Announcement PDF ASX Announcement 31 May 2023 YANGIBANA PROJECT UPDATE Staged development strategy to reduce project delivery risk and enable faster pathway to cash flow HIGHLIGHTS • Results of the project capital and delivery model review support a staged development strategy for the Yangibana Rare Earths Project • This strategy will reduce upfront capital requirements and project execution risks as well as providing a faster pathway to cash flow by Q1 2025 • Initial focus will be on construction of the Yangibana mine and beneficiation plant to produce rare earths concentrate (Stage 1), followed by development of a hydrometallurgical plant to produce mixed rare earth carbonate (Stage 2) • Total project capital cost is now estimated at $948m, with the Stage 1 component being $470m (a 40% increase to the estimate from 2020/21) • Fixed price contracting model aims to minimise risk of further capital cost increases, demonstrated by the recent arrangement with GR Engineering for construction of the beneficiation plant • Beneficiation plant construction to commence in Q3 CY2023, supporting Stage 1 concentrate delivery target date of Q1 CY2025 • Concentrate offtake discussions underway with rare earth oxides producers in Australia and offshore with a view to concluding firm contracts prior to drawdown of project finance debt in early 2024 • Potential for strong Stage 1 financial returns with post-tax NPV11 of $538m, an IRR of 27.54% and average annual EBITDA of $174m providing a funding source for Stage 2. Hastings Executive Chair, Mr Charles Lew, said: “The Yangibana Rare Earths Project is one of the world’s most advanced greenfield rare earth projects and is well-timed to meet the forecast supply gap for magnet rare earth elements which are required to support the global transition to clean energy. “A comprehensive project review undertaken by our new experienced management team has confirmed that this world-class project remains financially and operationally robust, with the investment in a Stage 1 mining and beneficiation plant being a compelling proposition.” “The implementation of a two-stage development strategy for Yangibana will lower the upfront capital funding requirements, reduce the project execution risk and enable a faster pathway to early project cash flows which can be used to fund Stage 2 plant construction.” HASTINGS TECHNOLOGY METALS LIMITED Level 3, 5 Mill Street, Perth WA 6000 www.hastingstechmetals.com | +61 8 6117 6118 Page 1 of 6 Australia’s next rare earths producer, Hastings Technology Metals Ltd (ASX: HAS) (Hastings or the Company), is pleased to provide an update on the outcomes of a review of the implementation plan for the Yangibana Rare Earths Project (Yangibana) in Western Australia. The review commenced during Q1 CY2023 with the objectives of mitigating scheduling and project execution risks and defining the capital cost for the beneficiation plant and hydrometallurgy plant. STAGED DEVELOPMENT STRATEGY The key strategic outcome of the review is the staging of the development of the Yangibana mine and beneficiation plant in the Gascoyne region, followed by the construction of the planned hydrometallurgical plant at Onslow in the Pilbara region. Hastings considers that a staged development of the Yangibana Project is the optimum strategy to allow the production of first concentrate in Q1 CY2025 and a faster pathway to cash flow which can be used to support funding of the hydrometallurgy plant. Under the new strategy, the Yangibana Project will be developed in two stages: • Stage 1: Develop Yangibana mine and beneficiation plant to produce 37,000 tpa of rare earth concentrate and achieve first concentrate on truck by Q1 CY2025 • Stage 2: Develop Hydrometallurgy plant at Onslow to produce 15,000 tpa of Mixed Rare Earth Carbonate (59% REO grade) Construction for Stage 1 is expected to commence in Q3 CY2023 following the completion of early works and site infrastructure currently at late stages of completion. The timing of the second stage development will be determined after Stage 1 beneficiation plant has commenced. UPDATED CAPITAL AND OPERATIONAL ESTIMATES Reflecting the outcome of the project review, the capital estimate for Stage 1 and 2 of the Yangibana Project is revised to $948m, which is an approximate 44% increase on a like-for-like basis to the estimates from 2020/21 (announced in February 2022). The increase reflects industry cost inflation, project scope refinement and design growth and third-party imposed conditions. The estimated capital cost of $470m for Stage 1 includes a contingency of $54m. Taking into account capitalised operating expenditure, general and administrative costs, corporate costs, operational readiness, holding costs for Onslow, capitalised interest and funding costs, the total funding requirement for Stage 1 is $770m, of which $87m has been expended on early infrastructure works. Table 1: Construction Phase Summary Stage 1 Stage 2 Main construction start Q3 2023 Q3 2026 Construction completion Q4 2024 Q4 2027 Total capital costs $470m $478m Capital costs incurred $87m 1 $25m 1 Includes contingency HASTINGS TECHNOLOGY METALS LIMITED Level 3, 5 Mill Street, Perth WA 6000 www.hastingstechmetals.com | +61 8 6117 6118 Page 2 of 6 An approximate 30% increase in the estimated operational expenditure for Stage 1 is broadly in line with market conditions, including labour and supply chain costs and price increases for the reagents required for processing. Table 2: Operations Summary Stage 1 Stage 2 Life Of Mine (LoM) 17 years (Initial 3 years) 17 years (14 years from Stage 2) Production start Q1 2025 Q1 2028 Production end Q1 2028 (Start of Stage 2) Q3 2041 92,953t (Initial 3 years) 191,848t (14 years) Contained TREO 25,097t (Initial 3 years) 113,190t (14 years) Contained NdPr 10,295t (Initial 3 years) 39,702t (14 years) Production Stage 1 – Concentrate Stage 2 – Mixed Rare Earth Carbonate PROJECT ECONOMICS The Stage 1 project delivers attractive forecast economic returns on a standalone basis, which will be further enhanced by the future Stage 2 investment. The pricing scenarios being considered for Stage 1 product include sales to Mixed Rare Earth Carbonate producers via (i) China benchmark price (via Asian Metals published prices) or (ii) tolling arrangement or (iii) profit sharing basis based on the producers’ realised oxides price. The current assumption for financial modelling purposes is that a profit-sharing arrangement will apply, net-backed to cover both parties’ costs. Table 3: Key Financial Metrics3 Post-tax NPV11 (ungeared) Stage 1 (Standalone) $538m Stage 2 (from Stage 2 FID) $1,018m Post-tax IRR (ungeared) 27.54% 50.93% Payback period 4.4 years Net revenue (LOM) $7,201m Free cash flow (LOM) $1,835m $2,443m Average EBITDA per annum $174m $251m Further upside on Stage 2 FID 2.1 years $11,098m 3 Key Assumptions REO price: Stage 1 (~US$24/kg assuming profit sharing model whereby HAS receives a price (real terms) of $18-28/kg). Stage 2 (Blend of three Market Consultants’ forecasts including Wood Mackenzie, Adamas Intelligence and CRU (10-year average: US$129/kg NdPr) FX: A$/US$ 10-year (1st 10 years: 0.68), Forward curve thereafter (Bloomberg) Discount Rate: Nominal, Post-Tax, 10.70% (equates to 8% real) Valuation Dates: Stage 1 (1-Jul-23), Stage 2 FID (1-Jul-26) NPV excludes >$100m sunk costs since Feb-22 (~$90m attributable to Stage 1 capital costs) HASTINGS TECHNOLOGY METALS LIMITED Level 3, 5 Mill Street, Perth WA 6000 www.hastingstechmetals.com | +61 8 6117 6118 Page 3 of 6 BASIS OF ESTIMATE The updated capital cost estimate pricing was obtained in first quarter of 2023 and is in Australian dollars (A$). The overall capital estimate has an estimated accuracy of -10/+15%. The operating cost estimate is based on current industry rates for mining, labour costs for an owner operator model and updated market pricing for reagents and consumables. It also includes factored allowances for maintenance and other relevant costs. CONTRACTOR DELIVERY MODEL To give greater certainty to the capital estimate and delivery schedule, Hastings chose to adopt a fixed price contract model which reduces overall project risk and limits further increases to the project’s capital cost. In line with this strategy, the original Engineering, Procurement and Construction Management (EPCM) model for the beneficiation plant was recently replaced with an Engineering, Procurement and Construction (EPC) delivery model. This had the result of replacing approximately 260 separate Stage 1 construction packages with a single, fixed price estimate with a single provider. On 3 May 2023, Hastings announced it had entered into a binding EPC terms sheet with GR Engineering (GRES) for the delivery of the Yangibana beneficiation plant and associated infrastructure. The $210m contract is lower than cost estimates for an equivalent scope under the current EPCM model and includes: • A fixed price component of $180m for the beneficiation plant; and • A provisional component of $30m, mainly for earthworks associated with the beneficiation plant and tailings storage facility. The EPC contract offers additional benefits and lowers risk in