HASTINGS TECHNOLOGY METALS LTD — Capital/Financing Update 2012

Dec 10, 2012

ASX Announcement 11[th] December 2012

==> picture [198 x 60] intentionally omitted <==

Hastings Rare Metals Limited ABN 43 122 911 399

HASTINGS’ COMPLETES TRANCHE 2 OF $3 MILLION CAPITAL RAISING

ASX Code: HAS

Level 9, 50 Margaret Street Sydney NSW 2000 PO Box R933 Royal Exchange NSW 1225 Australia

Telephone: +61 2 9078 7674 Facsimile: +61 2 9078 7661 admin@hastingsraremetals.com

Board and Management Anthony Ho (Chairman) Alastair Metcalf (CEO) Steve Mackowski (Technical Director) Guy Robertson (CFO)

Advisory Board Tony Grey

www.hastingsraremetals.com

Australian rare earths company Hastings Rare Metals Limited (ASX Code: HAS) is pleased to announce that it has completed tranche 2 of the capital raising announced on 15 October 2012.

Under tranche 2 the Company has issued 7,853,209 shares at 11 cents per share raising $863,853 million before costs. All subscription monies have been received and the shares have been allotted.

The total raising for an amount of $3 million (before costs) included both Australian and international investors. The capital raising was significantly oversubscribed.

The Company has also issued a free attaching option with an exercise price of 15c per share and an expiry date of 31 March 2014 on a one for two basis for all shares issued under tranche 1 and tranche 2, amounting to 13,636,390 options (HASO).

Directors participated in the raising on the same terms and conditions for 963,636 shares.

Patersons Securities Limited acted as lead manager.

==> picture [601 x 40] intentionally omitted <==

1

ASX Announcement 11[th] December 2012

==> picture [198 x 60] intentionally omitted <==

For further information please contact:

Alastair Metcalf, CEO +61 2 9078 7678 Mark Westfield, Westfield|Wright +61 457 805 838

About Hastings Rare Metals

• Hastings Rare Metals is a leading Australian rare earths company, with two rare earths projects in Western Australia.

• The Hastings deposit contains JORC Indicated and Inferred Resources totaling 36.2 million tonnes at 0.21% TREO, including 0.18% HREO, plus 0.89% ZᵣO ₂ and 0.35% Nb ₂ O ₅ .

• Rare earths are critical to a wide variety of current and new technologies, including smart phones, hybrid cars, wind turbines and energy efficient light bulbs.

• The Hastings deposit contains predominantly heavy rare earths (HREO) (85%), such as dysprosium and yttrium which are substantially more valuable than the more common light rare earths (LREO).

• The company aims to capitalise on the strong demand for heavy rare earths created by expanding new technologies. It has recently validated the extensive historical work and completed a Scoping Studies to confirm the economics of the Project.

Competent Person’s Statement

The information in this presentation that relates to Resources is based on information compiled by Simon Coxhell. Simon Coxhell is a consultant to the Company and a member of the Australasian Institute of Mining and Metallurgy. The information in this presentation that relates to Exploration Results is based on information compiled by Andy Border, an employee of the Company and a member of the Australasian Institute of Mining and Metallurgy. The information in this presentation that relates to metallurgy is based on information compiled by Steve Mackowski, an employee of the Company and a fellow of the Australasian Institute of Mining and Metallurgy.

Each have sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this presentation and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code”). Each consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

==> picture [601 x 40] intentionally omitted <==

2