HASTINGS TECHNOLOGY METALS LTD — Capital/Financing Update 2018

Jul 30, 2018

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31 July 2018

50% INCREASE IN ORE RESERVES AT YANGIBANA PROJECT TO 7.74 MILLION TONNES

Hastings Technology Metals Limited ABN 43 122 911 399

ASX Stock Code: HAS

Address:

Suite 506, Level 5, 50 Clarence Street Sydney NSW 2000

PO Box Q128 Queen Victoria Building NSW 1220 Australia

Telephone: +61 2 9078 7674 Facsimile: +61 2 9078 7661 info@hastingstechmetals.com

Board

Charles Lew (Executive Chairman)

Jean Claude Steinmetz (Non-Executive Director)

Guy Robertson (Finance Director and Company Secretary)

• Probable Ore Reserves increased to 7.74 million tonnes at 1.13%TREO including 0.43%Nd2O3+Pr6O11

• Includes the maiden Probable Ore Reserves at Yangibana West, Yangibana, Auer and Auer North deposits, estimated using JORC Code guidelines (2012 Edition)

• These additional Ore Reserves confirm the eight-year mine life as described in the Company’s Definitive Feasibility Study (DFS) of November 2017

• Drilling continuing to further increase Probable Reserves at Auer and Auer North

Introduction

Hastings Technology Metals Limited (ASX:HAS) is pleased to announce a significant increase in the Probable Ore Reserves at the Yangibana Project in the Gascoyne region of Western Australia. Total Probable Ore Reserves have increased to 7.74 million tonnes at 1.13%TREO including 0.43%Nd2O3+Pr6O11 , a 50% increase on the figures established in November 2017 as part of the Company’s Definitive Feasibility Study (DFS) and as reported in the ASX release entitled “Successful Completion of Yangibana Definitive Feasibility Study” dated 28th November 2017.

Probable Ore Reserves

Based on Pre-Feasibility studies (PFS) for recent geological, geotechnical, metallurgical and environmental work, independent consultants Snowden Mining Industry Consultants (Snowden) has completed PFS mining studies based on Measured and Indicated Mineral Resources at the Yangibana West, Yangibana, Auer and Auer North deposits. The mining focus is high ore recovery, and conventional drill and blasting methods will be employed.

The Modifying Factors used to estimate the Ore Reserves are provided in the Table 1 Section 4 of the JORC Code (2012) at the end of this announcement. Mining at each of the deposits will encounter three main rock types:

• The upper horizon is a saprolite, this does not require blasting.

• The lower weathered and fresh granite horizons require blasting.

• • Ironstone (not all of which is ore), RC grade control drilling is required.

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The ore dips at between 10-45[o] and varies in thickness between 1m and 20m at Fraser’s and 1m and 30m at Bald Hill, with an average thickness of 4m. At Yangibana West the ore dips at 20-40[o] and ranges to 5m thick. Ore at Yangibana is narrower at 2-3m and dips at 40-50[o] , and at Auer and Auer North it is steeper (70-80[o] ) and averages around 3m wide.

The ore zone (generally ironstone) is visually distinct from the host rock, providing some visual control for ore identification. RC grade control drilling will be done, on a 10m x 10m grid, prior to ore delineation.

Well controlled blasting and mining near and in the ore zones is planned to minimise dilution and allow selective mining of the hanging-wall to expose and selectively mine the ore. Due to the high value of the ore, a high ore recovery is the focus of mining. As such, a 50cm skin of dilution is added to the ore mined to enable a 98% ore recovery assumption. This dilution was incorporated in the estimation of reserves at each deposit.

For pit optimisation a 28[o] overall wall angle was applied to the saprolite, and 35-40[o] to weathered and fresh granite. In addition to the 50cm skin applied during the resources estimation process, Snowden established waste dilution at 19% at Bald Hill, 14% at Fraser’s, 32% at Yangibana West, 26% at Yangibana and 21% at Auer and Auer North. A 2% ore loss was also applied to each deposit.

Ground water at all deposits sits at around 45m below the mining surface. Pits will be dewatered ahead of mining using bores pumping a maximum 8 litres per sec pumped from each pit to provide a dewatered rock mass. Stormwater will be managed in pit using sumps with an estimated maximum of 10 litres per sec pumped from sumps in each pit.

Waste from each pit is stored in adjacent waste dumps. Some of the Bald Hill pit is backfilled to minimise haulage distances. Ore is transferred either directly to the Run-Of-Mine (ROM) pad, or to a low-grade stockpile, by mining trucks.

Pit optimisations were completed to determine the economic mining limits for each deposit. Only Measured and Indicated Resources were considered for processing. Pits were then designed in stages to enable higher grades to be targeted and waste extraction to be deferred.

Pit optimisation studies have defined the total Probable Ore Reserves for the Yangibana Project as shown in Table 1 including these additional deposits.

Deposit	Tonnes	%TREO	%Nd2O3+Pr6O11
Bald Hill	4,385,000	1.03	0.41
Fraser’s	780,000	1.58	0.67
Yangibana West	1,397,000	1.23	0.34
Yangibana	838,000	0.99	0.47
Auer	150,000	1.13	0.41
Auer North	192,000	1.22	0.45
TOTAL	7,742,000	1.13	0.43

Table 1 – Yangibana Project - Probable Ore Reserves July 2018

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The current resources at Auer and Auer North are shown in Tables 2 and 3 as reported in the ASX release entitled “Final 2017 JORC Resource Update Including Auer and Auer North Results” dated 22[nd] November 2017.

All Mineral Resources shown in the tables below are inclusive of Ore Reserves

Resource Category	Tonnes	%TREO	%Nd2O3+Pr6O11
Indicated	261,000	1.17	0.42
Inferred	978,000	1.08	0.39
TOTAL	1,219,000	1.10	0.39
Table 2 – Yangibana Project –		Auer JORC Mineral Resources
Resource Category	Tonnes	%TREO	%Nd2O3+Pr6O11
Indicated	301,000	1.24	0.45
Inferred	460,000	0.96	0.30
TOTAL	762,000	1.07	0.36

Table 3 – Yangibana Project – Auer North JORC Mineral Resources

The current resources at Yangibana are shown in Table 4 as reported in the ASX release entitled “Yangibana Project Resources Now Exceed 20.5 Million Tonnes” dated 12[th] October 2017.

Resource Category	Tonnes	%TREO	%Nd2O3+Pr6O11
Indicated	1,318,000	0.86	0.41
Inferred	851,000	0.81	0.39
TOTAL	2,169,000	0.84	0.40

Table 4 – Yangibana Project – Yangibana JORC Mineral Resources

The current resources at Yangibana West are shown in Table 5 as reported in the ASX release entitled “Another Major Increase In JORC Resources From Current Yangibana Drilling” dated 24[th] July 2017.

Resource Category	Tonnes	%TREO	%Nd2O3+Pr6O11
Indicated	1,686,000	1.29	0.35
Inferred	756,000	1.35	0.35
TOTAL	2,442,000	1.31	0.35

Table 5– Yangibana Project – Yangibana West JORC Mineral Resources

All Probable Ore Reserves are within tenements held 100% by Hastings, with all but those at Auer and Auer North being held under granted Mining Leases. The increased Ore Reserves support the eight-year mining and processing operation at 1.0 million tonnes per annum as described in the November 2017 DFS.

A major infill and extension drilling programme comprising both reverse circulation and diamond drilling is well advanced at Auer and Auer North aiming to increase estimates of Measured and Indicated Mineral Resources and thence reserves at these deposits.

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Pre-Feasibility Study

The maiden Probable Ore Reserves at the Yangibana West, Yangibana, Auer and Auer North deposits are based on results of a supplementary Pre-Feasibility Study (PFS). Hastings undertook the PFS on these additional deposits, which are in addition to the Bald Hill and Fraser’s deposits forming the Yangibana Rare Earths Project (the Project) in Western Australia.

The November 2017 Definitive Feasibility Study (DFS) detailed the Project, which will produce a Mixed Rare Earth Carbonate (MREC) rich in Neodymium (Nd) and Praseodymium (Pr), critical materials used in the manufacturing of permanent magnets. The DFS produced a maiden Ore Reserve for the Bald Hill and Fraser’s deposits, which underpinned the first 5 years of mine life. The DFS also included an additional production target (APT) produced from the Yangibana West, Yangibana, Auer and Auer North deposits.

