RAREX LIMITED — Capital/Financing Update 2020

Dec 1, 2020

ASX / MEDIA ANNOUNCEMENT 2 December 2020

DRILLING AT TRUNDLE JV PROJECT IN NSW INTERSECTS BROAD MINERALISED ZONES

HIGHLIGHTS

• RareX's 65% joint venture partner at the Trundle Copper-Gold Project in NSW, Kincora Copper (TSX-V: KCC), has reported part assay results for hole TRDD008 at the Trundle Park prospect.
• The hole intersected two significant skarn zones, including the broadest mineralised intervals received from the project to date:
  • 87.7 metres @ 0.65g/t gold and 0.19% copper from surface, including:
    • 16.4 metres @ 1.51g/t gold and 0.19% copper from surface; and
    • 8 metres @ 1.64g/t gold and 0.57% copper from 66 metres.
  • 19 metres @ 0.43g/t gold and 0.21% copper from 388 metres, including:
    • 4 metres @ 0.94g/t gold and 0.57% copper.
• Ongoing drilling and relogging of core at the Trundle Park prospect is providing improved geological understanding, highlighting vectors for at/near surface skarn mineralisation and the potential for a large, related porphyry intrusion system.
• Assay results for TRDD006 at the Mordialloc prospect returned extensive anomalous copper, gold and molybdenum intervals associated with a coarse plagioclase phyric diorite intrusion. These results further indicate that Mordialloc may be a significant mineralised porphyry system, wherein the possible higher-grade core has not been located by the relatively limited drilling to date.

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

Kincora has reported assay results from ongoing drilling at the Trundle Park and Mordialloc prospects.

Trundle Park Prospect

Drilling at Trundle Park has returned further encouragement for the targeted at/near surface skarn system, with ongoing deeper drilling also testing the potential for a larger causative porphyry intrusion system.

Assay results received for TRDD008 have returned two significant zones of mineralised skarn:

• Surface zone: returned 87.7 metres @ 0.65g/t gold and 0.19% copper from surface, including 16.4 metres @ 1.51g/t gold and 0.19% copper from surface and 8 metres @ 1.63g/t gold and 0.57% copper from 66 metres.
• Second zone: 27 metres @ 0.10g/t gold and 0.07% copper from 305 metres, 5 metres @ 0.18g/t gold and 0.02% copper from 379 metres and 19 metres @ 0.43g/t gold and 0.21% copper from 388 metres, including 4 metres @ 0.94g/t gold and 0.57% copper.

Further significant assay results for part of hole TRDD008 are provided in Table 1 with a current interpreted cross section of the central Trundle Park prospect region in Figure 1.

Hole ID	From	To	Interval	Au	Cu	Mo	Dilution
	(m)	(m)	(m)	(g/t)	(%)	(ppm)	(%)
TRDD008	0.0	87.7	87.7	0.65*	0.19	1.11	16
including	0.0	16.4	16.4	1.51*	0.19	0.34	4
including	0.0	6.0	6.0	3.73	0.25	0.67	0
including	34.0	40.0	6.0	0.60	0.43	0.67	0
including	52.0	87.7	35.7	0.69*	0.24	0.17	3
including	66.0	74.0	8.0	1.63*	0.57	0.00	13
and	134.0	142.0	8.0	0.26	0.12	2.25	0
pending	146.0	278.0
and	305.0	332.0	27.9	0.10	0.07	0.56	26
and	379.0	384.0	5.0	0.18	0.02	0.00	20
and	388.0	407.0	19.0	0.43	0.21	0.89	0
including	394.0	398.0	4.0	0.94	0.57	2.58	0
and	422.0	424.0	2.0	0.16	0.02	1.00	0
pending	424.0	490.0

Table 1: Trundle Park target hole TRDD008 - Anomalous results for part assays available

Notes:

• Interpreted near-surface skarn gold and copper intercepts are calculated using a lower cut of 0.20g/t Au and 0.10% Cu respectively.
• Porphyry gold and copper intercepts are calculated using a lower cut of 0.10g/t Au and 0.05% Cu respectively.
• Internal dilution is below cut off and * dilutions related with Core loss

Figure 1: Cross section of TRDD008 with current working interpretation of central Trundle Park geology

The Mordialloc Prospect

As previously announced, hole TRDD006 at the Mordialloc prospect returned encouraging visual alteration and sulphides (including chalcopyrite) (see ASX Announcement 7 September 2020). Assay results have reinforced this potential for close proximity to a potassic and higher-grade core of the targeted system, with multiple significant intervals of anomalous copper, gold and molybdenum.

