estimated using ordinary kriging interpolation techniques and reported at a 2.5% P2O5 cut-off grade. The Rare Dyke and Phos Dyke MRE is estimated over 800m of north-west – south-east strike, 700m of width, and 500m down-dip. 10 https://www.mainroads.wa.gov.au/projects-initiatives/all-projects/regional/tanami-road-upgrade/ RareX Limited ASX:REE ABN: 65 105 578 756 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 info@rarex.com.au rarex.com.au RareX Limited (ASX:REE) @rarex_asx The MRE has been split in two, due to spatial and mineralogical differences. Each of the Dykes has been reported as a regolith resource and a fresh rock resource, along with Mineral Resource confidence levels (Indicated or Inferred). Grade Tonnage Curve - Summary Tonnes Tonnes 90,000,000 P2O5 % 35.00 80,000,000 30.00 70,000,000 25.00 60,000,000 50,000,000 20.00 40,000,000 15.00 30,000,000 10.00 20,000,000 5.00 10,000,000 - 0.00 5.00 0.00 10.00 15.00 20.00 25.00 30.00 35.00 Cutoff P2O5 % Figure 2. Resource Grade Tonnage Curve for Phosphate Grade Tonnage Curve - Summary Tonnes Tonnes 600,000,000 40,000 500,000,000 35,000 30,000 400,000,000 25,000 300,000,000 20,000 200,000,000 15,000 10,000 100,000,000 - TREO ppm 45,000 5,000 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Cutoff TREO ppm Figure 3. Resource Grade Tonnage Curve for TREO RareX Limited ASX:REE ABN: 65 105 578 756 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 info@rarex.com.au rarex.com.au RareX Limited (ASX:REE) @rarex_asx Figure 4. 3D image of Cummins Range Mineral Resource Geology Model The Cummins Range pipe is a phosphorous-rare earth rich system with phosphorous and rare earths mineralisation found in variable quantities over the entire pipe. Drilling in the north-western portion of the pipe is the focus of this MRE. The Cummins Range deposit is centred around two sub-parallel carbonatite dykes (Rare Dyke and Phos Dyke) that strike at 320 degrees and dip at 60 degrees to the south-west. The Rare Dyke and the Phos Dyke have intruded into the clinopyroxenite forming large apatite rich carbonatised alteration holes. Within the carbonatites and wall rock alteration zones are monazite-bastnaesite-parisite rich veins that reach up to >20m wide. These phosphorous and rare earth rich rocks are present to significant depths with intersections drilled 600m below surface. The pyroxenites, carbonatites and alteration zones contain consistent disseminated to massive apatite and variable rare earths. Sitting on top of the larger dyke (Rare Dyke) is a well-developed weathering profile hosting high grade rare earths, phosphate, scandium, and niobium mineralisation. The weathering profile can extend to greater than 100m depth. A combination of residual, or eluvial, chemical weathering and primary mineralisation has contributed to the strong enrichment of rare earths and phosphate. A majority of the rare earths mineralisation in the regolith is contained in monazite with the remainder contained in bastnaesite and crandallite. Weathering processes have created an increase of monazite and apatite concentrations with portions of the regolith phosphate having potential for direct shipping ore (DSO). RareX Limited ASX:REE ABN: 65 105 578 756 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 info@rarex.com.au rarex.com.au RareX Limited (ASX:REE) @rarex_asx Large volumes of apatite rich phoscorite surround the Phos Dyke with consistent low grade rare earths in the form of monazite. Many of the drill holes bottomed in phoscorite and the extent of this rock type is open to the north, east and south. The geological model was simplified to three geological units: 1. Regolith – combination of all the domains in the regolith profile with the base of the weakly weathered oxidation boundary marking the lower boundary. 2. Ultramafic/pyroxenite – undifferentiated ultramafics, including altered ultramafics and phoscorite. 