The APT satellite deposits were not included in the 2017 Ore Reserve estimate because the required geotechnical investigation had not yet been completed and consequently the mine design and mining cost estimates could not be developed to a PFS level. The required geotechnical drilling and analysis was then completed in Q2 2018 and mine designs were also completed. Metallurgical development was substantially completed in 2017, except for comminution test work and confirmation of the compatibility of the Yangibana West deposit with the DFS process plant flowsheet. This work has since been undertaken to the required pre-feasibility level.

The Project is comprised of significant deposits across the tenement holdings - Bald Hill, Fraser’s, Yangibana West, Yangibana, Auer and Auer North – all 100% owned by Hastings (note that these areas mentioned herein represent approximately 50sqkm out of a total of 650sqkm of exploration tenure). In addition, Hastings holds a controlling 70% stake in other tenements held in a Joint Venture arrangement in the greater Yangibana area, although these have not been considered in this PFS study. These Joint Venture tenements may be readily developed as upside to increase the mine life of the Project in the future.

The 2017 DFS evaluated the development of the mine, process plant (incorporating beneficiation and hydrometallurgy) and supporting infrastructure. The Project is designed to mine 1 Million tpa of ore and a process plant that can produce up to 15,000t of Mixed Rare Earths Carbonate (MREC) per annum from the Bald Hill, Frasers, Yangibana West, Yangibana, Auer and Auer North deposits. The current Ore Reserves of 7.74 Million tonnes supports a mine life of 8 years.

Hastings has completed the following work on the site:

• Mapping,

• Rock chip sampling,

• Commissioned a major hyperspectral survey,

• Topographic and aerial photo surveys, and

• Aeromagnetic and radiometric survey and interpretation over the GCFC.

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Seven phases of drilling - both reverse circulation and diamond drilling have been completed by Hastings, with each phase increasing the JORC resources of the various deposits and providing samples for metallurgical test work. With shallow mineralisation, mining will be conventional drill and blast and operated by a mining contractor.

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Figure 1 – Yangibana Project Layout Plan

The Company has completed extensive DFS testwork to define the metallurgy for the Yangibana project, culminating in pilot plant tests on a composite sample of material from Bald Hill and Fraser’s. This testwork has defined a process route entailing crush, grind, flotation, acid bake with water leach and precipitation of a Mixed Rare Earths Carbonate. Further metallurgical PFS testwork has established that the ore from each of Yangibana West, Yangibana, Auer and Auer North is compatible with this processing route.

Approximately 1 million tonnes per annum of ore will be brought to the Run Of Mine (ROM) pad where the flowsheet process begins. Early stages of the processing of the ore comprise comminution and beneficiation. The resulting beneficiated concentrate is upgraded by 20 times from the ROM ore, as demonstrated through the DFS, to a 25% TREO concentrate. This concentrate is further processed downstream through a hydrometallurgical process that involves acid bake, water leaching, impurity removal and precipitation to produce up to 15,000 tpa of MREC. The MREC will contain up to 3,400 tpa of neodymium oxide (Nd2O3) + praseodymium oxide (Pr6O11) representing 41% of contained TREO.

The scope of work required for environmental approvals have been substantially completed and the Project is progressing through a Public Environmental Review (PER) level of

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assessment by both the State and Commonwealth Governments. Auer and Yangibana deposits will require additional approval considerations as a formality although environmental considerations in the PFS demonstrated no significant environmental issues that would preclude a future approval being issued by State and Commonwealth Governments.

The key Ore Reserve parameters developed from the supplementary PFS are shown in Table 6 below.

elow.
Pre-Feasibility Study Parameters	Parameter
Status of JORC Resources used for financial evaluation	Measured and Indicated
MiningMethod	Open Pits
Mining Dilution – 0.5m skin on HW and FW incorporated in resource estimation	variable
MiningRecovery	98%
Processing Route	Flotation, Acid Bake – Water Leach and MREC Precipitation
Overall ProcessingRecovery (TREO)– Ore to MREC	75.2%
Target Production Rate (Mixed Rare Earths Concentrate)	15,000 tpa
Target Contained Nd2O3+Pr6O11	3,400 tpa
Pre-Production Capital Costs	A$335.3m
Production Capital Costs	A$13.1m
OperatingCosts	A$18.5/kgTREO
Basket Value of MRECproduct	US$29.21/kgTREO
Exchange Rate US$:A$	0.75
Discount Rate	8%

Table 6– Yangibana Project – PFS Ore Reserve Parameters

This PFS financial evaluation evaluates the production targets based only on the combined Bald Hill, Fraser’s, Yangibana, Yangibana West, Auer and Auer North deposits that were upgraded through the DFS and this PFS to a Probable Ore Reserve of 7,742 Mt (DFS Production Target).

A summary of the Mineral Resources and their utilisation as Production Target in the financial evaluation is provided in Table 7 below.

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Deposit		Mineral Resources(t)	Mineral Resources(t)		Production Target(t)
	Measured	Indicated	Inferred	Total	2017 DFS + 2018 PFS Production Target from Probable Ore Reserve
Bald Hill	2,700,000	2,050,000	1,340,000	6,100,000	4,385,000
Fraser’s	220,000	650,000	700,000	1,580,000	780,000
Auer		260,000	960,000	1,220,000	150,000
Auer North		300,000	460,000	760,000	192,000
Yangibana		1,180,000	720,000	1,900,000	838,000
Yangibana West	110,000	1,660,000	760,000	2,540,000	1,397,000
Total	3,030,000	6,100,000	4,940,000	14,100,000	7,472,000

Table 7– Yangibana Project – PFS Production Target Resources

Resources shown do not represent the total Mineral Resources and are inclusive of Ore Reserves. Deposits not used in the economic evaluation have been excluded from Mineral Resources. Rounding errors may appear

The PFS financial model assumes an average long-term US$/A$ exchange rate of US$0.75 and uses price forecasts from 2017 to 2027 for rare earths prices from Argus Media, an independent provider of price information, market data and business intelligence for the global resource industry. Financial evaluation of the Probable Ore Reserves in the PFS results in the economic outcome shown in Table 8 below.

OperatingLife	8years
Net Present Value(NPV)	A$499m
Internal Rate of Return(IRR)	76%
Payback Period	2.3years

Table 8– Yangibana Project – PFS Financial Evaluation Results

TERMINOLOGY USED IN THIS REPORT

Total Rare Earths Oxides, TREO, is the sum of the oxides of the light rare earth elements lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), and samarium (Sm) and the heavy rare earth elements europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu), and yttrium (Y).

For further information please contact:

Stefan Wolmarans, Chief Operating Officer, +61 2 9078 7674 Andy Border, General Manager Exploration, +61 2 9078 7674

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Competent Person Statements

The information in this announcement that relates to Resources is based on information compiled by Lynn Widenbar. Mr Widenbar is a consultant to the Company and a member of the Australasian Institute of Mining and Metallurgy. The information in this announcement 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. Each has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this announcement and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code”). Consents to include statements in this announcement have been provided in previous announcements entitled “Final 2017 JORC Resource Update Including Auer and Auer North Results” dated 22[nd] November 2017; “Yangibana Project Resources Now Exceed 20.5 Million Tonnes” dated 12[th] October 2017; and “Another Major Increase In JORC Resources From Current Yangibana Drilling” dated 24[th] July 2017

The information in this announcement that relates to the Ore Reserves at Bald Hill, Fraser’s, Yangibana, Auer and Auer North and Yangibana West is based on information reviewed or work undertaken by Mr Frank Blanchfield, FAusIMM, and an employee of Snowden Mining Industry Consultants. Mr Blanchfield has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the preparation of mining studies to qualify as a Competent Person as defined by the JORC Code 2012. Mr Blanchfield consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The scientific and technical information in this announcement and that relates to process metallurgy is based on information reviewed by Ms. Narelle Marriott (Principal Engineer – Beneficiation) and Mr Zhaobing (Robin) Zhang (Process Engineering Manager) of Hastings Technology Metals Limited. Both Ms Marriott and Mr Zhang are members of AusIMM. Each has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined by the JORC Code 2012. Ms Marriott and Mr Zhang consent to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.

