RAREX LIMITED — Investor Presentation 2021

Mar 16, 2021

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Super-charging our rare earths growth strategy in 2021 NEW partners and NEW opportunities at a time of rising REE prices 121 Mining Investment APAC│ March 2021 Jeremy Robinson │ Managing Director

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Disclaimer & Competent Person Statement
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This presentation contains summary information about RareX Limited (REE) and is current as of 17[th] March 2021. 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.

This announcement has been authorised for release by the Board of RareX Limited. For further information, please contact Jeremy Robinson, Managing Director, on +61 8 6143 6720 or info@rarex.com.au.

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Investment Overview
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• Strategically located asset : 100% owned Cummins Range Rare Earths Project in Western Australia – Tier-1 mining jurisdiction

• :

• Significant maiden JORC 2012 Inferred Rare Earths Mineral Resource 13Mt at 1.13% TREO with 22.1% NdPr

• Assays of up to 70m at 5.4% TREO and 0.64% Nb2O5 from in-fill drilling in late 2021 – work now underway on Resource upgrade

• Landmark MoU with US$4.6B rare earths producer Shenghe Resources

• Rare Earths Prices surging in recent months due to strong demand growth in green-energy industry, global trade tensions

• High-quality exposure to Lachlan Fold Belt exploration, NSW : 35% stake in Trundle Project with Kincora Copper (RareX owns 7.8% of Kincora)

Highly leveraged to the booming global rare earths sector, with a quality asset in a Tier-1 location, Tier-1 partners and a clear growth strategy

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Corporate Snapshot
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Capital Structure	Capital Structure	Capital Structure
ASX Code		REE
Share Price (16th March 2021)		$0.135
Shares on Issue		433m
Market Capitalisation		$58.5m
Net Cash		$5.5m
Listed Investments (TSX-V: KCC and TSX-V: LL)		$5.5m
Enterprise Value		$47.5m
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
Consultant Geophysicist	Jayson Meyers

Shareholders	Shareholders
Top 40 Shareholders	~40%
Number of Shareholders	~5,200
Substantial Shareholder	Simon Lee AO (5.8%)

Share Price

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Rare Earths Market
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End Market Applications

Global End Market Growth

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Passenger, Electric commercial. Electric Vehicle trains and other transportation. motors Approx. 1kg NdPr per EV1

Consumer Smart speakers, electronics computer speakers, headphones, fridges, and air conditioners. appliances

Automotive parts and Micromotors, sensors, sensors speakers

Wind Electric motors generation At least 150kg per MWs

Industrial Robots, welders, elevators, escalators Electronics

Forecast Passenger EV Sales (m)

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Rare Earths Prices on the Rise
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Magnet Metals – Neodymium (Nd) Praseodymium (Pr), Dysprosium (Dy) and Terbium (Tb) Prices have risen sharply over past 3 months. These account for +90% of the potential revenue for Cummins Range.

NdPr Market Balance

Forecast NdPr Oxide market balance (kt)

NdPr Price US$/t

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• • NdPr supply shortage to occur in 2022-2023 + 2020-2030 demand growing at 9.6% p.a

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Cummins Range Rare Earths Project
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• Tier-1 mining jurisdiction : Located in the Kimberley region of Western Australia

• Government Support Available: Critical Minerals Facilitation Office, NAIF EFA, etc.

• Committed to high ESG standards: Good relations with Kimberley Land Council

• Good access: Accessible via Great Northern Highway, Tanami Track and pastoral tracks, potential access to Wyndham and Darwin Ports

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

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Recently Completed Drill Program
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• Recently completed 6,143m of drilling:

• 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

• Spectacular recent results from 2020 drill program include

• 109m at 3.6% TREO and 0.44% Nb O 2 5

• 90m at 3.8% TREO and 0.29% Nb O 2 5

• 41m at 4.0% TREO and 0.21% Nb O 2 5

• Recent drilling highlights high-grade NW trending channel

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Project Timeline

March Quarter

June Quarter September Quarter

December Quarter

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Drill Planning Resource Underway Metallurgy Underway

Drilling Underway Scoping Study Complete Resource Upgrade Further Drilling Metallurgy Stage 1

BFS Underway Off-Take Negotiations

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Commercialisation – Low Capital Strategy
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• 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 to new Australian refineries and existing capacity in SE Asia and China

• This approach will significantly reduce CAPEX

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

Proposed Australian Refineries

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MoU with Shenghe Resources
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• Shenghe Resources Holdings Co is a vertically integrated U S$4.6Bn global rare earths producer, major shareholder of MP Materials and supplier to Apple Inc.

• Non-Binding MoU executed with Global Rare Earths Producer Shenghe Resources on 4[th] February 2021

• Establishes framework for the formation of a jointly owned Rare Earths Trading Company sourcing rare earths concentrates globally (ex-China)

• Potential for Shenghe investment in RareX’s flagship Cummins Range Rare Earths Project

• Potential for joint investment by RareX and Shenghe in existing and proposed rare earths refineries located outside of China

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NSW Copper-Gold Assets
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• RareX retains a 35% free-carried interest over multiple projects and owns 7.8% of TSX:V-listed Kincora Copper

• Kincora currently focussing on Trundle Project with two diamond drill rigs

• About to list on ASX with A$8-10m raise

• Kincora exploration led by John Holliday, principal discoverer of the world-class Cadia deposit

• RareX recently retained 100% ownership of Orange East Project

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Key Investment Takeaways
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1

High-quality, advanced Rare Earths Project in WA

2 Recently completed major drilling program with significant assays

• 3 Significant global partner in Shenghe Resources

• 4 Rare Earths prices rising strongly

5 Free-carried in exciting NSW copper-gold exploration projects

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