Initial Assays Confirm High Grade Primary REE and Niobium

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ASX / MEDIA ANNOUNCEMENT

10 November 2021

Initial Assays Confirm High Grade Primary Rare Earth

and Niobium Mineralisation at Cummins Range

Thick, high-grade mineralisation in first diamond hole confirms outstanding upside in the primary zone

HIGHLIGHTS

• Significant primary mineralisation confirmed in diamond drill-hole CDX007, which returned an outstanding intercept of:
• • 34.6m at 1.3% TREO and 0.4% Nb2O5, including 3.6m at 2.5% TREO and 0.7% Nb2O5 within an overall zone of 61.4m at 1% TREO and 0.3% Nb2O5
• Reverse Circulation (RC) drill-hole CRX0066 intersected two wide breccia zones with significant rare earths mineralisation, returning an intercept of:
• • 40m at 1.8% TREO and 0.3% Nb2O5, including 13m at 3.1% TREO and 0.4% Nb2O5
• Below this zone was a further wide zone comprising:
• • 31m at 1.4% TREO and 0.4% Nb2O5, including 3m at 3.3% TREO and 0.3% Nb2O5
• Attractive economic drivers in the primary zone
• • Neodymium-Praseodymium(NdPr) ratio in the primary zone is the same as in the weathered and is up to 24% NdPr comparable with the Mt Weld deposit also in Western Australia
  • Niobium grade of 0.4% Nb2O5 is twice the current resource grade and comparable with other known deposits such as the Niobec Mine in Quebec, Canada
• Deeper hole, CDX0016, has intersected multiple stacked lenses, all with massive to disseminated rare earths as monazite
• Further assays expected to come over the next two months

RareX Limited (ASX: REE; RareX or the Company) is pleased to report initial assays from diamond drilling targeting the high-grade primary mineralisation at its 100%-owned Cummins Range Rare Earths Project in the Kimberley Region of Western Australia with a Mineral Resource of 18.8Mt at 1.15% TREO + 0.14% Nb2O5 (Indicated Resource of 11.1Mt at 1.34% TREO + 0.17% Nb2O5; Inferred Resource of 7.7Mt at 0.88% TREO+ 0.11% Nb2O5 (0.5% TREO cut-off)) including high- grade tonnes to 6.5Mt at 1.98% TREO (inc. 0.38% NdPr) + 0.21% Nb2O5.

These highly encouraging initial assays, coupled with further visual results from recent drilling, provide further strong evidence that there is a substantial high-grade primary mineralized zone at Cummins Range offering significant potential to expand the current Mineral Resource.

All of the Reverse Circulation (RC) drill assays have also now been received, together with a portion of assays from diamond hole CDX0007. The remainder of the assays are expected to be received over the next two months.

RareX Limited
Unit 6, 94 Rokeby Road, Subiaco WA 6008 Ph: 08 6383 6593 ACN: 105 578 756	1

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Hole CDX0007, shown in Figure 1, is the first assayed diamond drill-hole at Cummins Range in 40 years and was drilled into an area where a displacement fault had been interpreted.

This interpretation has now been supported by the hole intersecting a 77m wide breccia zone that has assayed 61.4m at 1% TREO and 0.3% Nb2O5.

The lower 34.6m of this breccia is in fresh rock with common disseminations of monazite grading at 34.6m at 1.3% TREO and 0.4% Nb2O5, including 3.6m at 2.5% TREO and 0.7% Nb2O5.

RareX's view is that this provides clear evidence that the primary zone can host significant high- grade mineralisation, opening up substantial growth opportunities for the Cummins Range Project at depth below the weathered zone.

RC drill hole CRX0066 was completed 90m to the north-east of CDX0007 and intersected two wide breccia zones with significant rare earths mineralisation, the first of which comprises 40m at 1.8% TREO and 0.3% Nb2O5, including 13m at 3.1% TREO and 0.4% Nb2O5.

Below this zone was another zone of 31m at 1.4% TREO and 0.3% Nb2O5, including 3m at 3.3% TREO and 0.3% Nb2O5. These intersections are considered to be true width. The geological understanding of this area is a high priority for RareX and a further three diamond drill holes have been drilled with assays pending.

Figure 1: CDX0007 Cross Section with Assay Results and Geology

RareX Limited
Unit 6, 94 Rokeby Road, Subiaco WA 6008 Ph: 08 6383 6593 ACN: 105 578 756	2

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Figure 2: CRX0066 Cross Section with Assay Results and Geology

Fresh rock intersections into the targeted Main Fault have delivered several well-mineralised zones that have been confirmed with a portable XRF. A series of mineralised stacked lenses in the hanging wall and footwall have also been drilled on multiple sections.

These zones vary in size, geology and grade.

Figure 3: Cummins Range Vertical Long Projection of the Main Fault

RareX Limited
Unit 6, 94 Rokeby Road, Subiaco WA 6008 Ph: 08 6383 6593 ACN: 105 578 756	3

For personal use only

Figure 4: Cummins Range Drill Plan Showing REE Mineralisation and 2021 Drill Holes

Figure 5 shows a cross-section with previously announced hole CRX0063 (41m at 2.4% TREO and 0.5% Nb2O5, including 10m at 4.1% TREO, as reported in the ASX announcement of 9 September 2021) and three diamond drill holes, CDX0011, CDX0012 and CDX0016.

The deeper hole, CDX0016, intersected multiple zones - all with disseminated to massive monazite. The deepest zone is 12m wide and 275m down-hole and is shown in photo 1. The zone is composed of patchy massive monazite on an ultramafic carbonatite contact.

Assays are pending.

RareX Limited
Unit 6, 94 Rokeby Road, Subiaco WA 6008 Ph: 08 6383 6593 ACN: 105 578 756	4

For personal use only

Figure 5: Cummins Range Cross Section with Stacked Lenses

Photo 1: Cummins Range deepest intercept to date with patchy to massive monazite - outlines of the massive monazite in blue

(note: monazite typically runs 60-70% TREO)

RareX Limited
Unit 6, 94 Rokeby Road, Subiaco WA 6008 Ph: 08 6383 6593 ACN: 105 578 756	5