Ann: EXPLORATION UNDERWAY AT HIGHLY PROSPECTIVE WELD NORTH, page-2

EXPLORATION UNDERWAY AT HIGHLY PROSPECTIVE WELD NORTH RARE EARTHS PROJECT

Drilling program buoyed by recent strong appreciation in Rare Earths pricing, with NdPr Oxide price up 40% in recent weeks

HIGHLIGHTS

• All drill pads cleared and air-core drilling to commence later this week at the Weld North Rare Earths Project, located ~350km north of Kalgoorlie.
• Drilling targeting a large circular magnetic anomaly, which may offer geological similarities to Lynas Corporation’s world-class Mt Weld rare earths mine, located 84km directly south.
• Rare Earths prices have increased significantly in China, with the NeodymiumPraseodymium (NdPr) Oxide price up 40% over recent weeks.

Australian rare earths explorer, RareX Limited (ASX: REE) (RareX or the Company), is pleased to advise that exploration programs have commenced at the Weld North Rare Earths Project, located 350km north of Kalgoorlie in Western Australia, with drilling set to commence later this week.

The Weld North Project covers a large, circular magnetic anomaly that may represent a carbonatite intrusive complex similar to those that host the majority of the world's existing rare earth element production – including Lynas Corporation’s world-class Mt Weld mine, located 84km south of Weld North, and RareX’s Cummins Range Rare Earth Project.

The drilling program will comprise high-impact, inexpensive air-core drilling to test under the cover sequence across the full width of the interpreted intrusion.

The program will assess if the source of the magnetic anomaly is a carbonatite intrusion, similar to the high-grade Mt Weld mine, or a granitic intrusion. Drilling will take 2-3 weeks, with results expected to be available in January. RareX is commencing drilling of this high-potential rare earths target against the backdrop of renewed interest in the rare earths sector and recent strong appreciation in the prices of many of the major rare earth elements, particularly those used in Rare Earth Permanent Magnets (REPMs) used in the high-growth electric vehicle and renewable energy sectors.

The price of Neodymium-Praseodymium (NdPr) Oxide has moved sharply higher over recent weeks, increasing by approximately 40% since the start of November to a current price of US$68/kg.

RareX Managing Director, Jeremy Robinson, said: “This is a really exciting drilling program which will deliver our first real assessment of the geology of the intrusive complex at Weld North, and whether it has a similar make-up to Lynas’ world-class Mt Weld mine to the south. “While our core focus remains on the development of our flagship Cummins Range Rare Earths Project in WA, success from this drilling at Weld North could deliver a substantial re-rating for RareX.

“We are also greatly encouraged by the recent surge in pricing for key rare earths elements, driven by the rapidly growing use of Rare Earth Permanent Magnets.”

This is where we find out where the rubber hits the road.