Slide 1: One of the World's Richest Producing Rare Earth Deposits
ONE OF THE WORLD’S RICHEST PRODUCING RARE EARTH DEPOSITS LOW COST PRODUCTION IN EAST AFRICA Q3 2018
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: What is Rainbow Rare Earths?
WHAT IS RAINBOW RARE EARTHS? AN INDEPENDENT SUPPLIER OF HIGH-GRADE CONCENTRATE TO THE GLOBAL RARE EARTH MARKET 90% owner of Gakara: Gakara is the only the highest grade rare earths producing rare earths mine mine globally in Africa (one of a handful (47 - 67% TREO) outside of China) USPs High value
Slide 4: Project Overview
PROJECT OVERVIEW PRODUCTION OF HIGH-GRADE RARE EARTH CONCENTRATE FROM THE ONLY PRODUCING RARE EARTHS MINE IN AFRICA Key Facts Location Processing Mining Areas: 35km by road from Simple efficient gravity separation Bujumbura, Burundi’s capital city processing facility – 5tph throughput Processing Pla
Slide 5: 2018 – Planned Development
2018 – PLANNED DEVELOPMENT PRODUCTION RAMP UP AND NEWSFLOW FROM EXPLORATION APRIL 2018 JUNE 2018 JULY 2018 OCTOBER 2018 Q4 2018 Q1 production results Completion of Phase 1 Q2 production results Q3 production Targeted delivery of and Phase 1 drilling drilling and Kiyenzi and commencement results code
Slide 6: Fundamental Growth and Value Strategy
FUNDAMENTAL GROWTH AND VALUE STRATEGY THREE ELEMENTS: NEAR-TERM PRODUCTION; RESOURCE GROWTH; AND DOWNSTREAM EXPANSION Develop separation capability ▶ Investigate separation capability for Gakara Develop downstream concentrate 3 ▶ Capex will depend on scale and technique but separation may be <$50m ▶
Slide 7: Operations Update to June 2018
OPERATIONS UPDATE TO 30 JUNE 2018 ONLY SECOND FULL QUARTER OF PRODUCTION 400 350 ▶ Concentrate tonnes sold up 180% QoQ to 300 Tonnes sold 350t 250 200 ▶ Concentrate tonnes exported up 10% QoQ 150 to 275t 100 50 ▶ Average grade of all exports in FY to 30 0 Q4 2017 Q1 2018 Q2 2018 June 2018 was 58% TR
Slide 8: Cooperation Agreement with TechMet
COOPERATION AGREEMENT WITH TECHMET DEAL ENABLES RAPID ACCELERATION OF DOWNSTREAM BUSINESS INVESTIGATION ▶ JV agreement whereby TechMet will fund up to US$3m for a full Definitive Feasibility Study (“DFS”) for a downstream rare earth separation business, with the aim of processing Rainbow’s high grad
Slide 9: The Gakara Rare Earths Project
THE GAKARA RARE EARTHS PROJECT Rainbow Rare Earths Ltd. 8
Slide 10: Murambi
MURAMBI RAINBOW’S NEXT MINING AREA ▶ Vein structure very similar to Gasagwe ▶ Lab tested vein samples contain high grade TREOs at 48-60% GASAGWE ▶ Trenching suggests vein extension may be up to 200m, approximately twice the length at Gasagwe ▶ Final permitting, approvals and land MURAMBI compensatio
Slide 11: Rainbow in Summary – Processing
RAINBOW IN SUMMARY – PROCESSING KABEZI PROCESSING PLANT – A SIMPLE EFFICIENT 5TPH GRAVITY SEPARATION PROCESSING FACILITY Fully operational on time and Capacity available to Located next to asphalt road First tonnes successfully within budget increase production providing ease of access for exported
Slide 12: Concentrate Production
CONCENTRATE PRODUCTION RAINBOW’S PLANT FULLY COMMISSIONED AND HANDED OVER Q1 2018 ► Rainbow processing plant located c. 13km south of Bujumbura at Kabezi and approximately 20km from mining areas ► Loading, sealing and sampling process working efficiently with Govt of Burundi officials prior to expor
Slide 13: Rainbow – Sales and Marketing
