IONIC RARE EARTHS LIMITED — Capital/Financing Update 2009

Nov 24, 2009

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25 November 2009

The Company Announcements Office Australian Securities Exchange

PLACEMENT OF SHORTFALL SHARES

Further to the Company’s announcement on 23 November 2009 regarding the results of the recent Entitlements Issue, the Company advises that it has received applications from the Underwriters for the shortfall arising from the entitlements issue, being 10,124,068 shares.

Pursuant to section 708 of the Corporations Act 2001 offer of the shortfall shares to the Underwriters does not require disclosure by way of a prospectus.

Please find attached Appendix 3B relating to the non-renounceable issue.

Allotment and issue of the new shares and dispatch of holding statements will occur today, 25 November 2009.

NOTICE UNDER SECTION 708A

The Company gives this notice pursuant to section 708A(5)(e) of the Corporations Act 2001(Cth) ( “Act” ). These securities are part of a class of securities quoted on ASX Limited ( “ASX” ). The shares are issued without disclosure to investors under Part 6D.2 of the Act.

The Company, as at the date of this notice, has complied with:

• (a) the provisions of Chapter 2M of the Act as they apply to the Company; and

• (b) Section 674 of the Act, being the requirement to meet its continuous disclosure obligations under ASX Listing Rules

There is no excluded information for the purposes of sections 708A(7) and (8) of the Act.

Yours faithfully

Ezenet Limited

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Brett Dickson Joint Company Secretary

Ezenet Limited ABN 84 083 646 477 Level 1, 30 Richardson Street, West Perth WA 6005 Telephone: +61 8 9481 2555 Facsimile: +61 9 485 1290