IONIC RARE EARTHS LIMITED — Management Reports 2007

Oct 28, 2007

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----- Start of picture text ----- 29 October 2007----- End of picture text -----

Dear Shareholder,

I am pleased to present my fifth (5[th] ) Report as Chairman of Ezenet Limited (“Ezenet” or “the Company”).

Since 2002 Ezenet has been systematically identifying the best commercial platform for its operations and developing an operating program to maximise its opportunities in the supply of digital movie services to the Australian hospitality and mining industries.

When I became the Chairman of Ezenet in January 2003, the Company had installed its systems in approximately 1,500 rooms. Since then Ezenet has redefined its commercial platform for the delivery of its services and has installed its systems into a total of 21,526 rooms using modern technology and operational methods. I am very pleased with the progress achieved during the 2007 financial year.

During the year Ezenet has established E-Resources Pty Ltd to consolidate its resource investments in a single division. Ezenet retains its eighteen million two hundred and eighty one thousand two hundred (18,281,200) shares in Weatherly International plc and has taken a strategic holding of one million (1,000,000) shares in Perth based Carbine Resources Limited. Carbine Resources Limited listed on the Australian Stock Exchange during the year and has been established to develop resource projects. Ezenet is looking at similar opportunities in the resource industry in early stages of development.

For some time the Company has been implementing its primary commercial strategy involving the installation of two (2) key technology platforms enabling it to compete aggressively in the hospitality market. These two (2) technology platforms comprise a full digital video on demand and high speed internet access system and a scheduled pay – movie system known as “Choice 24-7”. Following more than three (3) years of hard work, I am delighted that the Company is in a position to have advanced its installation programs to a sound commercial footing and to have to have achieved such a successful operational capability.

I wish to record my thanks for the efforts that the retiring Managing Director, Mr Richard Burt. Mr Burt has resigned to take up the important role of Chief Executive of Racing WA. Richard was instrumental in the achievements that Ezenet has made. With his resignation and the appointment of Mr Brett Wiley, as General Manager, the operations of Ezenet will continue. During this period Deputy Chairman, Mr Ross O’Dea has taken the interim position of Managing Director and it is important that Mr O’Dea be acknowledged for his contributions. My co-Directors Mr David Ward and Richard Burt in non-executive rolls have made important contributions and provided considerable expertise and effort towards the substantial progress made. I am confident that the Company is well positioned to achieve its operational targets as it moves steadily towards expanded development during 2008.

Yours faithfully,

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DR WOLF MARTINICK CHAIRMAN

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