RAREX LIMITED — Capital/Financing Update 2020

Jun 17, 2020

ASX / MEDIA ANNOUNCEMENT

18 June 2020

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RareX Raises $2.3 Million in Strongly Supported Share Placement

HIGHLIGHTS

• Strong support from existing institutional and professional investors

• Directors subscribe for $200,000 of placement

• RareX will hold $6.1m in cash and listed investments post-completion

• 6,000m RC drill program to commence at Cummins Range Rare Earths Project in July

• No drilling has occurred at Cummins Range Rare Earths Project since 2011

• Drilling ongoing at Trundle Copper-Gold Porphyry Project, NSW (35% free-carried interest plus ownership of 9.65% of listed equity of TSX-V listed Kincora Copper)

RareX Limited (“ RareX ” or “ the Company ”) (ASX: REE) is pleased to announce that it has received firm commitments to raise $2.3 million (before costs) through a strongly supported share placement to institutional and professional investors at A$0.05 per share, with 46 million new fully-paid ordinary shares to be issued (“ Placement ”).

RareX received strong support from existing institutional and professional investors for the capital raising, with Directors also showing strong support by collectively subscribing for $200,000 worth of shares in the Placement. The shares to be issued to the Directors will be subject to shareholder approval at a meeting to be convened in due course.

The proceeds will further strengthen the Company’s balance sheet, placing it in an excellent position to progress the upcoming maiden drilling program at its 100%-owned Cummins Range Rare Earths Project in the Kimberley region of Western Australia. RareX’s upcoming drill program represents the first drill program at Cummins Range in almost a decade with the last drilling completed by previous ownership in 2011.

RareX has significant exposure to one of the most exciting ongoing exploration campaigns being undertaken anywhere in Australia at the moment via its 35% free-carried interest in the Trundle Copper-Gold Porphyry Project in NSW alongside Kincora Copper (65%).

The Company has also retained 100% interest in a highly prospective gold project near Orange in NSW known as Orange East, which is located within close proximity to the large McPhillamys Gold Mine owned by Regis Resources Limited.

RareX Limited Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756

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Following completion of the Placement, RareX will hold cash and listed investments totalling $6.1 million, including its 9.65% stake in Kincora Copper (TSX.V: KCC).

Share Placement Details

The new shares will be issued under the Company’s existing placement capacity under ASX Listing Rules 7.1 (10,838,538 shares) and 7.1A (31,174,962 shares).

Settlement of the Placement is expected to occur on Wednesday, 24 June 2020 and the new shares will rank equally with the Company’s existing shares on issue.

Placement funds will be used to fund the Company’s RC drilling program at its Cummins Range Rare Earths Project, due to commence in July, and for general working capital.

Canaccord Genuity (Australia) Limited acted as Sole Lead Manager to the Placement.

An Appendix 3B for the proposed issue of the Placement securities will follow this announcement.

Management Comment

RareX Chairman, John Young, said: “We are delighted with the strong support received from investors as part of this capital raise, which reflects the quality of our assets and the exciting outlook for the Company. RareX shareholders will have exposure to two quite different, but equally exciting, exploration campaigns over the coming weeks and months.

“Drilling is on track to commence next month at Cummins Range targeting extensions of our high-quality existing Resource as well as new satellite discoveries. Meanwhile, we are in the midst of a potentially game-changing drill program at the Trundle Project in NSW, where the Kincora team have intersected significant porphyry mineralisation in the first two diamond drill holes. The third hole is in progress and we are eagerly awaiting further results, and assays, from this maiden drill program.”

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

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