Slide 1: Unlocking Secondary Sources of Critical Rare Earths
RAINBOW RARE EARTHS UNLOCKING SECONDARY SOURCES OF CRITICAL RARE EARTHS PHALABORWA PRELIMINARY ECONOMIC ASSESSMENT 3 OCTOBER 2022
Slide 2: Disclaimer
DISCLAIMER These Presentation Materials are for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity and should not be construed as, an offer for sale or subscription of, or solicitation of any offer to
Slide 3: Phalaborwa PEA overview
PRELIMINARY ECONOMIC ASSESSMENT BREAKTHROUGH STEP IN THE DEVELOPMENT OF PHALABORWA BREAKTHROUGH STEP IN THE DEVELOPMENT OF PHALABORWA BASE CASE1 YTD AVERAGE PRICES2 • Strong returns in a market underpinned by strong demand growth for separated magnet rare earth oxides NPV3 NPV US$627m US$934m Phalab
Slide 4: Uniquely positioned to unlock near-term rare earths production
UNIQUELY POSITIONED TO UNLOCK NEAR-TERM RARE EARTHS PRODUCTION • Strategic focus on recovering rare earth oxides from secondary sources to support global decarbonisation • IP and expertise in recovering rare earths from phosphogypsum Business model • Strong progress demonstrated by publication of ro
Slide 5: Accelerating global demand for rare earths
ACCELERATING GLOBAL DEMAND FOR RARE EARTHS UNDERPINNED BY MOUNTING PRESSURE TO DECARBONISE ROBUST SUPPLY/DEMAND OFFSHORE WIND POWER CAPACITY ADDITIONS (GW) FUNDAMENTALS • Magnet rare earth elements are critical building blocks for the global green revolution • Demand is forecast to grow strongly, dr
Slide 6: Phalaborwa: exciting, near-term growth opportunity
PHALABORWA: EXCITING, NEAR-TERM GROWTH OPPORTUNITY DELIVERY OF SEPARATED MAGNET RARE EARTH OXIDES ON SITE RARE EARTHS FROM SECONDARY SOURCE: 30.7MT OF JORC COMPLIANT INFERRED MINERAL RESOURCE ESTIMATE GYPSUM IN TWO STACKS FROM 50+ YEARS PHOSPHATE Contribution of TREO by oxide Grade HARD ROCK MINING
Slide 7: Assay results confirm high value project
ASSAY RESULTS CONFIRM HIGH VALUE PROJECT MUCH HIGHER GRADE THAN TYPICAL IONIC CLAY RARE EARTH PROJECTS Project Style Owner TREO3 NdPr4 Uranium5 Thorium6 PHALABORWA IN-SITU METAL VALUE: % ppm ppm ppm US$/t Gypsum1 Gypsum Phalaborwa1 stacks Rainbow Rare Earths 0.431% 1,257 2 48 Dy 8% Round Top2 Ionic
Slide 8: PEA demonstrates robust economic viability in all pricing scenarios
PEA DEMONSTRATES ROBUST ECONOMIC VIABILITY IN ALL PRICING SCENARIOS Life of operation Years 14.2 Phosphogypsum processing Mtpa 2.2 Production of separated rare earths oxides t 26,208 Phalaborwa PEA Capital costs US$m 295.5 Average operating costs for separated rare earth oxides US$/kg 33.86 Rare ear
Slide 9: Forecast Phalaborwa cashflows for main price scenarios
FORECAST PHALABORWA CASHFLOWS FOR MAIN PRICE SCENARIOS FORECAST PHALABORWA BASKET PRICE (US$/KG REO) PHALABORWA CUMULATIVE CASHFLOW (US$M) 1 250.00 3,500 3,000 200.00 Phalaborwa PEA 2,500 150.00 2,000 1,500 100.00 1,000 500 50.00 - Year Year Year Year Year Year Year Year Year Year Year Year Year Yea
Slide 10: Strong returns with low sensitivity to costs
STRONG RETURNS WITH LOW SENSITIVITY TO COSTS IN ANY FORESEEABLE PRICING ENVIRONMENT • Sensitivity analyses demonstrate robust EBITDA operating • NPV insensitive to changes in operating costs; beneficial in margins in all pricing sensitivity scenarios inflationary environment • Strong supply / demand
Slide 11: Unique rare earths project without many of the usual development stages
UNIQUE RARE EARTHS PROJECT WITHOUT MANY OF THE USUAL DEVELOPMENT STAGES THE STRONG MARGINS GENERATED BY PHALABORWA ARE TRADITIONAL BARRIERS TO RARE EARTHS DEVELOPMENT UNDERPINNED BY A LOW OPERATING AND CAPITAL COST Typical rare earths BASE, DUE TO: Typical unit processes Phalaborwa project – no requ
Slide 12: Block flow diagram
BLOCK FLOW DIAGRAM UNIQUE PROCESS DEVELOPED BY RAINBOW AND K-TECH HYDRAULIC PRE-LEACH PRETREATMENT PRETREATMENT RARE EARTH RE LEACH NEW PG STACK RECLAMATION DEWATERING PROCESS DEWATERING LEACH DEWATERING Phalaborwa flowsheet Benign gypsum deposited IMPURITIES RAPID REMOVAL CONSOLIDATION on new dry C
Slide 13: Efficient and patented technology reducing capital and operating costs
EFFICIENT AND PATENTED TECHNOLOGY REDUCING CAPITAL AND OPERATING COSTS BENEFITS OF K-TECH CIX AND CIC TECHNOLOGY • Continuous ion exchange (“CIX”) and continuous ion chromatography (“CIC”) are patented and proven processes Phalaborwa technology • CIX and CIC have been applied commercially at capacit
Slide 14: Next steps
NEXT STEPS PHALABORWA DEVELOPMENT SCHEDULE POSITIVE RESULTS OF THE PEA SUPPORT THE CONTINUED DEVELOPMENT OF PHALABORWA - NEXT STEPS: • Resource update • Feasibility Study • Permitting updated • Further process optimisation Next steps • Extensive process pilot plant operation K-Tech’s facilities in F
Slide 15: A strategic source of rare earths for a growing market
RAINBOW RARE EARTHS A STRATEGIC SOURCE OF RARE EARTHS FOR A GROWING MARKET UNIQUELY POSITIONED TO UNLOCK NEAR- TERM RARE EARTHS PRODUCTION ✓ RIGHT STRATEGY: focus on recovering rare earth oxides from secondary sources ✓ RIGHT OPPORTUNITIES: Robust economics of Phalaborwa demonstrated by PEA; applica
Slide 16: Thank you
RAINBOW RARE EARTHS THANK YOU Contact us: GEORGE BENNETT PETE GARDNER CEO CFO SA Mobile: +27 82 652 UK Mobile: +44 771 779 4251 Office Number: + 27 11 996 3500 Skype: petegardner73 Skype: George.bennett72 Email: peteg@rainbowrareearths.com Email: georgeb@Rainbowrareearths.com
Slide 17: Experienced board and executive management
EXPERIENCED BOARD AND EXECUTIVE MANAGEMENT ADONIS POUROULIS GEORGE BENNETT NON-EXECUTIVE CHAIRMAN CEO Experienced Board and Management • Mining engineer: an entrepreneur whose expertise lies in the discovery, exploration • 25 years in finance and management, including as partner in stockbroking/advi