IONIC RARE EARTHS LIMITED — Capital/Financing Update 2012

Feb 1, 2012

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ASX Announcement

UPDATED PRO FORMA BALANCE SHEET AND STATEMENT OF COMMITMENTS AND

The pro forma balance sheet set out below shows the Company’s financial position following completion of the offer pursuant to the prospectus dated 2 November 2011 and supplementary prospectus dated 11 November 2011 (the Offer ):

ASSETS Current Assets Cash and cash equivalents Receivables Other Total current assets Non-Current Assets Available-for-sale financial assets Plant & equipment Exploration and evaluation expenditure Total non-current assets Total Assets LIABILTIES Current liabilities Payables Provisions Total current liabilities Total Liabilities NET ASSETS EQUITY Issued Capital Reserves Accumulated Losses TOTAL EQUITY	$ 3,325,515 23,056 5,881
	3,354,452 4,568,819 1,576 937,744
	5,508,139
	8,862,591
	279,042 7,229
	286,271
	286,271
	$8,576,320
	13,896,797 5,520,474 (10,840,951)
	$8,576,320

Oro Verde Limited (ABN 84 083 646 477) Level 1, 30 Richardson Street, West Perth, WA 6005 PO Box 493, West Perth, WA 6872 Telephone: + 61 8 9481 2555

The table set out below details the funds that will be available to the Company at the close of the Offer and the use of those funds:

Funds Available	$
Existing cash reserves	1,519,421
Proceeds from AFS Investment	1,800,000
Funds raised from the Offer	2,396,636
Total	5,716,057
Allocation of Funds
Expenses of the Offer	552,798
Exploration expenditure	4,260,000
Administration costs	750,000
Project generation	-
Working capital	153,259
Total	5,716,057

For and on behalf of the Board

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Brett Dickson Company Secretary Oro Verde Limited

Oro Verde Limited (ABN 84 083 646 477) Level 1, 30 Richardson Street, West Perth, WA 6005 PO Box 493, West Perth, WA 6872 Telephone: + 61 8 9481 2555