Slide 1: Executive Chairman's Presentation
Executive Chairman’s Presentation June 2007 5 CORPORATION LTD
Slide 2: e The information contained in this presentation has been prepared
e The information contained in this presentation has been prepared using the information available to Lynas Corporation Limited (Lynas) at the time of preparation of the presentation. » For further information about Lynas, you can obtain a copy of recent ASX announcements made by Lynas at www.lynasc
Slide 3: Lynas has a clear vision to become a global company in the Rare Earths industry
Lynas has a clear vision to become a global company in the Rare Earths industry Values Strive for excellence in safety, health and the environment Value our differences and be open to change Operate in an honest, candid and transparent manner Deliver quality products, processes and services Always r
Slide 4: Lynas is listed on the Australian Stock Exchange
Lynas is listed on the Australian Stock Exchange > Listed on the Australian Stock Exchange (LYC) « Shares on issue 501,557,164 « Options outstanding 28M with strike price between A$0.17 — A$0.80 > Major institutional support, substantial shareholder announcements « Merrill Lynch 9.7% « Goldman Sachs
Slide 5: Energy Conservation
Energy Conservation Reduction in car exhaust | Enabling miniaturisation | Energy efficient products ¢ Catalytic converter * Rare Earth magnets ¢ Compact fluorescent lights ¢ Hybrid vehicles * Flat panel displays ¢ NiMH batteries
Slide 6: Rare Earths have many applications in the automotive industry
Rare Earths have many applications in the automotive industry UV cut glass Glass and Mirrors ° Cerium polishing powder e Cerium Diesel Fuel Additive e Cerium e Lanthanum HYBRID electric motor and generator « Neodymium « Praseodymium e Dysprosium « Terbium HYBRID NIMH battery e Lanthanum 25+ Electric
Slide 7: Electronics is also a key industry for Rare Earths
... Electronics is also a key industry for Rare Earths Screen * Eu, Tb phosphors ——_y a Hard Disk Drive/CD/DVD - CRT & PDP 7 i « Nd magnet in spindle « Nd magnet in voice ~ Backlight for LCD , coil rnotor « Ce glass polish Optical Lenses « La glass additive « Ce glass polish . e Speakers 9 -—7 « Nd
Slide 8: The global chemical companies who purchase Rare Earths include
The global chemical companies who purchase Rare Earths include: ag ‘Panasonic S SHOWA DENKO osRAM @ Shing: i MiclSU GRACE (hodia PHILIPS “ CORNING SIAN NEOMAX. | TOSHIBA SV ALBEMARLE (Ss AGC ENGELHARD fhanae the om r “ E. Nippon Electri MS) Lynas Johnson Matthey ENVIRONMENTAL CATALYSTS AND TECHNOLOG
Slide 9: Demand is growing over 10% p.a. from both existing and new applications
Demand is growing over 10% p.a. from both existing and new applications Demand » Existing applications are driving sustained growth of the 95,000t Rare Earths global market » Neo magnets 13% p.a. to 2010 « NiMH batteries 30% p.a. to 2010 « Catalysts (automotive and FCC) 4% p.a. to 2010 » Phosphors 1
Slide 10: Where do Rare Earths come from?