RAINBOW – SALES AND MARKETING ORE VALUE STRONGLY WEIGHTED TOWARDS MAGNET RARE EARTHS Based on average grades of REOs within Gasagwe in situ vein samples and market prices of purified Basket composition Value in Nd and Pr 2% ► Gasagwe: Based on average samples, magnet 15% REEs account for approximate
Slide 14: Exploration Success
EXPLORATION SUCCESS Source: Company photo of Kiyenzi (left) and Gasagwe (right) Rainbow Rare Earths Ltd. 13
Slide 15: Kiyenzi Discovery – 2018
KIYENZI DISCOVERY – 2018 PRIORITY TARGET FROM PHASE 1 DRILLING CAMPAIGN REVEALS NEW REE MINERALISATION ► Significant REE mineralisation encountered in five out of ten diamond drill holes at the Kiyenzi target ► Intersections range from a few centimetres to a few metres thick of breccia mineralisatio
Slide 16: 24 Month Objectives
24 MONTH OBJECTIVES NEAR-TERM OPTIONS INTENDED TO DRIVE VALUE FOR SHAREHOLDERS FOLLOWING INITIAL SUCCESS Target maiden Expanded New production Completion of DFS code compliant exploration target of 6,000tpa for downstream Resource by YE strategy and by the end of processing via 2018 drilling campaig
Slide 17: Key Strengths
KEY STRENGTHS Delivered on production & sales in 11 months Highest grade globally: 47-67% TREO The only African REE producer Attractive rare earth mix Low capex operation Simple processing route Fully permitted Supportive government Distribution partner established EV transformational demand drive T
Slide 18: Key Data
KEY DATA SHARES TICKER MARKET MARKET CAP SHARE PRICE BROKERS IN ISSUE RBW.L LSE £23.02m 12.25p 187.1m ARDEN PARTNERS As at 21.08.18 SHARE PRICE GRAPH SIGNIFICANT SHAREHOLDERS 30 SHAREHOLDER HOLDING 25 Adonis Pouroulis 25.46% 20 Other Board & 12.91% Management 15 Miton Asset 5.16% 10 Management IPO P
Slide 19: Contact
CONTACT Martin Eales Rainbow Rare Earths 29 Lincoln’s Inn Fields London, WC2A 3EG info@rainbowrareearths.com T +44 (0) 20 3910 4550 Rainbow Rare Earths Ltd. 18
Slide 20: Rare Earths: Gakara is One of the Only Few Producers Outside China
RARE EARTHS GAKARA IS ONE OF THE ONLY FEW RARE EARTH PRODUCERS OUTSIDE OF CHINA Rare earth production – 2016 ► Global rare earth production in 2016 was China-based estimated at 160,000-170,000 metric tonnes, production with 93% of it produced in China (source: Argus) Non-Chinese production ► With 6,
Slide 21: The "Technology Metals"
THE “TECHNOLOGY METALS” ND & PR REPRESENT THE MOST SIGNIFICANT ELEMENTS IN THE LANTHANIDE GROUP BY VALUE Magnet Rare Earths are critical in these key booming markets amongst others Electric vehicles: Smart phones : Wind turbines: Forecast demand growth for NdPr is Neodymium gives your phone the NdFe
Slide 22: Board
BOARD A BLEND OF CORPORATE, AFRICAN, RARE EARTH & PROJECT DEVELOPMENT EXPERIENCE Adonis Pouroulis • Mining engineer: an entrepreneur whose expertise lies in the discovery, exploration and Non-Executive development of natural resources across Africa including diamonds, precious/base metals, coal and
Slide 23: Rare Earth Elements and Their Uses
RARE EARTH ELEMENTS AND THEIR USES APPLICATION RARE EARTHS DEMAND DRIVERS Automotive, Wind turbines, Drives for computers, mobile Nd, Pr, Sm, Tb, phones, mp3 players, cameras, Voice coil motors. Magnets Dy Hybrid and Electric vehicles, Cordless power tools, Sensors, Medical imaging (MRIs) LaNiH Hybr
Slide 24: Electric Vehicle Revolution
ELECTRIC VEHICLE REVOLUTION 2017 MARKED LANDMARK COMMITMENTS FROM AUTOMAKERS AND ACCELERATED ADOPTION OF EVs ► Market currently driven by increasing demand for powerful Tesla introducing NdPr permanent magnet motor magnets used in electric motors and generators – rare earth (Model 3) magnets are the