RAREX LIMITED — Capital/Financing Update 2020

Dec 21, 2020

ASX / MEDIA ANNOUNCEMENT 22 December 2020

FURTHER ENCOURAGING MINERALISED INTERVALS AT TRUNDLE COPPER-GOLD PROJECT, NSW

Second drill rig to be mobilized in early 2021 to assist in expanding mineralized footprints

Highlights:

• RareX's 65% joint venture partner at the Trundle Copper-Gold Project in NSW, Kincora Copper (TSX-V: KCC) has provided a significant update on the ongoing diamond drilling program at Trundle.
• The latest diamond drill hole completed at the Trundle Park prospect, TRDD012, has provided further significant encouragement following on from previously reported visual observations for hole TRDD0011:
  • TRDD012 has intersected the best observed primary bornite and chalcopyrite zones seen to date at the Trundle Project; and
  • The hole has intersected four well-developed and broad skarn horizons.
• High-priority intervals from TRDD011 and TRDD012 have been submitted for assay results.
• A second drill rig is expected to be operational early in the New Year at the Trundle Park prospect to assist in expanding the alteration and mineralization footprints.
• Ongoing drilling and re-logging of core at the Trundle Park prospect is providing an improved geological understanding and vectors for the at/near-surface skarn potential, as well as the potential for a large related porphyry intrusion system.

RareX Limited (ASX: REE) (RareX or the Company) is pleased to provide an update on ongoing drilling activities at the Trundle Gold-Copper Project Joint Venture Project, located in the Macquarie Arc of the Lachlan Fold Belt in NSW, Australia. The Trundle Project is a 65% / 35% joint venture between RareX and Kincora Copper Ltd (Kincora) (TSXV: KCC).

Kincora has advised that the latest diamond hole at the Trundle Park prospect, TRDD012, has intersected the best observed primary bornite and chalcopyrite zones seen at the Project to date.

John Holliday, Technical Committee chair, and Peter Leaman, Senior VP of Exploration, commented: "The latest drill hole at the Trundle Park prospect, TRDD012, was targeted to make a deeper intersection of the structurally controlled covellite-pyrite-chalcocite massive sulphide mineralization intersected at shallow depth in hole TRDD011.

"TRDD012 looks particularly positive as our site geologists report it has intersected the best observed primary bornite and chalcopyrite zones to date at the Trundle Project. The zones are coincident with magnetite, with some intervals also hosting covellite and chalcocite. TRDD012 and TRDD011 provide encouragement for increased grade potential, vectors towards the more favourable part of the mineralised system and of an improved geological model for the Trundle Park prospect."

Figure 1: Trundle is the only brownfield porphyry project held by a listed junior in the Macquarie Arc, Australia's foremost and gold rich copper porphyry belt. Trundle is the western section of the Northparkes intrusive complex, that hosts the second largest porphyry mine in Australia, with initial Kincora drilling taking place at targets 8.5km apart.

Figure 2: Kincora's twelfth hole has intersected the best visual primary bornite and chalcopyrite zones, and thickest skarn horizons, to date at the Trundle project.

Trundle Park prospect

As outlined in the 2 December, 2020 ASX release, drill hole TRDD011 (see Figure 3), intersected intense structurally controlled mineralization hosted within near surface skarn alteration.

TRDD011 extended the mineralized skarn horizon to the north-west of TRDD001 and was followed up by a 50m step back to the south-east with TRDD012, which is an 80m step-out to the south of TRDD001. TRDD012 was designed to intersect the down-dip extension of previously intersected higher grade, near surface intervals, and to better understand the width potential of the skarn horizons.

TRDD012 was drilled to 581 metres, and was extended beyond the original target depth of 400 metres due to the extension of skarn alteration and mineralization intersected.

Figure 3: Improved geological understanding generating results. Encouraging visual intervals awaiting assay results.

Notes:

• 1. There is insufficient drilling data to date to demonstrate continuity of mineralized domains and determine the relationship between mineralization widths and intercept lengths, true widths are not known. Refer to Tables 1 and 2 and the QA/QC Procedures note for further details, including cut off and dilution levels of reported significant intervals.
• 1. Photos of selected intervals which are not representative of the mineralization hosted on the whole property but are of the lithology's intersected in the mineralized zones in this drill hole within respective skarn horizons.

The average depth of prior explorer drilling at the Trundle Park prospect is 28 metres, with only two diamond core drill holes completed to moderate depths.