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About Hastings Technology Metals

Yangibana Project

Hastings Technology Metals (ASX:HAS, the Company) is advancing the Yangibana Rare Earths Project towards production following the completion of a positive Definitive Feasibility Study in November 2017. The Yangibana Project hosts rare earths deposits rich in neodymium and praseodymium, elements vital to permanent magnets that provide many critical components of wide ranging high-tech products, including electric vehicles, renewable energy wind turbines, robotics, medical applications and others. The Company aims to be the next significant producer of neodymium and praseodymium outside of China.

The established Yangibana reserves and resources are predominantly within tenements held 100% by Hastings, with the majority in granted Mining Leases. Lesser resources are held in a joint venture in which Hastings holds a 70% interest and has management control.

The November 2017 Yangibana Project DFS established JORC Probable Ore Reserves of 5.15 million tonnes at 1.12% total rare earths oxides (TREO) including 41% neodymium and praseodymium oxides (Nd2O3+Pr6O11). This Ore Reserve was the basis of the initial operation at a planned production rate of up to 15,000 tonnes per annum (tpa.) MREC including 3,400 tpa. of Nd2O3+Pr6O11. The July 2018 Yangibana Probable Ore Reserve has increased to 7.74 million tonnes at 1.13%TREO including 0.43%Nd2O3+Pr6O11 as reported in this release. The increase in Probable Ore Reserves is demonstrated by additional Pre-Feasibility Study work that supports extension of production over the full eight-year period considered in the Company’s November 2017 DFS.

Including the above Ore Reserves, the Company has JORC Measured Mineral Resources of 3.9 million tonnes at 1.19% TREO including 0.42%Nd2O3+Pr6O11, JORC Indicated Mineral Resources of 8.6 million tonnes at 1.25% TREO including 0.42%Nd2O3+Pr6O11, and JORC Inferred Mineral Resources of 8.4 million tonnes at 1.09% TREO including 0.36%Nd2O3+Pr6O11, providing total JORC Measured, Indicated and Inferred Mineral Resources of 21.0 million tonnes at 1.17% TREO including 0.40%Nd2O3+Pr6O11.

Many more areas of the Company’s deposits have the potential for additional resources and exploration programmes are in place to evaluate these areas in future plus the numerous other targets identified to date.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (eg cut channels,	•	Samples used to assess the numerous deposits of
techniques		random chips, or specific specialised industry		the Yangibana Project have been derived from
		standard measurement tools appropriate to the		both reverse circulation (RC) and diamond drilling.
		minerals under investigation, such as down hole		Seven drilling programmes have been completed
		gamma sondes, or handheld XRF instruments,		and an eighth is in progress since 2014.
		etc). These examples should not be taken as	•	Samples from each metre were collected in a
		limiting the broad meaning of sampling.		cyclone and split using a 3-level riffle splitter.
	•	Include reference to measures taken to ensure		Field duplicates, blanks and Reference Standards
		sample representivity and the appropriate		were inserted at a rate of approximately 1 in 20.
		calibration of any measurement tools or systems	•	RC and diamond drilling leading to the
		used.		establishment of JORC Resources has been
	•	Aspects of the determination of mineralisation		carried out at Bald Hill, Frasers’s, Yangibana
		that are Material to the Public Report.		West, Auer, Auer North, Yangibana, and Simon’s
	•	In cases where ‘industry standard’ work has		Find within tenements held 100% by Hastings,
		been done this would be relatively simple (eg		and at Yangibana North, Gossan, Lion’s Ear,
		‘reverse circulation drilling was used to obtain 1		Hook and Kane’s Gossan. In addition, drilling has
		m samples from which 3 kg was pulverised to		been carried out at Hatchett, Demarcay,
		produce a 30 g charge for fire assay’). In other		Mosander Terry’s Find and Yangibana South
		cases more explanation may be required, such		prospects.
		as where there is coarse gold that has inherent
		sampling problems. Unusual commodities or
		mineralisation types (eg submarine nodules)
		may warrant disclosure of detailed information.
Drilling	•	Drill type (eg core, reverse circulation, open-hole	•	Reverse Circulation drilling at the various targets
techniques		hammer, rotary air blast, auger, Bangka, sonic,		utilised a nominal 5 1/4 inch diameter face-
		etc) and details (eg core diameter, triple or		sampling hammer.
		standard tube, depth of diamond tails, face-	•	Diamond drilling at the various targets has been
		sampling bit or other type, whether core is		HQ diameter.
		oriented and if so, by what method, etc).
Drill sample	•	Method of recording and assessing core and	•	Recoveries are recorded by the geologist in the
recovery		chip sample recoveries and results assessed.		field at the time of drilling/logging.
	•	Measures taken to maximise sample recovery	•	If poor sample recovery is encountered during
		and ensure representative nature of the		drilling, the geologist and driller have endeavoured
		samples.		to rectify the problem to ensure maximum sample
	•	Whether a relationship exists between sample		recovery. Visual assessment is made for moisture
		recovery and grade and whether sample bias		and contamination. A cyclone and splitter were
		may have occurred due to preferential loss/gain		used to ensure representative samples and were
		of fine/coarse material.		routinely cleaned.
			•	Sample recoveries to date have generally been
				high, and moisture in samples minimal.
				Insufficient data is available at present to
				determine if a relationship exists between
				recovery and grade.
Logging	•	Whether core and chip samples have been	•	All drill chip samples are geologically logged at 1m
		geologically andgeotechnically logged to a level		intervals from surface to the bottom of each