3. Carbonatite – dolomitic and calcic carbonatite. Figure 5. Cross section of Cummins Range Drilling Techniques The drilling data base provided for the MRE was composed of data collected from three exploration companies, Navigator Resources Ltd, Kimberley Rare Earths Ltd and RareX Ltd. Table 3 below summarises the drilling completed on Cummins Range: Table 2. Drill Holes used in the Cummins Range 2023 MRE Company Navigator Kimberley Rare Earths RareX MRE Total Hole Type RC No of Holes 93 Metres 9,293 Average Depth (m) 100 Year Drilled 2007 RC 77 4,229 55 2011 RC DDH RC/DDH 156 18 28 372 17,091 3279.7 11,533 45,426 112 203 401 2020-2023 2021-2023 2021-2023 Navigator and Kimberley Rare Earths drilled RC holes contributing 30% of the drilled metres in the MRE. The remaining 70% was drilled by RareX using RC and diamond drilling methods. RareX used a combination of RC and diamond drilling for 28 of the drill holes. RareX Limited ASX:REE ABN: 65 105 578 756 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 info@rarex.com.au rarex.com.au RareX Limited (ASX:REE) @rarex_asx Sampling Navigator Sampling • • • Bulk samples were collected in green plastic bags, along with a 9:1 split from the cyclone. 4m composites were taken during the time of drilling using a PVC spear for dry samples and an aluminium scoop for wet samples. All composites that returned >1000ppm Ce were resampled on 1m intervals before commencement of the 2007 wet season. The 1m intervals were bagged from the drill rig 9:1 cone split. Kimberley RC Sampling • No details on RC sampling have been recorded for the 77 drill holes completed by Kimberley. All drilled metres were sampled on 1m intervals, and it is assumed Kimberley used industry standards, which is sampling the 1m split from the cyclone on the drill rig. RareX RC Sampling • • • • For the 2020-2021 drill seasons the bulk sample was collected in green plastic bags and no split was taken. The cyclone was cleaned after every 3m drill run and where sticky clays were intersected, the driller would lift the hammer off the bottom and clean the cyclone after each metre. Wet samples were left open for water to evaporate. Sampling intervals were determined by geology with the aid of a Niton pXRF. Sample intervals ranged from 4m, 3m, and 2m composites in areas of no expected rare earths mineralisation. Mineralised zones were sampled on 1m intervals. The bulk bags were put through a 50/50 or 75/25 riffle splitter multiple times to achieve the desired 3kg sample. The splitter was cleaned between each sample and bulk samples were not put through the splitter until dry to avoid cross contamination. In the 2022-23 drill season instead of splinting the entire bulk bags as done in previous years, the cone split from the drill rig cyclone was used which is 5% to 8% of the metre drilled. Sampling Analytical Methods and QA/QC The analytical method used to assay has remained consistent through all the drilling used in the MRE with a peroxide fusion digest, with an ICP-OES and ICP-MS finish. 4-acid digest was used by navigator as a qualifier and is described below. Table 4 summaries the assay details for all the holes. Table 3. Assay methods and laboratory for drill holes Company Holes Sample Type Laboratory Navigator NRC001-NRC093 4m Composites Intertek Navigator NRC001-NRC093 1m Samples Intertek Kimberley KRC094-KRC170 1m Samples Intertek 1-4m Samples Nagrom 1-4m Samples Bureau Veritas RareX RareX RareX Limited ASX:REE ABN: 65 105 578 756 CRX0001-CRX0104 CDX0001-CDX0050 CRX0005-CRX0149 CDX0047,CDX0048,CDX0 051, CDX0052 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 info@rarex.com.au rarex.com.au Analysis Method for REE, P, Sc, Nb 4 acid digest, ICP-OES and ICP-MS finish Peroxide Fusion Digest, ICPOES and ICP-MS finish Peroxide Fusion Digest, ICPOES and ICP-MS finish Peroxide Fusion Digest, ICPOES