RAREX LIMITED — Capital/Financing Update 2023

Apr 12, 2023

ASX Release 13 April 2023

Cummins Range Rare Earths-Phosphate Project – Development and Strategy Update

Updated Resource and significant change in project scale provides catalyst for staged development approach commencing with initial DSO phosphate fertiliser phase.

Highlights

• Recent Mineral Resource update confirms scale and significance of the Cummins Range Rare Earths-Phosphate Project.
• New development concept highlights potential for a fast-tracked DSO phosphate fertiliser stage (Stage 1), as a catalyst for the rare earth stage.
• Stage 1 would be followed by phosphate, and subsequently rare earth, beneficiation (Stages 2 & 3).
• Stage 1 studies are being fast tracked whilst Stages 2 & 3 are following a more traditional PFS>DFS approach.
• RareX will continue to assess the development of a large and strategic, domestic, rare earth value chain as part of Stage 3.
• RareX's leadership team restructured to progress this simplified development plan.
• Updated global Mineral Resource due in late April 2023, to be followed shortly by a revised Scoping Study encompassing the new 3-Stage, DSO-catalysed development approach.

RareX limited (ASX: REE, RareX or the Company) is pleased to provide an update on the development strategy for its 100%-owned Cummins Range Phosphate-Rare Earths Project (Cummins Range, the Project), located just south of Halls Creek in the Kimberley region of Western Australia following the recent Mineral Resource update and key director and management changes.

The recent Mineral Resource update, to be followed by a further significant Resource update due by late April 2023, underpins a re-framing of the Project as a highly significant phosphate-hosted rare earths deposit commencing from surface.

For more information, Investors: James Durrant, CEO P +61 (0) 8 6383 6593 please contact: Media: Nicholas Read, Read Corporate P +61 (0) 8 9388 1474

The concept emerging as a result of the new understanding of the resource, coupled with important recent metallurgical testwork results (see later sections of this release), suggests the option for an initial fasttracked DSO (direct shipping ore) phosphate fertiliser phase (Stage 1), followed by phosphate beneficiation (Stage 2) and subsequently rare earth beneficiation and value chain development (Stage 3).

This staged approach is expected to lower the risk associated with building the full rare earth value chain outright at the beginning, by delivering a simpler and lower-cost DSO phosphate operation using existing infrastructure, whilst maintaining development towards a large scale, strategic, rare earth and phosphate critical minerals project.

Given the new understanding of the deposit and the emerging development possibilities, the Company has restructured its senior leadership team to strengthen the strategic, sales and marketing, and operational aspects of the business in the fields of bulk commodities, fertilisers and rare earths to capitalise on the shortterm opportunities the project potentially presents, while continuing to de-risk the longer term pathway to develop the full resource and participate in the full rare earth value chain.

This re-framing and simplification of the Project marks a key step in RareX's transition from explorer to developer.

Project Summary

The Cummins Range Project is an igneous carbonatite intrusive complex, visible from surface and located in a remote but accessible area of the Great Sandy Desert, 135km south-west of Halls Creek and 50km off the Tanami Road. Exploration drilling has been underway since RareX acquired the Project in 2019.

Exploration conducted by RareX has resulted in a recent Mineral Resource upgrade that indicates the presence of a significant quantity of high phosphate grade regolith overburden material with material quantities and grades of rare earths, overlaying a fresh rock rare earth-phosphate deposit of global significance.

Mineral Resource Update

Phase 1 of the new Mineral Resource Estimate (MRE) (for the Rare Dyke) was released on 30 March 20231 , which provided a description of the geology and estimation approach. Phase 2 of the MRE update covering the Phos Dyke portion of the deposit is due later this month.

Critically, a phosphate cut-off grade is being used for this rare earth deposit because it is clearly both a rare earth and a phosphate deposit which should be considered as a large-scale polymetallic deposit. A holistic development approach is therefore being adopted based on the extraction of all valuable minerals to maximise shareholder value. Within the large phosphate resource remain significant tonnes of high-grade rare earths mineralisation as demonstrated in 20212 .

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

1 ASX Announcement: Substantial increase in Cummins Range "Rare Dyke" Mineral Resource to 397Mt at 0.33% TREO, 4.2% P₂O₅. 30 March 2023. RareX confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimate in the relevant market announcement continue to apply and have not materially changed. 2 ASX Announcement: RareX Delivers Major Resource Upgrade at Cummins Range Rare Earths Project, WA. 19 July 2021.