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		of detail to support appropriate Mineral		individual hole to a level that support appropriate
		Resource estimation, mining studies and		future Mineral Resource studies.
		metallurgical studies.	•	Logging is considered to be semi-quantitative
	•	Whether logging is qualitative or quantitative in		given the nature of reverse circulation drill chips.
		nature. Core (or costean, channel, etc)	•	All RC drill holes in the current programme are
		photography.		logged in full.
	•	The total length and percentage of the relevant
		intersections logged.
Sub-	•	If core, whether cut or sawn and whether	•	The RC drilling rig is equipped with an in-built
sampling		quarter, half or all core taken.		cyclone and triple tier riffle splitting system, which
techniques	•	If non-core, whether riffled, tube sampled, rotary		provided one bulk sample of approximately 25kg,
and sample preparation	•	split, etc and whether sampled wet or dry. For all sample types, the nature, quality and	•	and a sub-sample of 2-4kg per metre drilled. All samples were split using the system described
		appropriateness of the sample preparation		above to maximise and maintain consistent
		technique.		representivity. Most samples were dry. For wet
	•	Quality control procedures adopted for all sub-		samples the cleanliness of the cyclone and splitter
		sampling stages to maximise representivity of		was constantly monitored by the geologist and
		samples.		maintained to avoid contamination.
	•	Measures taken to ensure that the sampling is	•	Bulk samples were placed in green plastic bags,
		representative of the in situ material collected,		with the sub-samples collected placed in calico
		including for instance results for field		sample bags.
		duplicate/second-half sampling.	•	Field duplicates were collected directly from the
	•	Whether sample sizes are appropriate to the		splitter as drilling proceeded through a secondary
		grain size of the material being sampled.		sample chute. These duplicates were designed for
				lab checks as well as lab umpire analysis.
			•	A sample size of 2-4kg was collected and
				considered appropriate and representative for the
				grain size and style of mineralisation.
Quality of	•	The nature, quality and appropriateness of the	•	Genalysis (Perth) was used for all analysis work
assay data		assaying and laboratory procedures used and		carried out on the 1m drill chip samples and the
and		whether the technique is considered partial or		rock chip samples. The laboratory techniques
laboratory		total.		below are for all samples submitted to Genalysis
tests	•	For geophysical tools, spectrometers, handheld		and are considered appropriate for the style of
		XRF instruments, etc, the parameters used in		mineralisation defined at the Yangibana REE
		determining the analysis including instrument		Project: FP6/MS
		make and model, reading times, calibrations	•	Blind field duplicates were collected at a rate of
		factors applied and their derivation, etc.		approximately 1 duplicate for every 20 samples
	•	Nature of quality control procedures adopted (eg		that are to be submitted to Genalysis for
		standards, blanks, duplicates, external		laboratory analysis. Field duplicates were split
		laboratory checks) and whether acceptable		directly from the splitter as drilling proceeded at
		levels of accuracy (ie lack of bias) and precision		the request of the supervising geologist.
		have been established.
Verification	•	The verification of significant intersections by	•	At least two company personnel verify all
of sampling		either independent or alternative company		significant intersections.
and assaying		personnel.	•	All geological logging and sampling information is
	•	The use of twinned holes.		completed firstly on to paper logs before being
	•	Documentation of primary data, data entry		transferred to Microsoft Excel spreadsheets.
		procedures, data verification, data storage		Physical logs and sampling data are returned to
		(physical and electronic) protocols.		the Hastings head office for scanning and storage.
	•	Discuss any adjustment to assay data.		Electronic copies of all information are backed up
				daily.
			•	No adjustments of assay data are considered
				necessary.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Location of	•	Accuracy and quality of surveys used to locate	•	A Garmin GPSMap62 hand-held GPS is used to
data points		drill holes (collar and down-hole surveys),		define the location of the drill hole collars.
		trenches, mine workings and other locations		Standard practice is for the GPS to be left at the
		used in Mineral Resource estimation.		site of the collar for a period of 5 minutes to obtain
	•	Specification of the grid system used.		a steady reading. Collar locations are considered
	•	Quality and adequacy of topographic control.		to be accurate to within 5m. Collars will be picked
				up by DGPS in the future. Down hole surveys are
				conducted by the drill contractors using a Reflex
				electronic single-shot camera with readings for dip
				and magnetic azimuth nominally taken every 30m
				down hole, except in holes of less than 30m. The
				instrument is positioned within a stainless steel
				drill rod so as not to affect the magnetic azimuth.
			•	Grid system used is MGA 94 (Zone 50)
			•	Topographic control is based on the detailed 1m
				topographic survey undertaken by Hyvista
				Corporation in 2016.
Data spacing	•	Data spacing for reporting of Exploration	•	Hole collars were initially laid out at 50m centres.
and		Results.		In areas considered to have potential to increase
distribution	•	Whether the data spacing and distribution is		to Measured plus Indicated resources
		sufficient to establish the degree of geological		intermediate holes have been drilled to provide
		and grade continuity appropriate for the Mineral		37.5m hole spacing. Collar locations were varied
		Resource and Ore Reserve estimation		slightly dependent on access at a given site.
		procedure(s) and classifications applied.	•	No sample compositing is used in this report, all
	•	Whether sample compositing has been applied.		results detailed are the product of 1m downhole
				sample intervals.
Orientation	•	Whether the orientation of sampling achieves	•	Most drill holes in the current programme are
of data in		unbiased sampling of possible structures and		vertical (subject to access to the preferred collar
relation to		the extent to which this is known, considering		position) or collared at -60oor -70oin steeper
geological		the deposit type.		mineralised areas such as Auer and Auer North.
structure	•	If the relationship between the drilling orientation
		and the orientation of key mineralised structures
		is considered to have introduced a sampling
		bias, this should be assessed and reported if
		material.
Sample	•	The measures taken to ensure sample security.	•	The chain of custody is managed by the project
security				geologist who places calico sample bags in
				polyweave sacks. Up to 10 calico sample bags are
				placed in each sack. Each sack is clearly labelled
				with:
				• Hastings Technology Metals Ltd
				• Address of laboratory
				• Sample range
			•	Samples were delivered by Hastings personnel to
				the Nexus Logistics base in order to be loaded on
				the next available truck for delivery to Genalysis.
				The freight provider delivers the samples directly
				to the laboratory. Detailed records are kept of all
				samples that are dispatched, including details of
				chain of custody.

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	Criteria	JORC Code explanation	Commentary	Commentary
	Audits or	• The results of any audits or reviews of sampling	•	No audit of sampling data has been completed to
	reviews	techniques and data.		date but a review will be conducted once all data
				from Genalysis (Perth) has been received. Data is
				validated when loading into the database and will
				be validated again prior to any Resource
				estimation studies.
Section 2 Reporting of Exploration Results
(Criteria listed in		the preceding section also apply to this section.)
	Criteria	JORC Code explanation	Commentary
	Mineral	• Type, reference name/number, location and	•	Drilling has been undertaken on numerous
	tenement and	ownership including agreements or material		tenements within the Yangibana Project.
	land tenure	issues with third parties such as joint ventures,	•	All Yangibana tenements are in good standing
	status	partnerships, overriding royalties, native title		and no known impediments exist.
		interests, historical sites, wilderness or national
		park and environmental settings.
		• The security of the tenure held at the time of
		reporting along with any known impediments to
		obtaining a licence to operate in the area.
	Exploration	• Acknowledgment and appraisal of exploration	•	Ten of the Yangibana prospects were previously
	done by other	by other parties.		drilled to a limited extent by Hurlston Pty Limited
	parties			in joint venture with Challenger Pty Limited in the
				late 1980s. Auer and Auer North were first drilled
				by Hastings in 2016. Simon’s Find was first
				drilled byHastings in 2017.
	Geology	• Deposit type, geological setting and style of	•	The Yangibana ironstones within the Yangibana
		mineralisation.		Project are part of an extensive REE-mineralised
				system associated with the Gifford Creek
				Carbonatite Complex. The lenses have a total
				strike length of at least 12km.
			•	These ironstone lenses have been explored
				previously for base metals, manganese, uranium,
				diamonds and rare earths.
			•	The ironstones are considered by GSWA to be
				coeval with the numerous carbonatite sills that
				occur within Hastings tenements, or at least part
				of the same magmatic/hydrothermal system.
	Drill hole	• A summary of all information material to the	•	N/A
	Information	understanding of the exploration results
		including a tabulation of the following
		information for all Material drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation
		above sea level in metres) of the drill hole
		collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
		• If the exclusion of this information is justified on
		the basis that the information is not Material
		and this exclusion does not detract from the

==> picture [125 x 38] intentionally omitted <==

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		understanding of the report, the Competent
		Person should clearly explain why this is the
		case.
Data	•	In reporting Exploration Results, weighting	•	All intervals reported are composed of 1m
aggregation		averaging techniques, maximum and/or		downhole intervals and as such are length
methods		minimum grade truncations (eg cutting of high		weighted. A lower cut-off grade of
		grades) and cut-off grades are usually Material		0.20%Nd2O3+Pr6O11has been used for assessing
		and should be stated.		significant intercepts, and no upper cut-off grade
	•	Where aggregate intercepts incorporate short		was applied.
		lengths of high grade results and longer lengths	•	Maximum internal dilution of 1m was incorporated
		of low grade results, the procedure used for		in reported significant intercepts.
		such aggregation should be stated and some	•	The basis for the metal equivalents used for
		typical examples of such aggregations should		reporting are provided in the body of the ASX
		be shown in detail.		announcement.
	•	The assumptions used for any reporting of		.
		metal equivalent values should be clearly
		stated.
Relationship	•	These relationships are particularly important in	•	True widths for mineralisation have not been
between		the reporting of Exploration Results.		calculated and as such only downhole lengths
mineralisation widths and intercept lengths	• •	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole	•	have been reported. It is expected that true widths will be less than downhole widths, due to the apparent dip of the mineralisation.
		lengths are reported, there should be a clear
		statement to this effect (eg ‘down hole length,
		_true width not known’). _
Diagrams	•	Appropriate maps and sections (with scales)	•	Appropriate maps and sections are available in
		and tabulations of intercepts should be included		the body of this ASX announcement.
		for any significant discovery being reported
		These should include, but not be limited to a
		plan view of drill hole collar locations and
		appropriate sectional views.
Balanced	•	Where comprehensive reporting of all	•	Reporting of results in this report is considered
reporting		Exploration Results is not practicable,		balanced.
		representative reporting of both low and high
		grades and/or widths should be practiced to
		avoid misleading reporting of Exploration
		Results.
Other	•	Other exploration data, if meaningful and	•	Geological mapping has continued in the vicinity
substantive		material, should be reported including (but not		of the drilling as the programme proceeds.
exploration		limited to): geological observations; geophysical
data		survey results; geochemical survey results; bulk
		samples – size and method of treatment;
		metallurgical test results; bulk density,
		groundwater, geotechnical and rock
		characteristics; potential deleterious or
		contaminating substances.
Further work	•	The nature and scale of planned further work	•	Numerous targets exist for expansion of the
		(eg tests for lateral extensions, depth		current JORC Resources within the Yangibana
		extensions or large-scale step-out drilling).		Project, as extensions to defined deposits, new
	•	Diagrams clearly highlighting the areas of		targets identified from the Company’s various
		possible extensions, including the main		remote sensing surveys, and conceptual as yet
		geological interpretations and future drilling		untested targets at depth.
		areas,provided this information is not

