RareX : SIGNIFICANT PRIMARY HIGH-GRADE PHOSPHATE DISCOVERY

ASX Release14 February 2022

Key Points:

• Significant primary phosphate mineralisation intersected for the first time in diamond drilling targeting a northern extension of the main Rare Earth Zone.

• Diamond hole CDX0015 intersected what is now referred to as the "Northern Phosphate Zone", with

o CRX0027 102m at 18% P2O5

o CRX0028 94m at 11% P2O5

o CRX0029 87m at 19% P2O5

o CRX0030 97m at 19% P2O5

o CRX0064 21m at 20% P2O5

o CRX0067 46m at 18% P2O5

RareX Limited (ASX: REE; "RareX" or "the Company") is pleased to advise that it has intersected a significant high-grade zone of primary phosphate mineralisation immediately north of the main rare earths zone at its flagship 100%-ownedCummins Range Rare Earths Project in the Kimberley region of WA.

The mineralisation was intersected in diamond hole CDX0015, which was drilled into an interpreted northern structure for its high-grade rare earth potential as part of the extensive diamond drilling program completed late last year.

While the hole only intersected low-to-moderate grade rare earths, it did intersect high-grade phosphate with a spectacular intersection of 71m at 15% P2O5 with assays from the top of the hole still awaited.

onlyMore importantly, the hole intersected a distinct primary phoscorite unit (coarse grained apatite - magnetite - phlogopite) for the first time.

While the presence of extensive high-grade supergene phosphate has been known at Cummins Range for some time, the discovery of a phoscorite unit and the broad interval of high-grade primary mineralisation in hole CDX0015 is regarded as potential game-changer for the Project.

The new zone, which is located immediately north of the Rare Earths Main Zone, will now be referred to as the "Northern Phosphate Zone".

usepersonalFor context, phosphate deposits are divided into sedimentary and igneous (as hosted in carbonatites). Igneous deposits typically have lower ore grades that range from 5 to 15 wt % versus 10 to 35 wt % P2 5

for sedimentary phosphate deposits.O

However, with beneficiation igneous phosphate deposits can produce higher grade concentrates with 31 Forto 41 wt % P2O5, as compared to ca. 30 wt % P2O5 for sedimentary deposits, because igneous apatite

contains less carbonate and lower concentrations of contaminants than apatite in sedimentary deposits.

Examples of major igneous phosphate deposits are the Araxa deposit in Brazil and the Foskor Phalaborwa deposit in South Africa, which are part of carbonatite intrusive systems.

Further interrogation of previous drilling has shown multiple zones of phosphate enrichment in the regolith in this area, lending support to the potential scale of this discovery. These historical results include:

Phosphate deposits do generally contain rare earths to a certain degree with some companies looking to recover rare earths as a by-product of fertiliser production from phosphate such as Yara Fertilisers,

onlyalthough it is not commonly done.

About Phosphates

The primary use of phosphates is in fertiliser production, either as rock phosphate or further refined into various forms of phosphorus requiring fertilisers such as Diammonium Phosphate (DAP), Monoammonium Phosphate (MAP), NPKs and SSP.

The price of all of these products has increased markedly in recent times due to concerns about food usesecurity and global food shortages requiring greater usage of fertilisers.

RareX is currently assessing these results while it remains focused on drilling out its primary rare earths deposit within the main zone.

Management Comment

RareX Managing Director, Jeremy Robinson, said: "Along with the spectacular high-grade rare earths results personalwe have been reporting from diamond drilling into the primary zone at Cummins Range, we now have a very exciting development to the north with diamond drilling intersecting a primary zone of high-grade

phosphate mineralisation.

"Because of its strategic location immediately adjacent to the main rare earths zone - which is not uncommon with large carbonatite systems - this is a discovery of considerable importance to the Company which we intend to follow up and pursue this year as part our expanded drilling campaign at Cummins Range.

"Because of its role in fertiliser production, phosphate is a strategic and future-facing mineral which complements our rare earths focus. We are very much looking forward to seeing how this discovery shapes up with further drilling this year."

This announcement has been authorized for release by the Board of RareX Limited. ForFor further information, please contact:

Jeremy Robinson

Managing Director

Ph: +61 8 6383 6593

Competent Person's Statements

Information in this release that relates to Exploration Results is based on and fairly represents information onlyand supporting documentation reviewed or compiled by Mr Guy Moulang, an experienced geologist engaged by RareX Limited. Mr Moulang is a Member of the Australian Institute of Geoscientist and has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Moulang consents to the inclusion in this release of the matters based on his information in

the form and context in which it appears.

useThe mineral resource estimate in this announcement were reported by the Company in accordance with listing rule 5.8 on 19 July 2021. The Company confirms it is not aware of any new information or data that materially affects the information included in the previous announcement and that all material assumptions and technical parameters underpinning the estimates in the previous announcement continue to apply and have not materially changed.

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