A GUIDE TO RARE EARTHS (THE MT MANSBRIDGE RARE EARTHS PROJECT)

Name of presentation Company name What Are Rare Earths?

Rare earth elements (REE) are a group of 17 metals that are found at the bottom of the periodic table and comprise the lanthanide series of elements:

Ø Lanthanum (La) Ø Cerium (Ce) Ø Praseodymium (Pr) Ø Neodymium (Nd)

Ø Promethium (Pm) Ø Samarium (Sm) Ø Europium (Eu) Ø Gadolinium (Gd)

Ø Terbium (Tb) Ø Erbium (Er) Ø Holmium (Ho) Ø Dysprosium (Dy) Ø Thulium (Tm) Ø Ytterbium (Yb) Ø Lutetium (Lu)

Rare earth elements are a relatively abundant in the earth’s crust, but they are not often found in concentrated quantities that make them viable to mine, hence the name rare earths. How are rare earths important in today’s and future applications?

Global technological advancements have seen the REE sector grow in importance in many domestic, medical, industrial and strategic applications.

The Japanese have coined rare earths as the “seed of high technology” as they are critical for modern technologies, including numerous environmental technologies with more uses being discovered all the time

Due to their unique catalytic, metallurgical, nuclear, electrical, magnetic and luminescent properties, rare earths have become the key ingredient of many of the devices and technologies we use on a daily basis which affect many areas of our everyday lives.

Applications include, magnets and super magnets, motors, metal alloys, electronic and computing equipment, batteries, catalytic converters, petroleum refining, medical imaging, coloring agents in glass and ceramics, phosphors, lasers and special glass. Why invest in rare earths? Rare earth elements, for so long have been overlooked but are now becoming increasingly popular as the growing demand for rare earths comes from the important part they play in modern technology. They help make electronic parts smaller and faster, magnets more powerful (especially in wind turbines), metal alloys stronger, flat screen TV pictures brighter, chemical reactions faster, fuel cells more efficient (for some types of hybrid cars) and pollution control better.

Rare earths are now classified as critical minerals as China controls over 70% of the supply of rare earths and accounting for up to 98% of global heavy rare earth production. China recently announced that it would severely restrict its exports of rare earth elements due to rising environmental problems with its mines, polluted waterways and radiation exposure affecting not only workers but entire communities.

With limited alternative supply options, there is strong global interest for new, sustainable sources of heavy rare earth supply outside of China. Red Mountain’s 100% owned Mt Mansbridge Project has the potential to be a strategic asset, prospective for critical and high value heavy rare earths, providing investors exposure to heavy rare earths. Are there different types of rare earths?

Rare earths can be categorised into light elements and heavy elements. The term rare earths has been often generalised without differentiating between heavy and light.

LIGHT RARE EARTHS consisting of La, Ce, Pr, Nd, Sm HEAVY RARE EARTHS consist of Eu, Gd Tb, Dy, Ho, Er, Th, Yb and Lu.

NOT ALL RARE EARTHS ARE CREATED EQUAL – heavy rare earths are considerably more rare than light rare earths and subsequently attract higher prices.

Of particular interest to the Mt. Mansbridge is the potential for xenotime mineralisation*, which is a heavy rare earth known to contain significant amounts of high value Dysprosium (Dy) and Terbium (Tb).

*https://www.asx.com.au/asxpdf/20201028/pdf/44p66fjxx1tb8v.pdf Where are heavy rare earths found in Australia?

Rare earth resources have been identified to occur all over Australia, with Lynas’s Mount Weld in Western Australia and BHP’s Olympic Dam in South Australia being two of the world's richest light rare earth deposits.

While heavy rare earths are much harder to come by, there are a significant number of heavy rare earth deposits and occurrences located in the East Kimberly region of Northern Western Australia (including Browns Range, John Galt, Brockman and MT MANSBRIDGE). So where is the Mt Mansbridge Heavy Rare Earths project?

The Mt Mansbridge Heavy Rare Earths Project is comprised of three highly prospective exploration licenses (E80/5229, E80/5111 and E80/5413) in the East Kimberly region of Western Australia.

The project area is located 40kms from the Northern Minerals Browns Range processing facility and is considered prospective for hydrothermal vein hosted and unconformity-related REE mineralisation*.

*https://www.asx.com.au/asxpdf/20201028/pdf/44p66fjxx1tb8v.pdf What is xenotime?

Xenotime is a Yttrium Phosphate mineral (YPO4) which contains high concentrations of yttrium and heavy lanthanide metals (dysprosium, erbium, ytterbium, holmium, terbium, thulium, lutetium).

Xenotime is a rare earth mineral that is dominant in high value critical heavy rare earths (Dy, Tb) and low in abundant rare earths (Ce, La). Xenotime has processing advantages in that the process flowsheet is well understood, meaning that individual rare earths can easily be separated out.

Xenotime contains significant amounts of Dysprosium, which is used in permanent magnets and allows for magnets to retain their magnetic properties, even at high temperatures.

This property is extremely desirable for use in Electric Vehicles manufacturing as well as its use in lasers, wind turbines, nuclear reactors and other military applications makes dysprosium a highly strategic mineral.

Other valuable heavy rare earths include Terbium, which is often used as a substitute for Dysprosium. Both Dysprosium and Terbium are valuable rare earths that contribute economically to typical xenotime deposits. What does xenotime presence at Mt Mansbridge mean?

With already a significant number of REE deposits located in the East Kimberly region of Northern Western Australia (including Browns Range, John Galt, Brockman and Cummins Range), Australia’s North West is considered to be an emerging rare earths province.

The nearby discovery of the Browns Range REE by Northern Minerals has shown the region to be highly prospective for critical and high value heavy rare earth elements.

The presence of xenotime mineralisation at Mt Mansbridge*, presents Red Mountain with an opportunity to explore for economically viable concentration of high value, strategic heavy rare earths.

Due to its strategic importance, constrained supply, strong demand growth and political importance, heavy rare earth deposits located in stable and trade-friendly jurisdictions will garner significant global interest from partners looking for surety of supply.

*https://www.asx.com.au/asxpdf/20201028/pdf/44p66fjxx1tb8v.pdf Going forward, what does the exploration program involve at Mt Mansbridge?

Having completed a geophysical review and building on the exploration results from past explorers, the Red Mountain exploration team has identified multiple rare earth targets at the Mt Mansbridge project area for drilling and follow up in 2021.

An enhanced exploration strategy has been adopted and the company has set the exploration to focus on the highest ranked targets at Mt Mansbridge.

In addition, geological reconnaissance of the area would include field mapping, rock chip and soil sampling to identify additional prospects and targets for drilling. The Company plans to undertake a Heritage survey ahead of conducting exploration activities. ASX: RMX

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