HASTINGS TECHNOLOGY METALS LTD — Capital/Financing Update 2013

Sep 9, 2013

ASX Announcement 10 September 2013

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Hastings Rare Metals Limited ABN 43 122 911 399

Hastings Signs Strategic Alliance with REE Partner

ASX Code: HAS & HASO

Highlights:

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) Malcolm Mason (Non Exec Director) Steve Mackowski (Technical Director) Guy Robertson (Finance Director)

Advisory Board Tony Grey

www.hastingsraremetals.com

Media & Investor Relations Fortbridge +612 9003 0477

Bill Kemmery +61 400 122 449 Marina Trusa +61 404 330 634

• Hastings has attracted a REE partner which has significant experience in operating mines and investing in the mining industry

• The partner has an existing investment in an integrated Rare Earth business with expertise in mining and processing of Heavy Rare Earths

• Both parties to work collaboratively to commercialise the Hastings Project

• The MOU will investigate funding requirements for future testwork, pilot studies, BFS and to establish commercial production

• Identify the optimal processing of ores including toll treatment opportunities

• Funding to include potential offtake arrangements, refining and marketing agreements

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Strategic Partner

Hastings is pleased to advise that it has signed a Strategic Alliance MOU (“Alliance”) with a REE strategic investor, to provide for the staged funding of the Hastings Project with the aim of establishing commercial production.

The Alliance allows for an initial period of further mutual due diligence to formalise a detailed plan to move the Hastings Project into production.

Hastings strategic partner has access to low cost capital. Funding will cover the key stages of development including test work, pilot plant studies, BFS and project construction.

Importantly the strategic partner has a deep technical understanding of the separation and refining process required for Heavy Rare Earths.

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ASX Announcement 10 September 2013

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The Strategic partner’s REE separation facility consistently achieves high purity, and high recovery rates for key elements including Dysprosium and Yttrium (purity up to 99.999%).

Hastings Chairman Tony Ho commented that: “We are extremely pleased to have identified a partner who shares our enthusiasm and commitment for Heavy REE’s, and brings a wealth of technical and financial skills which complement and enhance our assets.

As part of the alliance, we have commenced work to reduce the capital costs to derisk, and to maximise the NPV of the Hastings project.”

Hastings brings to the alliance a world class HREE project with a completed scoping study, located within a favourable jurisdiction, with excellent existing infrastructure, a proven technical team, and the ability to move to being production ready, based upon the funding framework in this Alliance.

The strategic partner has an existing team of scientists and production staff with a world class capability in the Rare Earth Industry. The business specialises in the separation, refining and trading of REE with a focus on the more valuable heavy rare earths.

The Strategic Alliance is in the form of a non-binding memorandum of understanding. It is expected that the parties will work collaboratively to complete further due diligence, progress studies required to bring the project into production, and to negotiate definitive funding agreements.

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ASX Announcement 10 September 2013

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For further information please contact:

Guy Robertson, Executive Director +61 2 9078 7678 Shaun Giacomo, Business Development +61 2 9078 7678

Media & Investor relations: Fortbridge +612 9003 0477

Bill Kemmery +61 400 122 449 or Marina Trusa +61 404 330 634

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 (comprising 27.1mt Indicated Resources and 9.1mt Inferred Resources) at 0.21% TREO, including 0.18% HREO, plus 0.89% Z r O₂ and 0.35% Nb₂O₅.

• 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 (85%), such as dysprosium and yttrium, which are substantially more valuable than the more common light rare earths.

• 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 Study to confirm the economics of the Project.

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