Criteria JORC Code explanation Commentary

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commercially sensitive.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Database	•	Measures taken to ensure that data has	•	Data was provided as a validated Access Database and
integrity		not been corrupted by, for example,		was digitally imported into Micromine Mining software.
		transcription or keying errors, between		Micromine validation routines were run to confirm validity of
		its initial collection and its use for		all data.
		Mineral Resource estimation purposes.	•	Individual drill logs from site have been checked with the
	•	Data validation procedures used.		electronic database on a random basis to check for validity.
			•	Analytical results have all been electronically merged to
				avoid anytranscription errors.
Site visits	•	Comment on any site visits undertaken	•	The Competent Person visited site from 15-16thDecember
		by the Competent Person and the		2016 and reviewed geology, drilling etc.
		outcome of those visits.
	•	If no site visits have been undertaken
		_indicate why this is the case. _
Geological	•	Confidence in (or conversely, the	•	Confidence in the geological interpretation is considered to
interpretation		uncertainty of ) the geological		be high.
		interpretation of the mineral deposit.	•	Detailed geological logging and surface mapping allows
	•	Nature of the data used and of any		extrapolation of drill intersections between adjacent
		assumptions made.		sections.
	•	The effect, if any, of alternative	•	Alternative interpretations would result in similar tonnage
		interpretations on Mineral Resource		and grade estimation techniques.
		estimation.	•	Geological boundaries are determined by the spatial
	•	The use of geology in guiding and		locations of the various mineralised structures.
		controlling Mineral Resource	•	Continuous ironstone units comprising iron oxides and
		estimation.		hydroxides, minor quartz rich zones, and locally carbonate
	•	The factors affecting continuity both of		and apatite host the rare earths mineralisation and are the
		grade and geology.		key factors providing continuity of geology and grade. The
				mineralised zones may be described as visually distinctive
				anastomosing iron rich veins with excellent strike and down
				dipcontinuity.
Dimensions	•	The extent and variability of the Mineral	•	Bald Hill mineralisation dips shallowly (maximum 30o) but
		Resource expressed as length (along		variably to the southwest and ranges from 1m to 10m thick.
		strike or otherwise), plan width, and		Maximum depth of the resource is to a vertical depth of 80
		depth below surface to the upper and		metres below surface.
		lower limits of the Mineral Resource.	•	Fraser’s mineralisation dips steeply (70-80o) in the western
				portion becoming more shallow (to 30o) in the east and
				ranges from 1m to 6m thick. Maximum depth of the
				resource is to a vertical depth of 140 metres below surface.
			•	Yangibana West mineralisation dips shallowly (maximum
				30o) but variably to the south and ranges from 1m to 5m
				thick. Maximum depth of the resource is to a vertical depth
				of 100 metres below surface.
			•	Auer has three discontinuous, steeply dipping zones of
				mineralisation extending North-South over a total strike
				length of approximately 3.5 km and to a depth of 150m
				below surface.
			•	Auer North has two discontinuous, steeply-dipping zones of
				mineralisation extending north-south over a total strike
				length of approximately 1.4 km and has been tested to a
				depth of 120m below surface.
			•	Yangibana mineralisation strikes east-west over a length of
				approximately 2 km, dipping at 40 to 45° to the north. The
				zone extends to a depth of approximately 150m. The zone
				isrelatively thin, typically2to 3m.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
			•	Simon’s Find consists of 3 separate mineralisation zones
				over a total strike length of 2 km. The zones vary in dip
				from 40 to 80° to the south and west, and extend
				approximately 100m below surface. The zones are
				relatively thin, typically 2 to 5m.
			•	Yangibana North mineralisation dips shallowly (maximum
				30o) but variably to the south and ranges from 1m to 5m
				thick. Maximum depth of the resource is to a vertical depth
				of 140 metres below surface.
			•	Gossan – the Inferred Resources at Gossan are based on
				limited drilling that has identified mineralisation over 300m
				of strike length, 100m down dip and ranging from 1-4m
				wide. Maximum depth of the resource is to a vertical depth
				of 80 metres below surface.
			•	Lion’s Ear - the Inferred Resources at Lion’s Ear are based
				on limited drilling that has identified mineralisation over
				520m of strike length, 80m down dip and ranging from 1-4m
				wide. Maximum depth of the resource is to a vertical depth
				of 140 metres below surface.
			•	Hook - the Inferred Resources at Hook are based on limited
				drilling that has identified mineralisation over 380m of strike
				length, 100m down dip and ranging from 1-4m wide.
				Maximum depth of the resource is to a vertical depth of 130
				metres below surface.
			•	Kane’s Gossan - the Inferred Resources at Kane’s Gossan
				are based on limited drilling that has identified
				mineralisation over 550m of strike length, 100m down dip
				and ranging from 1-4m wide. Maximum depth of the
				resource is to a vertical depth of 130 metres below surface.
Estimation and	•	The nature and appropriateness of the	•	Due to the variable dip and strike of the various deposits,
modelling		estimation technique(s) applied and key		an “unfolding” technique has been used to simplify setup of
techniques		assumptions, including treatment of		search ellipse and modelling parameters
		extreme grade values, domaining,	•	Statistical analysis and variography has been carried out in
		interpolation parameters and maximum		unfolded coordinates to define parameters for an Ordinary
		distance of extrapolation from data		Kriging estimation.
		points. If a computer assisted	•	All analysis and estimation has been constrained by the
		estimation method was chosen include		geological interpretation of the ironstone units. Separate
		a description of computer software and		estimation has been carried out for 0.5m thick dilution skins
		parameters used.		on the hangingwall and footwall of the mineralisation.
	•	The availability of check estimates,	•	Kriging Neighbourhood Analysis was carried out for each
		previous estimates and/or mine		deposit to determine optimal search and kriging parameters
	• • • •	production records and whether the Mineral Resource estimate takes appropriate account of such data. The assumptions made regarding recovery of by-products. Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. Any assumptions behind modelling of	• • • • •	All estimation was carried out using Micromine software (MM 2016 Sp5) Kriging parameters were defined using Nd2O3and Pr6O11 as the primary variables. Estimation has been carried out for the following variables : Ce2O3_ppm, Dy2O3_ppm, Er2O3_ppm, Eu2O3_ppm, Gd2O3_ppm, Ho2O3_ppm, La2O3_ppm, Lu2O3_ppm, Nd2O3_ppm, Pr6O11_ppm, Sm2O3_ppm, Tb4O7_ppm, Tm2O3_ppm, Y2O3_ppm, Yb2O3_ppm, ThO2_ppm, U3O8_ppm, Al_per, Ca_per, Fe_per, Mg_per, Nb_ppm, P_per, S_per, Si_per, Sr_ppm, Ta_ppm, Zr_ppm Drill hole spacing is variable, and the block sizes were chosen to reflect the best compromise between spacing and the necessity to define the geological detail of each
		selective mining units.		deposit. In general, block sizes are 12.5 m along strike,
	•	Any assumptions about correlation		10m down dip and 2.5 across strike.
		between variables.	•	As there are no extreme values no capping has been
	•	Description of how the geological		applied.
		interpretation was used to control the	•	Block model validation has been carried out byseveral

