27 October 2023

Rainbow Rare Earths Ltd ('Rainbow' or 'the Company')

Report on Payments to Governments for the 12 months ended 30 June 2023

Rainbow, the rare earth element mining company, today publishes its report on payments to governments for the 12 months ended 30 June 2023 (the "Report").

The Report provides an overview of the payments to governments made by Rainbow and its subsidiaries arising from business activities for the year ended 30 June 2023 as required under the UK Reports on Payments to Governments Regulation 2014 and its amendment in December 2015 (the UK Regulations). This Report is also intended to satisfy the requirements of the Disclosure and Transparency Rules (DTR 4.3A) of the Financial Conduct Authority in the United Kingdom.

This information is substantially a reproduction of information set out on page 35 of the Rainbow Rare Earths Limited Annual Report and Accounts 2023.

The governments to whom payments listed in this report have been made are those of the Republic of South Africa (relating to the Group's corporate overhead) and the Republic of Burundi (relating to the Gakara Project).

The table below, sets out the key payments to government, as direct taxes (such as land taxes, duties etc) as well as indirect taxes arising as a result of Rainbow's activity (such as payroll taxes, withholding tax, and net VAT movements in the period).

Payments disclosed in this report are shown in US Dollars. Actual payments have been made in South African Rands and Burundian Francs, however, have been translated at average monthly rates.

FY 2023

FY 2022

US$'000

South

Burundi

Total

South

Burundi

Total

Africa

Africa

Royalties

-

-

-

-

-

-

Permit and land taxes

-

-

-

-

-

-

Corporation tax

-

-

-

-

2

2

Duties & other

-

-

-

-

-

-

Total tax borne

-

-

-

-

2

2

Payroll tax

139

20

159

44

78

122

Net VAT

133

3

136

(22)

(4)

(26)

Total net payments to

272

23

295

22

76

98

government

Royalty payments relate to the Government of Burundi royalty of 4% charged on the value of exports of rare earths mineral concentrate. No royalties were paid during FY 2023 as operations in Burundi, including all exports, are suspended by the Government of Burundi.

Permits and land taxes include annual taxes payable to the Government of Burundi under the terms of the Mining Convention for the Mining Permit at Gakara. No payments were made during FY 2023 as the Burundi operations are suspended, with the annual cost accrued in the Financial Statements.

Corporation Tax is payable in Burundi based on a minimum 1% of turnover whilst the local operating entity remains loss making. No turnover was reported in FY 2023 as operations in Burundi, including all exports, are suspended by the Government.

Payroll taxes and VAT (net of recovered amounts) are included as they represent funds paid by the Group to the government either directly or via suppliers.

**ENDS**

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Rainbow Rare Earths Ltd. published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 08:51:45 UTC.