TRDD006 has returned the broadest anomalous zones to date at the Mordialloc target including:

• 42m @ 0.07% copper, 0.04g/t gold and 7.43ppm molybdenum from 62m, hosted by intermixed volcanoclastic rocks comprising andesite lava and greywacke;
• 306m @ 0.10% copper, 0.06g/t gold and 19.4ppm molybdenum from 144m, associated with a coarse plagioclase phyric diorite intrusion;
• 98m @ 0.11% copper, 0.07g/t gold and 17.6ppm molybdenum from 466m, occurring in intermixed volcanoclastic rocks comprising andesite lava and greywacke; and,
• 2m @ 0.98g/t gold, 0.02% copper and 2ppm molybdenum from 880m, also hosted by intermixed volcanoclastic rocks comprising andesite lava and greywacke.

Kincora is proposing to reopen and extend previous drill hole TRDD002, as interpretation of the alteration and assay results suggests these may represent the halo of a mineralised porphyry intrusion system.

In addition to the extension of TRDD002, further drilling is proposed to test the targeted finger porphyry setting and potential clustering of associated mineralised systems across a significant strike where anomalous surface and end-of-hole geochemistry, and geophysics are complementary. This vectoring from drill hole alteration indicators is similar to the exploration approach that was the key to the discovery of Cadia-Ridgeway, the majority of the Northparkes deposits and also Alkane Resources' recent discovery at Boda.

Figure 2: Current working interpretation of Mordialloc geology: Alteration and mineralisation returned in TRDD006, TRDD005 and CTD006.

Hole ID	From	To	Interval	Au	Cu	Mo	Dilution
	(m)	(m)	(m)	(g/t)	(%)	(ppm)	(%)
TRDD006	62.0	104.0	42.0	0.04	0.07	7.43	24
including	62.0	70.0	8.0	0.05	0.09	7.25	0
including	78.0	84.0	6.0	0.04	0.08	3.33	0
including	86.0	98.0	12.0	0.05	0.09	15.33	0
including	90.0	92.0	2.0	0.14	0.14	39.00	0
and	144.0	450.0	306.0	0.06	0.10	18.35	14
including	152.0	154.0	2.0	0.08	0.12	2.00	0
including	242.0	244.0	2.0	0.34	0.07	29.00	0
including	382.0	390.0	8.0	0.16	0.19	36.25	0
including	384.0	386.0	2.0	0.24	0.31	52.00	0
and	466.0	564.0	98.0	0.07	0.11	17.61	6
including	514.0	516.0	2.0	0.35	0.17	9.00	0
and	620.0	644.0	24.0	0.04	0.06	9.17	17
and	732.0	734.0	2.0	0.08	0.14	3.00	0
and	742.0	744.0	2.0	0.15	0.20	4.00	0
and	764.0	766.0	2.0	0.05	0.08	1.00	0
and	824.0	830.0	6.0	0.05	0.09	3.67	0
and	880.0	882.0	2.0	0.98	0.02	2.00	0

Table 2: Mordialloc target hole TRDD006 - Anomalous results

Note: Porphyry gold and copper intercepts are calculated using a lower cut of 0.10g/t Au and 0.05% Cu respectively and internal dilution is below cut-off

Hole ID	Easting (MGA)	Northing (MGA)	RL (m)	Dip	Azimuth (MGA)	Total Depth (m)
TRDD006	568599	6360206	268	70	275	962
TRDD007*	570015	6352231	272	60	264	521
TRDD008	569924	6351963	275	60	264	490
TRDD009*	569613	6352380	270	60	310	445
TRDD010*	569964	6351922	274	60	330	643

Table 3: Collar Table

* Awaiting assays

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

For further information, please contact:

RareX Limited Media Enquiries Jeremy Robinson Nicholas Read Managing 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.

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 aslimiting the broad meaning of sampling.Include reference to measurestaken 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 goldthat 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 byDrill Consulting Pty LtdDiamond drilling was used to obtain orientated samples from the ground,which was then structurally, geotechnically and geologically loggedSample interval selection was based on geological controls andmineralizationSampling was completed to industry standards with ¼ core for PQdiameter diamond core and ½ core for HQ and NQ diameter diamond coresent to the lab for each sample intervalSamples were assayed via the following methods:Gold: Au-AA24 (Fire assay)Multiple elements: ME-MS61 (4 acid digestion with ICP-AES & ICP-MSanalysis for48 elements)Copper oxides and selected intervals with native copper: ME-ICP44 (Aquaregia digestion with ICP-AES analysis) has been assayed, but not reportedAssay results >10g/t gold and/or 1% copper are re-assayed
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,HQ3andNQ2 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 loggedDiamond 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.	•	Systematic geological, structural and geotechnical logging was completedby Kincora geologists and consultants