Benefitting from this field season's deeper diamond core drilling program, re-logging of Kincora's core has resulted in a change in the current drill hole orientation towards the north-west. Kincora's ongoing exploration activities have resulted in a significantly improved understanding of the bedding direction hosting the skarn horizons, along with key structures/faulting and the identified multiple phases of mineralization within the skarn – all supporting a substantial mineralizing event and providing further vectors to the targeted causative intrusion system.

Recent drill results have provided the confidence to mobilize a second drill rig, which is planned to be active early in the 2021.

Target	Hole #	Length	Dip	Azimuth	RL	Easting	Northing	Core
		(m)	o)(			(MGA)	(MGA)	Recovery
Trundle Park1	TRDD001	685	60	251	270	570049	6352082	95.9%
Mordialloc2	TRDD002	790	60	101	271	568443	6360363	98.2%
Bayley's3	TRDD003	721	60	329	274	569230	6360641	99.5%
Trundle Park3	TRDD004	694	55	264	271	569780	6352079	99.6%
Mordialloc3	TRDD005	958	60	110	266	568439	6360204	97.3%
Mordialloc4	TRDD006	727	70	275	270	568598	6360208
Trundle Park*	TRDD007	521	60	264	272	570015	6352231	84.4%
Trundle Park4	TRDD008	490	60	264	274	569924	6351963	97.1%
Trundle Park*	TRDD009	445	60	310	270	569613	6352380	99.2%
Trundle Park*	TRDD010	643	60	330	274	569964	6351922	96.4%
Trundle Park*	TRDD011	332	55	330	273	570036	6352043	94.8%
Trundle Park*	TRDD012	581	55	330	273	570061	6352000
Trundle Park*	TRDD013		60	330	274	570010	6351830

Table 1: Trundle Project – Collar Information

Results previously released to the ASX on the following dates:

• 1. 6 July 2020
• 1. 24 July 2020
• 1. 7 September 2020
• 1. 2 December 2020

* Assays pending

Drilling, Assaying, Logging and QA/QC Procedures

Sampling and QA/QC procedures are carried out by Kincora, and its contractors, using Kincora's protocols as per industry best practice.

All samples have been assayed at ALS Minerals Laboratories, delivered to Orange, NSW, Australia. In addition to internal checks by ALS, Kincora incorporates a QA/QC sample protocol utilizing prepared standards and blanks for 5% of all assayed samples.

Diamond drilling was undertaken by DrillIt Consulting Pty Ltd, from Parkes, under the supervision of Kincora's field geologists. All drill core was logged to best industry standard by well-trained geologists and Kincora's drill core sampling protocol consisted a collection of samples over all of the logged core.

Sample interval selection was based on geological controls or mineralization or metre intervals, and/or guidance from the Kincora Technical Committee provided subsequent to daily drill and logging reports. Sample intervals are cut by Kincora and delivered directly to ALS.

All reported assay results are performed by ALS and widths reported are drill core lengths. There is insufficient drilling data to date to demonstrate continuity of mineralized domains and determine the relationship between mineralization widths and intercept lengths.

True widths are not known at this stage.

The following assay techniques have been adopted:

• Gold: Au-AA24 (Fire assay), reported.
• Multiple elements: ME-ICP61 (4 acid digestion with ICP-AES analysis for 33 elements) and ME-MS61 (4 acid digestion with ICP-AES & ICP-MS analysis for 48 elements), the latter report for TRDD001 and former reported for holes TRDD002-TRDD010.
• Copper oxides and selected intervals with native copper: ME-ICP44 (Aqua regia digestion with ICP-AES analysis) has been assayed, but not reported.
• Assay results >10g/t gold and/or 1% copper are re-assayed.

This announcement has been authorized for release by the Board of RareX Limited.

For further information, please contact:

RareX Limited Media Enquiries Jeremy Robinson Nicholas Read Executive Director Read Corporate

Ph: 08 6143 6720 Ph: 08 9388 1474

Competent Person's Statement

Information in this release that relates to current Exploration Results is based on and fairly represents information and supporting documentation reviewed by Mr Guy Moulang, an experienced geologist consulting for RareX Limited. Mr Moulang is a Member of the Australian Institute of Geoscientist and has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Moulang consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

The Trundle Project

The Trundle project is located 30km west of the China Molybdenum Company Limited ("CMOC") operated Northparkes copper-gold project, in the same Northparkes Igneous Complex.

Past explorer drilling has been extensive with the completion of 2208 holes for 61,146 metres but deeper drilling utilising modern exploration knowledge has been very limited.

