Slide 1: Sydney Resources Round-up
Sydney Resources Round-up 9 May 2007 Presented by Nicholas Curtis Executive Chairman c ORPORATION LTD
Slide 2: Disclaimer
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 is an Australian listed company
Lynas is an Australian listed company >» Australian « Mount Weld Rare Earths resource in Western Australia « Mount Weld Polymetallic resource including Nb, Ta, Ti, Zr, & Rare Earths > Listed on the Australian Stock Exchange (LYC) « Shares on issue 501,507,164 * Options outstanding 28M with strike pr
Slide 4: Greenhouse Gas Reduction
Greenhouse Gas Reduction coe Reduction in car exhaust | Enabling miniaturisation ¢ Catalytic converter ¢ Rare Earth magnets ¢ Hybrid vehicles ¢ Flat panel displays y; ui i - - oo a Energy efficient products ¢ Compact fluorescent lights ¢ NiMH batteries
Slide 5: 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 « Cerium e Lanthanum HYBRID electric motor and generator « Neodymium « Praseodymium « Dysprosium e Terbium HYBRID NIMH battery e Lanthanum e Cerium 2
Slide 6: Electronics is also a key industry for Rare Earths
... Electronics is also a key industry for Rare Earths Screen ° Eu, Tb phosphors —~—_ Hard Disk Drive/CD/DVD ~ CRT & PDP i « Nd magnet in spindle « Nd magnet in voice ~ Backlight for LCD : coll rnotor « Ce glass polish Optical Lenses « La glass additive « Ce glass polish e Speakers — « Nd magnets in
Slide 7: 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 » China currently supp
Slide 8: Mt Weld is near Laverton, WA
Mt Weld is near Laverton, WA > Mt Weld carbonatite 35km SE of Laverton; pop 600-800 permanent > Mt Weld 160 road kilometers from railhead at Leonora > Leonora 640 rail km from port Lynas Laverton Airport Saale: 2 ee Hobie EO AP yg omer a . BO 7 % = “Se e} ae x . a | 3 i Ea 4 kes i bi Seale 1:160 000
Slide 9: Mt Weld is a weathered carbonatite plug hosting significant mineralisation
Mt Weld is a weathered carbonatite plug hosting significant mineralisation of multiple metals Lynas Utes Te 7 y L omnes TAAL ALE COCRS / A SECTOR | CLD SECTOR . ay { “ SOUTH EAST SECTOR [:steoisem, MOUNT WELD RARE EARTHS PROJECT LOCATION OF RESOURCES Legend CJ Carhonatite [1] Alteration Zone [ES] Co
Slide 10: The Crown Polymetallic resource is also exceptional
The focus is the central Rare Earths deposit, however the Crown Polymetallic resource is also exceptional eee iE : aa ta Category Indicated Inferred Total ea Mt 15 36.2 37.7 Ta205 0.037% 0.024% 0.024% | Crown & Coors ! Crown, hoe | _ Rare Métal UU. ie Nb205 1.4% 1.06% 1.07% “Deposit ' ae FO gait \ U
Slide 11: Mt Weld central Rare Earths deposit JORC resource
Mt Weld central Rare Earths deposit JORC resource The Central Lanthanide Deposit (4% REO cut-off) Grade Category Tonnes (Mt) (%REO) Tonnes REO Measured 1.2 15.7 186,000 Indicated 5.0 11.8 583,000 Inferred 1.5 9.9 148,000 Total 7.7 12.0 917,000 JORC standard resource estimation and resource modelling
Slide 12: Insitu and recoverable resource comparison
INSITU RECOVERABLE RESOURCE RESOURCE DEPOSIT (REO) (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 Southern lonic Clays <1% ~800,000 ~400,000 Govt pressure to reduce mine rate Mt Pa
Slide 13: Grade control drilling confirmed robustness of resource
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 14: Mining contract let and mobilisation underway
Mining contract let and mobilisation underway 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 Resourc
Slide 15: Mt Weld will be a relatively small open cast pit
Mt Weld will be a relatively small open cast pit, mined on a campaign basis iP WELO Geological Section 6960N sia OR Sai. OE Siesta en. e580. OE igi tn: JT WELD Grade Contours. Lynas
Slide 16: 18% REO ore will be transported to Lynas plant in Malaysia
18% REO ore will be transported from mine via road, rail and ship to Lynas plant in Malaysia COORS 0 SECTOR. Lt i ‘ N Seven een CLD RARE . . "Wiccan sont] PROT EARTHS DEPOSIT . : KALGOORLIE-BOULDER, ANCHOR SECTOR ei | cs go Exton
Slide 17: Lynas processing plant to be built in Kemaman
Lynas processing plant to be built in Kemaman on the East Coast of Malaysia AH finns os OHOR Lynas
Slide 18: Why Malaysia is an ideal location for the processing plant
Why Malaysia is an ideal location for the processing plant > “Strategic pioneer status” granted, with a related 10 year tax free period > Excellent infrastructure at Teluk Kalong Industrial Estate » Flat industrial land available at reasonable rates « Close to deep water ail weather port « Establish
Slide 19: 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 20: Plant scope includes rapid 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 21: The plant will separate 5,000t REO initially
The plant will separate 5,000t REO initially, expanding by 5,000t REO modules » 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 tracked »
Slide 22: 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
Slide 23: Supply is undergoing a structural change
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 24: Supply - demand imbalance suggest 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 (REO Metric (US$/kg) Tonnes) @ 10.00 - 175000 2 © 900+ g | 150000 So 8.00 + * Tech Crash x 3 a . g 8 7004 + Substantial inventories | 125000 a 5 600+ sg ag
Slide 25: Supply - demand imbalance suggest price increases will continue
Supply - demand imbalance suggest the price increases will continue over the next few years Rare Earths market history and independent forecast (US$/kg) (REO Metric Tonnes) B 8 10.00 + USS9.43/ke r 175000 g on T 30-Apr-07 | 450000 Go omy o 700+ + Tech Crash ; 125000 a o 2 00 + + Substantial.inventor
Slide 26: Demand is growing over 10% p.a.
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 27: Basket price of product suite shows Nd and Pr are key value drivers
The basket price of product suite shows Neodymium and Praseodymium are key value drivers > Lynas 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% «
Slide 28: Supply - demand imbalance for elements used in magnets
Supply - demand imbalance for elements used in magnets shows potential for price increases Neodymium and Praseodymium Oxide price movement (US$/kg) 30 5 25 5 Rare Earths Price FOB China basis Yb dh dD DD DD HM Pm oO OS SO O_O SA & Q a a yor aS a 3S & xe qe es & NS ae eS es we ae eS es RS & SHIP AAAS
Slide 29: Estimated Rare Earths project schedule for Malaysian site
Estimated Rare Earths project schedule for Malaysian site, currently being finalised O06 608 O08 Qi | Q2| Q3 | G4| Gi | G2 | Q3/ G4) Qt | QZ] Qs | 4 Engineering design Civil works Equipment installation Commissioning Grade control drilling LD | Mining campaign ;.. Initial production ry » Ramp-up to
Slide 30: 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 has the only commercially viable deposit outside China, and will be one of the lowest cost producers in the world In achieving our Vision we will: » Create a gl