RAREX LIMITED — Regulatory Filings 2021

Jan 20, 2021

ASX / MEDIA ANNOUNCEMENT 21 January 2021

COMPANY AND PROJECTS UPDATE

RareX set to hit the ground running in 2021 with activities ramping up quickly on two fronts

HIGHLIGHTS

• Exploration set to re-commence at the Cummins Range Rare Earths Project in March
• Cummins Range Resource upgrade due this quarter, based on successful drilling last year
• Further shallow mineralisation at Trundle park
• Rare Earths prices continue to rise with Neodymium now at US$86.5/kg

RareX Limited (ASX: REE) (RareX or the Company) is pleased to provide the following update on the Company's activities.

Cummins Range Rare Earths Project, WA

Planning is progressing for the re-commencement of drilling at Cummins Range in March 2021 following the highly successful program in 2020. During December and January, work has been progressing on the Mineral Resource upgrade and metallurgical test work. At this stage, the updated Resource is expected to be published this quarter with results from the initial phase of the metallurgy shortly after that.

Trundle Copper-Gold Project, NSW

Please see separate release dated today, 21 January 2021, highlighting the results of the current drill program that continues to generate exciting shallow copper gold mineralisation at the Trundle Park Prospect. RareX retains a 35% free-carried interest in this project and 7.8% equity holding in JV Partner Kincora Copper Limited, which is planning to dual list on the ASX shortly.

Weld North

Drilling was completed pre-Christmas for a total 23 air core holes and assay results have now been received. The results indicate that the circular magnetic anomaly is a late-stage granite. RareX intends to complete its review on the project before determining the best path forward. RareX continues to develop greenfield targets like Weld North with the potential for world-class discoveries.

Corporate

RareX continues to actively advance its rare earths business, as evidenced by the option to acquire a significant stake in Canada Rare Earths Company as announced on the 23 December 2020, giving it potential access to refining capacity in Laos and Thailand.

The prices of rare earths have continued to increase substantially in recent months with prices of Neodymium and Praseodymium up to US$86.5/kg and US$60.9/kg respectively.

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

For further information, please contact:

RareX Limited	Media Enquiries
Jeremy Robinson	Nicholas Read
ManagingDirector	Read Corporate
Ph: 08 6143 6720	Ph: 08 9388 1474

Competent Person's Statement

Information in this release that relates to current Exploration Results is based on and fairly represents information and supporting documentation prepared by Mr Guy Moulang, an experienced geologist consulting for RareX Limited. Mr Moulang is a Member of the Australian Institute of Geoscientist and has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Moulang consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

Hole ID	Easting	Northing	Azimuth	Dip	TREO %
WNAC0001	453664	6890349	0	90	NSI
WNAC0002	453856	6890686	0	90	NSI
WNAC0003	454056	6891046	0	90	NSI
WNAC0004	454259	6891384	0	90	NSI
WNAC0005	454454	6891745	0	90	NSI
WNAC0006	454642	6892093	0	90	NSI
WNAC0007	454846	6892457	0	90	NSI
WNAC0008	454220	6890373	0	90	NSI
WNAC0009	454580	6890184	0	90	NSI
WNAC0010	454933	6890007	0	90	NSI
WNAC0011	455290	6889817	0	90	NSI
WNAC0012	455644	6889634	0	90	NSI
WNAC0013	453512	6890739	0	90	NSI
WNAC0014	453156	6890928	0	90	NSI
WNAC0015	452804	6891107	0	90	NSI
WNAC0016	452443	6891288	0	90	NSI
WNAC0017	452099	6891461	0	90	NSI
WNAC0018	451733	6891652	0	90	NSI
WNAC0019	453469	6889982	0	90	NSI
WNAC0020	453279	6889640	0	90	NSI
WNAC0021	453075	6889281	0	90	NSI
WNAC0022	452873	6888933	0	90	NSI
WNAC0023	452688	6888589	0	90	NSI

Table 1 – Drill Collars and Assay Results for Weld North Project

TREO = Lanthanide Oxides + Yttrium Oxide + Scandium Oxide

NSI = No Significant Intersection

Appendix 1: JORC Table

JORC Code, 2012 Edition –Table 1
Weld North Section 1 Sampling Techniques and Data
Criteria	JORC Code Explanation
Samplingtechniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standardmeasurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, orhandheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.Include reference to measures taken to ensure sample representivity and the appropriate calibration of anymeasurement tools or systems used.Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industrystandard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases moreexplanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusualcommodities ormineralisation types (eg submarine nodules)may warrant disclosure of detailed information.	•The Weld North magnetic anomaly was drilled tested with Air Coredrilling.•Samples were place on the ground and grab sampled.•Samples were taken in 4m composites•Samples were assayed for 26 elements using a aqua regia digestwith a ICP-OES and ICP-MS finish
DrillingTechniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details(eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether coreis oriented and if so, by what method, etc).	•Air Core drilling was used for the entire drill program
Drill SampleRecovery	Method of recording and assessing core and chip sample recoveries and results assessed.Measures taken to maximise sample recovery and ensure representative nature of the samples.Whether a relationship exists between sample recovery and grade and whether sample bias may have occurreddue to preferential loss/gain of fine/coarse material.	•Drill sample recovery was not logged
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to supportappropriate Mineral Resource estimation, mining studies and metallurgical studies.Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.The total length and percentage of the relevant intersections logged.	•All metres drilled had a geology log completed.
Sub-sampling	If core, whether cut or sawn and whether quarter, half or all core taken.	•Samples were place on the ground and grab sampled.
techniquesand sample	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.For all sample types, the nature, quality and appropriateness of the sample preparation technique.	•Samples were taken in 4m composites
preparation	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.Measures taken to ensure that the sampling is representative of the in situ material collected, including forinstance results for field duplicate/second-half sampling.Whether sample sizes are appropriate to the grain size of the material being sampled.