Where do Rare Earths come from? » Whilst Rare Earths are relatively abundant in the earth’s crust, they are rarely present in economic concentrations » They are never found as free metals but as a ‘cocktail’ of the Rare Earths elements, which need separating for commerciai use » Chinese mines curren
Slide 11: Supply is undergoing a structural change due to environmental and regulatory issues
Supply is undergoing a structural change due to environmental and regulatory issues Supply » China continues to dominate the world’s supply of Rare Earths (>95%) >» Chinese Government announced a mining production quota equal to 77,500 tpa of Rare Earths oxides for 2007, an increase of 2% from 2006
Slide 12: Supply-demand imbalance suggests price increases will continue
Supply - demand imbalance suggest the price increases will continue over the next few years Rare Earths market history and independent forecast (US$/kg) (REO Metric Tonnes) DQ 7) 8 12.00 7 , US$11.64/kg ; 175000 © 11.00 + . 28 May 07 = i000 1 Tech Crash. ; y L 450000 G6 6 + Substantial inventories 9
Slide 13: The supply-demand imbalance for elements used in magnets is particularly severe
The supply - demand imbalance for elements used in magnets is particularly severe Neodymium and Praseodymium Oxide price movement (US$/kg) 35 5 30 4 25 4 FOB China basis Rare Earths Price —e— Neodymium ~-@p Praseodymium —o— Mt Weld Pr & Nd Value > 28 May 07 =13-
Slide 14: Our strategy is to develop a transparent, environmentally sound, integrated supply chain
Our strategy is to develop a transparent, environmentally sound, integrated supply chain Australia Malaysia Malaysia and China Separation - Malaysia: 5,000 tpa modular solvent Mining: tpa of ore Processing: extraction separation plants 14.8% REO ' Integrated processing . a plant to float, crack and
Slide 15: Mt Weld Rare Earths resource compared with other deposits
INSITU RECOVERABLE RESOURCE RESOURCE DEPOSIT (Gise)) (t REO) (t REO) NOTE Mt Weld Rare Earths Project 12% 917,000 503,000 4% cut-off Baiyun Obo, Baotou PRC 5% 17,000,000 1,700,000 Govt pressure to reduce mine rate China Southernlonic Clays <1% ~800,000 ~A00,000 Govt pressure to reduce mine rate Mt P
Slide 16: Mt Weld's grade and composition are a natural advantage
Mt Weld’s grade and composition are a natural advantage Lanthanum oxide Cerium oxide Praseodymium oxide Neodymium oxide Samarium oxide Dysprosium oxide Europium oxide Jerbium oxide Mt Weld’s average head grade is 14.8%, compared to approximately 5% of Baotou China Mt Weld’s Rare Earth Oxide distribu
Slide 17: Grade control drilling confirmed robustness of resource and an ultra-high grade zone
Grade control drilling confirmed robustness of resource and a ultra-high grade zone Ultra-High Grade REO Drill Intercepts Drill hole Easting Northing From To Interval REO Grade No {MGA) (MGA) m m m % RC915 455800 6807100 54 58 4 45.5 RC922 455820 6807140 48 50 2 45.5 RC923 455820 6807160 54 58 4 54.
Slide 18: Mining contractor mobilised, June ground breaking for Mt Weld Rare Earths project
Mining contractor mobilised, June ground breaking for Mt Weld Rare Earths project All environmental approvals are complete and in good standing Aboriginal Heritage studies and artefact clearances complete, no Native Title issues Mining Proposal has been approved by the Department of Industry and Res
Slide 19: 18% REO ore will be transported via road, rail and ship to Lynas plant in Malaysia
18% REO ore will be transported from mine via road, rail and ship to Lynas plant in Malaysia PLAVERTON \ es “ J i ® CLD RARE ) NrcNewn ue Weousane Peover EARTHS DEPOSIT ~ : HALGOORLE- BOULDER, ANCHOR SECTOR Ba : nak Lynas oe -
Slide 20: Malaysian environmental and project approvals for the processing plant are underway
Malaysian environmental and project approvals for the processing plant are underway youn
Slide 21: Why Malaysia is an ideal location for the processing plant
Why Malaysia is an ideal location for the processing plant Granting of “strategic pioneer status” in Malaysia, with a related 10 year tax free period Excellent infrastructure at Teluk Kalong Industrial Estate « Fiat industrial land available at reasonable rates * Close to deep water all weather port
Slide 22: Initial production of the processing plant will be 10,500t REO p.a.
Initial production of the processing plant will be 10,500t REO p.a. » Lynas’ concentration process employs a proprietary state-of-the-art flotation re-agent » Bench test results achieved recoveries in excess of 70% at 40% REO grade » Apilot plant has been completed in Australia achieving a steady st
Slide 23: The processing plant scope includes rapid brown-field expansion to 20,000t REO p.a.