The recently released MRE positions Cummins Range as the second largest undeveloped rare earth deposit, and one of the largest and best located igneous phosphate deposits (with proximity to port) in Australia.

Importantly for phosphates, igneous deposits contain significantly lower deleterious elements including heavy metals and radioactive isotopes – which improves product chemistry and attractiveness, supports product pricing and affords the lower grade material greater refining flexibility.

Figure 1 - Cross section of the Cummins Range deposit

Since the deposit is now globally significant in scale, drilling in the upcoming 2023 field season will focus on multi-function holes covering deposit definition in the areas proposed to be mined within the first few years, metallurgy, geotechnical and hydrogeology.

Scoping Study Update

An initial Scoping Study3 was completed based on the 2021 Mineral Resource Estimate4 last year which focused primarily on the upper weathered portion of the ore body.

This Scoping Study was based on preliminary metallurgical testwork focusing on the flotation of the rare earth-bearing monazite, followed by hydrometallurgical refining, which presented a classical rare earth configuration not dissimilar to the proposed developments of similar deposits. Although the economics were found to be attractive, further assessment of the approach identified three potential pathways to improve project economics, simplify the proposed on-site infrastructure and provide a lower risk pathway to a commercial operation.

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

3 ASX Announcement: Positive Scoping Study for Cummins Range Shows Potential for Sustainable, Long-Life Rare Earths Project. 12 September 2022.

4 ASX Announcement: RareX Delivers Major Resource Upgrade At Cummins Range Rare Earths Project, WA. 19 July 2021.

Firstly, the rare earth overburden material, particularly above the Phos Dyke, was found to contain significant phosphate grades, with favourable bioavailability, in a low contaminant host rock, allowing for potential monetisation of the pre-strip.

Secondly, phosphate-optimised flotation tests have demonstrated the ability to simply float a combined monazite-apatite mineral combination with high recoveries and upgrade. This simplifies the rare earth beneficiation process flowsheet design from last year's Scoping Study, which split the regolith-sourced phosphate bearing minerals into two streams – both of which underwent further, separate processing before becoming two different products: one, a phosphate acid stream following the subsequent treatment in a hydrometallurgical plant, and the other, a phosphate bulk mineral concentrate from the flotation tails of the beneficiation plant.

Thirdly, an early but growing understanding of fresh rock underlaying the regolith material suggests that the rare earth reports through coarser grained minerals – suggesting that improved rare earth recovery and upgrade performance is achievable with only a slight modification to the regolith focused beneficiation plant.

Given these technical opportunities and in the wake of the updated MRE, a revision of the Scoping Study is underway with a particular focus on the DSO opportunity for potential expedited project delivery while the longer-term project configuration is further designed. This updated Scoping Study is due for completion soon.

It should be noted that Pre-Feasibility Study work streams are already underway for aspects of the Project that are unlikely to be impacted by this re-framing. This includes work on road and port design and on hydrogeological and geotechnical aspects, as well as the important baseline heritage and environmental surveys to support project approvals.

Proposed Project Pathway

The Project is now conceived as a three-phased phosphate-enabled rare earth project with an expedited DSO project as Stage 1. Work is underway to understand the details of the three stages and metallurgical testing has been structured accordingly:

Stage 1. DSO phosphate

This stage is the proposed bulk mining of apatite mineral rock phosphate contained within the overburden, with trucking to Wyndham Port for transhipment to ocean going vessels.

Most of the 500km road between Cummins Range and Wyndham Port is in place and sealed; the Tanami Road is undergoing a Main Roads WA upgrade which commenced in 20225 and Shawmac Civil Design Consultants, who have relevant experience in the Project area, are designing the all-weather mine site haulage road linking the mine to the Tanami Road.

This proposed 50km long road traversing flat, semi-arid desert has undergone consultations with the local pastoralists and is entirely on Jaru determined land, the same Traditional Owners as Cummins Range.

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

5 https://www.mainroads.wa.gov.au/projects-initiatives/all-projects/regional/tanami-road-upgrade/

RareX has recently signed an MOU with Agrimin (ASX: AMN) for utilising the joint venture (JV) haulage company, Newhaul Bulk, established between Agrimin and Newhaul6 , giving a good option alongside Cambridge Gulf Limited (CGL) for bulk haulage. The MOU also covers collaboration and sharing of infrastructure at Wyndham Port, where studies are underway with Ausenco for both solo and shared options for bulk handing infrastructure, including discharge, storage and barge loading.

