September 2022 Quarterly Activities Report

RareX Limited (RareX, the Company) (ASX: REE) is pleased to present its Quarterly Report.

HIGHLIGHTS

• Positive scoping study for Cummins Range shows potential for sustainable, long-life rare earths project
  • Strong financials with attractive NPV, IRR and payback period and low cash costs
  • Board approves commencement of Pre-Feasibility Study
  • Based only on current 2021 Indicated and Inferred Resources with 85% of the mine plan in the Indicated category
• 2022 growth drilling program is confirming scale and significance of Cummins Range for both rare earths and phosphate with an extensive mineral system emerging
  • CDX0020 - 384.4m at 4% P2O5 and 0.3% TREO and multiple high-grade rare earths intersections cumulatively 43m at 1.7% TREO including 11.6m at 1.9% TREO
  • CDX0022 - 455.6m at 5% P2O5 and 0.5% TREO and multiple high-grade rare earths intersections cumulatively 100.4m at 1.9% TREO including 17m at 2.4% TREO
  • CDX0027 - 326.4m at 4% P2O5 and 0.4% TREO with multiple high-grade rare earths intersections cumulatively 60.5m at 1.8% TREO including of 6.2m at 4.2% TREO
  • 2022 drill program now complete with assays pending
• Preliminary metallurgical testwork has delivered a premium phosphate concentrate from Cummins Range with results highlighting potential to produce a valuable co-product used in phosphate fertilisers
  • Greater than 39% P2O5 phosphate mineral concentrates produced with excellent recovery
  • Conventional phosphate flotation circuits tested, supporting a simple and proven beneficiation flowsheet for phosphate mineral recovery
• Preliminary metallurgical testwork shows promising ore sorting performance with a high REE recovery to Ore Sort Product and good mass rejection
  • Primary flotation testwork now underway both in Australia and with world experts, Baotou Mengrong Fine Material Co. Ltd
• Cash and Investments of $6.4m

During the quarter, the Company advised that it has built on the outstanding start to the 2022 resource drilling program at its 100%-owned Cummins Range Rare Earths Project (Project) in Western Australia, with drilling significantly extending the known mineralisation at depth. The Company also released the results of the positive scoping and ongoing metallurgical testwork that is confirming the potential of the emerging rare earths and phosphate mineral system at Cummins Range.

Exploration

The first assays for a complete diamond drill hole were received for CDX0020, which returned an impressive intercept of 384.4m at 4% P2O5 and 0.3% TREO and a high-grade rare earths zone of 11.6m at 1.9% TREO.

Assays were also received for six reverse circulation (RC) drill holes which returned wide and high- grade phosphate and rare earths intercepts including 153m at 11% P2O5 and 0.4% TREO from hole CDX0081.

Results for CDX0022 and CDX0027 were released subsequent to the end of the quarter with both holes returning very wide rare earths and phosphate intersections. These results included 455.6m at 5% P2O5 and 0.5% TREO and multiple high-grade rare earths intersections cumulatively 100.4m at 1.9% TREO including 17m at 2.4% TREO from CDX0027; and 326.4m at 4% P2O5 and 0.4% TREO with multiple high-grade rare earths intersections cumulatively 60.5m at 1.8% TREO including of 6.2m at 4.2% TREO from CDX0022.

These two drill holes have been drilled on the same drill section down-dip from the JORC 2012 Indicated and Inferred Mineral Resource Estimate (at a 0.5% TREO cut-off) of 18.8 million tonnes at 1.15% TREO and 10% P2O5, highlighting the strong potential to expand and upgrade the current MRE.

Diamond Drill-Hole CDX0020

CDX0020 has intersected numerous phosphate and rare earths zones including 384.4m at 4% P2O5 and 0.3% TREO. The wide zone is centred around the 80m wide Rare Dyke, as shown on Figure 1.

The Rare Dyke and hanging wall/footwall positions have abundant coarse disseminations of apatite with 26 monazite/bastnasite mineralised zones ranging from 0.3m to 11.6m. These zones accumulate to a total of 43m at 1.7% TREO (significant intercepts shown in Table 1). The strongest mineralised zone of 11.6m at 1.9% TREO and 7% P2O5 is located on the hanging wall contact of the Rare Dyke. Multiple rare earth zones above are hosted in carbonatite bands proximal to the Rare Dyke.

Figure 1 shows phosphate intercepts for the drill-holes completed up-dip of hole CDX0020. All of these drill holes have strong phosphate and rare earths mineralisation including CRX0063, which intersected 121m at 7% P2O5 and 1.2% TREO.

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