and ICP-MS finish Peroxide Fusion Digest, ICPOES and ICP-MS finish RareX Limited (ASX:REE) @rarex_asx Navigator assayed for 40 elements: Ag, Al, Ba, Ca, Ce, Cr, Cu, Dy, Er, Eu, Fe, Ga, Gd, Ho, K, La, Lu, Mg, Mn, Nb, Nd, P, Pb, Pr, Sc, Si, Sm, Sr, Ta, Tb, Th, Ti, Tm, U, V, Y, Yb, Zn, Zr. Laboratory QA/QC makes up 10% of the assays. Kimberley Rare Earths assayed for 30 elements: Al, Ca, Ce, Dy, Er, Eu, Fe, Ga, Gd, Ho, La, Lu, Mg, Nb, Nd, P, Pr, Sc, Sm, Ta, Tb, Th, Ti, Tm, U V, Y, Yb, Zr. Laboratory QA/QC was conducted and assessed during previous resource estimates. However, RareX have not been able to obtain the raw data. RareX assayed for 42 elements with Nagrom: Ba, Fe, Mg, Mn, Ce, Dy, Er, Eu, Gd, Ho, La, Lu, Nb, Nd, Pr, P, S, Si, Zr, Sm, Sn, Ta, Tb, Th, Tm, U, W, Y, Tb, Hf, Al, C, K, Ag, As, Be, Na, S, Sr, Sc, Zn, Li and Pb. RareX used standards, duplicates and blanks comprising 10% of the samples in RC assay batches and 6% in the diamond assay batches. RareX assayed for 31 elements with Bureau Veritas: Ba, Fe, Mg, Mn, Ce, Dy, Er, Eu, Gd, Ho, La, Lu, Nb, Nd, Pr, P, S, Si, Sc, Zr, Sm, Ta, Tb, Th, Tm, U, Y, Tb, Hf, C, and Sr. RareX used standards, duplicates and blanks comprising 10% of the samples in RC assay batches and 6% in the diamond assay batches. A batch of 178 pulps from 2020-2022 drill programs were sent to an alternate laboratory to be assay via Peroxide Fusion with ICP-OES and ICP-MS finish as umpire checks. The elements assayed were P, Sc, Zr, Ce, Ho, Sm, Y, Dy, Tb, Nb, Gd, Tm, Pr, La, Ta, Yb, Er, Lu, Eu, Th, Nd, Hf and U. The umpire checks confirmed the accuracy of the analytical batches from 2020-2022. A batch of 104 pulps from 2023 drill programs were sent to an alternate laboratory to be assay via Peroxide Fusion with ICP-OES and ICP-MS finish as umpire checks. The elements assayed Ba, Fe, Mg, Mn, Ce, Dy, Er, Eu, Gd, Ho, La, Lu, Nb, Nd, Pr, P, S, Si, Sc, Zr, Sm, Ta, Tb, Th, Tm, U, Y, Tb, Hf, C, and Sr. The competent person is of the opinion that the quality of control procedures adopted by Navigator, Kimberley Rare Earths, RareX and both the laboratories are of sufficient quality for an Inferred and Indicated mineral resource estimate. Specific Gravity During the 2023 drill season RareX increased the SG measurements in the regolith profile by 325% using the Archimedes Method. A total of 1236 SGs have been taken on numerous rock types in the regolith and fresh rock. Each SG sample was geologically logged and SGs were then divided into the geological domains and averaged. Table 6 below summarises the SG values applied in the mineral resource estimate. Table 4. SG values applied to geological domains Ultramafic Carbonatite 3.1 2.99 Regolith Cover 1.9 Regolith Pan 2.51 Regolith CW 1.9 Regolith SW 2.2 CW = Completely Weathered, SW = Strongly Weathered, MW = Moderately Weathered, WW = Weakly weathered Regolith MW 2.5 Regolith WW 2.71 Cut off Grade A cut off grade of 2.5% P2O5 was used in the Mineral Resource estimate. Due to the size of the Mineral Resource and the potential for a very long mine life, a 2.5% cut is considered appropriate. Other deposits of comparable size and grade in the world have use similar cuts. The apatite at Cummins Range lends itself to form high quality rock phosphate. Being an igneous phosphate deposit the resource contains very low levels of potentially toxic elements allowing upgrading. The coarseness of the apatite and simple mineralogy should also assist concentration. RareX Limited ASX:REE ABN: 65 105 578 756 RareX HQ Level 1, 338 Barker Road Subiaco WA 6008 Australia P +61 (0) 8 6383 6593 info@rarex.com.au rarex.com.au RareX Limited (ASX:REE) @rarex_asx Metallurgy Beneficiation testwork to date has been focused on both rare earth and phosphate concentration and samples from different dykes and zones were tested. The majority of 2021 and 2022 testwork was targeted at achieving