Announcement PDF Not for release to US wire services or distribution in the United States Rights Issue Presentation 18 April 2024 Hastings Technology Metals Ltd | ASX:HAS 1 Photo: Kurrbili Village DISCLAIMER 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, strategies, and prospects of the Company. Those intentions, expectations, future plans, strategies, 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. 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 presentation relating to Mineral Resources and Ore Reserves have been prepared by a Competent Person in accordance with the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code”) and have been extracted from the release titled ‘Yangibana Ore Reserves Increase by 25%’ dated 6 February 2023, which is available to view at www.asx.com.au under the code “HAS” (the original release). The Company confirms that it is not aware of any other new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Hastings confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. The information 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 JORC Code. The information 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. Mr O’Grady is an independent consultant to the Company, a member of the AusIMM, 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. 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 that relates to process metallurgy is based on information reviewed by Ms Narelle Marriott (former 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. Ms Marriott owned shares in the Company and participates in the Company’s 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 that relates to Exploration Results in relation to the Yangibana Project is based on information compiled by Dr Louis Schürmann (PhD) (Chief Geologist) of Hastings Technology Metals Limited. Dr Schürmann is a Fellow of the AusIMM and has sufficient experience that is relevant to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code. The Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release. Dr Schürmann consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears. This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US state securities laws. 2 EQUITY RAISING OVERVIEW $22.15m Rights Issue to existing shareholders for advancement of the Yangibana Project development Equity Raising Overview Offer Size and Structure • Partially underwritten pro-rata renounceable entitlement offer to Eligible Shareholders of 9 New Shares for every 20 Shares held to raise up to $22.15 million (before costs) (“Entitlement Offer”) • 61.5 million shares to be issued under the maximum Entitlement Offer (“New Shares”) reflecting 45% of the existing ordinary shares on issue • The Company will have 198 million shares on issue post the Entitlement Offer if the maximum Entitlement Offer is subscribed for • New Shares issued under the Entitlement Offer will rank pari passu with existing fully paid ordinary shares on issue • New Shares to be issued under the Entitlement Offer at a price of $0.36, which represents a discount of: Offer Price Attaching Options Uses of Funds Key Shareholder Participation • 40% to the last closing price of $0.605 per share on 22 March 2024 • 42% to the five-day volume weighted average price (“VWAP”) of $0.6159 as at 22 March 2024 • 32% to the theoretical ex-rights price (“TERP”) of $0.53 • 1 for 3 free listed options at an exercise price of $0.50 and expiry date two years post issue date • The Company proposes to use proceeds from the Entitlement Offer towards long lead equipment & associated engineering, professional services fees, working capital and project finance due diligence • The Executive Chairman, Board and Key Management Personnel intend to take up their entitlement under the Entitlement Offer • The Entitlement Offer is partially underwritten to $8.75 million by the following: Underwriters • Equator Capital Management Ltd, Advance Opportunities Fund, Paramount Star Investments Limited, Chiu Ling Ngooi, Neil Franks, Mun Kee Chang, Johann Chik and Yu Huei Wang Lead Manager • Canaccord Genuity has been appointed as lead manager for the potential placement of any New Shares under the Shortfall Order Legal Adviser • Steinepreis Paganin 3 EQUITY RAISING TIMETABLE Entitlement Close Date of 24 April 2024 Timetable Event Date Announcement of Entitlement Offer Wednesday, 27 March 2024 Lodgment of Prospectus (ASIC & ASX) Wednesday, 27 March 2024 Ex Entitlement date Tuesday, 2 April 2024 Rights trading starts Tuesday, 2 April 2024 Record Date for determining Entitlements (5:00pm AWST) Entitlement Offer opening date / prospectus sent out Wednesday, 3 April 2024 Friday, 5 April 2024 Rights trading ends at close of trading Wednesday, 