Consultations are also underway with Transhipment Australia (TSA), which has operated transhipment services between the port and ocean-going vessels for the Ridges Iron Ore Mine owned by Kimberley Metals Group.

The metallurgical tests of the likely DSO rock phosphate showed much higher bioavailability levels than the industry high-standard (9%) for use as direct application fertiliser, which is probably a result of the formation and weathering of the deposit and could be a significant positive differentiator relative to other rock phosphate products. Additionally, because of the DSO direct application nature of this potential product, it is likely to be considered organic and would therefore be of interest to the speciality market focussed on highvalue crops.

Table 1: DSO Bioavailability

Sample	Bioavailability, % P2O5
28% P2O5DSO sample	41.9%
34% P2O5DSO sample	49.3%

Note: Tests undertaken were the 2% citric acid leach tests which is an industry standard bioavailability assessment test that simulate the soil conditions and is used to predict the suitability of rock phosphate for use as direct application fertiliser.

An MOU is in place with OrdCo7 , the primary distributor of fertilisers in Kununurra, for the development of a product roadmap and an off-take and distribution agreement for the purposes of providing all the local phosphate fertiliser requirements for the regional agricultural and pastoral sector.

The Ord River irrigated region, in addition to the upcoming Carlton Plain by Kimberley Agricultural Investment (KAI), and other regions under clearing, soil conditioning and pre-cropping, accounts for approximately 50 thousand hectares of agricultural land.

This presents a small but important part of the off-take strategy.

Stage 2. Phosphate mineral concentrate (low-grade rare earths)

This stage continues with phosphate fertiliser production, but involves the proposed installation of simple flotation beneficiation infrastructure in order to concentrate the lower grade phosphate minerals from the regolith materials in the deposit.

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

6 Agrimin ASX Announcement: Haulage Joint Venture and Strategic Alliance. 3 December 2019.

7 ASX Announcement: RareX Signs MOU for Supply of Phosphate Products Locally. 7 November 2022.

Metallurgical testwork8 has shown upgrades of c.13% feed grade mineral phosphate to over c.35% P2O5 using typical flotation methods.

Table 2: Phosphate Flotation Results

Product		CDX0015 Fresh			CDX0015 Regolith
	P2O5		Bioavailability	P2O5		Bioavailability
	Grade%	Recovery%	%P2O5Dissolution	% P2O5Dissolution	Recovery%	%P2O5Dissolution
FinalConcentrate	39.1	80.3	19.7	34.1	85.7	24.3
Head Grade	13.4	-	-	12.8	-	-

The upgraded phosphate material has shown good results on both bioavailability tests as well as lower deleterious element grades than industry standards for fertilisers. This is a significant positive differentiator for igneous deposits over the more traditional sedimentary deposits, which typically contain much higher levels of heavy metals and lower bioavailability reactivity.

Studies are currently underway for a 5Mtpa feed beneficiation plant with Primero, a vertically integrated engineering group founded by RareX board member, Cameron Henry. Optimisation studies are about to commence to determine the installation schedule and, as a result, the duration of the Stage 1 project.

Off-takers of this stage are anticipated to comprise a mixture of direct application fertiliser distributors from Stage 1 as well as established phosphoric acid producers, particularly those with the capacity to develop rare earth extraction processes from the residue.

It is believed that high phosphorous extraction can be achieved with minimal rare earths loss during the phosphoric acid production process. This is supported by the initial refining testwork undertaken at Australia's Nuclear Science and Technology Organisation (ANSTO) and Nagrom where the results showed >90% P2O5 extraction with <2% RE loss to the leach solution. In addition, mineralogy studies on both high and low grade RE samples showed consistent mineralogy where monazite was not showed to be associated / locked by apatite, hence selective leaching of apatite should be achievable with minor RE loss. Refining testwork on low grade RE phosphate concentrate is underway to evaluate the extraction of phosphate for production of phosphoric acid and synthetic fertilisers as well as rare earths deportment during the process.

Stage 3. Rare Earths

This third stage is conceived to make the transition into rare earths production by expanding the beneficiation plant in Stage 2 with the requisite capital upgrades to manage the high-grade rare-earth regolith and subsequently fresh rock material.

Testwork has been continuing with Auralia Metallurgy with parallel testwork underway at BTMR in China.

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

8 ASX Announcement: Met Testwork Delivers Premium Phosphate Concentrate. 04 October 2022.

Early testwork has been very encouraging with positive results for both P2O5 and RE concentration achieved. While the majority of testwork to date are on regolith samples, fresh samples have shown good amenability to upgrading via ore sorting9 and flotation.

