RAREX LIMITED — Investor Presentation 2020

Dec 8, 2020

Exploring and developing rare earths projects in Australia Plus, high-potential copper-gold exploration in NSW Investor Presentation, December 2020 │ Jeremy Robinson, Managing Director

Disclaimer & Competent Person Statement

This presentation contains summary information about RareX Limited (REE) and is current as of 7th December 2020. The information in this presentation is of a general background and does not purport to be complete. This presentation is not investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. The information contained in this presentation has been prepared without taking into account the objectives, financial situation or needs of individuals. Investors should obtain their own advice before making any investment decision. REE has prepared this document based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in this presentation.

This presentation contains certain "forward-looking statements". Forward looking statements can generally be identified by the use of forward looking words such as, "expect", "should", "could", "may", "predict", "plan", "will", "believe", "forecast", "estimate", "target" and other similar expressions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions.

Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This presentation contains statements that are subject to risk factors associated with REE and the mining exploration industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially. REE disclaim any intent or obligation to publicly update any forward-looking statements, whether as a result of new information, future events or results or otherwise. To the maximum extent permitted by law, REE, their related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth)) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the presentation or its contents or otherwise arising in connection with it.

Competent Person Statement: The information in this presentation relating to the Mineral Resource estimate for the Cummins Range Rare Earths Project is extracted from the Company's ASX announcement entitled 'Globally Significant Maiden Resource of 13Mt at 1.13% TREO' as updated by the ASX announcement entitled 'Update to Mineral Resource Estimate Announcement', both released on 15 October 2019. REE confirms that it is not aware of any new information or data that materially affects the information included in the previous announcements and that all material assumptions and technical parameters underpinning the Mineral Resource estimate in the previous announcements continue to apply and have not materially changed. The exploration results contained within this presentation have been released to the ASX and the Company confimrs that it is not aware of any new information which materially change these results.

This presentation has been authorised for release by the Managing Director of RareX Limited. For further information, please contact Jeremy Robinson, Managing Director, on 08 6143 6720.

Investment Overview

• Strategically located asset: 100%-owned Cummins Range Rare Earths Project in Western Australia – Tier-1 mining jurisdiction
• Significant maiden JORC 2012 Rare Earths Mineral Resource: Inferred Resource of 13Mt at 1.13% TREO with 22.1% NdPr
• First Assays received up to 70m at 5.4% TREO and 0.64% Nb2O5
• Rare Earths Prices up strongly in recent months
• High-quality exposure to Lachlan Fold Belt exploration: via 35% stake in Trundle Project with Kincora Copper (RareX owns 7.8% of Kincora)
• 100%-owned Project at Orange East: 15km along strike from 2Moz McPhillamys Gold Project with strong geological similarities

A Rare Earth explorer and developer with significant exposure to copper-gold exploration in the world-class Lachlan Fold Belt of NSW

Corporate Snapshot

Capital Structure
ASX Code	REE
Share Price (7thDecember 2020)	$0.13
Shares on Issue	408m
Market Capitalisation	$53.0m
Net Cash	$5.0m
Listed Investments (14.95m TSXV:KCC)	$1.5m
Enterprise Value	$46.5m
Board and Management
Chairman	John Young
Managing Director	Jeremy Robinson
Non-Executive Director	Shaun Hardcastle
Non-Executive Director	Cameron Henry
Exploration Manager	Guy Moulang
Consultant Metallurgist	Gavin Beer

Shareholders
Top 40 Shareholders	42%
Number of Shareholders	3,839

Share Price

Rare Earth Elements

• Rare Earths are a group of 17 elements essential to the new world economy grouped into Light Rare Earth Elements (LREE) and Heavy Rare Earth Elements (HREE)
• RareX is focused on the production of LREE's Neodymium-Praseodymium (NdPr) which are critical to the manufacture of Neodymium-Iron-Boron (NdFeB) Rare Earth Permanent Magnets (REPM) which contain approximately 32% NdPr

Rare Earth Permanent Magnets (REPMs)

Electric Vehicles

• Whatever the type of EV (BEV, HEV PHEV) or the power source (Li Batteries, H Fuel Cells etc) they all use REPM motors.
• Each EV requires approximately 1kg to 2kg of REPM which form part of an EV's electric motor. EV sales are expected to grow from 3m to 32m by 2030.

Wind Turbines

• Wind power and Solar power set to dominate the renewable energy economy as cost effective mass deployable technologies.
• Wind power historically dominated by onshore capacity now increasingly moving to offshore capacity as turbines become larger and more efficient. Offshore has greater use of REPM's compared to onshore.
• Each MW of direct drive REPM wind turbine capacity contains 600kg of REPM containing 200kg of NdPr.