17 April 2024 Trading in shares commences Thursday, 18 April 2024 Entitlement Close Date (5:00pm AWST) Wednesday, 24 April 2024 Announcement of Entitlement Offer results (including shortfall, if any) Monday, 29 April 2024 Underwriter subscribes for shortfall under terms of Underwriting/Sub-Underwriting Agreement Tuesday, 30 April 2024 Cash settlement Tuesday, 30 April 2024 Quotation of New Shares under Entitlement Offer Wednesday, 1 May 2024 Issue of any remaining shortfall securities under the Shortfall Offer By no later than Wednesday, 24 July 2024 The timetable is indicative only and subject to variation. The Company reserves the right to alter the timetable at its discretion and without notice, subject to ASX Listing Rules and the Corporations Act. 4 EQUITY RAISING OUTCOME Utilisation of funds to strengthen balance sheet and advance final funding package through to final investment decision and main construction Purpose of the Offer1 Pro-forma Balance Sheet2 AUD Interim Financial Report Consolidated Project management team costs $1,149,476 31-Dec-23 Payment for long lead equipment & associated engineering costs $13,054,855 Site overheads, ongoing maintenance, ESG, & marketing $2,808,912 Corporate costs including office costs/G&A, project funding/DD, insurance, IT $4,575,286 Total (excl. costs) $21,588,529 Expenses of offer Item Total Uses 1Refer to section 3.1 of Prospectus released 27 March 2024 for further information on purpose of the Offer. Pro-forma fully subscribed Renounceable Rights Issue Pro-forma Post Rights Issue Current Assets $47,391,854 $21,588,529 $68,980,383 Non-Current Assets $418,277,643 - $418,277,643 Current Liabilities $17,876,433 - $17,876,433 $557,949 Non-Current Liabilities $153,851,699 - $153,851,699 $22,146,478 Net Assets $293,941,365 $21,588,529 $315,529,894 2Refer to section 3.4 of Prospectus released 27 March 2024 for full details of the pro-forma balance sheet. 5 CORPORATE SNAPSHOT Significant value upside from development of the Yangibana Rare Earths Project Yangibana Project Reserve inventory of 20.9mt with high NdPr:TREO ratio3 Current mine life of 17 years with significant upside $294 million $0.37 Investment of $142 million in early works Net Assets4 Share price1 137 million $42 million Ordinary shares on issue2 Cash balance at 31 December 2023 inclusive of restricted funds $49.59 million 21.15% Market capitalisation1 Investment in rare earth materials and magnet producer Neo Performance Materials (TSX:NEO) WESTERN AUSTRALIA Onslow Carnarvon Gascoyne Junction Major shareholders 12% Executive Chairman Charles Lew and family 6.6% L1 Capital ~45% Top 20 Shareholders Geraldton Retail Institutions Employees Other Perth Yangibana 1 At 16 April 2024 2 Includes 4.5 million shares issued to Alpha Investment Partners as collateral for the At-The-Market facility 3 Refer ASX announcement “Yangibana Ore Reserves Increase by 25%”, dated 6 February 2023 4 Refer ASX announcement “Half Yearly Report and Accounts”, dated 15 March 2024 AUSTRALIA 6 6 YANGIBANA - UNIQUE TIER ONE ASSET World-class deposit with unrivalled high percentage of NdPr:TREO in the orebody in a tier one jurisdiction, supplying the critical raw materials for rare earth magnets Average NdPr:TREO Ratio1 Sichuan (China) 14% Mountain Pass (US) NdPr is critical to the energy transition 16% Kangankunde (Malawi) 20% Ngualla (Tanzania) 21% Bayan Obo (China) 21% Mt Weld (Western Australia) Nolans (Northern Territory) 23% 26% Songwe Hill (Malawi) 33% Yangibana Project (Western Australia) 37% Average NdPr:TREO ratio surpassing most global projects Up to 52% NdPr:TREO ratio in certain parts of the orebody 1 Source – refer to slide 37 7 STRATEGIC HIGHLIGHTS Significant progress made to de-risk the pathway to first concentrate production in 20261 Globally significant world-class asset World-class rare earth deposit with high proportion of neodymium and praseodymium (average of 37% over mine life) in the rare earth basket, producing minerals critical to the global energy transition De-risked project execution strategy Shovel ready and fully permitted with $142 million invested to date (December 2023) in non-processing infrastructure and long-lead critical path equipment and with EPC contract in place to commence main construction High margin offtake supporting robust project economics New processing and offtake arrangement to deliver improved economic returns including post-tax NPV11 of $865 million and IRR of 31.28%1 and enhance project funding options and flexibility ESG focus Leading ESG credentials assessed by independent third-parties, providing employment and business development opportunities for local communities and Traditional Owners Clear long-term strategy to maximise value