The resulting rare earth and phosphate concentrate is anticipated to be well suited for the phosphoric acid producers from Stage 2 as well as deriving rare earth credits from the product mix. Additional work is underway to develop the off-take strategy and associated market placement opportunities for both the rare earth and phosphate value in Saudi Arabia, South Korea and Japan for the combined rare earth and phosphate mineral concentrate.

Hydrometallurgical testwork on a relatively high P2O5 and TREO grade concentrate at ANSTO has been conducted to confirm the basic amenability of this mineral concentrate to phosphoric acid generation and rare earths extraction. Although the test was preliminary in nature, the Company has received sufficient positive indications to pursue this approach, with further follow up work currently being planned.

Production of such a high value rare earth and phosphate concentrate also opens up the opportunity to grow the onshore value chain, including further beneficiation (i.e., sequential flotation or magnetic separation) and hydrometallurgical refining, where hydro-electric powered industrial sites at Wyndham Port and the closed Argyle Diamond Mine provide interesting optionality.

Feasibility Studies

This three-stage approach provides a potential expedited approach to revenue while de-risking the approach towards establishing a large rare earth and phosphate processing hub in northern Australia.

Feasibility studies are investigating this pathway and a specific emphasis is being placed on accelerating the DSO portion while maintaining a technical pathway towards the ultimate goal of producing rare earth critical metals. RareX aims to announced revised project economics this financial year and a Feasibility Study on Stage 1 by the end of 2023.

Heritage and Environmental Update

Negotiations with the Jaru Traditional Owners are on track with a draft Mining Agreement and compensation proposal complete. The RareX team, with support from Allens law firm, will meet with the Traditional Owners Negotiation Committee again towards the end of April with the goal of completing negotiations before the start of the 2023 wet-season.

RareX wishes to take this opportunity to thank the Jaru TONC for a constructive, collaborative, and pragmatic approach to the negotiations.

MBS Environmental, with support from WSP Golder, have designed the environmental approvals strategy and have been project managing the environmental and heritage surveys. The final flora and fauna surveys are due in May 2023.

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

9 ASX Announcement: Positive Ore Sorting Testwork Results for Cummins Range. 11 October 2022.

Baseline environmental studies should be completed in 2023, allowing for the requisite approval submissions in early 2024. The DSO Stage 1 will follow a simplified approvals path with the more complex Stage 2 and Stage 3 approvals expected to run in parallel.

Marketing and Pricing Update

The Cummins Range Project gives investors exposure to two global mega-trends.

Rare earths have their macro market drivers in the new electronic revolution, particularly NdPr – which enables the clean production and use of electricity through wind turbine generators and electric vehicle motors. This is overlayed by government incentivisation and mandates to both reach net-zero carbon dioxide emissions by 2050 and to create independent, sovereign, critical mineral value chains.

While pricing has softened of late due to rare earth exports from China, RareX expects these macro drivers to support rare earth prices over the longer term. While alternative technology may cannibalise some of the electric vehicle market demand, global demand for rare earths is expected to remain strong due to the increasing use of rare earths in a multitude of technologies.

Rare earth pricing is usually calculated as a basket, and the NdPr price is keenly followed. Current Nd and Pr oxides are at approximately US$80 per kg10, having come off their highs at close to US$200 per kg.

Demand is driven largely by electric vehicle market growth. By 2040, the world needs 15 times the rare earth output produced by Lynas (ASX: LYN)11, which in 2021 was approximately 5,500 kg of NdPr oxide12 .

Phosphate consumption is driven by food security. As the population expands another 1.7B people by 2050, more intensive farming is required on ever more nutrient depleted soils. Phosphate is one of the three macro nutrients known as NPK – nitrogen, phosphate and potassium – and is applied annually on farms and precropping on new, recently cleared areas.

Additionally, mineral phosphate is fed to cattle as a feed supplement, particularly in Australia's north where the soils are depleted, and the livestock need be robust in the more challenging environmental conditions.

The recent war in Ukraine, and the subsequent sanctions on Russia, have disrupted global phosphate supply pushing up prices for at least the medium term.

Phosphate is priced Morocco FOB and currently US$ 300 – 350 per tonne13 for 32% P2O5. Historically pricing has remained between US$ 100 and US$ 200. Growth in demand is anticipated at 6% CAGR14 .