Rare Earths Market

• China dominates production of rare earths and rare earth magnets, historically accounting for 80% of global production and representing a strategic weakness for the United States of America
• Prices are rising sharply

Cummins Range Rare Earths Project

• Tier-1 mining jurisdiction: Located in the Kimberley region of Western Australia
• Airstrip and township nearby: 130km from Halls Creek Township and Airstrip.
• Good access: Accessible via Great Northern Highway, Tanami Track and pastoral tracks.
• Established mining district: Located near Northern Minerals' Browns Range Rare Earth Mine and Pantoro's Nicholson's Gold Mine
• Port Facilities: Potential access to Wyndham and Darwin Ports

Advanced, high-quality Rare Earths Project located in a Tier-1 mining jurisdiction

Substantial Maiden JORC 2012 Resource

• Significant maiden JORC 2012 Inferred Resource of 13Mt at 1.13% TREO released 15 October 2019
• Neodymium and Praseodymium "NdPr" content of 22.1% and ultra low thorium of 50ppm ThO2 equals premium product
• Weathered carbonatite with REE mineralisation mostly hosted within laterite horizon (same at Mt Weld)
• Deposit outcrops and has dimensions amenable to low strip ratio open pit mining
• Recently completed 6,143m of drilling

Cummins Range Inferred Mineral JORC 2012 Resource
Tonnes (Mt)	Grade (TREO)	TREO (kg)
13.0	1.13%	147,300,000

Recent High Grade Drill Results

• 36m at 4.6% TREO and 0.32% Nb2O5 from surface
  • Inc 3m at 25.1% TREO and 0.45% Nb2O5
• 41m at 4.0% TREO and 0.21% Nb2O5 from surface
  • Inc 3m at 13.9% TREO and 0.25% Nb2O5
• Highlights potential for high grade starter pit

Recent High Grade Recent Drill Results

• 90m at 3.8% TREO and 0.29% Nb2O5 from surface
  • Inc 20m at 5.1% TREO and 0.29% Nb2O5
  • Inc 3m at 11.3% TREO and 0.48% Nb2O5
  • Inc 32m at 4.4% TREO and 0.30% Nb2O5
  • Inc 5m at 9.0% TREO and 0.56% Nb2O5
  • Inc 17m at 5.1% TREO and 0.32% Nb2O5
• Demonstrates continuity of high north west trending grade channel

Recent High Grade Drill Results

• 109m at 3.6% TREO and 0.44% Nb2O5 from surface
  • Inc 70m at 5.4% TREO and 0.64% Nb2O5
  • Inc 9m at 7.5% TREO and 1.5% Nb2O5
  • Inc 13m at 10.7% TREO and 1.04% Nb2O5
  • Inc 8m at 9.1% TREO and 0.5% Nb2O5
• Niobium represent potential highly valuable by-product – worth over 3 times rare earths basket price

Low Capital Strategy

• Rare Earth mineralogy dominated by monazite the most well understood Rare Earth Mineral from a processing perspective
• RareX consulting metallurgist Mr Gavin Beer to lead metallurgical testwork on completion of final assays
• Strategy is to produce a saleable monazite concentrate to sell on an FOB / CIF basis to China – Working with Talaxis Group (subsidiary of Noble Group)
• This approach will significantly reduce CAPEX

RareX has a low CAPEX development strategy for Cummins Range, based on production of a monazite concentrate

SIMPLIFIED FLOWSHEET

Exploration – Weld North

• Exploration Underway

• Contains a 5km wide airborne magnetic circular anomaly which RareX considers may be caused by an REEbearing circular carbonatite intrusive complex
• Sits below regolith cover which masks the buried bedrock source for this magnetic anomaly
• Part of greenfields exploration strategy to discover another world-class rare earth carbonatite deposit in Australia

NSW Copper-Gold Assets

• RareX retains a 35% free-carried interest over multiple projects and owns 7.8% of TSX:V-listed Kincora Copper
• Kincora is currently completing successful 3,800m drill program at flagship Trundle project comprising six deep holes with assays up to 51m at 1.17g/t Au and 0.54% Cu
• Kincora recently raised C$5.3m capital raise to fund a further 17-hole program at Trundle
• Kincora exploration led by John Holliday, principal discoverer of the world-class Cadia deposit
• RareX recently retained 100% ownership of Orange East Project

Trundle Project – 35% Free-Carried

• The only brownfield porphyry project held by listed juniors in the Macquarie Arc
• Trundle is the western section of the Northparkes intrusive complex, which hosts the second largest porphyry mine in Australia
• Exploration being driven by highly experienced team at Kincora Copper Limited led by John Holliday
• Confirmed similar geological settings/controls as Cadia and Northparkes, Australia's largest and second largest porphyry mines
• Seeking to discover a cluster of new porphyry deposits

Trundle Project – Trundle Park Target

• Drilling at Trundle Park returning multiple intercepts in skarn
  • TRD001 51.0m at 1.17g/t Gold and 0.54% Copper from 39m
  • TRD008 87.7m at 0.65g/t Gold and 0.19% Copper from surface
• Similar in style to the Big Cadia skarn that is peripheral to the Cadia porphyry copper-gold

Orange East – 100% Owned

• Located ~15km along strike from Regis Resources' 2Moz McPhillamys Gold Deposit
• Strong geological and geochemical similarities to McPhillamy's including:
  • Both hosted in the Silurian volcaniclastic rocks of the Anson Formation adjacent to the GCFZ
  • Both have coincident Au-As-Ba-Bi-Pb-Cu-Mo-Te surface anomalies, with the Gunnarbee geochemical anomaly extending over an area ~1,000m north-south by 200m east-west
  • Both have K radiometric high anomalies
• Gunnarbee Prospect never drilled

Currently reviewing project data before planning next steps

Key Investment Takeaways

• High-quality, advanced Rare Earth Project in WA
• Recently completed major drilling program with significant assays
• Building a portfolio of high-quality Rare Earth assets
• Significant exposure to NSW porphyry copper-gold exploration
• 100%-owned NSW gold exploration project in Tier-1 address

With a $50.0m market capitalisation, strongly leveraged to exploration success and growth on two fronts