Over 92% of prior drilling has been to less than 50 metres depth, a depth that the existing major mines in this belt suggest is just too shallow, with just 11 holes beyond 300 metres (0.5% of holes drilled).

Existing significant drill intersections supports vectoring to very compelling targets for ongoing phase 1 drilling program at three existing mineralised systems – Trundle Park, Mordialloc and Bayleys. These systems have not been drilled since industry leading Induced Polarisation survey's, including HPX's proprietary Typhoon system, and magnetic modelling were completed.

Appendix 1: JORC Code, 2012 Edition –Table 1
Trundle Section 1 Sampling Techniques and Data
Criteria	JORC Code Explanation
Samplingtechniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialisedindustry standard measurement tools appropriate to the minerals under investigation,such as down hole gamma sondes, or handheld XRF instruments, etc). These examplesshould not be taken as limiting the broad meaning of sampling.Include reference to measures taken to ensure sample representivity and theappropriate calibration of any measurement tools or systems used.Aspects of the determination of mineralisation that are Material to the Public Report.In cases where 'industry standard' work has been done this would be relatively simple(eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg waspulverised to produce a 30 g charge for fire assay'). In other cases more explanationmay be required, such as where there is coarse gold that has inherent samplingproblems. Unusual commodities ormineralisation types (eg submarine nodules) may warrant disclosure of detailedinformation.	•The Trundle Park prospect at the Trundle Project was drill tested by ourJoint Venture partner Kincora Copper Limited with diamond drillingcompleted by Drill Consulting Pty Ltd•Diamond drilling was used to obtain orientated samples from the ground,which was then structurally, geotechnically and geologically logged•No new assay results have been reported in this announcement
Drilling Techniques	Drill type (egcore, reverse circulation, open-hole hammer, rotary air blast, auger,Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth ofdiamond tails, face-sampling bit or other type, whether core is oriented and if so, bywhat method,etc).	•Diamond Drilling (DD) completed using PQ, HQ3 and NQ2 diameter
Drill SampleRecovery	Method of recording and assessing core and chip sample recoveries and resultsassessed.Measures taken to maximise sample recovery and ensure representative nature of thesamples.Whether a relationship exists between sample recovery and grade and whethersample bias may have occurred due to preferential loss/gain of fine/coarse material.	•Drill Core recovery was logged•Diamond drill core recoveries are contained in the body of theannouncement
Logging	Whether core and chip samples have been geologically and geotechnically logged to alevel of detail to support appropriate Mineral Resource estimation, mining studies andmetallurgical studies.Whether logging is qualitative or quantitative in nature. Core (or costean, channel,etc) photography.The total length and percentage of the relevant intersections logged.	•Systematic geological, structural and geotechnical logging was completedby Kincora geologists and consultants•The detail of logging was appropriated for the understanding and samplingof this style of mineralization•Drill core was photographed

Sub-sampling	If core, whether cut or sawn and whether quarter, half or all core taken.	•No new assay results have been reported in this announcement
techniques and	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet
sample preparation	or dry.
	For all sample types, the nature, quality and appropriateness of the sample
	preparation technique.
	Quality control procedures adopted for all sub-sampling stages to maximise
	representivity of samples.
	Measures taken to ensure that the sampling is representative of the in situmaterial
	collected, including for instance results for field duplicate/second-half sampling.
	Whether sample sizes are appropriate to the grain size of the material being sampled.
Quality of assay	The nature, quality and appropriateness of the assaying and laboratory procedures	•No new assay results have been reported in this announcement
data and	used and whether the technique is considered partial or total
laboratory tests	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters
	used in determining the analysis including instrument make and model, reading times,
	calibrations factors applied and their derivation, etc.
	Nature of quality control procedures adopted (eg standards, blanks, duplicates,
	external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias)
	and precision have been established.
Verification of	The verification of significant intersections by either independent or alternative	•No new assay results have been reported in this announcement
sampling and	company personnel.
assaying	The use of twinned holes.
	The verification of significant intersections by either independent or alternative
	company personnel.
	Discuss any adjustment to assay data.
Location of data	Accuracy and quality of surveys used to locate drill holes (collar and down-hole	•Drill hole collars were located by handheld GPS
points	surveys), trenches, mine workings and other locations used in Mineral Resource	•All coordinates are in MGA Zone 55H 1994
	estimation.	•Topographic control is maintained by the use of widely available
	Specification of the grid system used.	government data sets. Ground is gently undulating.
	Quality and adequacy of topographic control.	•Downhole surveys were taken at approximately 30m intervals, using a
		digital Reflex multi shot camera.
Data spacing and	Data spacing for reporting of Exploration Results.	•Drill holes are preferentially located in prospective areas
distribution	Whether the data spacing and distribution is sufficient to establish the degree of	•Further information on drill hole locations are discussed in the body of
	geological and grade continuity appropriate for the Mineral Resource and Ore Reserve	the report
	estimation procedure(s) and classifications applied.