a TREO grade between 10% and 20%, with acceptable recovery. This was achieved and exceeded; and the results were used to support the 2022 scoping study 11. The September 2022 scoping study outlines a 15% TREO monazite concentrate from metallurgical testing. Since September 2022, metallurgical programs in Australia and overseas have been focused on refining the process and results are expected in coming months. Phosphate optimised beneficiation as a strong alternative to rare earth focused beneficiation is also being explored. Phosphate flotation tests on weathered and fresh rock material from the Phos Dyke have produced concentrate grades of >39% P2O5 with >80% recovery 12. The phosphate flotation of the Phos Dyke materials showed reasonable TREO recoveries of >60%. A bulk flotation was also completed on the Phos Dyke regolith composite and showed similar results with slightly improved grades and recoveries 13. Phosphate flotation testwork on the overall regolith zone started in late 2022 and is currently in progress. Testwork to date mainly included collector screening, gangue mineral depression, desliming and magnetic separation and were conducted on regolith composite representing ROM typical grades. The composites were created with material from both Rare and Phos dykes. To date of reporting, limited testing on the overall regolith material has been reported upon and is subject to ongoing testing. Bioavailability tests of phosphate samples are up to 5 folds the industry high bioavailability standard indicating the potential to produce direct shipping ore and phosphate mineral concentrate 14. DSO samples were also analysed for deleterious elements such as cadmium (Cd), fluorine (F), chlorine (Cl) and lead (Pb) which were all well below industry limits. Preliminary refining testwork are also carried out on flotation concentrates and mainly included apatite leach and rare earth extractions. Testwork carried out on the Rare Dyke material showed good amenability to conventional methods which demonstrated good rare earth extraction and impurity removal. Apatite leaching testwork on combined apatite and monazite concentrates showed high apatite dissolution and low gangue elements dissolutions hence very pure leach liquor that is believed suitable for processing into purified phosphoric acid (PAP) for LFP applications. The results also showed high TREE (total rare earth element) recovery of 90% to the residue, suggesting that very little monazite was solubilised allowing the majority of the RE to be maintained in the leach residue 15. Further mineralogy analysis on the leach residue confirmed mineralogy to the initial head sample, suggesting the RE minerals remain intact during the dilute acid leach step. The acid leaching also improved the monazite liberation according to the mineralogy results. This result is well aligned to RareX expectations and further supports the proposed product processing strategy 16 at the offtaker’s facility. The similar mineralogy and the improved RE mineral liberations provide further confidence to RareX that a >30% RE concentrate can be produced from the leach residue suitable for typical RE refineries 17. 11 ASX release 12 September 2022: Positive Scoping Study for Cummins Range Shows Potential for Sustainable, Long-Life Rare Earths Project. 12 ASX release 04 October 2022: Metallurgical Testwork Delivers Premium Phosphate Concentrate from Cummins Range. 13 ASX release 29 August 2023: Cummins Range Project Metallurgical and Geotechnical Update. ASX release 23 March 2023: Phosphate Testwork Confirms Potential to Produce Direct-Application Fertilisers from DSO and Concentrate at Cummins Range. 15 ASX release 11 July 2023: Phosphoric Acid Leach Test Supports RareX Stage-3 Operations. 16 ASX release 12 October 2023: Cummins Range Product Strategy Update. 17 ASX release 28 November 2023: Rare Earths