IONIC RARE EARTHS LIMITED — Capital/Financing Update 2022

Apr 10, 2022

11 April 2022

IONICRE COMPLETES $30M PLACEMENT

• Placement to raise $30.0 million to new global Institutions and existing Investors

Funds raised will support:

• Finalisation of the updated Mineral Resource Estimate for the Makuutu Rare Earth Project due this quarter

• Completion of the Makuutu Feasibility Study and application for mining licence

• Accelerating development work for the newly acquired Seren Technology Rare Earth separation and refining and magnet recycling businesses

o Entry into the Rare Earth supply chain in the United States and Europe

Ionic Rare Earths Limited (ASX: IXR) (“IonicRE” or “the Company”) is pleased to announce it has received firm commitments to raise $30 million by way of a share placement at $0.074 (“Placement”) in a significantly oversubscribed issue. The Placement was strongly supported by both key existing shareholders and new global institutional investors from Europe, North America, Asia and Australia.

Canaccord Genuity (Australia) Limited acted as Global Bookrunner and Lead Manager to the Placement. Sprott Capital Partners LP acted as Co-Manager to the Placement.

IonicRE Managing Director Tim Harrison commented that the strong response reflected the potential of the Company as a unique magnet and heavy rare earth development opportunity with the potential to become an end to end vertically integrated rare earth and magnet supply chain.

“This is a very positive milestone for IonicRE and our plans to develop the Makuutu Rare Earths Project and to take Seren Technology forward. The extremely strong support we received from institutional and existing shareholders allows us to now commit to accelerating development timeframes for the both the Makuutu Rare Earths Project and the newly acquired heavy rare earth separation and magnet recycling businesses of Seren Technologies. The global interest in the capital raising is a testament to the potential of the Company and we are excited to secure this support from institutional investors at this defining moment of the company’s development.”

“We are seeing a significant step change in interest for the magnet rare earth and heavy rare earth content from Makuutu. With a greater end user understanding on supply risk for key magnet rare earths, we believe that the Company’s integrated business will become an increasingly important strategic asset as demand for a secure, sustainable supply of magnet and heavy rare earths increases and geopolitical tensions remain high.”

Ionic Rare Earths Limited, Level 1, 34 Colin Street, West Perth WA 6005 Australia T+61 8 9481 2555 F+61 8 9485 1290

Placement Details

The Company has received binding commitments from new and existing institutional and sophisticated investors to raise $30.0 million (before costs) through the issue of 405,405,405 fully paid ordinary shares (Shares) at an issue price of $0.074 per Share, representing a 10.0% discount to the volume weighted average price (VWAP) over the past 10 trading days and a 12.7% premium to the 30-day VWAP of IonicRE’s shares. Shares issued under the Placement will be issued utilising the Company’s existing placement capacity pursuant to Listing Rules 7.1 (258,607,101 Shares) and 7.1A (146,798,304 shares) and are expected to be issued on Wednesday 20th April 2022. The Shares issued under the Placement will rank equally with IonicRE’s existing Shares quoted on the ASX. The Placement timetable is set out below.

Event	Date*
Placement commitments announced	Monday 11 April 2022
Settlement of New Shares via DVP	Tuesday 19 April 2022
Allotment and quotation of New Shares	Wednesday 20 April 2022
Dispatch of holding statements	Wednesday 20 April 2022

*These dates are indicative only and are subject to change. IonicRE may alter the above dates in its discretion subject to the Listing Rules and the Corporations Act.

Use of Funds

It is the intention of the Company to use the funds raised as set out below.

Expenditure Item	Indicative Budget $ million
Makuutu Feasibility Studies	7.23
Makuutu Financial Investment Decision	3.63
Makuutu Demonstration Plant	3.17
Rare Earth Refinery Feasibility Studies	3.67
Seren Technology Operating	3.20
Seren Technology Demonstration Plant	5.72
Expenses of the issue	1.65
Working Capital	1.73
Total	30.00

Ionic Rare Earths Limited, Level 1, 34 Colin Street, West Perth WA 6005 Australia T+61 8 9481 2555 F+61 8 9485 1290

Authorised for release by the Board.

For enquiries, contact : Tim Harrison Managing Director +61 8 9481 2555

Forward Looking Statements

This announcement has been prepared by Ionic Rare Earths Limited and may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Ionic Rare Earths Limited. Actual values, results or events may be materially different to those expressed or implied in this document. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this document speak only at the date of issue of this document. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Ionic Rare Earths Limited does not undertake any obligation to update or revise any information or any of the forward looking statements in this document or any changes in events, conditions or circumstances on which any such forward looking statement is based.

Ionic Rare Earths Limited, Level 1, 34 Colin Street, West Perth WA 6005 Australia T+61 8 9481 2555 F+61 8 9485 1290