multiple areas, compared with the EPCM model, including guarantees on time, cost and product quality with first concentrate delivery in Q1 CY2025. YANGIBANA PROJECT UPDATE Early infrastructure works at Yangibana are in the final stages, ahead of the commencement of main construction in Q3 CY2023, including: • Kurrbili Accommodation Village: Stage 1 which includes the first 126 of 298 rooms, kitchen, messing facilities, medical centre, administration buildings and gym will be ready for occupancy in May 2023 – 90% complete. • Yangibana Aerodrome: 2km landing strip completed – allowing for up to 70-seater aircraft, first flight to Yangibana airstrip on 18 May 2023. Aerodrome buildings to be completed in August 2023. • SipHon borefield and pipeline: works are underway on water infrastructure, which will supply water to the village, mine and construction works – 50% complete. • Site Access Road: Construction of ~25km access road alignment trafficable with two lanes to connect with shire road network – 80% complete. • Communications: A series of communication towers installed to allow permanent high speed communication with site – 100% complete. • Engineering design: progress achieved for the Yangibana beneficiation plant - 60% complete and handed over to the new EPC contractor (GRES) for completion by August 2023. HASTINGS TECHNOLOGY METALS LIMITED Level 3, 5 Mill Street, Perth WA 6000 www.hastingstechmetals.com | +61 8 6117 6118 Page 4 of 6 NEXT STEPS In addition to the early site works detailed above, a three-month early works agreement is now in place for the beneficiation plant and infrastructure work, allowing GRES to immediately commence work on site, ahead of the final agreement being finalised and the start of main construction in Q3 CY2023. Hastings signed a binding offtake contract with Thyssenkrupp AG in April 2021 for up to two thirds of its annual production volume4. To support the staged development strategy, concentrate offtake discussions with rare earth oxides producers in Australia and offshore are underway with a view to concluding firm contracts prior to drawdown of project finance debt. Discussions to finalise the debt funding to support Stage 1 are well-advanced with lenders. NAIF’s Board has approved a $220m loan facility for the Yangibana Project under a single stage combined beneficiation and hydrometallurgical plants construction5. In addition, EFA has provided a letter of support to lend up to $100m for the Project6. A letter of support for up to $50m in funding has been received from a major international bank. Hastings is working with existing lenders and other financiers to finalise a project funding package for Stage 1 by the end of September 2023. This report has been approved by the Board for release to the ASX. FOR FURTHER INFORMATION CONTACT: Alwyn Vorster Chief Executive Officer +61 8 6117 8621 MEDIA QUERIES: Stephanie Vanicek Communications Manager +61 405 183 237 4 See ASX Release ‘Hastings signs major offtake contract with thyssenkrupp Materials Trading GmbH’, dated 20 April 2021 5 See ASX Release ‘NAIF Increases Financial Support for Yangibana Rare Earths Project to A$220 million’, dated 17 January 2023 6 See ASX Release ‘Letter of Support secured from Export Finance Australia for $100m loan’, dated 21 March 2023 HASTINGS TECHNOLOGY METALS LIMITED Level 3, 5 Mill Street, Perth WA 6000 www.hastingstechmetals.com | +61 8 6117 6118 Page 5 of 6 ABOUT HASTINGS TECHNOLOGY METALS LIMITED Hastings Technology Metals Limited (ASX: HAS) is a Perth based rare earths company primed to become the world’s next producer of neodymium and praseodymium concentrate (NdPr). NdPr are vital components in the manufacture of permanent magnets used every day in advanced technology products ranging from electric vehicles to wind turbines, robotics, medical applications, digital devices, etc. Hastings’ flagship Yangibana Project (which comprises a mine and beneficiation plant at the Yangibana site, and a hydrometallurgical plant at Onslow), in the Gascoyne and Pilbara regions of Western Australia, contains one of the most highly valued NdPr deposits in the world with NdPr:TREO ratio of up to 52% in some areas of the orebody. The Project is permitted for long-life production and with offtake commitments signed and debt finance in advanced stage. Hastings also owns and operates the Brockman project, Australia’s largest heavy rare earths deposit, near Halls Creek in the Kimberley. For further information on the Company and its projects visit www.hastingstechmetals.com HASTINGS TECHNOLOGY METALS LIMITED Level 3, 5 Mill