	Whether logging is qualitative or quantitative in nature. Core (or costean, channel,etc) photography.The total length and percentage of the relevant intersections logged.	•The detail of logging was appropriated for the understanding and samplingof this style of mineralization•Drill core was photographed
Sub-samplingtechniques andsample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wetor dry.For all sample types, the nature, quality and appropriateness of the samplepreparation technique.Quality control procedures adopted for all sub-sampling stages to maximiserepresentivity of samples.Measures taken to ensure that the sampling is representative of the in situ materialcollected, including for instance results for field duplicate/second-half sampling.Whether sample sizes are appropriate to the grain size of the material being sampled.	•Once all geological information was extracted from the drill core, thesample intervals were cut with an Almonte automatic core saw, baggedand delivered to the laboratory.•This is an appropriate sampling technique for this style of mineralizationand is the industry standard for sampling of diamond drill core.
Quality of assaydata andlaboratory tests	The nature, quality and appropriateness of the assaying and laboratory proceduresused and whether the technique is considered partial or totalFor geophysical tools, spectrometers, handheld XRF instruments, etc, the parametersused in determining the analysis including instrument make and model, reading times,calibrations factors applied and their derivation, etc.Nature of quality control procedures adopted (egstandards, blanks, duplicates,external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias)and precision have been established.	The reported assays were analyzed by ALS. The following techniques wereused:•Gold: Au-AA24 (Fire assay), reported.•Multiple elements: ME-ICP61 (4 acid digestion with ICP-AES analysis for 33elements) and ME-MS61 (4 acid digestion with ICP-AES & ICP-MS analysisfor 48 elements), the latter reported.•Copper oxides and selected intervals with native copper: ME-ICP44 (Aquaregia digestion with ICP-AES analysis), sampled but not reported.•Assay results >10g/t gold and/or 1% copper are re-assayed using anappropriate assay methodIn addition to internal checks by ALS, Kincoraincorporates a QA/QC sampleprotocol utilizing prepared standards and blanks for 5% of all assayed samples.
Verification ofsampling andassaying	The verification of significant intersections by either independent or alternativecompany personnel.The use of twinned holes.The verification of significant intersections by either independent or alternativecompany personnel.Discuss any adjustment to assay data.	•Significant intercepts were calculated by Kincora's geological staff.•No twinned drill holes have been completed.•The intercepts have not been verified by independent personal•There are numerous shallow drill holes in the Trundle Park prospect thatverify the gold and copper tenure of the prospect.•There has been no adjustments to assay data with ME-MS61 resultsreported for copper assays being the lower result relative to ME-ICP44.

		•	This announcement describes full assays from hole TRDD006 and partialassays from TRDD008. Assays for drill holes TRDD009, TRDD010 andTRDD011 are pending.
Location of datapoints	Accuracy and quality of surveys used to locate drill holes (collar and down-holesurveys), trenches, mine workings and other locations used in Mineral Resourceestimation.Specification of the grid system used.Quality and adequacy of topographic control.	••••	Drill hole collarswere located by handheld GPSAll coordinatesare in MGA Zone 55H 1994Topographic control is maintained by the use of widely availablegovernment data sets. Ground is gently undulating.Down hole surveys were taken at approximately 30m intervals, using adigital Reflex multi shot camera.
Data spacing anddistribution	Data spacing for reporting of Exploration Results.Whether the data spacing and distribution is sufficient to establish the degree ofgeological and grade continuity appropriate for the Mineral Resource and Ore Reserveestimation procedure(s) and classifications applied.Whether sample compositing has been applied.	••	Drill holes are preferentially located in prospective areasThe mineralised areas are yet to demonstrate sufficient grade orcontinuity to support 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 heldat 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.	The Trundle project is a porphyry copper gold mineralized system and is locatedin the Lachlan fold belt. Description of the project can be found in previousRareX announcement dated 6th July, 2020.
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	Inreporting Exploration Results, weighting averaging techniques, maximum and/orminimum grade truncations (egcutting of high grades) and cut-off grades are usuallyMaterial and should be stated.	•Significant intercepts were calculated using weighted averaging

	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.The assumptions used for any reporting of metal equivalent values should be clearlystated.	•Interpreted near surface skarn gold and copper intercepts are calculatedusing a lower cut of 0.20g/t and 0.10% respectively. Internal dilution isbelow cut off.•Porphyry gold and copper intercepts are calculated using a lower cut of0.10g/t and 0.05% respectively. Internal dilution is below cut off.
Relationshipbetweenmineralisationwidths andinterceptlengths	These relationships are particularly important in the reporting of Exploration ResultsIf the geometry of the mineralisation with 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 shouldbeincluded 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•For further detail, including plan views and photos, please see KincoraTSX Press release "Kincora intersects broad mineralised zones atTrundle", 30th November, 2020.
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 (eg tests 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.•This announcement is reporting the assay results from drill holes 6, 7, 8,9, 10and 11. Several more diamond holes are planned for the project.