IONIC RARE EARTHS LIMITED — Capital/Financing Update 2011

Nov 22, 2011

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21 November, 2011

Dear Fellow Shareholder

Ref: Shareholder participation in capital raising through a placement of shares

It is with pleasure that I invite you to participate in the capital raising by Ezenet to fund its exciting copper and gold exploration projects in Chile. We are raising up to $7,000,000 by issuing up to 35,000,000 shares at 20 cents to fund exploration, operating expenses and comply with Australian Stock Exchange (ASX) requirements to change activities. Shareholders registered on 1 November 2011 are invited to participate in a priority allocation of 10,000,000 shares. All additional requests for shares will be treated as part of the public offer of 25,000,000 shares.

Approval to change the activity of Ezenet to mining is expected to be granted at the Annual General Meeting (AGM) on 28 November, together with a name change to Oro Verde Limited. It is an ASX requirement that when a Company changes its activity status, that the share price is at least 20 cents. In Ezenet’s case, this requires a share consolidation. The proposed share consolidation will result in you being granted 1 post-consolidation share for every 3 shares owned by you before the AGM. This ratio was nominated on 7 October 2011 and included in the Notice of Meeting that was forwarded to you. The ratio was nominated when Ezenet shares traded around 7 cents.

I encourage you to increase your investment in our mineral opportunities in Chile by participating in the capital raising. In particular, if after the consolidation you own less than a marketable parcel of 10,000 shares ($2000 value at share price of 20 cents) I urge you to use your priority allocation to increase your shareholding to at least 10,000 shares. Enclosed is a personalised application form. Applications for shares close on 9 December 2011.

At the AGM Dr Brad Farrell (Technical Director) and I are requesting approval to allow each of us to make a placement of up to $100,000 and the Non-Executive Directors, Messrs David Ward and Ross O’Dea, are requesting approval to allow each to make a placement of up to $50,000.

In terms of current Company operations, construction of the access road to seven drill pads on the Chuminga mineralisation is expected to be completed in time to commence diamond core drilling in mid-December. This should allow us to progressively release results in early 2012. Drilling at Vega is scheduled for mid-January 2012 onwards.

Please contact me if you have queries. Alternatively, contact John Traicos, our General Manager, on +61 (0)417 885 279 or on email johntraicos17@gmail.com.au, or Brett Dickson, our Company Secretary, on +61 (0)8 9481 2555.

Yours sincerely

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Wolf Martinick PhD FAusIMM Chairman and Managing Director Mob: +61 417 942 466 Email: wolfmartinick@martinick.com.au

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