Street, Perth WA 6000 www.hastingstechmetals.com | +61 8 6117 6118 Page 6 of 6 Australia’s Next Rare Earths Producer Yangibana Rare Earths Project Staged development strategy Hastings Technology Metals Limited | ASX : HAS 31 May 2023 Importance notices and disclaimer All currency amounts are in A$ unless stated otherwise Disclaimer This presentation has been prepared by Hastings Technology Metals Limited (“Company” or “Hastings”). This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any securities in the Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile statement or offer information statement nor does it constitute investment or financial product advice (nor taxation, accounting or legal advice) and it is not intended to be used as a basis for making an investment decision. This presentation is provided expressly on the basis that you will carry out your own independent inquiries into the matters contained in the presentation and make your own independent decisions about the affairs, financial position or prospects of the Company. The Company reserves the right to update, amend or supplement the information at any time in its absolute discretion (without incurring any obligation to do so). To the maximum extent permitted by law neither the Company, nor its related bodies corporate, officers, their advisers, agents and employees accept any responsibility or liability to any person or entity as to the accuracy, completeness or reasonableness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any omission from this presentation, nor as to the attainability of any estimates, forecasts or projections set out in this presentation. Any such responsibility or liability is, to the maximum extent permitted by law, expressly disclaimed and excluded. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities in the United States or any other jurisdiction where it would be illegal. It does not include all available information and should not be used in isolation as a basis to invest in the Company. Forward Looking Statements This presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of the Company. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the control of the Company. No representation or warranty, express or implied, is made by the Company, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause the Company’s actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategies and prospects. The Company does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended. Corporate Presentation | Staged Development Strategy The Company is under no obligation to, nor makes any undertaking to, update or revise such forward looking statements, but believes they are fair and reasonable at the date of the presentation. Competent Persons’ Statement The information in this release that relates to Mineral Resources is based on information compiled by David Princep and Lyn Widenbar. Both Mr. Princep and Mr Widenbar are independent consultants to the Company and members of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Princep and Mr Widenbar have sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this announcement and to the activity which they are undertaking 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’ (“JORC Code”). The information in this announcement that relates to the Ore Reserves at Bald Hill, Simon’s Find, Fraser’s, Auer, Auer North, Yangibana and Yangibana North is based on information reviewed or work undertaken by Mr. Stephen O’Grady, member of the Australasian Institute of Mining and Metallurgy, and a Director of Intermine Engineering Consultants. Mr O’Grady has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the preparation of mining studies to qualify as a Competent Person as defined by the JORC Code 2012. Mr O’Grady consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. The scientific and technical information in this announcement and that relates to process metallurgy is based on information reviewed by Ms. Narelle Marriott (General Manager Process Development) of Hastings Technology Metals Limited. Ms. Marriott is a member of the AusIMM and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined by the JORC Code 2012. Ms. Marriott owns shares in the company and participates in the company employee share plan. Ms. Marriott consents to the inclusion in this announcement of the matters based on their information in the form and context in which it appears. The information in this announcement that relates to Exploration Results in relation to the Yangibana Project is based on information compiled