Yangibana is a multi-generational project with significant exploration upside to support the increase in mine life, while also evaluating opportunities for value-adding downstream processing opportunities 1 Refer ASX announcement “Binding Term Sheet Signed for Integrated Tolling and Offtake”, dated 16 February 2024 8 13X YANGIBANA PROJECTS TO MEET DEFICIT Supply deficit for rare earths driven by growth in demand for permanent magnets this decade1 Global REO Magnet Demand – Anticipated Growth2 NdPr Oxide – Forecast Supply and Demand Balance2 Supply Electric Vehicles / mobility Wind Power Industrial Consumer Demand Other Demand • Early 2026 First Concentrate – Yangibana Project CAGR 7.8% • Supply +189% • • • +180% 2023 2032 1 Refer to Appendix B: Key Risks CAGR of 7.8% for rare earth magnets driven predominantly by electric vehicles and renewable energy technologies Significant demand gap to continue growing for the next decade 2023 2 Global REO Magnet Demand represents rare earth elements used in magnets only (Nd, Pr, Dy, Tb oxides) Source (Global REO Magnet Demand – Anticipated Growth): Adamas Intelligence Forecast (April 2023) Source (NdPr Oxide – Forecast Supply and Demand Balance): Adamas Intelligence Forecast (Rare Earth Magnet Outlook to 2040 Q2/2023) 13x Yangibana Projects required by 2032 to support demand Near-term supply-side risks due to long project development lead times Market-wide cost escalations impacting potential developers 2032 9 SHORT TERM MARKET DYNAMICS Prices are recovering and sophisticated investors are building positions within the sector • Rare earth prices starting to rebound1 • • • Electric vehicle sales and wind turbines2,3 • Sophisticated investors and global partnerships • Global government support for alternative supply chain • • • Neodymium and praseodymium oxide prices have increased by ~10% in the past month on key markets Supply deficit expected to widen past 2030 Uncertainty around existing supply form Myanmar has potential to disrupt supply into China With inflation moderating and potential for lower interest rates this could bolster consumer confidence and spending Chinese EV sales have continued to increase, up 14.7% year-on-year from January to March 2024 Wind turbines – new data from International Energy Agency indicates the global offshore market grew by 35% in 2023 and the much larger onshore market added 46% more capacity Continued investment in rare earth companies in the past month in Australia and abroad Strong inbound interest from critical minerals funds and trading houses Introduction of “Future Made in Australia” policy by Australian Government providing increasing support for development of critical minerals projects 1 Asian Metals and Shanghai Metals Market pricing from 17 March to 17 April 2024 2 Source: Adamas Intelligence (Rare Earth Pricing Outlook Q1 2024) 3 “China's first-quarter EV sales”, dated 9-Apr-24 Available at: https://www.reuters.com 10 10 PROJECT OVERVIEW Photo: Kurrbili Village at dusk 11 YANGIBANA PROJECT SNAPSHOT1 Fully permitted and high-margin project with multigenerational opportunities for the Gascoyne region 17 years 20.9mt Life of mine JORC Ore Reserves 37% High margins Average NdPr:TREO ratio over life of mine, driving higher realised rare earth oxide basket price First quartile on global operational margin curve, as verified by CRU Group ~1.1mtpa 37,000tpa Material to the crusher, followed by a grinding and flotation circuit Rare earth concentrate at 27% TREO, containing ~3,400tpa of NdPr oxide Employment Economic contribution Construction Jobs Operations Jobs >470 >270 >$1 billion in Commonwealth tax income >$240 million in WA state royalties >$65 million in Native Title royalties 1 Refer ASX announcement “Corporate Presentation – Staged Development Strategy”, dated 31 May 2023 12 PROJECT EXECUTION SIGNIFICANTLY DE-RISKED Yangibana Project is shovel ready and fully permitted to move into development Key Workstreams Execution and cost management Technical and regulatory • Fully permitted for development and first concentrate production in 2026 • $210 million EPC contract awarded to GR Engineering Services for construction of process plant • Native Title agreement in place with Traditional Owners • • Completion of Staged Development Study in Q2 2023 $120 million invested in construction of non-processing infrastructure – completed in Q4 2023 • Mine plan optimisation for first five years targeting lower strip ratios while maintaining grade to the process plant • Beneficiation plant flowsheet extensively tested and de-risked • $22 million invested in long-lead critical path items • Engineering designs for beneficiation plant at 81% complete • Detailed design for bulk earthworks, civil