Spectrum Rare Earths : Pilbara Copper Gold Tenement Granted

(ASX: SPX)

ASX ANNOUNCEMENT

7 December 2017

Exploration Licence Granted for Western Australian Pilbara Gold Project

HIGHLIGHTS

Grant of Exploration Licence

♦ The first of two 100%-owned Exploration Licences granted, covering 156km2 of highly prospective ground forming Spectrum's first Pilbara copper-gold Project.

♦

Strategic package of rocks secured for development of historic results and further modern exploration in an underexplored terrane.

Exploration Program Update ♦ High powered Electromagnetic survey continues at the Whaleshark Project.

Figure 1. Licence application E08 / 2924 & E08 / 2972 Location.

Spectrum Rare Earths Limited (ASX: SPX), today announced that Exploration Licence E08/2924, a highly prospective tenement in Western Australia's Pilbara has been granted (Figure 1). This follows recent announcements that SPX increased its Pilbara gold Project footprint through a new exploration Licence application, commenced fieldwork and completed an oversubscribed Placement to raise $888,888. Refer ASX announcements dated 22 November 2017 & 28 November 2017.

Suite 1/827 Beaufort Street, Mt Lawley WA 6052

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

Grant of Exploration Licence

Spectrum is pleased to advise that first of two Exploration Licence applications (E08/2924) centered on the historic Whaleshark gold and copper Prospect in the Pilbara, Western Australia has been successful with the tenement being granted.

The two tenements cover regionally significant magnetic anomalies interpreted to be prospective for gold and copper mineralisation based on historic drill intercepts, local and international analogues. Refer ASX announcement dated 1 June 2017.

The tenement and region has not had any significant modern exploration since the 1990's and is in need of a systematic and modern exploration approach to unlock the potential of the area.

Exploration Program Update

Spectrum are currently undertaking a modern and high powered Moving Loop Electromagnetic ("MLEM") survey over the Whaleshark Project area (Figure 2.) to identify basement conductors, vectors to gold and copper mineralisation and to define drill targets. This milestone plays an important role in the regional exploration program in gaining much knowledge of the structural intensity, physical nature and electrical properties of the targeted basement rocks and cover sequences.

Figure 2. Granted Exploration Licence E08/2924,

Total Magnetic Intensity (Reduced to Pole) and MLEM survey areas.

SPX Chairman Mr Hewlett commented that; "We would like to take this opportunity to thank the Native Title Tribunal and the Department of Mines, Industry Regulation and Safety for their work in expediting the grant of this tenement.

With a secure tenure position, the company remains focused on delivering a well-structured, modern and value adding exploration program whilst applying evolving knowledge to identify new regional opportunities."

For further information please contact:

Mr Alex Hewlett

Chairman

Telephone: +61 8 9384 3284

Email:spectrumrareearths@outlook.com.au

About Spectrum Rare Earths Ltd

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.

Competent Person Statement

The information in this announcement as it relates to exploration results and/or geology was compiled by Mr Luke Forti, who is a Member of the Australasian Institute of Mining and Metallurgy ('AusIMM') and a consultant to the Company. Mr. Forti, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ('JORC Code 2012'). Mr. Forti consents to the inclusion in the announcement of the matters based on the information in the form and context in which it appears.

Forward Looking Statements

Statements regarding Spectrum's plans with respect to its mineral properties and programmes are forward-looking statements. There can be no assurance that Spectrum's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Spectrum will be able to confirm the presence of additional mineral resources/reserves, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Spectrum's mineral properties. The performance of Spectrum may be influenced by a number of factors which are outside the control of the Company and its Directors, staff and contractors.