13 https://www.indexmundi.com/commodities/?commodity=rock-phosphate

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

10 https://www.metal.com/Rare-Earth-Oxides

11 https://bnef.turtl.co/story/evo-2021/page/4/1?teaser=yes

12 https://wcsecure.weblink.com.au/pdf/LYC/02434182.pdf

14 https://www.businesswire.com/news/home/20230111005677/en/Phosphate-Rock-Global-Market-Report-2022-Increasing-Food-and-Feed-Production-Bolsters-Sector-Growth---ResearchAndMarkets.com#:~:text=The%20global%20phosphate%20rock%20market,(CAGR)%20of%206.2%25.

Timelines

Detailed project timelines for the 3-staged project are being prepared as part of the updated Scoping Study. The timeframes provided in this announcement are indicative only and are subject to change.

DSO Stage One

Five key deliverables are required to enable Stage One and are expected to be completed over the next 12-18 months:

• 1. Confirm the resource and further define the DSO phosphate portion.
  • a. Global resource.
  • b. Increased resource definition.
• 1. Confirm the business case.
  • a. Scoping Study.
    • b. Definitive Study.
• 1. Close infrastructure gaps (port facilities and mine site access road).
  • a. Design and select solution.
  • b. Construction / integration.
• 1. Develop the DSO marketing strategy.
  • a. Market and customer segmentation.
  • b. Local and regional offtake.
• 1. Complete approvals (environmental, heritage).
  • a. Mining.
  • b. Miscellaneous.

This approach has the potential to enable a financial investment decision to be made and potential operations of DSO material by 2025.

Stages 2 and 3

Feasibility Studies for the second and third stage of the Project will run in parallel to developing and executing an expedited DSO phosphate project with key dates estimated as follows, with further definition to be provided upon completion of the scoping level assessment:

• 1. Scoping Study (2H2023)
• 1. Pre-Feasibility Study (1H2024)
• 1. Definitive Feasibility Study (1H2025)

RareX continue to be supported in studies and approvals by well renowned and qualified consulting individuals and firms as shown below.

Consultant	Scope
Mining Plus	Updated Scoping Study and PFS - Mining
Primero	Updated Scoping Study and PFS – process and NPI
Knight Piesold	Water and Tailings PFS
Shawmac	Product haulage road design PFS
Ausenco	Supply chain and transhipment PFS
Primero (Damien Krebs)	Metallurgical consulting
Gavin Beer	Metallurgical consulting
Resources WA	Power and location study and options study
Lab: Auralia-Met	Flotation
Lab: Nagrom	Digestion, mineralogy, magnetics.
Lab: Strategic Met	Ionic clay diagnostic leaching
BTMR	Flotation trials in China
MBS (Rapallo)	Environmental approvals management
Rapallo	Flora and fauna surveys
WSP Golder	Community engagement, aboriginal impact, heritage surveys
Allens (Legal)	Heritage negotiation
PWC (Legal)	Power purchase agreement

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

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

Competent Persons Statements

The information in this release that relates to metallurgical testwork is based on information compiled and / or reviewed by Mr Gavin Beer who is a Member and Chartered Professional of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Beer is a consulting metallurgist being the founder and principal of Met-Chem Consulting Pty Ltd and has sufficient experience relevant to the activity which he is undertaking to be recognised as competent to compile and report such information. Mr Beer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr Beer does not hold securities in RareX.

The information in this release that relates to the Mineral Resource Estimate was reported in accordance with Listing Rule 5.8 on 30 March 2023. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimate in the relevant market announcement continue to apply and have not materially changed.

Classification	Tonnes(Mt)	P2O5(%)	TREO + Y2O3(ppm)	HREO(ppm)	Nd2O3(ppm)	Pr6O11(ppm)	Nb2O5(ppm)	Sc2O3(ppm)	ThU(ppm)
Indicated	44.3	6.3	5,800	290	930	280	1,020	100	90
Inferred	352.9	3.9	2,960	165	490	140	570	70	40
Total	397.2	4.2	3,270	180	540	160	620	70	50

Mineral Resource Estimate Table

Notes:

1. Due to effects of rounding, the total may not represent the sum of all components.

2. TREO (ppm) includes: Light Rare Earth Oxides (LREO): La2O3, CeO2, Pr6O11, Nd2O3; and Heavy Rare Oxides (HREO): Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3; + Y2O3

3. ThU comprises ThO2 + U3O8 (ppm)

4. Mineral Resource is reported from all blocks, classified as either Indicated or Inferred, where interpolated block grade is >2.5%P2O5

