HASTINGS TECHNOLOGY METALS LTD — Capital/Financing Update 2012

Feb 7, 2012

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ASX Announcement

8 February 2012

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The Manager Company Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000

Hastings Rare Metals Limited ACN 122 911 399

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

HASTINGS’ $5.3 EQUITY RAISING TO ADVANCE THE HASTINGS HEAVY RARE EARTHS PROJECT

• Firm commitments received for placement to institutional and sophisticated investors to raise $5.3m

• $3m received from two Asian institutions

• Placement significantly oversubscribed

• Capital to be used to advance the Hastings Heavy Rare Earth Project

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

Directors

David Nolan (Chairman) Steve Mackowski (Director) Anthony Ho (Director)

Advisory Board Tony Grey Dr Tony Mariano

ASX Code: HAS

Shares on Issue 71,413,462 Options on Issue 52,500,000

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Australian rare earths company Hastings Rare Metals Limited (ASX Code : HAS) is pleased to announce that it has received firm commitments for a placement to raise gross proceeds of approximately $5.3 million.

The funds were raised from a number of institutional and sophisticated investors, including two cornerstone Asian institutions. The placement was significantly oversubscribed and will be issued in two tranches.

Commenting on the success of this capital raising Steve Mackowski, Technical Director, said:

“The strong interest from overseas investors is recognition of the unique advanced stage of the Hastings project. We now have the funds for project development to match our project plan. The next 12-15 months will see an escalating work load, but I believe the expected subsequent move to pilot plant and Bankable Feasibility will establish the Hastings project as one of the most advanced heavy rare earths projects in the world.”

AddressLevel 9, 50 Margaret Street, Sydney NSW 2000Postal AddressPO Box R933 Royal Exchange NSW 1225 Australia Telephone02 9078 7674Fax 02 9078 7661Emailadmin@hastingsraremetals.comWebsitewww.hastingsraremetals.com ABN43 122 911 399

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ASX Announcement 8 February 2012

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The funds will be used to advance the Hastings project in the following manner:

• Validation and verification of the previously developed extraction circuit;

• Independent scoping study review;

• Optimisation of the product circuit to reflect the new emphasis on the heavy rare earths, dysprosium and yttrium, with by-product values from zirconium and niobium;

• Pre-feasibility Study

• Design of the revised pilot plant;

• Working capital

Achievement of the above tasks and results will be communicated to shareholders as they occur. Progressive milestones will also be communicated.

Under the placement, the Company will issue approximately 53,000,000 shares at 10 cents each, with a 1 for 1 free attaching option expiring on 31 March 2014, with an exercise price of 15 cents.

The shares will be issued to investors in two tranches. Tranche 1 will be issued shortly on completion and tranche 2, totalling approximately $2m, will be issued to the two cornerstone investors, following shareholder approval, which is scheduled to be received in March. Attaching options will be subject to shareholder approval.

Patersons Securities Limited acted as lead manager and Alexander Cable acted as corporate adviser to the placement.

For further information contact:

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David Nolan Steve Mackowski Chairman Technical Director dnolan@hastingsraremetals.com smackowski@hastingsraremetals.com

Media contact:

Robert Williams, FCR, Investor Relations +61 2 8264 1003

For further information please contact:

Hastings Rare Metals Limited, Tel: (02) 9078 7674 www.hastingsraremetals.com

AddressLevel 9, 50 Margaret Street, Sydney NSW 2000Postal AddressPO Box R933 Royal Exchange NSW 1225 Australia Telephone02 9078 7674Fax 02 9078 7661Emailadmin@hastingsraremetals.comWebsitewww.hastingsraremetals.com ABN43 122 911 399

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