RAREX LIMITED — Capital/Financing Update 2020

May 13, 2020

Proposed issue of securities

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Update Summary

Entity name

RAREX LIMITED

Announcement Type

Update to previous announcement

Date of this announcement

Thursday May 14, 2020

Reason for update to a previous announcement

Amendment to consideration price as securities are being issued for nil consideration with a deemed issue price of 0.025 each.

Refer to next page for full details of the announcement

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Proposed issue of securities

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Part 1 - Entity and announcement details

1.1 Name of +Entity

RAREX LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

Registration Number

ABN 65105578756

1.3 ASX issuer code

REE

1.4 The announcement is

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Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

Amendment to consideration price as securities are being issued for nil consideration with a deemed issue price of 0.025 each.

1.4b Date of previous announcement(s) to this update

Thursday May 14, 2020

1.5 Date of this announcement

Thursday May 14, 2020

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +Security Code and Description

REE : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

555,898

Reason for the update of 'Maximum Number of +securities proposed to be issued'

Purpose of the issue

As part consideration for corporate advisory services in two equal tranches

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security?

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Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Oversubscription & Scale back details May a scale back be applied to this event? No

Part 7C - Timetable

7C.1 Proposed +issue date Thursday May 14, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1? 555898

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? No

7D.2 Is a party referred to in listing rule 10.11.1 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? Yes

7D.4a Please enter the number and +class of the +securities subject to +voluntary escrow and the date from which they will cease to be subject to +voluntary escrow

277,949 ordinary shares will be subject to voluntary escrow until 13 November 2020

277,949 ordinary shares (to be issued on 13 November 2020) will be subject to voluntary escrow until 13 May 2021

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Proposed issue of securities

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Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? No

7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

Part 7F - Further Information

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

The shares will be issued in two equal tranches of 277,949 shares on each of 14 May 2020 and 13 November 2020

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