by Mr. Andrew Ford BSc (Hons), a Competent Person, who is a member of the Australian Institute of Mining and Metallurgy. Mr. Ford has sufficient experience that is relevant to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. The Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release. Mr. Ford consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears. 2 Corporate overview Developing the world-class Yangibana Rare Earths Project in Western Australia Share price1 Shares on issue $2.10 129.2m Market capitalisation $271m HAS 12-month share price vs NdPr oxide price2 $150m Key shareholders 160 Long-term NdPr Oxide Forecast3 140 5.00 120 4.00 100 3.00 80 60 2.00 40 1.00 20 May 2021 May 2022 $292m Key assets L1 Capital 11.8% Yangibana Project Western Australia Top 20 Shareholders 44.7% Brockman Project Western Australia 5.5% 19.9% holding in Neo Performance Materials Inc (TSX:NEO) Canada 0 May 2023 Historical HAS Share Price (A$/sh) NdPr oxide price US$/kg 180 6.00 A$/sh $129m Enterprise value 200 7.00 0.00 Cash at 30 April 2023 Exchangeable bonds to Wyloo NdPr Price (Historical) NDPr Price (Blended Forecast) Board and Management 1 As at 26 May 2023 2 Asian Metal NdPr oxide ex-works price (daily) in RMB/kg converted to USD 3 Blended NdPr oxide long-term price forecast (Woodmac, CRU, Adamas Intelligence) Corporate Presentation | Staged Development Strategy 3 Yangibana overview Proven and de-risked flowsheet initially producing a concentrate, followed by a highvalue mixed rare earth carbonate to global market Stage 2 Hydrometallurgical plant Halls Creek Broome Mining 20.9 Mt Ore Reserve for 17-year mine life1 Beneficiation Crushing, grinding, flotation, tailings & handling Hydrometallurgy Cracking, leaching, precipitation & drying Port Hedland Dampier Onslow Onslow Plant Yangibana Mine Site Carnarvon ~1.1 Mtpa to crusher Traditional drill, blast, load & haul ~37,000tpa concentrate (27% TREO) 15,000tpa Mixed Rare Earth Carbonate (59% TREO) Meekatharra Geraldton Kalgoorlie Perth ~3,400 tpa NdPr Albany Stage 1 Yangibana mine and beneficiation plant 1 Refer ASX announcement “Yangibana Ore Reserves Increase by 25%”, dated 6 February 2023. Mine Life based on new Ore Reserve estimate. Corporate Presentation | Staged Development Strategy 4 Staged development strategy Staged development strategy Enhanced two-stage delivery model supporting a de-risked pathway to becoming Australia’s next rare earths producer by Q1 CY2025 Rare Earth Concentrate Stage 1 Mixed Rare Earth Carbonate Stage 2 Downstream processing Stage 3 Double production Stage 1b Double production at Yangibana Yangibana mine and beneficiation Hydrometallurgical plant • Fixed price EPC contact terms sheet signed with GR Engineering • Downstream processing providing higher margins • 19.9% ownership in Neo Performance Materials • Become a globally significant Concentrate producer • Reduces initial capital cost and technical and execution risks • Use Stage 1 free cash flows to fund equity portion of Stage 2 • Complete scoping study in 2023 • Enabling a faster pathway to project cashflows • Secure additional debt for the balance of funding required • Opportunity to vertically align and increase Hastings’ downstream processing capacity Mine to magnet strategy • Consider mine gate purchasing from other juniors • Discussions ongoing with high quality offtake partners Short term - first concentrate delivery in Q1 CY2025 Develop after Stage 1 reaches practical completion Corporate Presentation | Staged Development Strategy Strategic plan for future growth and business sustainability 66 EPC delivery model reducing risk Fixed price EPC contract for the beneficiation plant GR Engineering ~$210m binding terms sheet entered with final form contract to be completed shortly De-risks delivery Offers additional benefits and lowers risks in multiple areas compared to previous EPCM model: • Cost significantly lower • Completion 3-months quicker • Construction packages reduced • Process and product quality guarantees Timeframe Greater certainty with practical completion by December 2024 and first concentrate sale in Q1 CY2025 Corporate Presentation | Staged Development Strategy 7 Project execution schedule Staged Development Strategy enabling a quicker and lower risk pathway to cashflow to support funding of Stage 2 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3 Q4 Q1 2026 Q2 Q3 Q4 Q1 2027 Q2 Q3 Q4 Q1 2028 Q2 Q3 Q4 Yangibana EPC terms agreed Enabling Works (Airstrip, Roads, Roads) First Concentrate on Truck Utilities & Services (Power, Water, Gas) Process Plant Start of main