Appendix 5B

+Rule 5.5

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

LYNAS CORPORATION LIMITED ("the Group")

ABN Quarter ended ("current quarter")

27 009 066 648

31 March 2017

Consolidated statement of cash flows

Current quarter

$A'000

Year to date (9 months)

$A'000

  1. Cash flows from operating activities

    1. Receipts from customers

    2. Payments for

      1. exploration & evaluation

      2. development

      3. production

      4. staff costs

      5. administration and corporate costs

      6. Dividends received (see note 3)

      7. Interest received

      8. Interest and other costs of finance paid

      9. Income taxes paid

      10. Research and development refunds

      11. Other (royalty payments)

        12. 1.9 Net cash from / (used in) operating activities

      69,207

      - (1,112)

      (40,816)

      (9,026)

      (5,793)

      - 46

      (8)

      (60)

      - (1,323)

      184,972

      (33)

      (1,244)

      (119,646)

      (26,572)

      (15,536)

      - 69

      (35)

      (74)

      - (4,074)

      11,115

      17,827

      2. Cash flows from investing activities

      (552)

      (1,547)

      2.1 Payments to acquire:

      (a) property, plant and equipment

      (b) tenements (see item 10)

      -

      -

      (c) investments

      -

      -

      (d) other non-current assets

      -

      -

      2.2 Proceeds from the disposal of:

      (a) property, plant and equipment

      -

      -

      (b) tenements (see item 10)

      -

      -

      Consolidated statement of cash flows

      Current quarter

      $A'000

      Year to date (9 months)

      $A'000

      (c) investments

      -

      -

      (d) other non-current assets

      -

      -

      2.3 Cash flows from loans to other entities

      -

      -

      2.4 Dividends received (see note 3)

      -

      -

      2.5 Other

      -

      -

      Deposit to Atomic Energy Licensing Board

      -

      (5,932)

      Security deposits

      1,086

      1,061

      2.6 Net cash from / (used in) investing

      534

      (6,418)

      activities

      3. Cash flows from financing activities

      5,153

      5,153

      3.1 Proceeds from issues of shares

      3.2 Proceeds from issue of convertible notes

      -

      -

      3.3 Proceeds from exercise of share options

      -

      -

      3.4 Transaction costs related to issues of

      -

      -

      shares, convertible notes or options

      3.5 Proceeds from borrowings

      -

      -

      3.6 Repayment of borrowings

      -

      (3,950)

      3.7 Transaction costs related to loans and

      -

      -

      borrowings

      3.8 Dividends paid

      -

      -

      3.9 Other (provide details if material)

      -

      -

      3.10 Net cash from / (used in) financing

      5,153

      1,203

      activities

      4. Net increase / (decrease) in cash and cash equivalents for the period

      16,802

      12,612

      4.1 Cash and cash equivalents at beginning of

      38,477

      43,348

      period

      4.2 Net cash from / (used in) operating

      11,115

      17,827

      activities (item 1.9 above)

      4.3 Net cash from / (used in) investing activities

      534

      (6,418)

      (item 2.6 above)

      4.4 Net cash from / (used in) financing activities

      5,153

      1,203

      (item 3.10 above)

      4.5 Effect of movement in exchange rates on

      (2,695)

      (3,376)

      cash held

      4.6 Cash and cash equivalents at end of

      52,584

      52,584

      period

      5. Reconciliation of cash and cash equivalents

      at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

      Current quarter

      $A'000

      Previous quarter

      $A'000

      5.1 Bank balances

      24,263

      8,503

      5.2 Call deposits

      -

      -

      5.3 Bank overdrafts

      -

      -

      5.4 Other (provide details)

      28,221

      29,974

      5.5 Cash and cash equivalents at end of

      52,584

      38,477

      quarter (should equal item 4.6 above)

      Current quarter

      $A'000

      502

      -

      1. Payments to directors of the entity and their associates

        1. Aggregate amount of payments to these parties included in item 1.2

        2. Aggregate amount of cash flow from loans to these parties included in item 2.3

        3. Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

          Includes fees, salaries and superannuation paid to the directors.

          Current quarter

          $A'000

          -

          -

        4. Payments to related entities of the entity and their associates

          1. Aggregate amount of payments to these parties included in item 1.2

          2. Aggregate amount of cash flow from loans to these parties included in item 2.3

          3. Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

            N/A

            Total facility amount at quarter end

            $US'000

            Amount drawn at quarter end

            $US'000

            425,000

            425,000

            -

            -

            -

            -

          4. Financing facilities available Add notes as necessary for an understanding of the position

            1. Loan facilities

            2. Credit standby arrangements

            3. Other (please specify)

            4. Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

              5. Facility

              Lender

              Interest Rate

              Secured

              Outstanding Principal

              $US'000

              JARE

              SPC established by Sojitz and JOGMEC

              2.50%

              Yes

              200,000

              Convertible Bond

              Mt Kellett Capital Management

              1.25%

              No

              225,000

              9. Estimated cash outflows for next quarter

              $A'000

              9.1 Exploration and evaluation

              -

              9.2 Development

              2,250

              9.3 Production

              42,500

              9.4 Staff costs

              9,800

              9.5 Administration and corporate costs (including sales

              commission)

              4,700

              9.6 Other (royalty)

              1,400

              9.7 Total estimated cash outflows

              60,650

              10. Changes in tenements (items 2.1(b) and 2.2(b) above)

              Tenement reference and location

              Nature of interest

              Interest at beginning of quarter

              Interest at end of quarter

              10.1 Interests in mining

              tenements and petroleum tenements lapsed, relinquished or reduced

              N/A

              10.2 Interests in mining

              tenements and petroleum tenements acquired or increased

              N/A

            Lynas Corporation Limited published this content on 26 April 2017 and is solely responsible for the information contained herein.
            Distributed by Public, unedited and unaltered, on 19 May 2017 10:24:24 UTC.

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