The processing plant scope includes rapid brown-field expansion to 20,000t REO p.a. » The cracker and initial separation plant on the same integrated site as the concentrator allows process optimisation » Cracking plant is mature Rare Earths industry technology » Apilot plant has been completed in A
Slide 24: The Malaysian plant will also separate 5,000 tpa REO to individual oxides initially
The Malaysian plant will also separate 5,000 tp REO to individual oxides initially wv Lynas will separate approximately 5,000 tpa REO in Malaysia, and is likely to expand this separation capacity shortly after commencement of production » The engineering for the separation capacity is being fast tra
Slide 25: Commissioning of the plant in Malaysia is planned for late 2008
Commissioning of the plant in Malaysia is planned for late 2008 > MIDA approval received « Strategic Pioneer Status with associated 10 year tax break EPCM contract discussion with Ranhill WorleyParsons « Offices in Sydney, Beijing, Kuala Lumpur and Kerteh Engineering design underway « Completed Basi
Slide 26: Rare Earths project schedule for Malaysian site
Rare Earths project schedule for Malaysian site EPCM schedule currently being finalised O06 e)¢ 08 Qi | Q2| Q3 | G4| Gi | G2 | Q3/ G4) Qt | G2] Q3 | 4 Engineering design Civil works Equipment installation Commissioning Grade control drilling B Mining campaign ;.. Initial production ry >» Ramp-up to
Slide 27: The project capital costs will increase significantly due to location, scope and design changes
The project capital costs will increase significantly due to location, scope and design philosophy changes » 2006 Project capital cost estimate for China A$ 65.0M >» Malaysia based project capital expenditure A$ 65m + additional « Mt Weld mine contractor cost A$ 22.6M =» Processing plant capital cos
Slide 28: Forecast operating costs, from mine to separated product, estimated at US$4-US$5/kg REO
Forecast operating costs, from mine to separated product inclusive, is estimated at US$4 —- US$5/kg REO >» Total forecast operating costs (+ 10%) US$ 4.50/ kg REO >» Percentage breakdown « Mt Weld costs (A$ exposure) 4% « Transportation (mine to plant) (US$ exposure) 14% * Concentration (MYR, US$, a
Slide 29: The basket price of product suite shows Neodymium and Praseodymium are key value drivers
The basket price of product suite shows Neodymium and Praseodymium are key value drivers > Neodymium and Praseodymium 23.8% « Magnet market, capacitors, NiMH batteries Lanthanum 25.5% « NiMH battery, FCC and glass polishing Cerium 46.7% « Catalytic converter and glass polishing Europium 0.4% « Displ
Slide 30: Lynas has signed a Supply Agreement and a number of other Letters of Intent
Lynas has signed a Supply Agreement and a number of other Letters of Intent » Supply Agreement « Major international Rare Earths consumer « Value of contract is in excess of US$90M over 5 years = Due to product mix, ~30% by volume and 15% by value « Five year contract sets new benchmark in Rare Eart
Slide 31: Rare Earths summary
Rare Earths summary > A perfect storm has hit the Rare Earths market, with demand growing strongly and supply restrictions in place » Lynas is the alternative global supplier of Rare Earths to China, from a unique resource base, and will be one of the lowest cost producers in the world » The plant i
Slide 32: Crown Polymetallic resource
Crown Polymetallic resource ce Crown & Coors 4 | -Rare Métal ‘ssosngoray Deposit e508000imN WEST SECTOR i “ gh, seofor. snd Fi nN Crown Rare \ ? i \ XN Ni [uarsz6 “rh Proposed Rare Earths Mi | Rare Earths Mi ANCHOR SECTOR SOUTH EAST SECTOR be Category Mt | Ta205 | Nb205 ; TLnO | ZrO | FeO3 P205 Y203
Slide 33: Summary
Summary In achieving our Vision we will: » Create the globally unique integrated Rare Earths company » Create sustainable long term earnings with exposure to growth through technology advancement » Create long term shareholder value in excess of current share price