Review Of 2022, Outlook For 2023

The Board of Ionic Rare Earths Limited (“IonicRE” or the “Company”) (ASX: IXR) is pleased to provide an update on the progress made across calendar year 2022, and an insight into the expected activities for H1 2023.

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• Focused on the development of the Makuutu Rare Earths Project in Uganda and to accelerate magnet recycling technology scale up at Ionic Technologies in Belfast
• To enable these developments, we have significantly increased our skilled workforce across all divisions within Uganda and Belfast, UK
• The awarding of the Environmental and Social Impact Assessment Certificate has been a major milestone in the development of the Makuutu Project
• Work programs continue in Australia and Uganda to de-risk the Makuutu Rare Earths Project, with finalisation of Mining Licence Application expected early in 2023
• Discussions initiated with partners in Rwenzori Rare Metals to increase ownership beyond 60% in Makuutu
• Downstream Refinery study nearing completion, expected to be finalised in Q1 2023, with the US as the preferred location for the facility
• Engagements continue with governments, government bodies, and potential strategic partners interested in the unique appeal of the Makuutu basket of magnet and heavy rare earths to feed new emerging supply chains
• Strong cash reserves, in excess of $20M¹ as we close out 2022, allowing for the delivery of work streams across the mining, refining and recycling programs

 

2022 has been a year of significant growth within IonicRE, as we have further advanced the Makuutu Rare Earths Project (“Makuutu” or “the Project”) towards the finalisation of a Mining Licence Application (MLA) in Uganda, underpinned by a significant resource base upgrade and approval of our Environmental and Social Impact Assessment (ESIA).

The Company finalised the acquisition of Seren Technologies Limited (now Ionic Technologies International Limited) and is now accelerating the scale up and verification of the technology prior to the potential commercialisation of magnet recycling in the near term.

Additionally, IonicRE has further defined the potential landscape and strategic appeal of a dedicated facility to separate and refine the Makuutu basket to magnet and heavy rare earth oxides (REO), to feed a growing demand from western end users and governments looking to establish new secure, sustainable and traceable supply chains to support net zero carbon technologies and defence demands.

Mr Tim Harrison, Managing Director of Ionic Rare Earths commented: “I am very proud of the Company’s achievements on reaching a number of significant milestones in 2022. These achievements position IonicRE to be an early mover and to significantly add value and capacity in developing the supply chain of critical magnet and heavy rare earth elements for use across key applications to enable the delivery of net zero carbon technologies.”

“Importantly, with the Board having stressed the importance of health and safety, we have developed strong policies and implemented strict procedures resulting in a very safe environment for our workforce, measured by no lost time incidents across our businesses in the last 12 months. The health, safety and wellbeing of our staff and communities we interact with is of utmost importance to us.”

“Completing our maiden ESG baseline study was another success to celebrate this year. The Board and staff of IonicRE and subsidiary company Rwenzori Rare Metals are pleased with our maiden ESG rating of “BB”. Processes to build on this initial rating were instigated immediately as we look to improve on our performance, and further develop our interaction with all stakeholders with care and diligence throughout our entire operation.”

“Also of significance was the positive response from global institutions supporting the $30 million placement in April 2022 which has allowed us to accelerate the development of timeframes for the Makuutu Rare Earths Project in Uganda, acquire and establish magnet recycling in Belfast, and continue to work with potential partners interested in refining the unique magnet and heavy REOs found in the Makuutu basket.”

“Further to our internal growth plans, we have continued to engage with governments, quasi government organisations, and potential strategic partners that are key to building the supply chain for the ever-increasing demand for rare earth elements. These activities have been carried out in parallel with driving the development our flagship mine at Makuutu in Uganda.”

“We look forward to commissioning the Ionic Technologies magnet recycling demonstration plant in late Q1 2023, and first recycled magnet REOs produced at scale by the end of Q2 2023. With the production of these magnet REOs, we will be able to further collaborate in the sustainable, secure and traceable supply chain that in turn enables the making of metals, alloys and magnets for potential partners in the EV and wind turbine sectors.”

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