Appendix A

Metallurgical test sample source

Hole ID	East MGA	North MGA	RLUTM	End Depth	Azimuth	Dip	Type
CDX0005	307141	7866598	392	210.9	56	59	Diamond
CDX0006	307193	7866537	391	215.8	51	59	Diamond
CDX0009	307325	7866444	391	213.4	49	59	Diamond
CDX0010	307159	7866508	391	231.3	50	60	Diamond
CDX0012	307038	7866666	392	210.9	52	59	Diamond
CDX0016	307007	7866638	392	298.2	52	59	Diamond
CRX0003	307267	7866661	392	97	182	60	RC
CRX0010	307209	7866731	392	126	182	60	RC
CRX0035	307372	7866583	392	138	182	60	RC

Appendix B

JORC Table 1

Section 1: Exploration Results - Metallurgy

(Criteria listed in this section also apply to following section.)

Criteria	JORC Code explanation	Commentary
Samplingtechniques	•Nature and quality of sampling (e.g., cutchannels, random chips, or specificspecialised industry standardmeasurement tools appropriate to theminerals under investigation, such asdown hole gamma sondes, or handheldXRF instruments, etc.). These examplesshould not be taken as limiting thebroad meaning of sampling.	•Both RC chips and diamond drill cores weresampled for the metallurgical testwork.Samples were selected based on drill assays,drill hole location and intervals, geologicaland mineralogical data. Samples were rifflesplit from bulk samples and sent to AuraliaMetallurgy in Perth and/or Nagrom Perthand/or ALS Perth for assays and furthertestwork.
	•Include reference to measures taken toensure sample representivity and theappropriate calibration of anymeasurement tools or systems used.	•For RC chips, the entire bulk samples wereriffle split to ensure a representative samplefrom the selected interval. For diamond drillcores, half core was sent to a laboratory toconduct crushing and sampling. Alllaboratories used in the assaying of theCummins Range material were checked forsampling and assaying equipment andequipment calibrations / accuracy.
	•Aspects of the determination ofmineralisation that are Material to thePublic Report.In cases where 'industry standard' workhas been done this would be relativelysimple (e.g. 'reverse circulation drillingwas used to obtain 1m samples fromwhich 3 kg was pulverised to produce a30 g charge for fire assay'). In othercases more explanation may berequired, such as where there is coarsegold that has inherent samplingproblems. Unusual commodities ormineralisation types (e.g., submarinenodules) may warrant disclosure ofdetailed information.	•Sample interval selection for themetallurgical testwork was based ongeological controls and mineralisation of thedeposit, the samples were consideredrepresentative of the mineralisation thatwere intended to be tested.
Drillingtechniques	•Drill type (e.g., core, reverse circulation,open-hole hammer, rotary air blast,auger, Bangka, sonic, etc) and details	•Drilling techniques used for the CumminsRange samples used for the metallurgicaltestwork were:

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

Criteria	JORC Code explanation	Commentary
	(e.g., core diameter, triple or standardtube, depth of diamond tails, facesampling bit or other type, whether coreis oriented and if so, by what method,etc).	oReverse Circulation (RC) drilling in 2020-2021 using 5 ½ inch diameter hammer.Diamond drilling in 2021- 2022 using HQoand PQ sized rods.
Drill samplerecovery	•Method of recording and assessing coreand chip sample recoveries and resultsassessed.	•Samples used for the metallurgical testworkwere collected by riffle split. Additionallaboratory assays were undertaken on thesamples submitted for the testwork andshowed good alignments to the drill assays.
	•Measures taken to maximise samplerecovery and ensure representativenature of the samples.	•Larger and more capable rigs were used forcollection of the metallurgical samples whichallowed for good recoveries of samples.During each drill program, all drill rigs werechecked by professional geologists, and alldrill holes were logged and monitored forrecoveries and accuracy prior to samplesplitting and logging.
	•Whether a relationship exists betweensample recovery and grade andwhether sample bias may haveoccurred due to preferential loss/gainof fine/coarse material.	•Holes used for the metallurgical testworkhad good sample recovery hence minorsample bias. There is no distinctiverelationship exist between sample recoveryand grade.
Logging	•Whether core and chip samples havebeen geologically and geotechnicallylogged to a level of detail to supportappropriate Mineral Resourceestimation, mining studies andmetallurgical studies.	•All samples used for the metallurgicaltestwork were geologically logged to a detaillevel that supported the metallurgicalstudies.
	•Whether logging is qualitative orquantitative in nature. Core (or costean,channel, etc) photography.	•The logging is qualitative and quantitative innature for the metallurgy samples. Therecorded details include lithology, grainsize,weathering, colour, alteration, sulphidequantity and type, structure and veining.Photos were taken for all core samples.•Mineralogy was also completed via XRD andQEMSCAN
	•The total length and percentage of therelevant intersections logged.	•Logging of all metallurgical samples werecarried out on geological intervals.