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		resource estimates.		methods, including:
	•	Discussion of basis for using or not		o Drill Hole Plan and Section Review
		using grade cutting or capping.		o Model versus Data Statistics by Domain
	•	The process of validation, the checking		o Easting, Northing and RL swathe plots
		process used, the comparison of model	•	All validation methods have produced acceptable results.
		data to drill hole data, and use of
		_reconciliation data ifavailable. _
Moisture	•	Whether the tonnages are estimated on	•	Tonnages are estimated on a dry basis.
		a dry basis or with natural moisture,
		and the method of determination of the
		_moisture content. _
Cut-off	•	The basis of the adopted cut-off	•	A nominal downhole cut-off of 0.20% Nd2O3+Pr6O11has
parameters		grade(s) or quality parameters applied.		been used in conjunction with logging of ironstone to define
				mineralised intersections.
Mining factors	•	Assumptions made regarding possible	•	Mining is assumed to be by conventional open pit mining
or assumptions		mining methods, minimum mining		methods
		dimensions and internal (or, if	•	Based on previous and on-going mining studies by
		applicable, external) mining dilution. It		Snowden, a 0.5m dilution skin has been added to both the
		is always necessary as part of the		footwall and hangingwall contacts of the mineralisation.
		process of determining reasonable	•	The dilution material is independently interpolated and is
		prospects for eventual economic		subsequently added to the mineralised domain to produce
		extraction to consider potential mining		a diluted resource.
		methods, but the assumptions made
		regarding mining methods and
		parameters when estimating Mineral
		Resources may not always be rigorous.
		Where this is the case, this should be
		reported with an explanation of the
		basis of the mining assumptions made.
Metallurgical	•	The basis for assumptions or	•	Beneficiation and hydrometallurgical test work has been
factors or		predictions regarding metallurgical		carried out on samples from the Eastern Belt (comprising
assumptions		amenability. It is always necessary as		Bald Hill, Bald Hill Southeast and Fraser’s deposits).
		part of the process of determining		Mineralisation at Auer and Auer North is considered
		reasonable prospects for eventual		compatible with the Eastern Belt-style mineralisation, based
		economic extraction to consider		on variability testwork.
		potential metallurgical methods, but the	•	Test work to date has shown that the rare earths
		assumptions regarding metallurgical		mineralisation (largely monazite) can be upgraded readily
		treatment processes and parameters		using standard froth flotation techniques and readily
		made when reporting Mineral		available reagents..
		Resources may not always be rigorous.
		Where this is the case, this should be
		reported with an explanation of the
		basis of the metallurgical assumptions
		made.
Environmental	•	Assumptions made regarding possible	•	Environmental studies have been carried out on site with
factors or		waste and process residue disposal		Stage 1 Flora and Fauna surveys and Stage 2 Flora and
assumptions		options. It is always necessary as part		Fauna surveys completed. No environmental issues have
		of the process of determining		been identified.
		reasonable prospects for eventual	•	Subterranean fauna studies have located both troglofauna
		economic extraction to consider the		and stygofauna but no unique or endangered species have
		potential environmental impacts of the		been encountered.
		mining and processing operation. While
		at this stage the determination of
		potential environmental impacts,
		particularly for a greenfields project,
		may not always be well advanced, the
		status of early consideration of these
		potential environmental impacts should
		be reported. Where these aspects have
		not been considered this should be
		reported with an explanation of the
		environmental assumptions made.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Bulk density	•	Whether assumed or determined. If	•	Bulk density/specific gravity have been measured by the
		assumed, the basis for the		Company on core from Yangibana North, and at
		assumptions. If determined, the method		independent laboratories on core from Bald Hill South,
		used, whether wet or dry, the frequency		Fraser’s and Yangibana West. Samples have been taken
		of the measurements, the nature, size		from each of oxidised, partially oxidised and fresh
		and representativeness of the samples.		mineralisation with results feeding into the resource
	•	The bulk density for bulk material must		estimations. Mineralisation at Auer and Auer North is
		have been measured by methods that		considered to be similar to these areas.
		adequately account for void spaces	•	Bulk density/specific gravity measurements have also been
		(vugs, porosity, etc), moisture and		carried out at an independent laboratory on samples of
		differences between rock and alteration		oxidised, partially oxidised and fresh host rock, granite.
		zones within the deposit.	•	In situ bulk densities for the individual deposits have ranged
	•	Discuss assumptions for bulk density		from 2.30 to 2.80 tonnes per cubic metre and have been
		estimates used in the evaluation		assigned into the models based on weathering surfaces
		_process of the different materials. _		and assignedrocktypes.
Classification	•	The basis for the classification of the	•	The Mineral Resource has been classified in the Measured,
		Mineral Resources into varying		Indicated and Inferred categories, in accordance with the
		confidence categories.		2012 Australasian Code for Reporting of Mineral Resources
	•	Whether appropriate account has been		and Ore Reserves (JORC Code). A range of criteria has
		taken of all relevant factors (ie relative		been considered in determining this classification including:
		confidence in tonnage/grade		o Geological and grade continuity
		estimations, reliability of input data,		o Data quality.
		confidence in continuity of geology and		o Drill hole spacing.
		metal values, quality, quantity and		o Modelling technique and kriging output
		distribution of the data).		parameters.
	•	Whether the result appropriately	•	The Competent Person is in agreement with this
		reflects the Competent Person’s view of		classification of the resource.
		the deposit.
Audits or	•	The results of any audits or reviews of	•	No audit of the current resources has been carried out at
reviews		Mineral Resource estimates.		this time.
Discussion of	•	Where appropriate a statement of the	•	The relative accuracy of the various resource estimates is
relative		relative accuracy and confidence level		reflected in the JORC resource categories.
accuracy/		in the Mineral Resource estimate using	•	At the Measured and Indicated Resource classification
confidence		an approach or procedure deemed		level, the resources represent local estimates that can be
		appropriate by the Competent Person.		used for further mining studies.
		For example, the application of	•	Inferred Resources are considered global in nature.
		statistical or geostatistical procedures
		to quantify the relative accuracy of the
		resource within stated confidence limits,
		or, if such an approach is not deemed
		appropriate, a qualitative discussion of
		the factors that could affect the relative
		accuracy and confidence of the
		estimate.
	•	The statement should specify whether it
		relates to global or local estimates, and,
		if local, state the relevant tonnages,
		which should be relevant to technical
		and economic evaluation.
		Documentation should include
		assumptions made and the procedures
		used.
	•	These statements of relative accuracy
		and confidence of the estimate should
		be compared with production data,
		where available.

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Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant in sections 2 and 3 also apply to this section.)

Item	Comments	Comments	Comments
Mineral Resource for conversion to Mineral Reserves	The resource models used for mine planning were: • Bald Hill – BH_ALL_12_07_2017.dm • Fraser’s – FR_ALL_14_07_2017.dm • Yangibana West – Y_30_10_2017.dm • Yangibana – YA_18_09_2017.dm • Auer/Auer North – AU_ALL_26_10_2017.dm. Only Measured and Indicated Resources were considered for inclusion in the Ore Reserve.
Site visits	Site visits were completed by the following Competent Persons: Competent Persons Items Date of site visit Frank Blanchfield Mining December 2015 Lynn Widenbar Resources December 2016 Narelle Marriott Metallurgy beneficiation August 2016 Robin Zhang Hydrometallurgy N/A The hydrometallurgy Competent Person did not visit the site and was comfortable relying on the report of staff who have visited the site.
Study status	The Yangibana REO Project has previously had a Definitive Feasibility Study (DFS) released in November 2017, based on the Bald Hill and Fraser’s deposits only. The updated Ore Reserve includes satellite deposits for Yangibana West, Yangibana, Auer and Auer North, which have been assessed to a prefeasibility-level study. The satellite deposit metallurgical assessment has been completed using the process flowsheet developed for Bald Hill and Fraser’s, assessing each deposit’s suitability for processing through this flowsheet. A small amount of comminution testwork is still in progress for the satellite ore sources; results received to date have been used to determine that the comminution results are not expected to be inconsistent with the DFS ore sources. Some environmental assessments are ongoing; initial results indicate there are currently no encumbrances to theproject from the environmental assessments.
Cut-off parameters	The cut-off grade of 0.2% Nd2O3+Pr6O11for the geological resource is used as neodymium (Nd) and praseodymium (Pr) are the most important sources of potential revenue from the project. The cut-off coincides generally with the visual geology of the deposits, with target minerals being hosted by either ironstone, phoscorite or carbonate. The cut-off grade for the project was determined based on calculating revenue from recovered metal, selling and processing costs on a block-by-block (diluted) basis (parameters are below). Blocks with revenue greater than the sum of the processing and selling costs (approximately $90/t ore)were considered to be above the cut-off forprocessing.
Mining factors and assumptions	The following Modifying Factors were considered in relation to the development of the Yangibana Ore Reserves: •Geotechnical: For pit optimisation, a 28° overall wall angle was applied for saprolite, and 35° to 40° was applied to weathered and fresh granite. •Dilution and ore loss: Dilution was applied by adding a 50 cm skin on the hangingwall and footwall sides of the orebody. A 2% ore loss was additionally applied to the deposits. Bald Hill – Measured and Indicated Resources only Item Geological model Mining model Difference Tonnes (kt) 3,924 4,670 +19% TREO (%) 1.19 1.01 -15% Nd2O3(ppm) 3,826 3,250 -15% Pr6O11 (ppm) 902 765 -15% Fraser’s – Measured and Indicated Resources only
	Item	Geological model	Mining model
	Tonnes (kt) TREO (%) Nd2O3(ppm) Pr6O11 (ppm)	3,924 1.19 3,826 902	4,670 1.01 3,250 765
	Fraser’s – Measured and Indicated Resources only