Quality ofassay dataandlaboratorytests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether thetechnique is considered partial or totalFor geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining theanalysis including instrument make and model, reading times, calibrations factors applied and their derivation,etc.Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) andwhether acceptable levels of accuracy (ie lack of bias) and precision have been established.	The reported assays were analysed by Nagrom.•Samples were assayed for 26 elements using a aqua regia digestwith a ICP-OES and ICP-MS finish•RareX used no standards, duplicates or blanks. Nagrom usedinternal standards, duplicates and blanks.
Verificationof samplingand assaying	The verification of significant intersections by either independent or alternative company personnel.The use of twinned holes.The verification of significant intersections by either independent or alternative company personnel.Discuss any adjustment to assay data.	•NA
Location ofdata points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workingsand other locations used in Mineral Resource estimation.Specification of the grid system used.Quality and adequacy of topographic control.	•Drill hole collars were located by handheld GPS•All coordinates are in MGA Zone 51H 1994
Data spacinganddistribution	Data spacing for reporting of Exploration Results.Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuityappropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.Whether sample compositing has been applied.	•NA
Orientationof data inrelation togeologicalstructure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to whichthis is known, considering the deposit type.If the relationship between the drilling orientation and the orientation of key mineralised structures is consideredto have introduced a sampling bias, this should be assessed and reported if material.	•NA
Samplesecurity	The measures taken to ensure sample security	•Drill samples were delivered to the Laboratory by RareX staff.

Cummins Range Section 2 Reporting of Exploration Results
Criteria	JORC Code Explanation
Mineraltenement andland tenurestatus	Type, reference name/number, location and ownership including agreements or materialissues with third parties such as joint ventures, partnerships, overriding royalties, nativetitle interests, historical sites, wilderness or national park and environmental settings.The security of the tenure held at the time of reporting along with any known impedimentsto obtaining a licence to operate in the area.	•Drilling was done on tenement E38/3455. The tenement was pegged by RareX in 2019
Explorationdone by otherparties	Acknowledgment and appraisal of exploration by other parties.	•No previous exploration has been completed on the tenement
Geology	Deposit type, geological setting and style of mineralisation.	•The target geology was a carbonatite pipe and was identified by a mottled circularmagnetitic signature. Drill testing has proven the magnetic featureis a granite body.
Drill holeinformation	A summary of all information material to the understanding of the exploration resultsincluding a tabulation of the following information for all Material drill holes:easting and northing of the drill hole collarelevation or RL (Reduced Level –elevation above sea level in metres) of the drill holecollardip and azimuth of the holedown hole length and interception depthhole length.If the exclusion of this information is justified on the basis that the information is notMaterial and this exclusion does not detract from the understanding of the report, theCompetent Person should clearly explain why this is the case.	As per body of announcement
Dataaggregationmethods	In reporting Exploration Results, weighting averaging techniques, maximum and/orminimum grade truncations (eg cutting of high grades) and cut-off grades are usuallyMaterial and should be stated.	•NA

	Where aggregate intercepts incorporate short lengths of high grade results and longerlengths of low grade results, the procedure used for such aggregation should be stated andsome typical examples of such aggregations should be shown in detail.The assumptions used for any reporting of metal equivalent values should be clearly stated.
Relationship	These relationships are particularly important in the reporting of Exploration Results	•
betweenmineralisation	If the geometry of the mineralisation with respect to the drill hole angle is known, its natureshould be reported.	NA
widths andinterceptlengths	If it is not known and only the down hole lengths are reported, there should be a clearstatement to this effect (eg 'down hole length, true width not known').
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be	•See ASX announcement dated 29th November 2021 for appropriate maps
	included for any significant discovery being reported These should include, but not be
	limited to a plan view of drill hole collar locations and appropriate sectional views.
Balanced	Where comprehensive reporting of all Exploration Results is not practicable, representative	•Reporting is considered balanced
reporting	reporting of both low and high grades and/or widths should be practiced to avoid
	misleading reporting of Exploration Results.
Other	Other exploration data, if meaningful and material, should be reported including (but not	•NA
substantive	limited to): geological observations; geophysical survey results; geochemical survey results;
exploration	bulk samples –size and method of treatment; metallurgical test results; bulk density,
data	groundwater, geotechnical and rock characteristics; potential deleterious or contaminating
	substances.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or large scale	•RareX will assess the future of the project in the coming months.
	step out drilling.
	Diagrams clearly highlighting the areas of possible extensions, including the main
	geological interpretations and future drilling areas, provided this information is not
	commercially sensitive.