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

Criteria	JORC Code explanation	Commentary
Sub-samplingtechniques andsample	•If core, whether cut or sawn andwhether quarter, half or all core taken.	•Cores were cut in half and half cores fromeach selected interval were used formetallurgical testwork.
preparation	•If non-core, whether riffled, tubesampled, rotary split, etc and whethersampled wet or dry.	•RC chips were riffle split from the bulk bags.Samples were dry when riffle split.
	•For all sample types, the nature, qualityand appropriateness of the samplepreparation technique.	•Samples used for the metallurgical testworkincluded RC and diamond drill cores whichwere split and prepared with appropriateequipment. Where required, the sampleswere crushed / ground and/or chemicallytreated to ensure the samples were properlyprepared for the required testwork.
	•Quality control procedures adopted forall sub-sampling stages to maximiserepresentivity of samples.	•All sample preparation and samplingequipment was cleaned with adequateprocedures before taking of each sample toensure there is no cross-contaminationbetween samples.
	•Measures taken to ensure that thesampling is representative of the in-situmaterial collected, including forinstance results for fieldduplicate/second-half sampling.	•Drill assays, mineralogical and geologicalinformation were reviewed for selectiontestwork samples. Additional assays on thesamples showed high repeatability of drillassays suggesting good representivity of thein-situ material hence no further samplingwas required.
	•Whether sample sizes are appropriateto the grain size of the material beingsampled.	•The metallurgical sample sizes wereappropriate to the grain size of the materialbeing sampled. Where necessary, materialwas crushed and/or pulverised before riffle /rotary split to ensure good consistency ofsampling representivity.
Quality of assaydata andlaboratory tests	•The nature, quality and appropriatenessof the assaying and laboratoryprocedures used and whether thetechnique is considered partial or total.	•The assay analyses of all samples wereconducted by registered laboratories (i.e.,ALS and Nagrom etc.) with suitableequipment and well-known qualityassurance accreditation to ensure theaccuracy of the assay results. Samples wereassayed by X-ray fluorescence (XRF) andInductively Coupled Plasma (ICP).

Criteria	JORC Code explanation	Commentary
	•For geophysical tools, spectrometers,handheld XRF instruments, etc, theparameters used in determining theanalysis including instrument make andmodel, reading times, calibrationsfactors applied and their derivation, etc.	•There was no reliance upon geophysicaltools, spectrometers, or any othertechniques for the required metallurgicaltestwork apart from the use of a portableXRF to quickly track the progress ofmetallurgical tests. These XRF results werelater confirmed with ICP analysis at thelaboratory. The XRF had been calibrated forvery elevated levels of REE and phosphate.System checks, blanks and standards wereanalysed before any PXRF readings weretaken.
	•Nature of quality control proceduresadopted (e.g. standards, blanks,duplicates, external laboratory checks)and whether acceptable levels ofaccuracy (i.e. lack of bias) and precisionhave been established.	•The metallurgical samples were testedagainst the standards and the goodalignments to drill assays confirmed theaccuracy of the results. Bench-top XRFassays were also verified with additional ICPassays and the XRF equipment was furthercalibrated to ensure the precision is wellestablished.
Verification ofsampling andassaying	•The verification of significantintersections by either independent oralternative company personnel.	•There are no significant intercepts mentionedin this announcement.
	•The use of twinned holes.	•Twin holes were not used for collection ofmetallurgical samples.
	•Documentation of primary data, dataentry procedures, data verification, datastorage (physical and electronic)protocols.	•An electronic geological database was usedfor data storage. For metallurgical testwork,all raw data from laboratories, resultsanalysis and summary reports weredocumented in a metallurgy database.
	•Discuss any adjustment to assay data.	•No adjustment was made to the assay data.
Location of datapoints	•Accuracy and quality of surveys used tolocate drill holes (collar and down-holesurveys), trenches, mine workings andother locations used in MineralResource estimation.	•Drill hole collar locations for the metallurgicaltestwork have been surveyed using adifferential GPS with accuracy to 0.1 m.
	•Specification of the grid system used.	•GDA94, MGA Zone 52 and MGA2020 Zone52
	•Quality and adequacy of topographic	•Drillhole collar locations for the metallurgicaltestwork have been surveyed using a