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Item	Comments
	Item	Geological model	Mining model
	Tonnes (kt) TREO (%) Nd2O3(ppm) Pr6O11 (ppm)	749 1.77 5,975 1,549	857 1.54 5,185 1,343
	Yangibana West – Measured and Indicated		Resources only
	Item	Geological model	Mining model
	Tonnes (kt) TREO (%) Nd2O3(ppm) Pr6O11 (ppm)	1,165 1.57 3,314 936	1,543 1.23 2,591 745
	Yangibana – Indicated Resources only
	Item	Geological model	Mining model
	Tonnes (kt) TREO (%) Nd2O3(ppm) Pr6O11 (ppm)	921 1.11 4,506 790	1,162 0.89 3,597 630
	Auer/Auer North – Indicated Resources only
	Item	Geological model	Mining model
	Tonnes (kt) TREO (%) Nd2O3(ppm) Pr6O11 (ppm)	386 1.41 3,994 1,124	467 1.19 3,347 942

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Item

Comments

Metallurgical factors and assumptions

A DFS has been completed on the Bald Hill and Fraser’s deposits and is now progressing to detailed design. The metallurgical flowsheet developed from that study has been used for the basis of assessment for the prefeasibility studies of the satellite deposits. The metallurgical performance of samples from each satellite deposit has been assessed through the standard bench-scale flowsheet, the results of the testwork, as well as impacts on operating costs have been used for the prefeasibility-level study on each satellite deposit. Process and flowsheet The metallurgical process comprises ore beneficiation followed by hydrometallurgical (hydromet) extraction to produce a valuable Mixed Rare Earths Carbonate (MREC) product. The beneficiation unit processes include crushing, grinding, rougher flotation, regrinding and cleaner flotation. The hydromet unit processes include acid bake, water leach, impurity removal and MREC product precipitation. The simple and effective metallurgical process flowsheet developed with the best known available technology and industrial practice by the Hastings Technical Team, has been well tested in both laboratory scale and pilot scale during the Bald Hill and Fraser’s DFS. The unit processes selected for inclusion in the beneficiation and hydromet process flowsheet are based on known technologies, both in the rare earths (RE) industries and other mining applications. Ore feed chemistry tolerances Assessment of satellite deposit mineralogy has shown the main RE-bearing mineral in the ore is monazite, which is consistent with the DFS ore sources. The main gangue minerals are iron oxides and hydroxides, biotite-type minerals and apatite. Iron carbonate (siderite) has been identified in Yangibana West. The siderite boundary has been mapped and excluded from the planned mill feed ore. The ratio of RE elements contained in the monazite differs from that of Bald Hill and Fraser’s. This is reflected in the financial analysis but has no impact on the performance of the beneficiation flowsheet. Compared to DFS ore source concentrate, there may be some variation on concentrate mineralogy. This can be managed in the hydromet circuit through varying process conditions. Inputs for ore scheduling to the process included control of TREO feed grade between 1% and 1.4% TREO. Additionally, a limit on CaO content in the ore has been set at less than 1 CaO:TREO. Testwork Pilot plant campaigns for both the beneficiation flowsheet and the hydromet flowsheet have proved the circuits can be run on a continuous basis and that the selected unit processes are able to selectively concentrate the RE-bearing mineral monazite and remove or control the major product impurities of manganese, iron, thorium and uranium within acceptable product range. Over 50 kg of high-purity MREC produced from the pilot plant was sent to 11 customers for evaluation. The product quality is acceptable to separation plant operators. Bench-scale testwork for the satellite deposits was mostly carried out in 2017 at a number of commercial laboratories in Australia. Beneficiation testwork has been completed at KYSPY Met and ASL Metallurgy. Hydromet testwork has been completed at SGS Minerals Metallurgy and ANSTO. Assessment of metallurgical processing performance of all satellite deposits was based on batch testwork, using the standard DFS comminution and flotation flowsheet, and comparison against the performance achieved with DFS ore sources. A standard acid bake and water leach test was completed for assessment of the hydromet performance. Liquor chemistry post-water leach was used to compare against DFS ore sources. Assessment of comminution requirements was undertaken using a standard suite of comminution tests includingSMC, Bond Ball Mill work index, Bond Crusher work index, and abrasion index. Deposit No. of comminution samples Complete Inprogress Auer 1 Auer North 3 Yangibana 5 Yangibana West 1 3 Where standard comminution tests are currently in progress, a comparison of laboratory grind times required to achieve the target grind size using standard conditions have been compared between the satellite deposits and the DFS ores. All results indicate the satellite deposits are suitable for processingthrough the comminution circuit as designed in the DFS.

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Item	Comments
Metallurgical factors and assumptions (cont’d)	Detailed mineralogy and variability testwork has been carried out on multiple samples for each deposit, as shown below. Deposit No. of samples Mineralogy Variability Composite Auer 8 8 Auer North 4 4 Yangibana 12 12 2 Yangibana West 6 2 1 A composite sample was also tested for Yangibana West in order to understand the impact of blending ore samples to achieve the planned CaO:TREO ratio limit of less than 1. Overall Metallurgical recovery The metallurgical recovery for the additional production targets is 87.4% TREO recovery in the beneficiation circuit, 86.1% TREO recovery in the hydrometallurgy circuit, giving an overall metallurgical recovery of 75.2%.
Environmental	This feasibility study (FS) was updated for the Environmental and Social Baseline section and includes data from the 2014 prefeasibility study (PFS), but has been updated to reflect: •Baseline flora and fauna: Flora and fauna surveys have been conducted over 55,650 Ha of tenements. No significant impact will occur to conservation significant terrestrial flora or fauna. Subterranean fauna sampling has been completed at Yangibana West and is currently underway in the Auer, Auer North and Yangibana areas. •Baseline ground and surface water: A hydrology study has determined that mining and the majority of infrastructure falls outside flood impact zones. Water from fractured rock aquifers will meet approximately 20% of the project’s water demands. The remaining 80% of water demands will be sourced from the paleochannel borefield. A pit dewatering assessment and post-closure pit lake modelling has been completed for Yangibana West and is planned to be undertaken for Auer, Auer North and Yangibana pit areas. •Baseline soil and radiation: Topsoil analysis was conducted a nd mapped over all but the Yangibana area, which is planned. Baseline radiation surveys and radiation waste characterisation studies have determined that naturally occurring radioactive materials (NORM) are associated with the orebody. Additional radiation surveys are required over Auer, Auer North and Yangibana. •Waste rock geochemical characterisation: Yangibana West pit lithologies have been characterised geochemically and classify as benign and non-acid forming. The mineralogy of the project is not associated with asbestiform minerals. Erodibility parameters were determined for waste rock and topsoil, and inform the waste rock landforms’ design for Yangibana West. Waste rock geochemical characterisation for Auer, Auer North and Yangibana are initiated. •Baseline air quality: A baseline air quality assessment and greenhouse gas emissions assessment have been completed. A radiation impact assessment has determined that dust containing NORM will not pose a risk to the surrounding environment. •Cultural heritage: No impacts to known significant heritage sites will occur as a result of implementing the project. Heritage surveys are currently underway for waste rock landform areas. •Closure: A landform evolution study has identified landform design specifications that aim to ensure site landforms will maintain their integrity for 1,000 years post-closure. A landform evolution study will be revised if waste rock characterisation studies’ findings in Auer, Auer North and Yangibana differ from those of the DFS ore sources. •The closure plan will be updated subject to outcomes of ongoing studies. •Permits required and status of permits: A formal environmental impact assessment is currently set at a Public Environmental Review (PER) level of assessment by both the State and Commonwealth Governments of the DFS ore sources and Yangibana West. The PER documentation is currently being assessed. Referral for Auer, Auer North and Yangibana will occur under the_Environmental Protection Act(WA 1986)_.