	Whether sample compositing has been applied.	•	The mineralised areas are yet to demonstrate sufficient grade orcontinuity tosupport the definition of a Mineral Resource per the JORC2012 Code
Orientation of datain relation togeologicalstructure	Whether the orientation of sampling achieves unbiased sampling of possiblestructures and the extent to which this is known, considering the deposit type.If the relationship between the drilling orientation and the orientation of keymineralised structures is considered to have introduced a sampling bias, this should beassessed and reported if material.	•	The angled drill holes were directed as best possible across the knownlithological and interpreted mineralized structures
Sample security	The measures taken to ensure sample security	•	Core is handled by Kincora Copper, and its contractors, including deliveryto the laboratory

Trundle Section 2 Reporting of Exploration Results
Criteria	JORC Code Explanation
Mineraltenement andland tenurestatus	Type, reference name/number, location and ownership including agreements or materialissues with third parties such as joint ventures, partnerships, overriding royalties, nativetitle interests, historical sites, wilderness or national park and environmental settings.The security of the tenure held at the time of reporting along with any knownimpediments to obtaining a licence to operate in the area.	•The Trundle Project is located on EL8222 in which RareX is 35% freecarried in a JV with Kincora Copper until PEA or scoping study iscompleted.
Explorationdone by otherparties	Acknowledgment and appraisal of exploration by other parties.	•Exploration has been conducted by multiple previous explorers includeNewcrest Mining, Calibre Mining, HPX and Clancy Exploration•The review and verification process for the information disclosed hereinfor the Trundle project has included the receipt of all material explorationdata, results and sampling procedures of previous operators and reviewof such information by Kincora's geological staff using standardverification procedures
Geology	Deposit type, geological setting and style of mineralisation.	As per body of announcement
Drill holeinformation	A summary of all information material to the understanding of the exploration resultsincluding a tabulation of the following information for all Material drill holes:easting and northing of the drill hole collarelevation or RL (Reduced Level –elevation above sea level in metres) of the drill holecollardip and azimuth of the holedown hole length and interception depthhole length.If the exclusion of this information is justified on the basis that the information is notMaterial and this exclusion does not detract from the understanding of the report, theCompetent Person should clearly explain why this is the case.	As per body of announcement
Dataaggregationmethods	In reporting Exploration Results, weighting averaging techniques, maximum and/orminimum grade truncations (egcutting of high grades) and cut-off grades are usuallyMaterial and should be stated.Where aggregate intercepts incorporate short lengths of high grade results and longerlengths of low grade results, the procedure used for such aggregation should be statedand some typical examples of such aggregations should be shown in detail.	•No new assay results have been reported in this announcement

	The assumptions used for any reporting of metal equivalent values should be clearlystated.
Relationshipbetweenmineralisationwidths andinterceptlengths	These relationships are particularly important in the reporting of Exploration ResultsIf the geometry of the mineralisationwith respect to the drill hole angle is known, itsnature should be reported.If it is not known and only the down hole lengths are reported, there should be a clearstatement to this effect (eg'down hole length, true width not known').	•Geometry of the mineralised zones, including true width, is unknown dueto lack of drill density
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should beincluded for any significant discovery being reported These should include, but not belimited to a plan view of drill hole collar locations and appropriate sectional views.	•Maps and diagrams are included in the body of the announcement
Balancedreporting	Where comprehensive reporting of all Exploration Results is not practicable,representative reporting of both low and high grades and/or widths should be practicedto avoid misleading reporting of Exploration Results.	•Reporting is considered balanced
Othersubstantiveexplorationdata	Other exploration data, if meaningful and material, should be reported including (but notlimited to): geological observations; geophysical survey results; geochemical surveyresults; bulk samples –size and method of treatment; metallurgical test results; bulkdensity, groundwater, geotechnical and rock characteristics; potential deleterious orcontaminating substances.	•Nothing further
Further work	The nature and scale of planned further work (egtests for lateral extensions or large scalestep out drilling.Diagrams clearly highlighting the areas of possible extensions, including the maingeological interpretations and future drilling areas, provided this information is notcommercially sensitive.	•Exploration is ongoing.•Exploration activities are to be undertaken by Kincora Copper, theCompany's joint venture partner.