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

Criteria	JORC Code explanation	Commentary
	control.	differential GPS with accuracy to 0.1m.
Data spacing anddistribution	•Data spacing for reporting ofExploration Results.	•The regolith samples were mainly collectedfrom three drill holes that were spaced outover ~120 m x 180 m of the deposit andwere ranging from 0 m down hole to 112 mdown hole. For the fresh core samples, thedrill holes that the metallurgical samplescame from were spread out over 400 m ofstrike and range from 70 m down hole to 285m down hole.
	•Whether the data spacing anddistribution is sufficient to establish thedegree of geological and gradecontinuity appropriate for the MineralResource and Ore Reserve estimationprocedure(s) and classificationsapplied.	•The data spacing is considered appropriatefor the metallurgical testwork at this studylevel.
	•Whether sample compositing has beenapplied.	•Samples were all composited for themetallurgical testwork. Representativeportion of each selected intervals were sentto the designated laboratories to undergostaged crushing and grinding before beingcomposited and homogenised with suitableequipment. Where drill cores were used forthe testwork, half cores were crushed intosuitable sizes before splitting therepresentative samples used forcomposition.
Orientation ofdata in relation togeologicalstructure	•Whether the orientation of samplingachieves unbiased sampling of possiblestructures and the extent to which thisis known, considering the deposit type.	•The orientation of the metallurgical samplingis not considered to be biased towards anygeological characteristics.
	•If the relationship between the drillingorientation and the orientation of keymineralised structures is considered tohave introduced a sampling bias, thisshould be assessed and reported ifmaterial.	•Not applicable to the metallurgical test workundertaken.

Criteria	JORC Code explanation	Commentary
Sample security	•The measures taken to ensure samplesecurity.	•All metallurgical samples were secured withappropriate labelling system. Samples werelabelled with standard designations and werestored in locked shed. Samples weretransported to Perth from site by reputabletransport companies. Individual bags arecable tied and the pallets are wrapped inplastic with detailed logging sheet included.
Audits or reviews	•The results of any audits or reviews ofsampling techniques and data.	•No audits were undertaken however theCompetent Person was involved in all stagesof the metallurgical sampling and tests. Inhouse reviews were also completed on thesampling techniques and testwork results.

Section 2: Exploration Results - Metallurgy

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenementand land tenurestatus	•Type, reference name/number, locationand ownership including agreements ormaterial issues with third parties suchas joint ventures, partnerships,overriding royalties, native titleinterests, historical sites, wilderness ornational park and environmentalsettings.	•The Cummins Range deposit is located ontenement E80/5092 and is 100% owned byCummins Range Pty Ltd which is a whollyowned subsidiary of RareX Ltd. CumminsRange Pty Ltd purchased the tenement fromElement 25 with a potential capped royaltypayment of AU$1m should a positive PFS becompleted within 36 months of purchasefinalisation.
	•The security of the tenure held at thetime of reporting along with any knownimpediments to obtaining a licence tooperate in the area.	•No security or impediments with tenementE80/5092.
Exploration doneby other parties	•Acknowledgment and appraisal ofexploration by other parties.	•CRA Exploration defined REO mineralisationat Cummins Range in 1978 usingpredominantly aircore drilling. NavigatorResources progressed this discovery withadditional drilling after purchasing thetenement in 2006. Navigator announced aresource estimate in 2008. Kimberly RareEarths drilled additional holes and upgradedthe resource estimate in 2012.

ASX:REE Level 1, 338 Barker Road @rarex_asx ABN: 65 105 578 756 Subiaco WA 6008 info@rarex.com.au Australia rarex.com.au

Criteria	JORC Code explanation	Commentary
Geology	•Deposit type, geological setting andstyle of mineralisation.	•The Cummins Range REO deposit occurswithin the Cummins Range carbonatitecomplex which is a 2.0 km diameter nearvertical diatreme pipe that has been deeplyweathered but essentially outcropping withonly thin aeolian sand cover in places. Thediatreme pipe consists of various mafic toultramafic rocks with later carbonatiteintrusions. The primary ultramafic andcarbonatite rocks host low to high grade rareearth elements with back ground levels of1000-2000 ppm TREO and high grade zonesup to 17% TREO. The current resource sitsprimarily within the oxidised/weathered zonewhich reaches to 120 m below the surface.Metallurgical studies carried out to dateshow that the rare earth elements areprimarily hosted by monazite which is acommon and favourable host for rare earthelements.