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Item	Comments	Comments
Infrastructure	The Yangibana project is located approximately 200 km north of Gascoyne Junction in the Upper Gascoyne region. The process plant is located on a greenfield site and all supporting infrastructure must be constructed. The proposed infrastructure for the project will include: •Comminution plant •Beneficiation plant •Hydrometallurgy plant •Access and site roads •Water supply borefield •Tailings storage facility (TSF) and evaporation plant •Mining buildings •Fuel storage •Security and fencing •Borefield •Employee housing and transportation •Water treatment and mine site sewage •Data and communications infrastructure •LNG fuelled power station. As of July 2018 early site works include the construction of the water supply bore and pipeline, the 240 room accommodation village and the access road from the Cobra – Gifford Creek Road to the plant site. Of the above, construction has started on the bore and pipeline and off-site fabrication of the accommodation village buildings. Designs have been completed for the access road.
Costs	Operating costs Mining A contract mining cost for mining at Bald Hill and Fraser’s of A$3.98/DMT mined was estimated by Snowden based upon quotations received in 2017. Process Based on FS modelling, processing costs are the same for both Bald Hill and Fraser’s: • A$75.50/t ore, made up of A$23.42/t ore for beneficiation and $52.08/t ore for fixed costs. • A$16.92/t TREO in-situ for the hydromet processing, and carbonate transport. Since the TREO content of the carbonate is constant, the yield to carbonate will vary with TREO head grade and recovery. Selling costs A royalty cost of 2.5% was applied. Additionally, a separation charge (inclusive of impurity removal) of US$2.50/TREO in carbonate was applied, based on the November 2017 separation quote from REHT-International. For modelling purposes, this cost was applied to each RE oxide separately. Opex summary (LOM – unescalated) Item A$M Average A$/t of ore Mining costs 421 54.4 Labour 147 18.9 Flights, messing and accommodation 41 5.3 Power 79 10.2 Process fuel 44 5.7 Exploration programs (ongoing) 18 2.3 Maintenance 28 3.6 Consumables 18 2.3 Equipment hire 23 3.0 Product transport 23 3.0 Contract/General expenses 39 5.0 Corporate costs 18 2.3 Mine closure costs1 30 3.9 Reagents 308 39.8 Total operating costs 1238 159.91
	Item	A$M
	Mining costs Labour Flights, messing and accommodation Power Process fuel Exploration programs (ongoing) Maintenance Consumables Equipment hire Product transport Contract/General expenses Corporate costs Mine closure costs1 Reagents	421 147 41 79 44 18 28 18 23 23 39 18 30 308
	Total operating costs	1238

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Item	Comments
	Note 1: Stated closure costs are for the Bald Hill and Fraser’s pits and waste dumps only. Closure cost estimate for the plant and all associated site infrastructure has been calculated as part of the FS but are not stated as part of the above LOM costs, as further Measured and Indicated Resources (excluding this Probable Reserve) are available to support additional mine life.

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Item	Comments	Comments
Costs (cont’d)	Other operating costs(LOM – unescalated)
	Item	A$M
	Taxation Total royalties	147.8 68.1
	Capital costs summary Pre-production capital costs(LOM – unescalated)
	Description
	Mining Process plant Non-process infrastructure TSF Total direct costs
	Indirect costs
	Subtotal – Project costs Contingency
	Totalpre-productionproject costs(-5% +15%)
	Production capital costs(LOM – unescalated)
	Item
	Plant sustaining TSF and evaporation pond – additional cells and lifts Shire access road upgrade
	Total LOMproduction costs
	Totalproject capital costs
Revenue factors	The project will provide a MREC product for sale. The separated oxide prices used for the economic evaluation are the Argus Media forecasts for the period 2017 to 2020. Annual year-on-year escalation was applied on an individual RE oxide basis, as supplied in the forecasts. The derived MREC basket price applied in the evaluation, using the formula stated in revenue factors, is shown below: TREO basketprice used in evaluation(2020) Project (LOM) 2020 basket value (US$/kg TREO) All LOM deposits 29.21 The annual MREC production volume (as kg TREO) is calculated through the application of beneficiation and hydrometallurgy elemental recovery factors (derived from pilot plant and laboratory testing) to a quarterly mining schedule. The MREC revenue is calculated as: TREO Basket Price minus Customer Separation Quote minus Customer Impurity Removal Charges = MREC Product Price Hastings has previously announced that four offtake memorandums of understanding (MOUs) have been entered with Qiandong Rare Earth Group, China Rare Earth Holdings Limited, Baotou Sky Rock Rare Earth and Thyssenkrupp Raw Materials GmbH for approximately 11,000 t of the total planned 15,000 MREC annual tonnes.

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Item	Comments
Market assessment	The Yangibana project will produce a MREC that has a high neodymium (Nd) and praseodymium (Pr) content (~41% of TREO content) as the predominant value elements. It is estimated that Pr6O11, Nd2O3, Tb4O7and Dy2O3will contribute between 85% and 90% of the economic value per kilogram of production. • It is particularly in the Nd2O3and Pr6O11oxides where substantial supply shortages and rapid demand growth are anticipated in the decade of the 2020s. • Argus Media supplied price forecasts for RE oxides in October 2017 covering the period 2017 to 2027. • Argus Media identifies an increase in demand in wind turbines and their use of Nd in permanent magnets. RE demand in permanent magnets is forecast to increase at >10% per annum between 2016 and 2021. • The plant has a have a design capacity of 15,000 t of MREC per annum. • The plant will have a design capacity of 8,500 t per annum TREO. Hastings has previously announced that four offtake MOUs have been entered with customers covering approximately 11,000 t of the planned annual MREC production volume, with separated oxideprices used for MRECproductpricingto be confirmed.
Economic	The key financial metrics for the Yangibana Ore Reserves are IRR8%Nominal of 76% and NPV8%Nominal of $499 million (A$). • A NPV discount rate of 8% was used for the financial analysis. • A US$:A$ exchange rate of 0.75:1 was used for the financial analysis. A sensitivity analysis on the NPV is provided below. The Ore Reserves was also evaluated on a flat growth basis (Argus 2017 prices applied without any growth, NdPr Oxide price = $64/USD/kg) and was found to still be economically viable with a NPV8% of 151M and an IRR of 38%. A sensitivity analysis was undertaken on the key parameters that are ranked below, with the greatest impact on the NPV of the project. Item Units Low Mode High Input NPV Input NPV Input NPV Nd2O3price escalation % -9% 70 3% 499 13% 1,288 Nd2O3oxide price USD 40.34 198 60.00 499 80.33 810 Exchange rate (A$-US$) A$/US$ 0.62 795 0.75 499 0.88 292 P6O11oxide price USD 58.76 407 77.00 499 117.0 699 Mining costs % 70% 566 100% 499 130% 431 Nd2O3beneficiation recovery % 73% 434 79% 499 82% 527 Pr6O11 price escalation % 1% 512 2% 499 3% 418 The low-high case range was based on the following: • Oxide price growth rates – The high and the low case was selected as one standard deviation lower or higher from the mean growth rate predicted by the Argus forecasts • Mining costs – The low and high case for mining costs were assessed on the basis of a ± 30% accuracy. • Metallurgical Recovery – the low and high case for beneficiation was assessed based on the range of test results observed in laboratory test work under varying process conditions. • Oxide prices were set in the low case as a equivalent $14USD /kgTREO equivalent basket price, which is the estimated breakeven point for Chinese producers. The high case was set at a NdPr Oxide price of $90USD / kg TREO, the estimates copper substitution price point for permanent magnets in 2017.
Social	Hastings is implementing a Stakeholder Engagement Plan. The overall response to the project has been very positive. A Land Access Agreement has been negotiated and ratified with the pastoral lessee. A Native Title Agreement has been negotiated and ratified with the Native Title claimants. The workforce will be recruited from the region, and where this is not possible, more broadly with most plant operations specialists sourced from Perth. Hastings is currently developing systems and processes to ensure it maintains its social licence to operate, to ensure its workforce are competent in their respective roles and have a culture of safetyand compliance.

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Item	Comments
Classification	The Mineral Reserve is classified as a Probable Ore Reserve using the guidelines of the JORC Code (2012 Edition). The conversion of Measured Resources to Probable Reserves is primarily based on the need for production reconciliation of the selective ore deposit and reconciliation of the complexprocessingmethod.
Audits or reviews	No external audits or reviews of the 2017 FS have been undertaken.
Relative accuracy/ confidence	The estimates in this study relating to mining, processing and cost performance are underpinned by an updated PFS which has a confidence range of ±25%.