and structural elements advanced 1 Refer ASX announcement “Yangibana Project Funding Update”, dated 22 November 2023 Commercial and funding • • • • Offtake agreement in place for twothirds of annual concentrate production with thyssenkrupp Materials Trading Binding term sheet in place with Baotou Skyrock for integrated processing and offtake agreement for a minimum of 10,000tpa of concentrate Non-binding indicative financing proposals received from multiple parties1 Final due diligence phase progressed including investor and bank site visits and due diligence calls with Hastings partners Operational Readiness • Experienced management team in place with strong track record of project delivery • Ongoing work to build internal processes and capabilities • Negotiation ongoing on key commercial agreements, including: o Power purchase agreement for the Project’s power station o Catering contract issued to market for competitive tender 13 DEVELOPMENT READY Fully permitted for first production in Q1 2026 Key Approvals Status WA Ministerial Approval Commonwealth Ministerial Approval Native Title Agreement Mining Proposal (Early Works) Mining Proposal (2023) Works Approvals (Early Works) Works Approval (Site-wide) Water License (Early Works) Water License (Site-wide) Land Tenure Project MP (Early Works) Project MP (Early Works – Amendments) Operating Licence Radiation MPs and Site Registration 14 CAPITAL COSTS $142 million capital investment1 to date provides strong base to ramp up construction $52 $22 Non-Processing Infrastructure $120 million invested to date1 in finalising early site works • Kurrbili Accommodation Village • Yangibana Airstrip • SipHon Well Borefield • Site Access Roads $120 $503m $309 Critical path equipment $22 million invested to date1 in long lead items • In Transit/Delivered – SAG Mill and Regrind Mill • Fabrication – Flotation Cells, Thickener, Mill Liner Handler EPC contract $210 million contract awarded to leading WA engineering and construction company GR Engineering Services2 1As of 31 December 2023 2 Refer ASX Announcement “EPC Contract executed with GRES for Beneficiation Plant”, dated 4 August 2023 Remaining capital cost Non Processing Infrastructure Critical Path Equipment Contingency 15 YANGIBANA PROJECT PROGRESS Kurrbili Village SipHon Borefield Yangibana Airstrip SAG Mill Shell 16 MINING SCHEDULE1 Process plant site 1.5 1.0 0.5 Bald Hill Fraser's Yangibana North Yangibana Auer North Auer Year 17 Year 16 Year 15 Year 14 Year 13 Year 12 Year 11 Year 10 Year 9 Year 8 Year 7 Year 6 Year 5 Year 4 Year 3 0.0 Year 2 Mining model is strategically designed to target zones with well-defined grade and strip ratios, ensuring efficient extraction and maximising resource value, while maintaining feed grade to the process plant 2.0 Year 1 Lower Strip ratio 2.5 Ore Tonnes Mined (Mt) Focus on first five year to identify cost saving and enhance economic returns Life of mine optimised mining sequence by orebody1,2 3.0 Simon's find Strategically located close to eight-kilometre long zone of economic mineralisation at Bald Hill, Simon’s Find and Fraser’s Higher free cashflow Maximising returns in the early years of operations and reducing in the capital payback period High margins Leveraging favourable basket composition with high NdPr, the Yangibana Project is expected to be one of the highest margin producers globally, sitting in the first quarter of CRU’s operational margin curve 1 Refer to Appendix B: Key Risks 2 Refer ASX announcement “Binding Term Sheet Signed for Integrated Tolling and Offtake”, dated 16 February 2024 17 BENEFICIATION PLANT CONSTRUCTION EPC contract in place with leading engineering and construction firm GR Engineering Services1 $210 million contract Fixed price lump sum portion of $180 million and provisional sum portion of $30 million Key benefits Lowers project delivery risks, lower cost, greater certainty on timeframe, process and product quality guarantees Performance guarantees Commissioning and operational support to ensure facility achieves quality and throughput guarantees 1 Refer ASX Announcement “EPC Contract executed with GRES for Beneficiation Plant”, dated 4 August 2023 18 BENEFICIATION PROCESS Conventional flotation process which has been extensively tested and de-risked Recovered grade of ~27% TREO Feed grade of 1% TREO Crushing Grinding Regrinding Flotation >100 bench scale tests Completed at four commercial labs to develop robust beneficiation flowsheet >80 variability samples Covering expected range of grade and mineralogy tested through standard flowsheet Two pilot plant tests Input of 1.1mtpa of mined ore Successfully validated simple and effect flowsheet Successful bulk samples For use in downstream engineering