Spectrum Rare Earths : Appoints Managing Director

(ASX: SPX)

ASX ANNOUNCEMENT

28 May 2018

Company Update Appointment of Managing Director

Spectrum Rare Earths Limited (ASX: SPX) is pleased to announce the appointment of Paul Adams as Managing Director of Spectrum Rare Earths Limited (ASX: SPX) ("SPX" or "the Company).

Mr Adams, a geologist (BSc Geology, UK), joins SPX from DJ Carmichael Pty Limited, where he was Director - Head of Research and Natural Resources, gaining considerable experience in equity capital markets and equity research with a focus in small to mid-cap resource companies across a large range of commodities. Prior to DJ Carmichael Pty Limited, Mr Adams held technical and senior roles with Metana Minerals, Dominion Mining, Australian Goldfields and Placer Dome, where he held senior technical roles at the giant mesothermal-epithermal Porgera gold-silver mine in Papua New Guinea and as Chief Mine Geologist and Development Manager at the Granny Smith Mine in Western Australia. Mr Adams also holds a Graduate Diploma in Applied Finance and Investment from the Financial Securities Institute of Australia.

SPX's Chairman, Alex Hewlett commented:

"We are delighted that Paul has joined the Spectrum team where his experience in exploration and development of gold assets, combined with a strong equity markets background, will be instrumental in progressing our portfolio of gold projects and to bringing these to the attention of the market."

For further information please contact:

Spectrum Rare Earths Limited (ASX: SPX) is a mineral resource exploration and development company. Focussed on identifying and exploring under explored terrain through the use of modern techniques and technology to maximise success.

Suite 1/827 Beaufort Street, Mt Lawley WA 6052

ABN: 94 115 770 226 |info@spectrumrareearths.com.au | www.spectrumrareearths.com.au

ASX Release 28 May 2018

ANNEXURE A

Spectrum Rare Earths Limited (Company) has entered into an employment agreement (Agreement) with Paul Adams pursuant to which the Company has appointed the Mr Adams to act as the managing director and chief executive officer of the Company and to provide expert geological, exploration and geophysical advice, any other expertise and skill that the Company may require from time to time.

The Company will pay Mr Adams $180,000 p.a. exclusive of superannuation. The Company will also reimburse Mr Adams for reasonable expenses incurred in the carrying out the role.

In addition, Mr Adams will be issued with 10,000,000 unlisted options to acquire ordinary shares in two tranches on the following terms.

Tranche 1 - 5,000,000 options vesting on 30 November 2018 and exercisable on or before 31 May 2023 by payment of 1.5 cents; and

Tranche 2 - 5,000,000 options vesting on 31 May 2019 and exercisable on or before 31 May 2023 by payment of 1.5 cents.

The Agreement may be terminated by:

• a) the employee giving 3 months prior notice to the Company; or

• b) the Company giving 3 months prior notice to the employee.

• c) the Company may terminate the Agreement with 1 months notice in the instance where a persistent breach occurs or without notice in certain limited circumstances.

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