construction Commission Q3 2025 – cashflow positive Production Ramp Up to ~37ktpa (27% TREO Concentrate) Q2 2026 nameplate Onslow Enabling Works Utilities & Services (Power, Water, Gas) Process Plant Commissioning Ramp Up to 15,000 tpa MREC (59% TREO) Q4 2028 nameplate First MREC on Ship Corporate Presentation | Staged Development Strategy 8 Staged construction and production metrics Results of comprehensive project review to reduce overall project delivery risk Stage 1 Stage 2 Yangibana mine and beneficiation plant Hydrometallurgical plant Main construction start Q3 2023 Q3 2026 Construction completion Q4 2024 Q4 2027 Total capital costs $470m1 $478m Capital costs incurred $87m $25m 17 years (Initial 3 years) 17 years (14 years from Stage 2) Production start Q1 2025 Q1 2028 Production end Q1 2028 (start of Stage 2) Q3 2041 Production Stage 1 – Concentrate Stage 2 – Mixed Rare Earth Carbonate 92,953t (Initial 3 years) 191,848t (14 years) Contained TREO 25,097t (Initial 3 years) 113,190t (14 years) Contained NdPr 10,295t (Initial 3 years) 39,702t (14 years) CONSTRUCTION PHASE OPERATIONS Life of mine Project capital cost • Capital cost for Stage 1 and 2 of $948m, representing a 44% increase from 2020/21 estimates • Phased into two stages to de-risk project, generate early cash flow and lower upfront funding requirement • Significant advancement of early infrastructure works reducing remaining Stage 1 capital cost to $383m (incl contingency) • Stage 2 equity partially or completely funded from Stage 1 concentrate sales Production • Circa 8Ktpa TREO and 3Ktpa NdPr for both Stage 1 and 2 • Total NdPr over LOM increased to 50Kt (from 43.3Kt in February 2022) due to mine life extension from 15 to 17 years Includes contingency 2 Capitalised operating expenditure, G&A, Corporate, Operational Readiness, Onslow holding costs, capitalised interest and funding costs 1 Corporate Presentation | Staged Development Strategy 9 Stage 1 capex estimates Capital intensity per % NdPr produced remains competitive with other developers Stage 1 capital cost (~A$470m) Total Cost (A$M) Total Cost (US$M) % Processing Plant (and NPI) 210 143 45 Enabling Works1 88 60 19 Subtotal - Direct Capital Cost 298 203 64 Hastings Project Mgt 58 40 12 Other Indirects2 59 40 13 Subtotal - Indirect Capital Cost 117 80 25 Contingency/Reserve 55 37 11 TOTAL Capital Cost 470 320 100 Incurred to date 87 57 19% Remaining 383 252 81% CAPEX 11% 13% A$470m 45% 12% 19% Processing Plant (GRES contract) Enabling works Hastings Project Mgt Other indirects Project cost review Capex increases attributed to following factors (broadly equally) to: i. Market inflation ii. Design growth iii. Third-party imposed conditions Stage 1 capex ~40% increase from 2020/21 estimates – new fixed price EPC delivery model to reduce price escalation risk Contingency 1Enabling works ($88m or 19%) represents: roads, aerodrome, village and borefields 2Other indirects ($59m or 13%) represents: fuel and accommodation, IT and comms, health and safety, consultants, insurances and other Corporate Presentation | Staged Development Strategy 10 Operating expenditure competitive positioning Opex intensity per % NdPr produced remains competitive with other developers Stage 1 operating cost 8% 14% Cost US$/kg REO 25.8 14 3.09 2.10 Power 14.9 8 1.79 1.22 Reagents and Consumables 26.1 14 3.12 2.12 Concentrate Transport 11.0 6 1.32 0.90 Tailings Transport 13.9 7 1.66 1.13 Other1 14.8 8 1.78 1.21 Contract Mining 63.5 33 7.59 5.16 Subtotal Direct cash cost 170.2 90 20.35 13.84 G&A 19.6 10 2.34 1.59 Total 189.8 100 22.69 15.43 Labour Operating Costs 10% 8% A$22.69/kg 14% 33% 6% 7% Labour Reagents and Consumables Tailings Transport G&A % Cost A$/kg REO Total Cost (A$M pa) Power Concentrate Transport Contract Mining Other Stage 1 opex ~30% increase from 2020/21 estimates, largely due to labour, supply chain bottlenecks and cost of reagents Operational readiness Inclusion of >$100m for capitalised operation expenditure, G&A and operational readiness 1Other represents: diesel consumption (3%), maintenance materials (2%), vehicle hire (2%), laboratory (1%) Corporate Presentation | Staged Development Strategy 11 Revenue competitive positioning High NdPr content in Concentrate and MREC support strong revenue assumptions Yangibana revenue1 NdPr 3% 3% Dy Tb Stage 1 LOM NdPr Content1 Strong offtake demand for Stage 1 Concentrate – discussions ongoing Pricing scenarios for Concentrate include sale to Mixed Rare Earth Carbonate producers via: i. Asian Metal benchmark price ii. Tolling arrangement iii. Profit sharing based on their realis