equipment design test work Output of 37,000tpa of rare earth concentrate Scale up from 150kg/h to 124t/h Translation of process development batch and pilot programs into engineering design 19 OPERATING SUSTAINABLY Leading ESG credentials outperforming our peers and competitors in sustainability performance Health and Safety Climate Change Five years lost time injury free Commitment to minimum 40% renewables allowed for in capital forecast for Yangibana power station Public benefit Cultural Heritage >470 and >270 jobs during construction and operations respectively and >$1 billion in commonwealth tax income and >$240 million in state royalties Voluntary native title project agreement in place with the Thiin-Mah Warriyangka, Tharrkari and Jiwarli People Agency Rating Agency Rating Included in Sustainalytics’ 2024 ESG top rated companies list Gold Rating – ranked in the top five per cent of companies assessed Formal supporter of the Task Force on Climate-Related Financial Disclosures Participant of the Ten Principles of the UN Global Compact Positively assessed against the IFC performance standards (World Bank) Positively assessed against the Equator Principles IV (World Bank) 20 PROJECT ECONOMICS AND COMMERCIAL ARRANGEMENTS 21 1 ROBUST PROJECT ECONOMICS Improved metrics driven by move from previous domestic profitsharing model to realising 100% of net revenue, as well as lower processing fees under the Baotou Skyrock agreement $865 million Post-tax NPV11 (ungeared) 3.4 years Payback period $3,345 million Free cash flow (Life of Mine) $503 million Capital Cost (including $142 million spent at 31 December 2023) 61% 23% 82% 7% 31.28% Post-tax IRR (ungeared) $9,639 million Net revenue (Life of Mine) $258 million Average EBITDA per annum $361 million Remaining Capital Costs 1 Refer ASX announcement “Binding Term Sheet Signed for Integrated Tolling and Offtake”, dated 16 February 2024 Key Material Assumptions / Updates The Base Case Financial Model (“BCFM”) assumptions adopted in the Staged Development Study released on 31 May 2023 continues to apply and has not materially changed, save for the following key updates: • Offtake and payabilities: Shift from domestic profit-sharing model to rare earth concentrate sale and third-party processing (hydrometallurgical and oxide separation) to achieve a full rare earth oxide basket price, on terms expected in the term sheet with Baotou Skyrock. Adjustments to yields and costs may be required following pre-production pilot test work, as contemplated in the Term Sheet. Negotiations are ongoing with other potential customers to conclude similar arrangements. • Spent capital cost: $142 million of capital cost estimate incurred as of 31 December 2023. • Commodity price: Average 10-year blended neodymium and praseodymium (“NdPr”) oxide price (Wood Mackenzie, CRU, Adamas Intelligence) of US$121/kg real, 2024$ (reduction from US$129/kg adopted in the Staged Development Study). • Stage 1 standalone: The impact of Stage 2 for the Yangibana Project (i.e. the potential hydrometallurgical plant) is excluded from the economic analysis. • Mining: Mine schedule optimisation for the first five years of mining targets lower strip ratio zones of the Yangibana Project’s ore bodies, while maintaining the grade to the beneficiation plant. The total ore processed remains at 20.9Mt, the mine life remains at 17 years, and annual average production of rare earth concentrate remains at 37,000tpa as per the ASX Announcement ‘Yangibana Ore Reserves increase by 25%’ dated 6 February 2023 • Macroeconomics: FX Forward (Bloomberg January 2024), 10-year average AUD:USD 0.65. • Cost assumptions: Incorporation of MREC and oxide separation fees based on the fees provided in the Term Sheet, updated power tariffs (40% renewable) from Independent Power Producer, and other revisions for escalation. 14% 34% 48% 6% 22 BAOTOU SKYROCK OFFTAKE AGREEMENT1 Higher rare earth oxide revenue achieved through competitive offshore processing Increased payability for the Yangibana Project’s concentrate through outsourcing multistage processing to mixed rare earth carbonate and rare earth oxides No upfront capital cost required for hydrometallurgical and oxide separation plant Stage 1 – Yangibana Project Mining and Beneficiation Rare Earth Concentrate Processing and Offtake Agreement Hydrometallurgy Mixed Rare Earth Carbonate Indicative Domestic Operating Costs ~US$13 to 27/kg REO Indicative China Processing Costs2 Up to 75% lower Oxide Separation Rare Earth Oxides Company Baotou Skyrock Rare Earth New Material Co., Ltd (“Baotou Skyrock”) Description Established in 2006, Baotou Skyrock is a privately-owned Chinese high-tech enterprise specialising in the production and research an